----

----

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

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

|                          Nevada                      |                         91-1948355                  |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (State      or Other Jurisdiction of                                                                                                                                                                                           | (I.R.S.      Employer I.D. No.)                                                                                                                                   |
| incorporation      or organization)                                                                                                                                                                                            |                                                                                                                                                              |

----

| SMOOTH GLOBAL (CHINA) HOLDINGS,      INC. ANDSUBSIDIARIES |
|-----------------------------------------------------------|

| INDEX                                                                     |   |
|---------------------------------------------------------------------------|--------|
|                                                                      |   |
|                                                                      |   |
|                                                                      |   |
|                                                                      | PAGE   |
|                                                                      |   |
| CONSOLIDATED BALANCE      SHEETS                                          | 2      |
|                                                                      |   |
| CONSOLIDATED STATEMENTS OF      OPERATIONS AND OTHER COMPREHENSIVE INCOME | 3      |
|                                                                      |   |
| CONSOLIDATED STATEMENTS OF CASH      FLOWS                                | 4      |
|                                                                      |   |
| NOTES TO CONSOLIDATED FINANCIAL      STATEMENTS                           | 5-29   |

----

|                                                                                                                        |   | June 30,    |     |   | December31, |   |
|-----------------------------------------------------------------------------------------------------------------------------|--------|-------------|----------|--------|-------------|--------|
|                                                                                                                        |   | 2009        |     |   | 2008        |   |
|                                                                                                                        |   | (unaudited) |     |   |        |   |
| ASSETS                                                                                                                      |   |        |     |   |        |   |
|                                                                                                                        |   |        |     |   |        |   |
| Current    Assets:                                                                                                          |   |        |     |   |        |   |
|      Cash      and cash equivalents                                                                |   | $           | 24,036   |   |        | $      | 33,415 |   |
|      Prepaid      expense (Note 6)                                                                 |   |        | 367,270  |   |        |   | 374,597 |   |
|           Total      current assets                                       |   |        | 391,306  |   |        |   | 408,012 |   |
|                                                                                                                        |   |        |     |   |        |   |   |   |
| Property, Plant, and Equipment,      net (Note 7)                                                                           |   |        | 173,777  |   |        |   | 215,515 |   |
|                                                                                                                        |   |        |     |   |        |   |   |   |
| Long-term Investment (Note      9)                                                                                          |   |        | 233,754  |   |        |   | 233,434 |   |
|                                                                                                                        |   |        |     |   |        |   |   |   |
| Contract Security Deposit (Note      8)                                                                                     |   |        | 89,119   |   |        |   | 89,114 |   |
|                                                                                                                        |   |        |     |   |        |   |   |   |
|           Total      Assets                                               |   | $           | 887,956  |   |        | $      | 946,075 |   |
|                                                                                                                        |   |        |     |   |        |   |   |   |
| LIABILITIES AND STOCKHOLDERS'      EQUITY                                                                                   |   |        |     |   |        |   |   |   |
|                                                                                                                        |   |        |     |   |        |   |   |   |
| Current      Liabilities:                                                                                                   |   |        |     |   |        |   |   |   |
|      Accrued      expenses (Note 10)                                                               |   |        | 24,243   |   |        |   | 53,667 |   |
|      Taxes      payable                                                                            |   |        | 1,367    |   |        |   | 34 |   |
|      Deferred      revenue (Note 11)                                                               |   |        | 1,242    |   |        |   | 1,679 |   |
|      Agreement      security deposit (Note 12)                                                     |   |        | 321,412  |   |        |   | 320,971 |   |
|      Due      to officers (Note 13)                                                                |   |        | 64,047   |   |        |   | - |   |
|           Total      Current Liabilities                                  |   |        | 412,311  |   |        |   | 376,351 |   |
|                                                                                                                        |   |        |     |   |        |   |   |   |
| Commitments and Contingencies      (Note 17)                                                                                |   |        | -        |   |        |   | - |   |
|                                                                                                                        |   |        |     |   |        |   |   |   |
| Stockholders'      Equity:                                                                                                  |   |        |     |   |        |   |   |   |
|      Common      stock, $0.001 par value, 200,000,000 shares    authorized;                        |   |        |     |   |        |   |   |   |
|             38,381,375      shares issued and outstanding as of |   |        |     |   |        |   |   |   |
|             June      30, 2009 and December 31, 2008            |   |        | 38,381   |   |        |   | 38,381 |   |
|      Additional      paid-in capital                                                               |   |        | 799,255  |   |        |   | 799,255 |   |
|      Unamortized      contractual services costs                                                   |   |        | (7,333   | )      |        |   | (29,333 | ) |
|      Statutory      reserves                                                                       |   |        | 236,875  |   |        |   | 236,875 |   |
|      Retained      earnings                                                                        |   |        | (770,710 | )      |        |   | (653,811 | ) |
|      Accumulated      other comprehensive income                                                   |   |        | 179,177  |   |        |   | 178,357 |   |
|         Stockholders'      Equity                                                   |   |        | 475,645  |   |        |   | 569,724 |   |
|                                                                                                                        |   |        |     |   |        |   |   |   |
|           Total      Liabilities and Stockholders' Equity                 |   | $           | 887,956  |   |        | $      | 946,075 |   |

----

| SMOOTH GLOBAL (CHINA) HOLDINGS,      INC. AND SUBSIDIARIES               |
|--------------------------------------------------------------------------|
|                                                                     |
|                                                                     |
| CONSOLIDATED STATEMENTS OF      OPERATIONS AND OTHER COMPREHENSIVEINCOME |

|                                                                                      |   | For the Three Months      Ended |       |   | For the Six Months      Ended |   |
|-------------------------------------------------------------------------------------------|--------|---------------------------------|------------|--------|-------------------------------|--------|
|                                                                                      |   | June 30,                        |       |   | June 30,                      |   |
|                                                                                      |   | 2009                            |       |   | 2008                          |   |   | 2009 |   |   | 2008 |   |
|                                                                                      |   | (unaudited)                     |       |   | (unaudited)                   |   |   | (unaudited) |   |   | (unaudited) |   |
| Revenues                                                                                  |   |                            |       |   |                          |   |   |   |   |   |   |   |
|      (a)      GRT public telephone service                       |   | $                               | 473        |   |                          | $      | 2,389 |   |   | $ | 1,600 |   |   | $ | 7,533 |   |
|      (b)      GRT VoIP call time distribution                    |   |                            | 18,921     |   |                          |   | 10,886 |   |   |   | 41,052 |   |   |   | 99,836 |   |
|      (c)      GRT sales of call forwarding cards                 |   |                            | -          |   |                          |   | 11,607 |   |   |   | - |   |   |   | 12,669 |   |
| Total    Revenue                                                                          |   |                            | 19,394     |   |                          |   | 24,882 |   |   |   | 42,652 |   |   |   | 120,038 |   |
|                                                                                      |   |                            |       |   |                          |   |   |   |   |   |   |   |   |   |   |   |
| Costs of      Revenue                                                                     |   |                            |       |   |                          |   |   |   |   |   |   |   |   |   |   |   |
|      (a)      GRT public telephone service                       |   |                            | 2,679      |   |                          |   | 5,046 |   |   |   | 3,896 |   |   |   | 13,432 |   |
|      (b)      GRT VoIP call time distribution                    |   |                            | 13,001     |   |                          |   | 10,756 |   |   |   | 27,572 |   |   |   | 84,834 |   |
|      (c)      GRT sales of call forwarding cards                 |   |                            | -          |   |                          |   | 5,371 |   |   |   | - |   |   |   | 6,947 |   |
| Total Costs of      Revenue                                                               |   |                            | 15,680     |   |                          |   | 21,173 |   |   |   | 31,468 |   |   |   | 105,213 |   |
|                                                                                      |   |                            |       |   |                          |   |   |   |   |   |   |   |   |   |   |   |
| GrossProfit                                                                               |   |                            | 3,714      |   |                          |   | 3,709 |   |   |   | 11,184 |   |   |   | 14,825 |   |
|                                                                                      |   |                            |       |   |                          |   |   |   |   |   |   |   |   |   |   |   |
| QTC Supplemental Income (Note      13)                                                    |   |                            |       |   |                          |   | 36,761 |   |   |   |   |   |   |   | 36,761 |   |
|                                                                                      |   |                            |       |   |                          |   |   |   |   |   |   |   |   |   |   |   |
| Operating      Expenses                                                                   |   |                            |       |   |                          |   |   |   |   |   |   |   |   |   |   |   |
|      Compensation      to CEO                                    |   |                            | -          |   |                          |   | - |   |   |   | - |   |   |   | 44,538 |   |
|      Payroll      and employee benefit                           |   |                            | 6,803      |   |                          |   | 11,900 |   |   |   | 14,571 |   |   |   | 24,895 |   |
|      Depreciation      expenses                                  |   |                            | 21,714     |   |                          |   | 21,271 |   |   |   | 43,370 |   |   |   | 40,597 |   |
|      Office      expenses                                        |   |                            | 14,594     |   |                          |   | 7,685 |   |   |   | 25,720 |   |   |   | 14,638 |   |
|      Repair      and maintenance                                 |   |                            | 167        |   |                          |   | 6 |   |   |   | 167 |   |   |   | 524 |   |
|      Professional      fees                                      |   |                            | 12,626     |   |                          |   | 26,071 |   |   |   | 17,674 |   |   |   | 30,071 |   |
|      Consultant      fees (Note 14)                              |   |                            | 11,000     |   |                          |   | 111,085 |   |   |   | 22,000 |   |   |   | 259,967 |   |
|      Travel      and entertainment                               |   |                            | 2,734      |   |                          |   | 19,254 |   |   |   | 2,915 |   |   |   | 39,908 |   |
|      Other      general and administrative expenses              |   |                            | 1,705      |   |                          |   | 1,265 |   |   |   | 1,705 |   |   |   | 1,038 |   |
|           Total      Operating Expenses |   |                            | 71,343     |   |                          |   | 198,537 |   |   |   | 128,122 |   |   |   | 456,176 |   |
|                                                                                      |   |                            |       |   |                          |   |   |   |   |   |   |   |   |   |   |   |
| Income (Loss) from      Operation                                                         |   |                            | (67,629    | )      |                          |   | (158,067 | ) |   |   | (116,938 | ) |   |   | (404,590 | ) |
|                                                                                      |   |                            |       |   |                          |   |   |   |   |   |   |   |   |   |   |   |
| OtherIncome                                                                               |   |                            |       |   |                          |   |   |   |   |   |   |   |   |   |   |   |
|      Interest      income                                        |   |                            | 19         |   |                          |   | 84 |   |   |   | 39 |   |   |   | 281 |   |
|           Total      other income       |   |                            | 19         |   |                          |   | 84 |   |   |   | 39 |   |   |   | 281 |   |
|                                                                                      |   |                            |       |   |                          |   |   |   |   |   |   |   |   |   |   |   |
| Income (Loss) before      provision                                                       |   |                            |       |   |                          |   |   |   |   |   |   |   |   |   |   |   |
|     for Income      Tax                                               |   |                            | (67,610    | )      |                          |   | (157,983 | ) |   |   | (116,899 | ) |   |   | (404,309 | ) |
|                                                                                      |   |                            |       |   |                          |   |   |   |   |   |   |   |   |   |   |   |
| Provision for Income      Tax                                                             |   |                            | -          |   |                          |   | - |   |   |   | - |   |   |   | - |   |
|                                                                                      |   |                            |       |   |                          |   |   |   |   |   |   |   |   |   |   |   |
| Income (Loss) from Continuing      Operations                                             |   |                            | (67,610    | )      |                          |   | (157,983 | ) |   |   | (116,899 | ) |   |   | (404,309 | ) |
|                                                                                      |   |                            |       |   |                          |   |   |   |   |   |   |   |   |   |   |   |
| Loss from Discontinued      Operations--                                                  |   |                            |       |   |                          |   |   |   |   |   |   |   |   |   |   |   |
|      VoIP      Call Time Distribution of QTC                     |   |                            | -          |   |                          |   | (5,584 | ) |   |   | - |   |   |   | (10,864 | ) |
|                                                                                      |   |                            |       |   |                          |   |   |   |   |   |   |   |   |   |   |   |
| Net Income                                                                                |   |                            | (67,610    | )      |                          |   | (163,567 | ) |   |   | (116,899 | ) |   |   | (415,173 | ) |
|                                                                                      |   |                            |       |   |                          |   |   |   |   |   |   |   |   |   |   |   |
| Other Comprehensive Income      (Loss)                                                    |   |                            |       |   |                          |   |   |   |   |   |   |   |   |   |   |   |
|     Effects of      Foreign Currency Conversion                       |   |                            | 162        |   |                          |   | 22,885 |   |   |   | 820 |   |   |   | 84,918 |   |
|                                                                                      |   |                            |       |   |                          |   |   |   |   |   |   |   |   |   |   |   |
| Comprehensive Income      (Loss)                                                          |   | $                               | (67,448    | )      |                          | $      | (140,682 | ) |   | $ | (116,079 | ) |   | $ | (330,255 | ) |
|                                                                                      |   |                            |       |   |                          |   |   |   |   |   |   |   |   |   |   |   |
| Basic and fully diluted earnings      (loss) per share                                    |   | $                               | (0.00      | )      |                          | $      | (0.00 | ) |   | $ | (0.00 | ) |   | $ | (0.01 | ) |
|                                                                                      |   |                            |       |   |                          |   |   |   |   |   |   |   |   |   |   |   |
| Weighted average shares      outstanding                                                  |   |                            | 38,381,375 |   |                          |   | 38,381,375 |   |   |   | 38,381,375 |   |   |   | 38,381,375 |   |

----

| SMOOTH GLOBAL (CHINA) HOLDINGS,      INC. AND SUBSIDIARIES |
|------------------------------------------------------------|
|                                                       |   |   |   |   |   |   |   |
|                                                       |   |   |   |   |   |   |   |
| CONSOLIDATED STATEMENTS OF CASH      FLOWS                 |

|                                                                                                      |   | For the Six Months      Ended |     |
|-----------------------------------------------------------------------------------------------------------|--------|-------------------------------|----------|
|                                                                                                      |   | June 30,                      |     |
|                                                                                                      |   | 2009                          |     |   | 2008 |   |
|                                                                                                      |   | (unaudited)                   |     |   | (unaudited) |   |
| Operating      Activities                                                                                 |   |                          |     |   |   |   |
|                                                                                                      |   |                          |     |   |   |   |
| Net income      (loss)                                                                                    |   | $                             | (116,899 | ) |   | $ | (415,173 | ) |
| Adjustments to reconcile net      income (loss) to net cash provided (used) by      operating activities: |   |                          |     |   |   |   |   |   |
|         Depreciation                                              |   |                          | 43,370   |   |   |   | 40,597 |   |
|         Deferred      consultant compensation                     |   |                          | 22,000   |   |   |   | 185,680 |   |
| Changes in operating assets and      liabilities:                                                         |   |                          |     |   |   |   |   |   |
|    (Increase)/Decrease      in accounts receivable                                         |   |                          | -        |   |   |   | 116,964 |   |
|    (Increase)/Decrease      in purchased SIM cards                                         |   |                          | -        |   |   |   | 403 |   |
|    (Increase)/Decrease      in prepaid expenses                                            |   |                          | 7,843    |   |   |   | (329,490 | ) |
|     Increase/(Decrease)      in accounts payable and accrued expenses                 |   |                          | (29,504  | ) |   |   | (35,271 | ) |
|     Increase/(Decrease)      in deferred revenue                                      |   |                          | (439     | ) |   |   | 6,672 |   |
|     Increase/(Decrease)      in taxes payable                                         |   |                          | 1,333    |   |   |   | (307 | ) |
| Net cash provided (used) by      operating activities                                                     |   |                          | (72,296  | ) |   |   | (429,925 | ) |
|                                                                                                      |   |                          |     |   |   |   |   |   |
| Investing      Activities                                                                                 |   |                          |     |   |   |   |   |   |
|                                                                                                      |   |                          |     |   |   |   |   |   |
| Investment in      subsidiary                                                                             |   |                          | -        |   |   |   | (106,835 | ) |
| Purchase of fixed      assets                                                                             |   |                          | (1,329   | ) |   |   | (5,082 | ) |
| Net cash (used) by investing      activities                                                              |   |                          | (1,329   | ) |   |   | (111,917 | ) |
|                                                                                                      |   |                          |     |   |   |   |   |   |
| Financing      Activities                                                                                 |   |                          |     |   |   |   |   |   |
|                                                                                                      |   |                          |     |   |   |   |   |   |
| Loans from      shareholders                                                                              |   |                          | 64,003   |   |   |   | - |   |
| Net cash provided (used) by      financing activities                                                     |   |                          | 64,003   |   |   |   | - |   |
|                                                                                                      |   |                          |     |   |   |   |   |   |
| Increase (decrease) in      cash                                                                          |   |                          | (9,623   | ) |   |   | (541,842 | ) |
| Effects of exchange rates on      cash                                                                    |   |                          | 244      |   |   |   | 74,860 |   |
| Cash at beginning of the      period                                                                      |   |                          | 33,415   |   |   |   | 521,016 |   |
| Cash at end of the      period                                                                            |   | $                             | 24,036   |   |   | $ | 54,034 |   |
|                                                                                                      |   |                          |     |   |   |   |   |   |
| Supplemental Disclosures of Cash      Flow Information:                                                   |   |                          |     |   |   |   |   |   |
|    Cash paid      (received) during year for:                                              |   |                          |     |   |   |   |   |   |
|        Interest                                                        |   | $                             | -        |   |   | $ | - |   |
|        Income      taxes                                               |   | $                             | -        |   |   | $ | - |   |

----

| Note 1- | BASIS OF      PRESENTATION                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
|---------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
|    | The consolidated financial      statements of Smooth Global (China) Holdings, Inc. and subsidiaries ( the      "Company"), included herein were prepared, without audit, pursuant to      rules and regulations of the Securities and Exchange      Commission.   In management's opinion, all adjustments      (consisting only of normal recurring adjustments) considered necessary for      a fair presentation have been included.  Because certain      information and notes normally included in financial statements prepared      in accordance with accounting principles generally accepted in the United      States of America were condensed or omitted pursuant to such rules and      regulations, these financial statements should be read in conjunction with      the financial statements and notes thereto included in the audited      financial statements of the Company as included in the Company's Form 10-K      for the year ended December 31, 2008. |
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
| Note 2- | ORGANIZATION AND      OPERATIONS                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
|    | Organization and Business      Background                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
|    | The Bralorne Mining Company      ("Bralorne") was incorporated under the laws of the State of Nevada on      December 2, 1998 with authorized common stock of 200,000,000 shares at      $0.001 par value.  Currently, the Company principally engages in      the business to provide telecommunication services in the People's      Republic of China ("PRC'), through its wholly-owned subsidiaries, Gold      Profit (Asia) Group Limited ("Gold Profit") and Smooth Global Services      Limited ("Smooth Global").  On July 31, 2007, Bralorne changes      its name to Smooth Global (China) Holdings, Inc. ("Smooth Global (China)"      or the "Company").                                                                                                                                                                                                                                                                                                                      |
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
|    | On November 2, 2006, Bralorne      entered into an Share Exchange Agreement (“the Agreement") with the sole      shareholder of Gold Profit to exchange 1,333,334 shares (40,000,000 shares      prior to reverse stock split on July 31, 2007) of common stock of Bralorne      for 100% of the outstanding stock of Gold Profit.  Upon the      execution of the Agreement, Gold Profit became a wholly-owned subsidiary      of Bralorne.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
|    | Gold Profit was incorporated as a      limited liability company in the British Virgin Islands (“BVI”) under the      BVI Business Companies Act on July 28, 2006, for the purpose of seeking      and consummating a merger or acquisition with a business entity organized      as a private corporation, partnership, or sole proprietorship as defined      by Statement of Financial Accounting Standards (SFAS) No. 7 “Accounting      and Reporting by Development Stage Enterprises”.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
|    | On September 8, 2006, Gold Profit      entered into a Share Purchase Agreement with all the shareholders of      Beijing Quan Tong Chang Information Service Limited a/k/a Beijing Smooth      Global Information Services Ltd. (”QTC') to acquire 100% of QTC's      registered capital for RMB500,000 (equivalent to      US$60,386).  Upon completion of this transaction, QTC became a      wholly-owned subsidiary of Gold Profit.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
|    | Under the Company Law of PRC, QTC      was incorporated in Beijing City, PRC on August 2, 2003 with a registered      capital of RMB500,000 (equivalent to US$60,386).  QTC is engaged      in the business of providing telecommunication services in      PRC.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |

----

| Note      2- | ORGANIZATION AND OPERATIONS      (continued)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |
|--------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
|         | Organization and Business      Background (continued)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
|         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
|         | On October 24, 2007 Smooth Global      (China) completed the acquisition of all the registered capital stock of      Smooth Global.  In exchange for the capital stock of Smooth      Global, Smooth Global (China) issued 33,000,000 shares of its common stock      to the prior owners of Smooth Global.  The prior registered      owners were Christina Nelson and Shannon Lee Alsop.  They held      the shares, however, as nominees for nine residents of      PRC.  Accordingly, upon closing of the acquisition, Ms. Nelson      and Ms. Alsop assigned the 33,000,000 shares to those nine      beneficiaries.  20,000,000 of the shares were assigned to Ms.      Zheng Shuying.  Ms. Zheng is the Chief Executive Officer of      Smooth Global (China).  Also, Smooth Global became a      wholly-owned subsidiary of Smooth Global (China) upon completion of the      acquisition. |
|         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
|         | Smooth Global was incorporated on      January 25, 2006 in the British Virgin Island ("BVI") under the BVI      Business Companies Act, 2004, as a BVI Business Company.  The      Company was formed for the purpose of seeking and consummating a merger or      acquisition with a business entity organized as a private corporation,      partnership, or sole proprietorship as defined by Statement of Financial      Accounting Standards (SFAS) No. 7.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
|         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
|         | On June 28, 2007, Smooth Global      established a wholly owned subsidiary, Smooth Global (Beijing) Telecom      Science Limited ("Beijing Telecom") in the Beijing City,      PRC.  Beijing Telecom was incorporated under the Company Law of      PRC as a limited liability company with registered capital of      $100,000.  Beijing Telecom was formed for the purpose of seeking      and consummating a merger or acquisition with a business entity organized      in PRC and engaged in the business of providing telecommunication      services.                                                                                                                                                                                                                                                                                                                                                                                         |
|         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
|         | On September 20, 2007, Ms.      Yianfang Jin and Ms. Yianxia Wang (collectively the "Trustees"), both of      whom are citizens of PRC and totally own a 100% equity ownership interest      in Beijing GRT Information Services Limited ( "GRT" ),  executed      Trust and Indemnity Agreements ("Agreements") with Beijing Telecom,      pursuant to which the Trustees assigned to Beijing Telecom all of the      beneficial interest in the Trustee's equity ownership interest in      GRT.  The Agreements provided for effective control of GRT to be      transferred to Beijing Telecom at September 20,    2007.                                                                                                                                                                                                                                                                                                                         |
|         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
|         | Through the Agreements described      in the preceding paragraph Beijing Telecom is deemed a 100% beneficiary of      GRT resulting in GRT being deemed a subsidiary of Beijing Telecom under      the requirements of Financial Interpretation 46 (Revised) "Consolidation      of Variable Interest Entities" issued by the Financial Accounting      Standards Board ("FASB").   Accordingly, the consolidated      financial statements of Smooth Global and its wholly owned      subsidiary,  Beijing Telecom, will be prepared by including the      financial statements of GRT through September 20, 2007 and      thereafter.                                                                                                                                                                                                                                                                                                         |

----

| Note 2- | ORGANIZATION AND OPERATIONS      (continued)                                                                                                                                                                                                                                                                                                                                                                                                                                         |
|---------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
|    | Organization and Business      Background (continued)                                                                                                                                                                                                                                                                                                                                                                                                                                |
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
|    | GRT and QTC are the two of these      affiliated companies that are engaged in business      operations.  Smooth Global (China), Gold Profit, Smooth Global,      and Beijing Telecom are all holding companies, whose business is to hold      an equity ownership interest in QTC and a beneficial interest in      GRT.   All these affiliated companies are hereafter      referred to as the "Company", whose structure is outlined as      following: |

|   | Reverse Merger      Accounting                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
|   | The merger of Smooth Global      (China) with Smooth Global results in a capital transaction accounted for      as a reverse merger.  The transaction was treated for accounting      purposes as a recapitalization of the accounting acquirer (Smooth Global)      and a reorganization of the accounting acquiree (Smooth Global (China)).      Accordingly, the historical consolidated financial statements presented      prior to the merger are the historical consolidated financial statements      of Smooth Global, which includes Smooth Global's wholly-owned subsidiary,      Beijing Telecom, and its variable interest entity, GRT.  The      consolidated financial statements presented post to the merger are the      consolidated financial statements of Smooth Global (China) and its      subsidiaries and variable interest entity, which include      GRT,  and QTC from the acquisition date, October 24,      2007. |

----

| Note 2- | ORGANIZATION AND OPERATIONS      (continued)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
|---------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
|    | Business      Operations                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
|    | (a)  GRT Public      Telephone Service                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
|    | GRT provides public phone users      with access to the network of  China Unicom (Beijing) Limited      (“CUBJ”) F/K/A China United Telecommunications (Beijing) Corporation      Limited, via paid phones installed in outlets located in universities,      convenience shops and street corners.  These outlets are managed      but not necessary owned by GRT.  GRT signed non-exclusive      distribution agreement with CUBJ to distribute its traditional fixed line      call time in Beijing City, PRC.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
|    | CUBJ is a subsidiary of China      Unicom (Hong Kong) Limited ("CUHK") F/A/K China United Telecommunications      Corporation Limited.  On January 6, 2009, China United      Telecommunications Corporation Limited merged with China Netcom (Group)      Corporation Limited and changed its name to China Unicom (Hong Kong)      Limited.  CUHK is one of the largest telecommunications carriers      in PRC.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
|    | (b) GRT VoIP Call Time      Distribution                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
|    | Beginning from January 2008, GRT      provides enterprise phone users and public phone users with access to the      network of China Unicom (Shaoxing) Limited (“CUSX”) F/K/A China Netcom      (Shaoxing) Corporation Limited  and China Unicom (Shanghai)      Limited (“CUSH”) F/A/K China Netcom (Shanghai) Corporation      Limited,  via phones connected to GRT's telecommunication      server.  Both CUSX and CUGD are subsidiaries of China Unicom      (Hong Kong) Limited F/A/K China Netcom (Group) Company Limited. GRT signed      non-exclusive distribution agreement with CUSX and CUGD to distribute      their Voice Over Internet Protocol (“VoIP”) call time in the      PRC.                                                                                                                                                                                                                                                                                      |
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
|    | (c) GRT International Call      Forwarding Service                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
|    | GRT provides China mobile phone      users with international call forwarding service, which resembles the      function of international roaming services.  GRT provides      subscribers with SIM cards of the destination country or region with      predefined call forwarding time.  The subscribers forward their      mobile phone calls to a specified GRT number and instruct GRT to further      forward the calls to a telephone number in their destination country or      region.  This enables the mobile phone user to receive local      calls for a competitive tariff rate when they are traveling      abroad.                                                                                                                                                                                                                                                                                                                                                                                           |
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
|    | Discontinued      Operation                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
|    | QTC provided enterprise phone      users and public phone users with access to the network of CUSX and China      Unicom (Guangdong) Limited (“CUGD”) F/A/K China Netcom (Guangdong)      Corporation Limited  via phones connected to QTC's      telecommunication server.  On August 20, 2008, QTC's board of      directors decided to terminate this operation and disposed of the relevant      equipment.  QTC totally disposed of 65 pieces of equipments with      a carrying value of $61,929 (RMB 424,475), of which 59 pieces of equipment      with a carrying value of $42,312 (RMB 290,017) were sold to a third party      for $7,295 (RMB 50,000. 00), resulting in a loss of $34,474 (RMB 240,017),      and 6 pieces of equipment with carrying value of $19,617 (RMB 134,458)      were transferred to GRT to satisfy a "due to GRT" of $11,671 (RMB      80,000.00). No loss was recognized for this transfer due to the      elimination of intercompany transactions in      consolidation. |

----

| Note 2- | ORGANIZATION AND OPERATIONS      (continued)                     |
|---------|------------------------------------------------------------------|
|    |                                                             |
|    | Discontinued Operation      (continued)                          |
|    |                                                             |
|    | Losses from discontinued operation      consist of thefollowing: |

|                                                                                                                              |   | For The Six Months      Ended |   |
|-----------------------------------------------------------------------------------------------------------------------------------|--------|-------------------------------|--------|
|                                                                                                                              |   | June 30,                      |   |
|                                                                                                                              |   | 2009                          |   |   | 2008 |   |
|                                                                                                                              |   | (unaudited)                   |   |   | (unaudited) |   |
| Losses from discontinued      operation                                                                                           |   |                          |   |   |   |   |
|     Revenue      from discontinued operation-                                                                 |   |                          |   |   |   |   |
|          QTC      VoIP call time distribution                                        |   | $                             | -      |   |   | $ | 4,143 |   |
|     Costs of      revenue from discontinued operation-                                                        |   |                          |   |   |   |   |   |   |
|          QTC      VoIP call time distribution                                        |   |                          | -      |   |   |   | (15,007 | ) |
|                Losses      from discontinued operation |   |                          | -      |   |   |   | (10,864 | ) |
| Loss of disposal of fixed      assets                                                                                             |   |                          | -      |   |   |   | - |   |
| Incometaxes                                                                                                                       |   |                          | -      |   |   |   | - |   |
|        Losses      on discontinued operation                                                   |   | $                             | -      |   |   | $ | (21,728 | ) |
|                                                                                                                              |   |                          |   |   |   |   |   |   |
| Assets to be disposed consist of      the following:                                                                              |   |                          |   |   |   |   |   |   |
|                                                                                                                              |   | June 30,                      |   |   | December31, |   |
|                                                                                                                              |   | 2009                          |   |   | 2008 |   |
|                                                                                                                              |   | (unaudited)                   |   |   |   |   |   |
| Cost of fixed assets to be      disposed of                                                                                       |   | $                             | -      |   |   | $ | 190,437 |   |
| Accumulated depreciation of fixed      assets to be disposed of                                                                   |   |                          | -      |   |   |   | (104,950 | ) |
|                                                                                                                              |   | $                             | -      |   |   | $ | 85,487 |   |

| Note 3- | GOING    CONCERN                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
|---------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
|    | As reflected in the accompanying      consolidated financial statements, the Company incurred a loss of      $1,155,287 in the year ended December 31, 2008.  This amount is      significant compared with the Company's shareholders'      equity.   Additionally, the Company continued to incurred a      loss of $115,197 for the six months ended June 30, 2009.  These      factors raise substantial doubt about the Company's ability to continue as      a going concern.  In view of the matters described above,      recoverability of a major portion of the recorded asset amounts shown in      the accompanying consolidated balance sheets is dependent upon continued      operations of the Company, which in turn is dependent upon the Company's      ability to raise additional capital, obtain financing and succeed in its      future operations.  The financial statements do not include any      adjustments relating to the recoverability and classification of recorded      asset amounts or amounts and classification of liabilities that might be      necessary should the Company be unable to continue as a going      concern. |
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
|    | Management has taken the steps to      revise its operating and financial requirements, which it believes are      sufficient to provide the Company with the ability to continue as a going      concern.  The Company is actively pursuing additional funding      and a potential merger or acquisition candidate and strategic partners,      which would enhance stockholders' investment.  The Company is      also developing new business lines, including new telecommunication      equipment and telecommunication services.  Management believes      that these actions will allow the Company to continue operations through      the next fiscalyear.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |

----

| Note 4- | Control by Principal      Stockholders                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
|---------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
|    | The chief executive officer owns      beneficially and in the aggregate, the majority of the voting power of the      Company. Accordingly, the chief executive officer has the ability to      control the approval of most corporate actions, including approving      significant expenses, increasing the authorized capital stock and the      dissolution, merger or sale of the Company's  assets.                                                                                                                                                                                                                                |
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
| Note 5- | SIGNIFICANT ACCOUNTING      POLICIES                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
|    | Basis of      Consolidation                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
|    | The consolidated financial      statements include the accounts of the Company and all its majority-owned      subsidiaries which require consolidation.  Inter-company      transactions have been eliminated in  consolidation.                                                                                                                                                                                                                                                                                                                                                                                              |
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
|    | The consolidated financial      statements are prepared in accordance with generally accepted accounting      principles in the United States of America ("US GAAP").  This      basis of accounting differs from that used in the statutory accounts of      the Company, which are prepared in accordance with the "Accounting      Principles of China" ("PRC GAAP").  Certain accounting      principles, which are stipulated by US GAAP, are not applicable in the PRC      GAAP.  The difference between PRC GAAP accounts of the Company      and its US GAAP financial statements is  immaterial. |
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
|    | Subsequent      Events                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
|    | The Company evaluated subsequent      events through the time of filing this Quarterly Report on Form 10-Q on      August 11, 2009. We are not aware of any significant events that occurred      subsequent to the balance sheet date but prior to the filing of this      report that would have a material impact on our financial      statements.                                                                                                                                                                                                                                                                                   |
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
|    | Use of      Estimates                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
|    | The consolidated financial      statements have been prepared in accordance with accounting principles      generally accepted in the United States of America. In preparing these      financial statements, management makes estimates and assumptions that      affect the reported amounts of assets and liabilities in the balance      sheets and revenues and expenses during the years reported. Actual results      may differ from these estimates.                                                                                                                                                                            |
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
|    | Revenue      Recognition                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
|    | The Company recognizes its      revenues net of sales taxes and sales-related taxes. In accordance with      the SEC’s Staff Accounting Bulletin No. 104, Revenue Recognition , the      Company recognizes revenue when persuasive evidence of an arrangement      exists, transfer of title and the risks and rewards of ownership have      occurred or services have been rendered and accepted, the selling price is      fixed or determinable and collectability is reasonably      assured.                                                                                                                                |

----

| Note 5- | SIGNIFICANT ACCOUNTING POLICIES      (continued)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
|---------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
|    | Revenue Recognition      (continued)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
|    | (a)  GRT Public      Telephone Service                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
|    | GRT sets up outlets through CUBJ's      network to provide public telephone service to end users.  GRT      buys call time from CUBJ in advance and then distribute to end users via      these outlets.  GRT recognizes revenue when the tariff is      collected after an end user places a telephone call.  GRT      records revenue from outlets after netting outlets' operating expenses      since such expenses are instable.                                                                                                                                                                                                         |
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
|    | Pursuant to the distribution      agreement with CUBJ, GRT is entitled to refund a certain percentage of      call time cost and the percentage varies based on the volume of call time      which GRT distributes monthly.  GRT records these refunds as      revenue because GRT has to issue sales invoices to CUBJ for the      refunds.                                                                                                                                                                                                                                                                                                                      |
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
|    | (b) GRT VoIP Call Time      Distribution                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
|    | Beginning from January 2008, GRT      contracted with CUSX and CUSH for the distribution of their VoIP call      time. VoIP call time distribution revenue is generally recognized when the      end user makes a call through the phone connected to GRT's      telecommunication server.                                                                                                                                                                                                                                                                                                                                                                                  |
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
|    | Pursuant to the contracts with      CUSX and CUSH, GRT pays tariff to the telecommunication carriers in      advance and connects its telecommunication server to the carriers'      network.  Then, GRT distributes the VoIP call time to its      customers who connect their phones to GRT’s server.   The      customers also pay tariff to GRT in advance.  Monthly, the      telecommunication carriers bill GRT for the VoIP call time that it      distributes.  In turn, GRT bills its customers for the VoIP call      time which the customers consume, based on the records provided by its own      server. |
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
|    | (c) International Call Forwarding      Service                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
|    | GRT purchases a foreign SIM card      and then attaches it with a specified phone number, which GRT bought from      CUSH.   When a mobile phone call is forwarded to that      particular phone number, GRT will further forward the call to the related      SIM card, via the network of either CUSH or CUSX.  GRT signed      non-exclusive agreements with CUSH and CUSX to forward phone calls via      their network.                                                                                                                                                                                                                       |
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
|    | GRT sells SIM cards either      directly to end users or via its franchised distributors, who signed      non-exclusive Distribution Agreements with GRT to distribute its SIM      cards.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
|    | (1)   When GRT      sells SIM cards directly to end users, it recognizes revenue when the SIM      cards are expired as indicated in the description printed on the envelop      containing the SIM card.                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
|    | (2)   When GRT      sells SIM cards to its franchised distributors, it recognizes revenue when      the SIM cards are delivered to the distributors and the payments have been      received, at which time Management believes the sales transactions have      been completed pursuant to the Distribution    Agreements.                                                                                                                                                                                                                                                                                                                                  |

----

| Note 5- | SIGNIFICANT ACCOUNTING POLICIES      (continued)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
|---------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
|    | Revenue Recognition      (continued)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
|    | Revenue from discontinued      operation-QTC VoIP call time distribution                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
|    | Before QTC terminated its      operation of VoIP call time distribution on August 20, 2008, QTC      contracted with CUSX and CUGD for the distribution of their VoIP call      time. VoIP call time distribution revenue is generally recognized when the      end user makes a call through the phone connected to QTC's      telecommunication server.                                                                                                                                                                                                                                                                                                                   |
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
|    | Pursuant to the contracts with      CUSX and CUGD, QTC pays tariff to the telecommunication carriers in      advance and connects its telecommunication server to the carriers'      network.  Then, QTC distributes the VoIP call time to its      customers who connect their phones to QTC’s server.   The      customers also pay tariff to QTC in advance.  Monthly, the      telecommunication carriers bill QTC for the VoIP call time that it      distributes.  In turn, QTC bills its customers for the VoIP call      time which the customers consume, based on the records provided by its own      server. |
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
|    | Cost of    Revenue                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
|    | (a)  GRT Public      Telephone Service                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
|    | Costs of public telephone service      mainly include costs to buy call time from CUBJ.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
|    | (b) GRT VoIP Call Time      Distribution                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
|    | Costs of VoIP call time      distribution principally include the costs of VoIP call time purchased      from CUSX and CUSH.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
|    | (c) International Call Forwarding      Service                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
|    | Costs of international call      forwarding services principally include the costs to purchase SIM cards,      the costs of telephone number, and the call forwarding fees charged by the      telecommunication carriers.                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
|    | Cost of revenue from discontinued      operation-QTC VoIP call time distribution                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
|    | Costs of QTC VoIP call time      distribution principally include the costs of VoIP call time purchased      from CUSX andCUGD.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |

----

| Note 5- | SIGNIFICANT ACCOUNTING POLICIES      (continued)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
|---------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
|    | Cash and Cash      Equivalents                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
|    | Cash and cash equivalents are      carried at cost and represent cash on hand, demand deposits placed with      banks or other financial institutions and all highly liquid investments      with an original maturity of three months or less as of the purchase date      of such investments.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
|    | Accounts      Receivable                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
|    | Trade accounts receivable are      recorded at the invoiced amount and do not bear interest. The allowance      for doubtful accounts is the Management’s best estimate of the amount of      probable credit losses in the Company’s existing accounts receivable. The      Company determines the allowance based on historical write-off experience.      The Company reviews its allowance for doubtful accounts on a regular      basis. Past due balances over 90 days and over a specified amount are      reviewed individually for collectability. All other balances are reviewed      on a pooled basis by industry. Account balances are charged off against      the allowance after all means of collection have been exhausted and the      potential for recovery is considered remote.  If actual      collections experience changes, revisions to the allowance may be      required. |
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
|    | Concentrations of Credit      Risk                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
|    | Financial instruments that subject      the Company to concentrations of credit risk consist primarily of cash and      cash equivalents. The Company maintains its cash and cash equivalents with      high-quality institutions. While deposits held with banks are not      insurance in PRC, these deposits generally may be redeemed upon demand and      therefore bear minimal risk.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
|    | Fair Value of Financial      Instruments                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
|    | The carrying value of the      Company’s financial instruments, which include cash and cash equivalents,      accounts receivables and payables, and amounts due from/to shareholders,      approximate fair value due to the short maturities of those      instruments.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
|    | Impairment of Long-life      Assets                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
|    | Long-lived assets and certain      identifiable intangibles are reviewed for impairment whenever events or      changes in circumstances indicate that the carrying amount of an asset may      not be recoverable. Recoverability of assets to be held and used is      measured by a comparison of the carrying amount of an asset to future net      cash flows expected to be generated by the asset. If such assets are      considered to be impaired, the impairment to be recognized is measured by      the amount by which the carrying amount of the assets exceeds the fair      value of the assets. Assets to be disposed of are reported at the lower of      the carrying amount or fair value less costs to    sell.                                                                                                                                                                                          |

----

| Note 5- | SIGNIFICANT ACCOUNTING POLICIES      (continued)                                                                                                                                                                                                                                                                                                                       |
|---------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|    |                                                                                                                                                                                                                                                                                                                                                                   |
|    | Property and      Equipment                                                                                                                                                                                                                                                                                                                                            |
|    |                                                                                                                                                                                                                                                                                                                                                                   |
|    | Plant and equipment are stated at      cost less accumulated depreciation and accumulated impairment losses, if      any.  Depreciation is calculated on the straight-line basis over      the following expected useful lives from the date on which they become      fully operational and after taking into account their estimated residual      values: |

|                              |                          | Depreciable |   | Residual |
|-----------------------------------|-------------------------------|-------------|--------|----------|
|                              |                          | Life        |   | Value    |
|                              |                          |        |   |     |
| Network and office      equipment | 5 years                       |        | 4%     |
| Leasehold      Improvements       | 5 years (Lease      duration) |        |

|   | Expenditure for maintenance and      repairs is expended as incurred.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
|   | Deferred      Revenue                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
|   | Payments received prior to      satisfying the Company’s revenue recognition criteria are recorded as      deferred revenue.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
|   | Research and Development      Costs                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
|   | Research and development costs are      expensed when incurred.  Research and development costs were      immaterial for the six months ended June 30, 2009 and 2008,      respectively.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
|   | Advertising      Costs                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
|   | The Company expenses advertising      costs as incurred in accordance with the American Institute of Certified      Public Accountants (“AICPA”) Statement of Position 93-7, “Reporting for      Advertising Costs”. Advertising expenses were immaterial for the six      months ended June 30, 2009 and 2008,  respectively.                                                                                                                                                                                                                                                                                                                                                       |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
|   | Foreign Currencies      Translation                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
|   | The functional currency of the      Company is Renminbi (“RMB”). Transactions denominated in currencies other      than RMB are translated into RMB at the exchange rates quoted by the      People’s Bank of China (“PBOC”) prevailing at the date of the      transactions. Monetary assets and liabilities denominated in foreign      currencies are translated into RMB using the applicable exchange rates      quoted by the PBOC at the balance sheet dates. Exchange differences are      included in the statements of changes in shareholders'      equity.  Gain and losses resulting from foreign currency      transactions are included inoperations. |

----

| Note 5- | SIGNIFICANT ACCOUNTING POLICIES      (continued)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
|---------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
|    | Foreign Currencies Translation      (continued)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
|    | The Company’s financial statements      are translated into the reporting currency, the United States Dollar      (“US$”), using exchange rates in effect at each year end for assets and      liabilities and average exchange rates during each reporting year for the      consolidated statements of operations. Contributed capital accounts are      translated using the historical rate of exchange when capital is      injected.  Translation adjustments resulting from translation of      these consolidated financial statements are reflected as accumulated other      comprehensive income in the shareholders’equity.                                                                       |
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
|    | Translation adjustments resulting      from this process are included in accumulated other comprehensive income      (loss) in the consolidated statement of changes in shareholders’ equity      and amounted to 179,177  as of June 30, 2009, and $178,357 as of      December 31, 2008.  The balance sheet amounts with the exception      of equity at June 30, 2009 were translated at 6.84 RMB to $1.00 USD as      compared to 6.85 RMB at December 31, 2008. The equity accounts were stated      at their historical rate.  The average translation rates applied      to income statement accounts for the six months ended June 30, 2009 and      2008 were 6.84 RMB and 7.07 RMB, respectively. |
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
|    | Statement of Cash      Flows                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
|    | In accordance with SFAS No. 95,      “Statement of Cash Flows,” cash flows from the Company’s operations are      calculated based upon the functional currency.  As a result,      amounts related to assets and liabilities reported on the statement of      cash flows may not necessarily agree with changes in the corresponding      balances on the balance sheet.                                                                                                                                                                                                                                                                                                                                          |
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
|    | Segment      Reporting                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
|    | SFAS No. 131 “Disclosures about      Segments of an Enterprise and Related Information” establishes standards      for reporting information about operating segments on a basis consistent      with the Company’s internal organization structure as well as information      about geographical areas, business segments and major customers in      financial statements. The Company operates in five principal business      segments.                                                                                                                                                                                                                                                                                  |
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
|    | Related    Parties                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
|    | For the purposes of these      financial statements, parties are considered to be related to the Company      if the Company has the ability, directly or indirectly, to control the      party or exercise significant influence over the party in making financial      and operating decisions, or vice versa, or where the Company and the party      are subject to common control or common significant influence. Related      parties may be individuals or other  entities.                                                                                                                                                                                                                                                            |

----

| Note 5- | SIGNIFICANT ACCOUNTING POLICIES      (continued)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
|---------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
|    | Statutory      Reserves                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
|    | Pursuant to the applicable laws in      PRC, PRC entities are required to make appropriations to three      non-distributable reserve funds, the statutory surplus reserve, statutory      public welfare fund, and discretionary surplus reserve, based on after-tax      net earnings as determined in accordance with the PRC GAAP, after      offsetting any prior years’ losses. Appropriation to the statutory surplus      reserve should be at least 10% of the after-tax net earnings until the      reserve is equal to 50% of the Company's registered      capital.  Appropriation to the statutory public welfare fund is      5% to 10% of the after-tax net earnings.  The statutory public      welfare fund is established for the purpose of providing employee      facilities and other collective benefits to the employees and is      non-distributable other than in liquidation.  No appropriations      to the discretionary surplus reserve are made at the discretion of the      Board of Directors. |
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
|    | The Company makes appropriations      to these three reserve funds at the fiscal year end pursuit      to  PRC GAAP.  Accordingly, the Company made no      appropriations for the six months ended June 30, 2009 and 2008,      respectively.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
|    | Income  Taxes                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
|    | The Company accounts for income      taxes in interim periods as required by Accounting Principles Board      Opinion No. 28 "Interim Financial Reporting" and as interpreted by FASB      Interpretation No. 18, "Accounting for Income Taxes in Interim      Periods".  The Company has determined an estimated annual effect      tax rate.  The rate will be revised, if necessary, as of the end      of each successive interim period during the Company's fiscal year to its      best current estimate.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
|    | The estimated annual effective tax      rate is applied to the year-to-date ordinary income (or loss) at the end      of the interim period.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
|    | Comprehensive      Income                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
|    | Statement of Financial Accounting      Standards (SFAS) No. 130, “Reporting Comprehensive Income,” establishes      standards for reporting and display of comprehensive income, its      components and accumulated balances.  Comprehensive income as      defined includes all changes in equity during a period from non-owner      sources. Accumulated comprehensive income, as presented in the      accompanying statement of changes in shareholders' equity consists of      changes in unrealized gains and losses on foreign currency      translation.  This comprehensive income is not included in the      computation of income tax expense or  benefit.                                                                                                                                                                                                                                                                                                                                                             |

----

| Note 5- | SIGNIFICANT ACCOUNTING POLICIES      (continued)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
|---------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   |   |
|    | Earnings (Loss) Per      Share                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   |   |
|    | The Company reports earnings per      share in accordance with the provisions of SFAS No. 128, “Earnings Per      Share.” SFAS No. 128 requires presentation of basic and diluted earnings      per share in conjunction with the disclosure of the methodology used in      computing such earnings per share.  Basic earnings (loss) per      share is computed by dividing income (loss) available to common      shareholders by the weighted-average number of common shares outstanding      during the period.  Diluted earnings per share is computed      similar to basic earnings per share except that the denominator is      increased to include the number of additional common shares that would      have been outstanding if the potential common shares had been issued and      if the additional common shares were dilutive.  There are no      potentially dilutive securities outstanding (options and warrants) for the      six months ended June 30, 2009 and 2008,    respectively. |
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   |   |
|    | Fair Value of      Measurements                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   |   |
|    | The Company adopted Statement of      Financial Accounting Standards No. 157, “Fair Value Measurements” (“SFAS      157”), effective January 1, 2008.  The provisions of SFAS 157      are to be applied prospectively.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   |   |
|    | SFAS 157 clarifies that fair value      is an estimate of the exit price, representing the amount that would be      received to sell an asset or paid to transfer a liability in an orderly      transaction between market participants (i.e., the exit price at the      measurement date).  Under SFAS 157, fair value measurements are      not adjusted for transaction cost.  SFAS 157 provides for use of      a fair value hierarchy that prioritizes inputs to valuation techniques      used to measure fair value into three levels:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   |   |
|    | Level 1:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   | Unadjusted quoted prices in active      markets for identical assets or liabilities |
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   |   |
|    | Level 2:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   | Input other than quoted market      prices that are observable, either directly or indirectly, and reasonably      available.  Observable inputs reflect the assumptions market      participants would use in pricing the asset or liability and are developed      based on market data obtained from sources independent of the      Company. |
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   |   |
|    | Level 3:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   | Unobservable      inputs.  Unobservable inputs reflect the assumptions that the      Company develops based on available information about what market      participants would use in valuing the asset or      liability. |
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   |   |
|    | An asset or liability’s level      within the fair value hierarchy is based on the lowest level of any input      that is significant to the fair value measurement.  Availability      of observable inputs can vary and is affected by a variety of      factors.  The Company uses judgment in determining fair value of      assets and liabilities and Level 3 assets and liabilities involve greater      judgment than Level 1 and Level 2 assets or      liabilities.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |

----

| Note 5- | SIGNIFICANT ACCOUNTING POLICIES      (continued)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
|---------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
|    | Adoption of FIN      48                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
|    | Effective January 1, 2007, the      Company adopted FASB Interpretation No. 48, “Accounting for Uncertainty in      Income Taxes” (“FIN 48”).  FIN 48 clarifies the accounting for      uncertainty in income taxes recognized in an enterprise’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 a tax position taken or expected to be taken in a tax      return.  FIN 48 also provides guidance on de-recognition of tax      benefits, classification on the balance sheet, interest and penalties,      accounting in interim periods, disclosure, and transition.  In      accordance with FIN 48, the Company performed a self-assessment and      concluded that there were no significant uncertain tax positions requiring      recognition in its financial statements.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
|    | Adoption of SFAS No.      157                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
|    | In September 2006, the Financial      Accounting Standards Board (“FASB”) issued SFAS No. 157, "Fair Value      Measurements".  SFAS No. 157 defines fair value, establishes a      framework and gives guidance regarding the methods used for measuring fair      value, and expands disclosures about fair value      measurements.  In February 2008, the FASB issued FASB Staff      Position 157-1, "Application of FASB Statement No. 157 to FASB Statement      No. 13 and Other Accounting Pronouncements That Address Fair Value      Measurements for Purposes of Lease Classification or Measurement under      Statement 13" ("FSP 157-1") and FASB Staff Position 157-2, "Effective Date      of FASB Statement No. 157" ("FSP 157-2").  FSP 157-1 amends SFAS      No. 157 to remove certain leasing transactions from its      scope.  FSP 157-2 delays the effective date of SFAS No. 157 for      all non-financial assets and non-financial liabilities, except for items      that are recognized or disclosed at fair value in the financial statements      on a recurring basis (at least annually), until fiscal years      beginning after November 15, 2008.  SFAS No. 157 is effective      for financial statements issued for fiscal years beginning after November      15, 2007, and interim periods within those fiscal years.  The      Company adopted SFAS No. 157 effective January 1, 2008 for all financial      assets and liabilities as required, and effective January 1, 2009 for all      non-financial assets and non-financial liabilities as allowed by FSP FAS      157-2.  The adoption of SFAS No. 157 did not have a material      impact on the Company’s financial position and results of      operations. |
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
|    | On October 10, 2008, the FASB      issued FSP FAS 157-3, “Determining the Fair Value of a Financial Asset      When the Market for That Asset Is Not Active.”  The FSP      clarifies the application of FASB Statement No. 157, “Fair Value      Measurements,” in a market that is not active and provides an example to      illustrate key considerations in determining the fair value of a financial      asset when the market for that financial asset is not      active.  The FSP is effective immediately, and includes prior      period financial statements that have not yet been      issued.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |

----

| Note 5- | SIGNIFICANT ACCOUNTING POLICIES      (continued)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
|---------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
|    | Adoption of SFAS No.      159                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
|    | In February 2007, the FASB issued      SFAS No. 159, “The Fair Value Option for Financial Assets and Financial      Liabilities — Including an Amendment of FASB Statement No. 115”, which is      effective for fiscal years beginning after November 15,      2007.  SFAS No. 159 is an elective standard which permits an      entity to choose to measure many financial instruments and certain other      items at fair value at specified election dates.  Subsequent      unrealized gains and losses on items for which the fair value option has      been elected will be reported in earnings.  The Company did not      elect the fair value option for any assets or liabilities that were not      previously carried at fair value.  Accordingly, the adoption of      SFAS 159 did not have a material impact on the Company’s financial      position and results of operations.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
|    | Adoption of SFAS No. 160 and SFAS      141R                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
|    | In December 2007, the FASB issued      Statements of Financial Accounting Standards No. 141 (revised 2007),      “Business Combinations” (“SFAS 141R”) and No. 160, “Noncontrolling      Interests in Consolidated Financial Statements – an amendment to ARB No.      51” (“SFAS 160”).  Both SFAS 141R and SFAS 160 are to be adopted      effective January 1, 2009.  SFAS 141R requires the application      of several new or modified accounting concepts that, due to their      complexity, could introduce a degree of volatility in periods subsequent      to a material business combination.  SFAS 141R requires that all      business combinations result in assets and liabilities acquired being      recorded at their fair value, with limited exceptions.  Other      areas related to business combinations that will require changes from      current GAAP include:  contingent consideration, acquisition      costs, contingencies, restructuring costs, in process research and      development and income taxes, among others.  SFAS 160 will      primarily impact the presentation of minority or noncontrolling      interests within the Balance Sheet and Statement of Operations as well as      the accounting for transactions with noncontrolling interest      holders.  The Company adopted SFAS No. 141 (revised 2007) and      SFAS No. 160 on January 1, 2009. There was no material impact on the      Company’s financial position and results of operations upon adoption, and      their effects on future periods will depend on the nature and significance      of business combinations subject to these    statements. |
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
|    | Adoption of SFAS No.      161                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
|    | In March 2008, the FASB issued      Statement of Financial Accounting Standards No. 161, “Disclosures about      Derivative Hedging Instruments and Hedging Activities – an amendment of      FASB Statement No. 133” (“SFAS 161”). SFAS 161, which is effective January      1, 2009, requires enhanced qualitative and quantitative disclosures with      respect to derivatives and hedging activities.  The adoption of      SFAS No. 161 did not have a material effect on the Company’s financial      position and results ofoperations.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |

----

| Note 5- | SIGNIFICANT ACCOUNTING POLICIES      (continued)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
|---------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
|    | Adoption of FSP FAS      142-3                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
|    | In April 2008, the FASB issued      Staff Position FAS 142-3, Determination of the Useful Life of Intangible      Assets (“FSP FAS 142-3”) which amends the factors an entity should      consider in developing renewal or extension assumptions used to determine      the useful life of a recognized intangible asset under FAS No. 142,      Goodwill and Other Intangible Assets (“FAS No. 142”). FSP FAS 142-3      applies to intangible assets that are acquired individually or with a      group of assets and intangible assets acquired in both business      combinations and asset acquisitions. It removes a provision under FAS No.      142, requiring an entity to consider whether a contractual renewal or      extension clause can be accomplished without substantial cost or material      modifications of the existing terms and conditions associated with the      asset. Instead, FSP FAS 142-3 requires that an entity consider its own      experience in renewing similar arrangements. An entity would consider      market participant assumptions regarding renewal if no such relevant      experience exists.      FSP FAS 142-3 is effective for year ends beginning after December 15, 2008      with early adoption prohibited.  The adoption of FSP FAS 142-3      did not have a material effect on the Company’s financial position and      results of operations. |
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
|    | Adoption of FSP No. EITF      03-6-1                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
|    | In June 2008, the Financial      Accounting Standards Board (“FASB”) issued FSP No. EITF 03-6-1,      Determining Whether Instruments Granted in Share-Based Payment      Transactions Are Participating Securities (“FSP EITF 03-6-1”). FSP EITF      03-6-1 concludes that unvested share-based payment awards that contain      rights to receive non-forfeitable dividends or dividend equivalents are      participating securities, and thus, should be included in the two-class      method of computing earnings per share (“EPS”). FSP EITF 03-6-1 is      effective for fiscal years beginning after December 15, 2008, and interim      periods within those years. Early application of EITF 03-6-1 is      prohibited. It also requires that all prior-period EPS data be adjusted      retrospectively.  The adoption of FSP No. EITF 03-6-1 did not      have a material effect on the Company’s financial position and results of      operations.                                                                                                                                                                                                                                                                                                                                                                                                                                 |
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
|    | Recent Accounting      Pronouncements                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
|    | In June 2009, the FASB issued SFAS      No. 168, “The FASB Accounting Standards Codification” (the      "Codification"). The Codification will become the source of authoritative      U.S. generally accepted accounting principles (GAAP) recognized by the      FASB to be applied by nongovernmental entities. Rules and interpretive      releases of the Securities and Exchange Commission (SEC) under authority      of federal securities laws are also sources of authoritative GAAP for SEC      registrants. On the effective date of this Statement, the Codification      will supersede all then-existing non-SEC accounting and reporting      standards. All other nongrandfathered non-SEC accounting literature not      included in the Codification will become      nonauthoritative.   This Statement is effective for      financial statements issued for interim and annual periods ending after      September 15, 2009. The Management does not expect that the adoption of      SFAS No. 168 would have a material effect on the Company’s financial      position and results ofoperations.                                                                                                                                                                                                                                                                                              |

----

| Note 5- | SUMMARY OF SIGNIFICANT ACCOUNTING      POLICIES (continued)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |
|---------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
|    | Recent Accounting Pronouncements      (continued)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
|    | In June 2009, the FASB issued SFAS      No. 167, "Amendments to FASB Interpretation No. 46(R)." SFAS No. 167,      among other things, requires a qualitative rather than a quantitative      analysis to determine the primary beneficiary of a variable interest      entity ("VIE"); requires continuous assessments of whether an enterprise      is the primary beneficiary of a VIE; enhances disclosures about an      enterprise's involvement with a VIE; and amends certain guidance for      determining whether an entity is a VIE. Under SFAS No. 167, a VIE must be      consolidated if the enterprise has both (a) the power to direct the      activities of the VIE that most significantly impact the entity's economic      performance, and (b) the obligation to absorb losses or the right to      receive benefits from the VIE that could potentially be significant to the      VIE. SFAS No. 167 will be effective as of the beginning of each reporting      entity’s first annual reporting period that begins after November 15,      2009, and for interim periods within that first annual reporting      period.  Earlier      application is prohibited. The Management does not expect that the      adoption of SFAS No. 167 would have a material effect on the Company’s      financial position and results of operations. |
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
|    | In June, 2009, the FASB issued      SFAS No. 166, "Accounting for Transfers of Financial Assets". SFAS No. 166      is a revision to FASB SFAS No. 140, "Accounting for Transfers and      Servicing of Financial Assets and Extinguishments of Liabilities", and      requires more information about transfers of financial assets, including      securitization transactions, and where companies have continuing exposure      to the risks related to transferred financial assets. SFAS No. 166 also      eliminates the concept of a "qualifying special-purpose entity", changes      the requirements for derecognizing financial assets and requires      additional disclosures. FASB No. 166must be applied as of the beginning of      each reporting entity’s first annual reporting period that begins after      November 15, 2009, and for interim periods within that first annual      reporting period. Earlier application is prohibited.  The      Management does not expect that the adoption of SFAS No. 166 would have a      material effect on the Company’s financial position and results of      operations.                                                                                                                                                                                                                      |
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
|    | In May 2009, the FASB issued SFAS      No. 165, "Subsequent Events." SFAS No. 165 establishes authoritative      accounting and disclosure guidance for recognized and non-recognized      subsequent events that occur after the balance sheet date but before      financial statements are issued. SFAS No. 165 also requires disclosure of      the date through which an entity has evaluated subsequent events and the      basis for that date. In accordance with this Statement, an entity should      apply the requirements to interim or annual financial periods ending after      June 15, 2009. The adoption of SFAS No. 165 had no material impact      on  the Company’s financial position and results of      operations.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |

----

| Note 5- | SIGNIFICANT ACCOUNTING POLICIES      (continued)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
|---------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
|    | Recent Accounting Pronouncements      (continued)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
|    | In April 2009, the FASB issued FSP      FAS 141(R)-1, “Accounting for Assets Acquired and Liabilities Assumed in a      Business Combination That Arise from Contingencies.” This FSP requires      that assets acquired and liabilities assumed in a business combination      that arise from contingencies be recognized at fair value if fair value      can be reasonably estimated. If fair value cannot be reasonably estimated,      the asset or liability would generally be recognized in accordance with      SFAS No. 5, “Accounting for Contingencies” and FASB Interpretation No. 14,      “Reasonable Estimation of the Amount of a Loss”. Further, the FASB removed      the subsequent accounting guidance for assets and liabilities arising from      contingencies from SFAS No. 141(R). The requirements of this FSP carry      forward without significant revision the guidance on contingencies of SFAS      No. 141, “Business Combinations”, which was superseded by SFAS No. 141(R).      The FSP also eliminates the requirement to disclose an estimate of the      range of possible outcomes of recognized      contingencies at the acquisition date. For unrecognized contingencies, the      FASB requires that entities include only the disclosures required by SFAS      No. 5. This FSP was adopted effective January 1, 2009. There was no impact      upon adoption, and its effects on future periods will depend on the nature      and significance of business combinations subject to this      statement. |
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
|    | In April 2009, the Financial      Accounting Standards Board (FASB) issued FASB Staff Position (FSP)      Financial Accounting Standard (FAS) 157-4 “Determining Fair Value When the      Volume and Level of Activity for the Asset or Liability Have Significantly      Decreased and Identifying Transactions That Are Not Orderly”. Based on the      guidance, if an entity determines that the level of activity for an asset      or liability has significantly decreased and that a transaction is not      orderly, further analysis of transactions or quoted prices is needed, and      a significant adjustment to the transaction or quoted prices may be      necessary to estimate fair value in accordance with Statement of Financial      Accounting Standards (SFAS) No. 157 “Fair Value Measurements”. This FSP is      to be applied prospectively and is effective for interim and annual      periods ending after June 15, 2009 with early adoption permitted for      periods ending after March 15, 2009. The adoption of this FSP did not have      a material effect on the Company’s financial position and results of      operations.                                                                                                                                                                                                                                                                                                                                                                                                      |
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
|    | In April 2009, the FASB issued FSP      FAS 115-2 and FAS 124-2 “Recognition and Presentation of      Other-Than-Temporary Impairments”. The guidance applies to investments in      debt securities for which other-than-temporary impairments may be      recorded. If an entity’s management asserts that it does not have the      intent to sell a debt security and it is more likely than not that it will      not have to sell the security before recovery of its cost basis, then an      entity may separate other-than-temporary impairments into two components:      1) the amount related to credit losses (recorded in earnings), and 2) all      other amounts (recorded in other comprehensive income). This FSP is to be      applied prospectively and is effective for interim and annual periods      ending after June 15, 2009 with early adoption permitted for periods      ending after March 15, 2009. The adoption of this FSP did not have a      material effect on the Company’s financial position and results of      operations.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |

----

| Note 5- | SIGNIFICANT ACCOUNTING POLICIES      (continued)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
|---------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
|    | Recent Accounting Pronouncements      (continued)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
|    | In April 2009, the FASB issued FSP      FAS 107-1 and Accounting Principles Board (APB) 28-1 “Interim Disclosures      about Fair Value of Financial Instruments”. The FSP amends SFAS No. 107      “Disclosures about Fair Value of Financial Instruments” to require an      entity to provide disclosures about fair value of financial instruments in      interim financial information. This FSP is to be applied prospectively and      is effective for interim and annual periods ending after June 15, 2009      with early adoption permitted for periods ending after March 15, 2009. The      Company adopted this FSP for its quarter ended June 30,      2009.  The adoption of this FSP did not have a material effect      on the Company’s financial position and results of      operations. |
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
| Note 6- | PREPAID      EXPENSES                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
|    | Prepaid expenses consists of the      following:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |

|                                       |   | June 30,    |    |   | December31, |   |
|--------------------------------------------|--------|-------------|---------|--------|-------------|--------|
|                                       |   | 2009        |    |   | 2008        |   |
|                                       |   | (unaudited) |    |   |        |   |
|                                       |   |        |    |   |        |   |
| Prepaid telephone number usage      fees   |   | $           | 26,428  |   |        | $      | 28,823 |   |
| Advance to telecommunication      carriers |   |        | 38,423  |   |        |   | 43,769 |   |
| Advance to purchase equipment      *       |   |        | 302,419 |   |        |   | 302,005 |   |
|                                       |   | $           | 367,270 |   |        | $      | 374,597 |   |

|   | * Advance to purchase equipment      represents cash payments to three venders to purchase telecommunication      equipments which will be used in the Company's new business lines. These      equipments must go through testing before they can be put into service.      These payments represent partial of the purchase price and Management      believes that the amount paid approximates the fair value based on the      progress of thetesting. |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| Note 7- | PROPERTY AND EQUIPMENT,      NET                                                                              |
|---------|---------------------------------------------------------------------------------------------------------------|
|    |                                                                                                          |
|    | The following is a summary of      property, plant and equipment-at cost, less accumulated      depreciation: |

|                                |   | June 30,    |     |   | December31, |   |
|-------------------------------------|--------|-------------|----------|--------|-------------|--------|
|                                |   | 2009        |     |   | 2008        |   |
|                                |   | (unaudited) |     |   |        |   |
|                                |   |        |     |   |        |   |
| Network and office      equipment   |   | $           | 123,157  |   |        | $      | 121,660 |   |
| Leasehold      Improvements         |   |        | 325,048  |   |        |   | 324,603 |   |
|                                |   |        | 448,205  |   |        |   | 446,263 |   |
|                                |   |        |     |   |        |   |   |   |
| Less: Accumulated      depreciation |   |        | (274,428 | )      |        |   | (230,748 | ) |
|                                |   |        |     |   |        |   |   |   |
|      Total |   | $           | 173,777  |   |        | $      | 215,515 |   |

|    | Depreciation expense charged to      operations was $43,370 and $40,597 for the six months ended June 30, 2009      and 2008, respectively. |
|---------|---------------------------------------------------------------------------------------------------------------------------------------------|
|    |                                                                                                                                        |
| Note 8- | CONTRACT SECURITY      DEPOSIT                                                                                                              |
|    |                                                                                                                                        |
|    | Contract security deposit consists      of thefollowing:                                                                                    |

|                                                                                     |   | June 30,    |   |   | December31, |   |
|------------------------------------------------------------------------------------------|--------|-------------|--------|--------|-------------|--------|
|                                                                                     |   | 2009        |   |   | 2008        |   |
|                                                                                     |   | (unaudited) |   |   |        |   |
| Security deposit for      GRT's                                                          |   |        |   |   |        |   |
|      public      phone distribution contract with CUBJ          |   | $           | 1,461  |   |        | $      | 1,576 |   |
| Security deposit for GRT and      Beijing Telecom'                                       |   |        |   |   |        |   |   |   |
|      Trust      and Indemnity Agreement with Ms. Yianfang Jin * |   |        | 87,658 |   |        |   | 87,538 |   |
|                                                                                     |   |        |   |   |        |   |   |   |
|                                                                                     |   | $           | 89,119 |   |        | $      | 89,114 |   |

|   | *On September 20, 2007, Ms.      Yianfang Jin who owns a 98% equity ownership interest in GRT executed a      Trust and Indemnity Agreements,  pursuant to which Ms. Jin      assigned to Beijing Telecom all of the beneficial interest in her equity      ownership interest in GRT, as more fully disclosed in Note      2. |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| Note 9- | LONG-TERM      INVESTMENT                           |
|---------|-----------------------------------------------------|
|    |                                                |
|    | Long-term investment consists of      thefollowing: |

|                                        |   |   | June 30,                                    |   |       | December  31, |
|---------------------------------------------|--------|--------|---------------------------------------------|--------|------------|---------------|
|                                        |   |   | 2009                                        |   |       | 2008          |
|                                        |   |   | (unaudited)                                 |   |       |          |   |   |
|                                        |   |   |                                        |   |       |          |   |   |   |   |
|                                        |   |   |                                        |   | Equity     |          |   |   |   | Equity |
|                                        |   |   |                                        |   | Ownership  |          |   |   |   | Ownership |
| Description                                 |   |   | Amount                                 |   | Percentage |          |   | Amount |   | Percentage |
|                                        |   |   |                                        |   |       |          |   |   |   |   |
| Joint-venture      with                     |   |   |                                        |   |       |          |   |   |   |   |
| Beijing Zhongheng Technology Co.,      Inc. |   |   |       233,754 |   | 10%        |          |   |      233,434 |   | 10% |
|                                        |   | $      | 233,754                                     |   |       |          | $ | 233,434 |   |   |

|   | Joint-venture with Beijing      Zhongheng Technology Co., Inc.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
|   | On October 9, 2008, GRT executed      an agreement with Beijing Zhongheng Technology Co., Inc., pursuant to      which, GRT agreed to invest $233,434 (RMB 1,600,000), and Beijing      Zhongheng Technology agreed to invest $350,151 (RMB 2,400,000), totaling      $584,855 (RMB 4,000,000) to establish a join-venture to sell international      call-forwarding cards.  On October 21, 2008, GRT wired $233,434      (RMB 1,600,000) to Beijing Zhongheng Technology Co.,      Inc.                                                                                                      |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
|   | On November 25, 2008, the parties      amended the agreement, pursuant to which both parties agreed that Beijing      Zhongheng Technology Co., Inc. will increase its investment to $2,100,960      (RMB 14,400,000).  Accordingly, Beijing Zhongheng Technology      Co., Inc. owns 90% equity ownership interest of the joint-venture and GRT      owns the rest 10% equity ownership interest.  As the project is      currently ongoing, the Management believes the amount invested      approximates the fair value and uses the cost method to record this      transaction. |

----

| Note 10- | ACCRUED      EXPENSES                            |
|----------|--------------------------------------------------|
|     |                                             |
|     | Accrued expenses consists of the      following: |

|                            |   | June 30,    |   |   | December31, |   |
|---------------------------------|--------|-------------|--------|--------|-------------|--------|
|                            |   | 2009        |   |   | 2008        |   |
|                            |   | (unaudited) |   |   |        |   |
|                            |   |        |   |   |        |   |
| Employee benefit payable      * |   | $           | 16,003 |   |        | $      | 17,546 |   |
| Accrued professional      fees  |   |        | 8,240  |   |        |   | 36,121 |   |
|                            |   | $           | 24,243 |   |        | $      | 53,667 |   |

|     | * Employee benefit payable was      mainly carried forward from QTC. |
|----------|----------------------------------------------------------------------|
|     |                                                                 |
| Note 11- | DEFERRED      REVENUE                                                |
|     |                                                                 |
|     | Deferred revenue consists of the      following:                     |

|                             |   | June 30,    |   |   | December31, |   |
|----------------------------------|--------|-------------|--------|--------|-------------|--------|
|                             |   | 2009        |   |   | 2008        |   |
|                             |   | (unaudited) |   |   |        |   |
|                             |   |        |   |   |        |   |
| Advance from VoIP      customers |   | $           | 1,242  |   |        | $      | 1,679 |   |
|                             |   | $           | 1,242  |   |        | $      | 1,679 |   |

| Note 12- | AGREEMENT SECURITY      DEPOSIT                           |
|----------|-----------------------------------------------------------|
|     |                                                      |
|     | Agreement security deposit      consists of thefollowing: |

|                                                      |   | June 30,    |    |   | December31, |   |
|-----------------------------------------------------------|--------|-------------|---------|--------|-------------|--------|
|                                                      |   | 2009        |    |   | 2008        |   |
|                                                      |   | (unaudited) |    |   |        |   |
|                                                      |   |        |    |   |        |   |
| Security deposit for the Business      Transfer Agreement |   | $           | 321,412 |   |        | $      | 320,971 |   |
|                                                      |   | $           | 321,412 |   |        | $      | 320,971 |   |

|   | On October 18, 2008, GRT signed a      “"Business Transfer Agreement" with Shanghai Zhen Guang Travel Agent and      Shanghai North Travel Agent, pursuant to which, Shanghai Zhen Guang Travel      Agent and Shanghai North Travel Agent agreed to acquire GRT’s      call-forwarding operation in Shanghai area for $511,098 (RMB 3,500,000).      On November 30, 2008, the parties agreed to increase the sales price to      $729,480  (RMB 5,000,000) and the deal will be closed in      December 2009.  On October 21, 2008, GRT received $291,792 (RMB      2,000,000) from Shanghai Zhen Guang Travel Agent, and $29,179 (RMB      200,000) from Shanghai North Travel Agent as security deposit for the      agreement. |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| Note 13- | DUE TO    OFFICERS                              |
|----------|-------------------------------------------------|
|     |                                            |
|     | Due to officers consists of the      following: |

|   |   |                                          |   | June 30,    |   |   | December31, |   |
|--------|--------|-----------------------------------------------|--------|-------------|--------|--------|-------------|--------|
|   |   |                                          |   | 2009        |   |   | 2008        |   |
|   |   |                                          |   | (unaudited) |   |   |        |   |
|   |   |                                          |   |        |   |   |        |   |
| (1     | )      | Due to Ms. Shuying      Zheng                 |   | $           | 45,243 |   |        | $      | - |   |
| (2     | )      | GRT Office rent due to Mr. Guoqing      Xu    |   |        | 10,038 |   |        |   | - |   |
| (3     | )      | QTC Office rent due to Ms. Shuying      Zheng |   |        | 8,766  |   |        |   | - |   |
|   |   |                                          |   | $           | 64,047 |   |        | $      | - |   |

| (1)      | Due to Ms. Shuying      Zheng                                                                                                                                                                                                                                                                                                                                                                             |
|----------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|     |                                                                                                                                                                                                                                                                                                                                                                                                      |
|     | Due to Ms. Shuying Zheng, CEO of      the Company, represents loans from Ms. Zheng to finance the Company's      operations due to lack of cash resources. These loans are unsecured,      non-interest bearing and have no fixed terms of repayment, therefore,      deemed payable on demand.  Cash flows from these activities are      classified as cash flows from financing  activities. |
|     |                                                                                                                                                                                                                                                                                                                                                                                                      |
| (2)      | GRTLease                                                                                                                                                                                                                                                                                                                                                                                                  |
|     |                                                                                                                                                                                                                                                                                                                                                                                                      |
|     | GRT rents office premise at the      market rate from Mr. Guoqing Xu, President of QTC.  The lease is      non-cancelable and will expire in June 2010.  Rent expense      amounted to $10,038 and $3,492 for the six months ended June 30, 2009 and      2008, respectively.  As of June 30, 2009, there was an      outstanding balance of $10,038 due to Mr. Xu.         |
|     |                                                                                                                                                                                                                                                                                                                                                                                                      |
| (3)      | QTCLease                                                                                                                                                                                                                                                                                                                                                                                                  |
|     |                                                                                                                                                                                                                                                                                                                                                                                                      |
|     | QTC rents office premise at the      market rate from Ms. Shuying Zheng, CEO.  The lease is      non-cancelable and will expire in June 2010.  Rent expense      amounted to $8,766 and $8,483 for the six months ended June 30, 2009 and      2008, respectively.  As of June 30, 2009, there was an      outstanding balance of $8,766 due to Ms. Zheng.                  |
|     |                                                                                                                                                                                                                                                                                                                                                                                                      |
| Note 14- | CONSULTANT    FEES                                                                                                                                                                                                                                                                                                                                                                                        |
|     |                                                                                                                                                                                                                                                                                                                                                                                                      |
|     | Consultant fees consist of the      following:                                                                                                                                                                                                                                                                                                                                                            |

|                                                             |   | For the Six Months      Ended |   |
|------------------------------------------------------------------|--------|-------------------------------|--------|
|                                                             |   | June 30,                      |   |
|                                                             |   | 2009                          |   |   | 2008 |   |
|                                                             |   | (unaudited)                   |   |   | (unaudited) |   |
|                                                             |   |                          |   |   |   |   |
| Amortization of costs of common      stock issued for            |   |                          |   |   |   |   |
|     compensation      of consultant services |   | $                             | 22,000 |   |   | $ | 251,680 |   |
| Other consultancy      fees                                      |   |                          | -      |   |   |   | 8,287 |   |
|                                                             |   | $                             | 22,000 |   |   | $ | 259,967 |   |

----

| Note 15- | SEGMENT      REPORTING                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |
|----------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
|     | GRT    Operation                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
|     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
|     | For the six months ended June 30,      2009 and 2008, GRT operates in three reportable business segments that are      determined based upon differences in products and services. GRT does not      allocate any operating expenses or assets to its four business segments as      management does not use this information to measure the performance of the      operating segments. Certain costs of revenues are shared between business      segments.  Also, no measures of assets by segment are reported      and used by the chief operating decision maker. Hence, GRT has not made      disclosure of total assets by reportable  segments. |
|     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
|     | Summarized information by business      segment for the six months ended June 30, 2009 and 2008 is as      follows:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |

|                                                                  |   | For the Six Months      Ended |    |
|-----------------------------------------------------------------------|--------|-------------------------------|---------|
|                                                                  |   | June 30,                      |    |
|                                                                  |   | 2009                          |    |   | 2008 |   |
|                                                                  |   | (unaudited)                   |    |   | (unaudited) |   |
| REVENUE                                                               |   |                          |    |   |   |   |
|      GRT      public telephone service       |   | $                             | 1,600   |   |   | $ | 7,533 |   |
|      GRT      VoIP call time distribution    |   |                          | 41,052  |   |   |   | 99,836 |   |
|      GRT      sales of call forwarding cards |   |                          | -       |   |   |   | 12,669 |   |
|                                                                  |   |                          |    |   |   |   |   |   |
| COST OF    SALES                                                      |   |                          |    |   |   |   |   |   |
|      GRT      public telephone service       |   | $                             | 3,896   |   |   | $ | 13,432 |   |
|      GRT      VoIP call time distribution    |   |                          | 27,572  |   |   |   | 84,834 |   |
|      GRT      sales of call forwarding cards |   |                          | -       |   |   |   | 6,947 |   |
|                                                                  |   |                          |    |   |   |   |   |   |
| GROSS    PROFITS                                                      |   |                          |    |   |   |   |   |   |
|      GRT      public telephone service       |   | $                             | (2,296  | ) |   | $ | (5,899 | ) |
|      GRT      VoIP call time distribution    |   |                          | 13,480  |   |   |   | 15,002 |   |
|      GRT      sales of call forwarding cards |   |                          | -       |   |   |   | 5,722 |   |
|                                                                  |   |                          |    |   |   |   |   |   |
| TOTAL ASSETS OF      GRT                                              |   | $                             | 711,512 |   |   | $ | 821,142 |   |

----

| Note 16- | CONCENTRATIONS AND      RISKS                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
|----------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
|     | Major    Suppliers                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |
|     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
|     | GRT signed non-exclusive      agreements with CUSH and CUSX to facilitate the international call      forwarding business and to distribute VoIP call time purchased from the      carriers.  If the strategic relationship with either CUSH and      CUSX is terminated or scaled-back, or if CUSH and CUSX alter the      co-operative arrangements, GRT’s revenue from international call      forwarding service and VoIP call time distribution might be adversely      affected.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
|     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
| Note 17- | COMMITMENTS AND      CONTINGENCIES                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |
|     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
|     | PRC's political and economic      system                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
|     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
|     | The Company faces a number of      risks and challenges not typically associated with companies in North      America and Western Europe, since its assets exist solely in the PRC, and      its revenues are derived from its operations therein.  The PRC      is a developing country with an early stage market economic system,      overshadowed by the state.  Its political and economic systems      are very different from the more developed countries and are in a state of      change.  The PRC also faces many social, economic and political      challenges that may produce major shocks and instabilities and even      crises, in both its domestic arena and in its relationships with other      countries, including the United States.  Such shocks,      instabilities and crises may in turn significantly and negatively affect      the Company's performance.                                                                                                                                                                                                                            |
|     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
|     | Governmental control of currency      conversion                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
|     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
|     | The PRC government imposes      controls on the convertibility of Renminbi into foreign currencies and, in      certain cases, the remittance of currency out of the PRC. The Company      receives all of its revenues in Renminbi, which is currently not a freely      convertible currency. Shortages in the availability of foreign currency      may restrict the Company’s ability to remit sufficient foreign currency to      satisfy foreign currency denominated obligations.  Under      existing PRC foreign exchange regulations, payments of current account      items, including profit distributions, interest payments and expenditures      from the transaction, can be made in foreign currencies without prior      approval from the PRC State Administration of Foreign Exchange by      complying with certain procedural requirements. However, approval from      appropriate governmental authorities is required where Renminbi is to be      converted into foreign currency and remitted out of China to pay capital      expenses such as the repayment of bank loans denominated in foreign      currencies. |
|     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
|     | The PRC government may also at its      discretion restrict access in the future to foreign currencies for current      account transactions. If the foreign exchange control system prevents the      Company from obtaining sufficient foreign currency to satisfy its currency      demands, the Company may not be able to pay certain of its expenses as      they comedue.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |

----

| ITEM      2. | MANAGEMENT’S      DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF      OPERATIONS |
|--------------|-------------------------------------------------------------------------------------------------------|

| Ø | The      tariffs on mobile phone calls in China have fallen by approximately 80% in      the past two years.  As a result, the use of cell phones has      increased dramatically, with a concomitant slackening of demand for our      payphone services.  When we initiated our business, the average      cell phone tariff was five times the tariff on a call from our      payphones.  Now the difference is  insignificant. |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Ø | In      January 2007 China Netcom (Beijing) Corporation Limited cancelled the      contract under which we distributed its fixed line call      times.  This contract had generated $57,329 in revenue for us in      the first nine months of 2006. |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | § | as the capital of China, Beijing      attracts 80-90% of foreign tourists traveling to China, and thus has a much larger      potential customer bases thanShanghai; |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | § | our executive offices and      connections are based in Beijing, which would substantially reduce      our operational cost      and improve ourprofitability. |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

----

----

----

----

| Item      6.                           | Exhibits                          |
|----------------------------------------|-----------------------------------|
|                                   |                              |
|       31 | Rule      13a-14(a) Certification |
|       32 | Rule      13a-14(b) Certification |

----

|                       | SMOOTH      GLOBAL (CHINA) HOLDINGS, INC. |
|----------------------------|-------------------------------------------|
|                       |                                      |   |
| Date:      August 11, 2009 | By:                                       | /s/ Zheng      Shuying |
|                       |                                      | Zheng      Shuying, Chief Executive Officer |
|                       |                                      | and      Chief FinancialOfficer |

----