----

----

| o | Annual Report Under Section 13 or 15(d) of The Securities Exchange Act of 1934 for the Fiscal Year Ended December 31, 2009 |
|---|----------------------------------------------------------------------------------------------------------------------------|

| o | Transition Report Under Section 13 or 15(d) of The Securities Exchange Act of 1934 |
|---|------------------------------------------------------------------------------------|

| Nevada                          |   | 90-0531621                        |
|---------------------------------|--------|-----------------------------------|
| (State or other jurisdiction of |   | (IRS Employer Identification No.) |
| incorporation or organization)  |   |                              |

| Title of each class |   | Name of each exchangeon which registered |
|---------------------|--------|------------------------------------------|
| None                |   | Not Applicable                           |

----

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

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----

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|        |                                                                                                               |   | PAGE   |   |
|-------------|--------------------------------------------------------------------------------------------------------------------|--------|--------|--------|
| PART I:     |                                                                                                               |   |   |   |
|        |                                                                                                               |   |   |   |
| Item 1.     | Business                                                                                                           |   |   | 1      |   |
| Item 1A.    | Risk Factors                                                                                                       |   |   | 9      |   |
| Item 1B.    | Unresolved Staff Comments                                                                                          |   |   | 16     |   |
| Item 2.     | Properties                                                                                                         |   |   | 16     |   |
| Item 3      | Legal Proceedings                                                                                                  |   |   | 18     |   |
| Item 4.     | Submission of Matters to a Vote of Security Holders                                                                |   |   | 18     |   |
|        |                                                                                                               |   |   |   |   |
| PART II:    |                                                                                                               |   |   |   |   |
|        |                                                                                                               |   |   |   |   |
| Item 5.     | Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities |   |   | 18     |   |
| Item 6.     | Selected Financial Data                                                                                            |   |   | 20     |   |
| Item 7.     | Management’s Discussion and Analysis or Plan of Operation                                                    |   |   | 21     |   |
| Item 7A.    | Quantitative and Qualitative Disclosures About Market Risk                                                         |   |   | 38     |   |
| Item 8.     | Financial Statements and Supplementary Data                                                                        |   |   | 38     |   |
| Item 9.     | Changes in and Disagreements with Accountants on Accounting and Financial Disclosure                               |   |   | 38     |   |
| Item 9A.    | Controls and Procedures                                                                                            |   |   | 38     |   |
| Item 9B.    | Other Information                                                                                                  |   |   | 40     |   |
|        |                                                                                                               |   |   |   |   |
| PART III:   |                                                                                                               |   |   |   |   |
|        |                                                                                                               |   |   |   |   |
| Item 10.    | Directors, Executive Officers and Corporate Governance                                                             |   |   | 40     |   |
| Item 11.    | Executive Compensation                                                                                             |   |   | 43     |   |
| Item 12.    | Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters                     |   |   | 44     |   |
| Item 13.    | Certain Relationships and Related Transactions, and Director Independence                                          |   |   | 44     |   |
| Item 14.    | Principal Accounting Fees and Services                                                                             |   |   | 49     |   |
|        |                                                                                                               |   |   |   |   |
| PART IV:    |                                                                                                               |   |   |   |   |
|        |                                                                                                               |   |   |   |   |
| Item 15.    | Exhibits, Financial Statement Schedules                                                                            |   |   | 50     |   |
|        |                                                                                                               |   |   |   |   |
| SIGNATURES: |                                                                                                               |   |   |   |

----

| ITEM 1. | BUSINESS |
|---------|----------|

----

----

|   | ● | 90.51% and controls Shaanxi Bai Shui Du Kang Liquor Co., Ltd., and holds |
|--------|---------|--------------------------------------------------------------------------|
|   | ● | 70% Shaanxi Bai Shui Du Kang Brand  Management Co., Ltd.;      |

----

|   | · Bai Shui Du Kang       |
|--------|----------------------------------------------|
|   | · Thirteen Dynasties and |
|   | · Jiu Zu Gong.           |

|   | o | Sales of liquor within China generally through long-term liquor distributors (“distributor”).                                                                                                                                                            |
|--------|---|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   | o | Fees from agent liquor stores/retailers (“agent”)                                                                                                                                                                                                        |
|   | o | Our subsidiary, Shaanxi Bai Shui Du Kang Brand Management Co., Ltd. grants permission to use “Baishui Dukang” trademark to white spirits manufactures (“licensee”) who comply with the liquor (or white spirits) production standard of PRC. |

|   | 1. | The Company’s distribution agreements grant the distributor the exclusive right to distribute the Company’s products within a defined territory. Each distributor agreement provides an area within the PRC that is exclusive to the distributor for a 5-year exclusive period.  Each Distributor Agreement specifies the Du Kang products that are to be sold, with the Thirteen Dynasties series being the most prevalent. Pricing of the products is according to the China Du Kang pricing policies. Terms include account settlement procedures; duties pertaining to licenses, packaging and sales conduct. The distributors are required to provide reports, protect the trademarks and copyrights and dispute resolution procedures. The |
|--------|----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | 2. | The Company’s agency agreements grant the agent the exclusive right to sell the Company’s products within a defined territory. The agency agreements grant an agent to exclusively sell particular products of the Company in exchange for a pre-determined royalty. The Royalty payments for agency agreements range from $44,610 to $160,317. The Company will produce specific liquors for sale stated under the terms of the agency agreement, and the agent has the exclusive right to sell certain products as designated by the agreement. The agreement does not private label the specific products, but we agree that we will not sell those products through our distributors or other arrangements. The agency agreement does not entitle the agent to sell any other China Du Kang products other than the specific products that are subject to the Agency agreement.  For agency agreements last for one year and may be renewed annually. The agent must pay an upfront fee that varies from product to product and the agent must minimum sales requirements during the term of the agreement. |
|--------|----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 3. | The Company ’s licensing agreements grant the licensee a non-exclusive right to use the Company ’s trademarks, logos, and brand names in connection with the development, marketing, and sale of the licensee’s independently manufactured products. The licensing agreements grant a license to use the Company’s trademarks in exchange for a pre-determined royalty. The Royalty payments for licensing agreements ranged from $6,134 to $355,254. Licensing agreements typically date back to a period before the current Company acquired the assets and essentially continues the rights of certain third parties to market products using the China Du Kang name, patterns, logos, trademarks and other proprietary assets for sub-branding of products. Licensing agreements are for specific zones with the PRC and may overlap territories that are included in other agreements. Each agreement specifies the products covered types of uses permitted, and the method and scope of sub-branding. The Agreements cover sales literature, pricing, quality controls and standards for packaging. |
|--------|----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                                                                                        |   |        |   | For the Year Ended |      |   | For the Year Ended |   |
|---------------------------------------------------------------------------------------------|--------|-------------|--------|--------------------|-----------|--------|--------------------|--------|
|                                                                                        |   |        |   | December 31, 2009  |      |   | December 31, 2008  |   |
|                                                                                        |   |        |   |               |      |   | Percentage         |   |   |   |   |   | Percentage |   |
| Name of                                                                                     |   | Type of     |   |               |      |   | of Total           |   |   |   |   |   | of Total |   |
| Customer                                                                                    |   | Customer    |   | Revenue            |      |   | Revenue            |   |   | Revenue |   |   | Revenue |   |
| Shaanxi Dukang Group Co., Ltd.                                                              |   | Distributor |   | $                  | 594,731   |   |               |   | 29.92 | % |   | $ | 252,813 |   |   |   | 22.11 | % |
| Shaanxi Baishui Dukang Spirits Industry  Development Co., Ltd.                    |   | Distributor |   |               | 129,866   |   |               |   | 6.53 | % |   |   | 321,127 |   |   |   | 28.09 | % |
| Shaanxi Baishui Dukang Marketing Management  Co., Ltd.                            |   | Distributor |   |               | 72,149    |   |               |   | 3.63 | % |   |   | 117,370 |   |   |   | 10.27 | % |
| Shaanxi Baishui Trade Co., Ltd. (a/k/a Shaanxi Baishui Dukang Shiyue Co., Ltd.)             |   | Distributor |   |               | 98,772    |   |               |   | 4.97 | % |   |   | 118,797 |   |   |   | 10.39 | % |
| Shanxi Baishui Xingjijiu Marketing Co., Ltd. (a/k/a Lanzhou Jiuxing Liquor Trade Co., Ltd.) |   | Licensee    |   |               | 299,445   |   |               |   | 15.07 | % |   |   | - |   |   |   |  - |  % |
| Shaanxi Huang Majia Wuliu Co., Ltd                                                          |   | Distributor |   |               | 122,026   |   |               |   | 6.14 | % |   |   | - |   |   |   | - | % |
| Total                                                                                       |   |        |   | $                  | 1,316,999 |   |               |   | 66.26 | % |   | $ | 810,107 |   |   |   | 70.86 | % |

----

|             | For the Year Ended |   |
|------------------|--------------------|--------|
|             | 2009               |   |   | 2008 |   |
|             |               |   |   | Percentage |   |   |   |   |   | Percentage |   |
|             |               |   |   | of Total |   |   |   |   |   | of Total |   |
| Type of Customer | Revenue            |   |   | Revenue |   |   | Revenue |   |   | Revenue |   |
| Distributor      |               | $      | 1,059,694 |   |   |   | 53.31 | % |   | $ | 953,751 |   |   |   | 83.43 | % |
| Licensee         |               |   | 731,711 |   |   |   | 36.81 | % |   |   | 189,444 |   |   |   | 16.57 | % |
| Agent            |               |   | 196,254 |   |   |   | 9.87 | % |   |   | - |   |   |   | - |   |
|             |               | $      | 1,987,659 |   |   |   | 100.00 | % |   | $ | 1,143,195 |   |   |   | 100.00 | % |

| We derive revenue from PRC region as further disclosed in the following: |   |               |      |   |               |   |   |    |   |   |       |   |
|--------------------------------------------------------------------------|--------|--------------------|-----------|--------|--------------------|--------|--------|---------|--------|--------|------------|--------|
|                                                                     |   |               |      |   |               |   |   |    |   |   |       |   |
|                                                                     |   |               |      |   |               |   |   |    |   |   |       |   |
|                                                                     |   | For the Year Ended |      |   | For the Year Ended |   |
|                                                                     |   | December 31, 2009  |      |   | December 31, 2008  |   |
|                                                                     |   |               |      |   | Percentage         |   |   |    |   |   | Percentage |   |
| Name of                                                                  |   |               |      |   | of Total           |   |   |    |   |   | of Total   |   |
| Province                                                                 |   | Revenue            |      |   | Revenue            |   |   | Revenue |   |   | Revenue    |   |
| Shaanxi Province                                                         |   | $                  | 1,587,641 |   |               |   | 79.87  | %       |   | $      | 953,751    |   |   |   | 83.43 | % |
| Henan Province                                                           |   |               | 147,707   |   |               |   | 7.43   | %       |   |   | 90,787     |   |   |   | 7.94 | % |
| Shandong Province                                                        |   |               | 105,612   |   |               |   | 5.31   | %       |   |   | 2,633      |   |   |   | 0.23 | % |
| Hebei Province                                                           |   |               | -         |   |               |   | -      |    |   |   | -          |   |   |   | - |   |
| Anhui Province                                                           |   |               | 71,147    |   |               |   | 3.58   | %       |   |   | 51,019     |   |   |   | 4.46 | % |
| Hubei Province                                                           |   |               | -         |   |               |   | -      |    |   |   | -          |   |   |   | - |   |
| Gansu Province                                                           |   |               | 23,034    |   |               |   | 1.16   | %       |   |   | 4,788      |   |   |   | 0.42 | % |
| Zhejiang Province                                                        |   |               | 35,242    |   |               |   | 1.77   | %       |   |   | 36,626     |   |   |   | 3.20 | % |
| Heilongjiang Province                                                    |   |               | 17,276    |   |               |   | 0.87   | %       |   |   | 3,591      |   |   |   | 0.31 | % |
| Total                                                                    |   | $                  | 1,987,659 |   |               |   | 100.00 | %       |   | $      | 1,143,195  |   |   |   | 100.00 | % |

----

|   | • | lack of availability of materials and interruptions in delivery of components and raw materials from our suppliers;                               |
|--------|---------|---------------------------------------------------------------------------------------------------------------------------------------------------|
|   | • | manufacturing delays caused by such lack of availability or interruptions in delivery;                                                            |
|   | • | fluctuations in the quality and the price of components and raw materials, in particular due to the petroleum price impact on such materials; and |
|   | • | risks related to foreign operations.                                                                                                              |

----

----

----

----

----

----

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| ITEM 1B.      UNRESOLVED STAFF COMMENTS |
|----------------------------------------------------------------------------|

|                                |   | December 31, |       |   | December 31, |
|-------------------------------------|--------|--------------|------------|--------|--------------|
|                                |   | 2009         |       |   | 2008         |
|                                |   |         |       |   |         |   |
| Building and warehouses             |   | $            | 2,963,873  |   |         | $ | 2,913,855 |   |
| Machinery and equipment             |   |         | 1,857,877  |   |         |   | 1,820,095 |   |
| Office equipment and furniture      |   |         | 194,394    |   |         |   | 191,029 |   |
| Motor vehicles                      |   |         | 329,815    |   |         |   | 491,005 |   |
| Leased Assets*                      |   |         | 2,159,053  |   |         |   | 2,153,698 |   |
|                                |   |         | 7,505,012  |   |         |   | 7,569,682 |   |
|                                |   |         |       |   |         |   |   |   |
| Less: Accumulated depreciation      |   |         | (3,262,315 | )      |         |   | (2,853,022 | ) |
|                                |   |         | 4,242,697  |   |         |   | 4,716,660 |   |
|                                |   |         |       |   |         |   |   |   |
| Add: Construction in progress       |   |         | 41,153     |   |         |   | 12,231 |   |
|                                |   |         |       |   |         |   |   |   |
|      Total |   | $            | 4,283,850  |   |         | $ | 4,728,891 |   |

----

| Year   | Pension Insurance Expense     |                 |       | Unemployment Insurance Expense |                                     | Total                     |                 |
|--------|-------------------------------|----------------------|------------|--------------------------------|------------------------------------------|---------------------------|----------------------|
|   | Province average salary (RMB) | Annual increase rate | Percentage | No. of employees               | Estimated pension insurance expense(RMB) | City average salary (RMB) | Annual increase rate | Percentage | No. of employees | Estimated pension insurance expense |  USD$1.00=RMB¥6.837@12/31/2009 | Present Value as of December 31, 2009(the incremental interest rate is 8%) |
| 2009   | 14,335                        | 4%                   | 20%        | 309                            | 885,919                                  | 11,420                    | 4%                   | 2.50% | 309 | 88,217 | 974,136 | 147,333 |   |   |
| 2010   | 13,784                        | 4%                   | 20%        | 316                            | 871,143                                  | 10,980                    | 4%                   | 2.50% | 316 | 86,745 | 957,888 | 144,876 | 886,934 | 129,722 |
| 2011   | 14,335                        | 4%                   | 20%        | 309                            | 885,919                                  | 11,420                    | 4%                   | 2.50% | 309 | 88,217 | 974,136 | 147,333 | 835,165 | 126,314 |
| 2012   | 14,909                        | 4%                   | 20%        | 301                            | 897,502                                  | 11,876                    | 4%                   | 2.50% | 301 | 89,370 | 986,872 | 149,259 | 783,411 | 118,487 |
| 2013   | 15,505                        | 4%                   | 20%        | 282                            | 874,483                                  | 12,351                    | 4%                   | 2.50% | 282 | 87,078 | 961,561 | 145,431 | 706,776 | 106,896 |
| 2014   | 16,125                        | 4%                   | 20%        | 268                            | 864,312                                  | 12,846                    | 4%                   | 2.50% | 268 | 86,065 | 950,377 | 143,740 | 646,811 | 97,827 |
| 2015   | 16,770                        | 4%                   | 20%        | 258                            | 865,344                                  | 13,359                    | 4%                   | 2.50% | 258 | 86,168 | 951,512 | 143,911 | 599,614 | 90,688 |
| 2016   | 17,441                        | 4%                   | 20%        | 244                            | 851,123                                  | 13,894                    | 4%                   | 2.50% | 244 | 84,752 | 935,875 | 141,546 | 546,074 | 82,591 |
| 2017   | 18,139                        | 4%                   | 20%        | 228                            | 827,124                                  | 14,449                    | 4%                   | 2.50% | 228 | 82,362 | 909,486 | 137,555 | 491,367 | 74,317 |
| 2018   | 18,864                        | 4%                   | 20%        | 215                            | 811,162                                  | 15,027                    | 4%                   | 2.50% | 215 | 80,772 | 891,935 | 134,900 | 446,189 | 67,484 |
| 2019   | 19,619                        | 4%                   | 20%        | 199                            | 780,828                                  | 15,629                    | 4%                   | 2.50% | 199 | 77,752 | 858,580 | 129,856 | 397,689 | 60,148 |
| 2020   | 20,404                        | 4%                   | 20%        | 173                            | 705,963                                  | 16,254                    | 4%                   | 2.50% | 173 | 70,297 | 776,260 | 117,405 | 332,925 | 50,353 |
| 2021   | 21,220                        | 4%                   | 20%        | 148                            | 628,103                                  | 16,904                    | 4%                   | 2.50% | 148 | 62,544 | 690,647 | 104,457 | 274,265 | 41,481 |
| 2022   | 22,068                        | 4%                   | 20%        | 135                            | 595,849                                  | 17,580                    | 4%                   | 2.50% | 135 | 59,332 | 655,182 | 99,093 | 240,909 | 36,436 |
| 2023   | 22,951                        | 4%                   | 20%        | 113                            | 518,698                                  | 18,283                    | 4%                   | 2.50% | 113 | 51,650 | 570,348 | 86,262 | 194,181 | 29,369 |
| 2024   | 23,869                        | 4%                   | 20%        | 102                            | 486,933                                  | 19,015                    | 4%                   | 2.50% | 102 | 48,487 | 535,420 | 80,979 | 168,787 | 25,528 |
| 2025   | 24,824                        | 4%                   | 20%        | 77                             | 382,290                                  | 19,775                    | 4%                   | 2.50% | 77 | 38,067 | 420,357 | 63,577 | 122,698 | 18,557 |
| 2026   | 25,817                        | 4%                   | 20%        | 52                             | 268,497                                  | 20,566                    | 4%                   | 2.50% | 52 | 26,736 | 295,233 | 44,652 | 79,792 | 12,068 |
| 2027   | 26,850                        | 4%                   | 20%        | 41                             | 220,167                                  | 21,389                    | 4%                   | 2.50% | 41 | 21,923 | 242,091 | 36,615 | 60,583 | 9,163 |
| 2028   | 27,924                        | 4%                   | 20%        | 25                             | 139,618                                  | 22,244                    | 4%                   | 2.50% | 25 | 13,903 | 153,521 | 23,219 | 35,573 | 5,380 |
| 2029   | 29,041                        | 4%                   | 20%        | 18                             | 104,546                                  | 23,134                    | 4%                   | 2.50% | 18 | 10,410 | 114,957 | 17,387 | 24,664 | 3,730 |
| 2030   | 30,202                        | 4%                   | 20%        | 12                             | 72,485                                   | 24,059                    | 4%                   | 2.50% | 12 | 7,218 | 79,703 | 12,055 | 15,834 | 2,395 |
| 2031   | 31,410                        | 4%                   | 20%        | 6                              | 37,692                                   | 25,022                    | 4%                   | 2.50% | 6 | 3,753 | 41,446 | 6,268 | 7,624 | 1,153 |
| 2032   | 32,667                        | 4%                   | 20%        | 1                              | 6,533                                    | 26,023                    | 4%                   | 2.50% | 1 | 651 | 7,184 | 1,087 | 1,224 | 185 |
| Total  |                          |                 |       |                           | 12,696,318                               |                      |                 |   |   | 1,264,252 | 13,960,570 | 2,180,403 | 7,899,087 | 1,155,310 |

----

| -   | Fermenter: grain fermentation                                                                                                        |
|---------------|--------------------------------------------------------------------------------------------------------------------------------------|
| -   | Crasher: before the fermentation of the grain, it is better to have it crashed and then it can fully access to the distiller's yeast |

| -   | Brewing equipment: which is also called Liquor distillation equipment.  The well fermented semi-finished products can be poured into it. After heating, the Ethanol, water and various organic compounds can be fractioned by distillation. |
|---------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| -   | Cellar: for the storage of the liquor after it is brewed                                                                                                                                                                                                   |

| -   | Liquid filling machine: filling the liquor into the containers, such as the bottles |
|---------------|-------------------------------------------------------------------------------------|
| -   | Capping machine: cover the bottle shutters                                          |

| -   | Labeling machine: affix  labels on the products |
|---------------|-----------------------------------------------------------|
| -   | Packaging machine: put the bottles into the boxes.        |

| -   | Carton sealing machine seal the boxes                                                                                                                                                  |
|---------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| -   | Progressive assembly line: it can help to make the liquid filling, capping, labeling and packaging, etc be completed in an assembly line so it can speed up the production efficiency. |

|  in any bankruptcy petition                                                                                                                                                    |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|  in any conviction of a criminal proceeding or involved in a pending criminal proceeding (excluding traffic violations and minor offenses)                                     |
|  is subject to any order, judgment or decree enjoining, barring suspending or otherwise limiting their involvement in any type of business, securities, or banking activities, |
|  has been found to have violated a federal or state securities or commodities law.                                                                                             |

----

| CALENDAR YEARS |   | BY QUARTER |   | BID PRICE |   |   |   |   |
|----------------|--------|------------|--------|-----------|--------|--------|--------|--------|
|           |   |       |   | LOW       |   |   | HIGH   |   |
|           |   |       |   |      |   |   |   |   |
| 2008           |   | First      |   | $         | 0.01   |   |   |   | 0.01 |   |
|           |   | Second     |   |      | 0.015  |   |   |   | 0.25 |   |
|           |   | Third      |   |      | 0.17   |   |   |   | 0.25 |   |
|           |   | Fourth     |   |      | 0.01   |   |   |   | 0.20 |   |
|           |   |       |   |      |   |   |   |   |   |   |
|           |   |       |   |      |   |   |   |   |   |   |
| 2009           |   | First      |   | $         | 0.01   |   |   | $      | 0.13 |   |
|           |   | Second     |   |      | 0.015  |   |   |   | 0.025 |   |
|           |   | Third      |   |      | 0.017  |   |   |   | 0.025 |   |
|           |   | Fourth     |   |      | 0.01   |   |   |   | 0.02 |   |

----

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----

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|              |   |                |   | For the Years Ended |   |
|-------------------|--------|---------------------|--------|---------------------|--------|
|              |   |                |   | December 31,        |   |
|              |   |                |   | 2009                |   |   | 2008 |   |
|  Distributor |   |  Related Party |   |                | 85     | % |   |   | 92 | % |
|              |   |  Third Party   |   |                | 15     | % |   |   | 8 | % |
|              |   |                |   |                | 100    | % |   |   | 100 | % |
|              |   |                |   |                |   |   |   |   |   |   |
|  Licensee    |   |  Related Party |   |                | 0      | % |   |   | 0 | % |
|              |   |  Third Party   |   |                | 100    | % |   |   | 100 | % |
|              |   |                |   |                | 100    | % |   |   | 100 | % |
|              |   |                |   |                |   |   |   |   |   |   |
|  Agent       |   |  Related Party |   |                | 0      | % |   |   | 0 | % |
|              |   |  Third Party   |   |                | 100    | % |   |   | 0 | % |
|              |   |                |   |                | 100    | % |   |   | 0 | % |

|        |   |                |   | For the Year Ended |      |   | For the Year Ended |   |
|-------------|--------|---------------------|--------|--------------------|-----------|--------|--------------------|--------|
|        |   |                |   | December 31, 2009  |      |   | December 31, 2008  |   |
|        |   |                |   | Revenue            |      |   | Costs of sales     |   |   | Gross Profit |   |   | Gross Profit % |   |   | Revenue |   |   | Costs of sales |   |   | Gross Profit |   |   | Gross Profit % |   |
|        |   |  Related Party |   |               | 897,056   |   |               |   | 1,076,084 |   |   |   | (179,027 | ) |   |   | 19.96 | % |   |   | 854,715 |   |   |   | 861,499 |   |   |   | (6,784 | ) |   |   | (0.79 | )% |
| Distributor |   |  Third Party   |   |               | 162,638   |   |               |   | 43,192 |   |   |   | 118,725 |   |   |   | 73.02 | % |   |   | 99,036 |   |   |   | 27,730 |   |   |   | 71,306 |   |   |   | 72.02 | % |
|        |   |  Subtotal      |   |               | 1,059,694 |   |               |   | 1,119,996 |   |   |   | (60,302 | ) |   |   | (5.69 | )% |   |   | 953,751 |   |   |   | 889,229 |   |   |   | 64,522 |   |   |   | 6.77 | % |
|        |   |                |   |               |      |   |               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|        |   |  Related Party |   |               | -         |   |               |   | - |   |   |   | - |   |   |   |   |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 0.00 | % |
| Licensee    |   |  Third Party   |   |               | 731,711   |   |               |   | - |   |   |   | 731,711 |   |   |   |   |   |   |   | 189,444 |   |   |   | - |   |   |   | 189,444 |   |   |   |   |   |
|        |   |  Subtotal      |   |               | 731,711   |   |               |   | - |   |   |   | 731,711 |   |   |   |   |   |   |   | 189,444 |   |   |   | - |   |   |   | 189,444 |   |   |   |   |   |
|        |   |                |   |               |      |   |               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|        |   |  Related Party |   |               | -         |   |               |   | - |   |   |   | - |   |   |   |   |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   |   |   |
| Agent       |   |  Third Party   |   |               | 196,254   |   |               |   | - |   |   |   | 196,254 |   |   |   |   |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   |   |   |
|        |   |  Subtotal      |   |               | 196,254   |   |               |   | - |   |   |   | 196,254 |   |   |   |   |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   |   |   |
|        |   |  Total         |   |               | 1,987,659 |   |               |   | 1,119,996 |   |   |   | 867,663 |   |   |   | 43.65 | % |   |   | 1,143,195 |   |   |   | 889,229 |   |   |   | 253,966 |   |   |   | 22.22 | % |

----

----

----

----

| No.   |   |  Name of Related-party                                            |   |  Description           |   | Balance @ 12/31/08 |       |   | Effects of foreign currency translation |   |   | Payback in 2009 |   |   | Additional borrowing in 2009 |   |   | Balance @ 12/31/09 |      |   | Highest Balance during 2009 |   |
|-------|--------|------------------------------------------------------------------------|--------|-----------------------------|--------|--------------------|------------|--------|-----------------------------------------|--------|--------|-----------------|--------|--------|------------------------------|--------|--------|--------------------|-----------|--------|-----------------------------|--------|
| 1     |   | Shaanxi Dukang Group Co., Ltd.                                         |   | Affiliate                   |   |               | 471,244    |   |                                    |   | 1,172  |            |   |   | 1,274,734                    |   |   |               | 1,391,175 |   |                        |   | 588,857 |   |   |   | 881,375 |   |
| 2     |   | Shaanxi Zhongke Spaceflight Agriculture Development Stock Co., Ltd     |   | Affiliate                   |   |               | 33,512     |   |                                    |   | 31     |            |   |   | -                            |   |   |               | -         |   |                        |   | 33,543 |   |   |   | 33,543 |   |
| 3     |   | Shaanxi Baishui Dukang Marketing Management  Co. Ltd         |   | Affiliate                   |   |               | 1,179      |   |                                    |   | 3      |            |   |   | 104,868                      |   |   |               | 116,553   |   |                        |   | 12,867 |   |   |   | 27,508 |   |
| 4     |   | Shaanxi Baishui Dukang Commercial and Trade Co. Ltd                    |   | Affiliate                   |   |               | 72,853     |   |                                    |   | 180    |            |   |   | 2,290                        |   |   |               | 1,463     |   |                        |   | 72,206 |   |   |   | 74,496 |   |
| 5     |   | Shaanxi Baishui Dukang Spirits Industry  Development Co. Ltd |   | Affiliate                   |   |               | 876,721    |   |                                    |   | 2,179  |            |   |   | 349,644                      |   |   |               | 739,200   |   |                        |   | 1,268,456 |   |   |   | 1,353,844 |   |
| 6     |   | Shaanxi Changjiang Electric Power and Energy Sources Co. Ltd           |   | Affiliate                   |   |               | 291,792    |   |                                    |   | 725    |            |   |   | 292,517                      |   |   |               | -         |   |                        |   | - |   |   |   | 292,517 |   |
| 7     |   | Shaanxi Baishui Dukang Trade Co.ltd                                    |   | Affiliate                   |   |               | -          |   |                                    |   | -      |            |   |   | 193,849                      |   |   |               | 355,923   |   |                        |   | 162,074 |   |   |   | 328,935 |   |
| 8     |   | Shaanxi Lantian Fuping Investment Co., Ltd.                            |   | Affiliate                   |   |               | -          |   |                                    |   | -      |            |   |   | -                            |   |   |               | 292,517   |   |                        |   | 292,517 |   |   |   | 292,517 |   |
| 9     |   | Shaanxi Baishui Shiye Co., Ltd.                                        |   | Affiliate                   |   |               | -          |   |                                    |   | -      |            |   |   | -                            |   |   |               | -         |   |                        |   | - |   |   |   | - |   |
| 10    |   | Shaanxi Changjiang Petrol Co., Ltd.                                    |   | Affiliate                   |   |               | -          |   |                                    |   | -      |            |   |   | -                            |   |   |               | -         |   |                        |   | - |   |   |   | - |   |
| 11    |   | Mr. Hongjun Zhang                                                      |   | Shareholder                 |   |               | 3,058,821  |   |                                    |   | 7,605  |            |   |   | 95,272                       |   |   |               | 218,647   |   |                        |   | 3,189,801 |   |   |   | 3,189,801 |   |
| 12    |   | Mr. Guoqi Diao                                                         |   | Prior director of Xidenghui |   |               | 392,107    |   |                                    |   | 975    |            |   |   | -                            |   |   |               | -         |   |                        |   | 393,082 |   |   |   | 393,082 |   |
| 13    |   | Ms. Ping Li                                                            |   | Secretary of the Board      |   |               | 581,438    |   |                                    |   | 1,446  |            |   |   | -                            |   |   |               | -         |   |                        |   | 582,884 |   |   |   | 582,884 |   |
| 14    |   | Mr. Pingjun Nie                                                        |   | Shareholder                 |   |               | 4,380,268  |   |                                    |   | 10,891 |            |   |   | -                            |   |   |               | -         |   |                        |   | 4,391,159 |   |   |   | 4,391,159 |   |
| 15    |   | Ms. Hong Ge                                                            |   | Prior director of Xidenghui |   |               | 263,991    |   |                                    |   | 657    |            |   |   | -                            |   |   |               | -         |   |                        |   | 264,648 |   |   |   | 264,648 |   |
| 16    |   | Mr.Hailong Tian                                                        |   | Prior director of Xidenghui |   |               | 2,760,680  |   |                                    |   | 6,864  |            |   |   | -                            |   |   |               | -         |   |                        |   | 2,767,544 |   |   |   | 2,767,544 |   |
| 17    |   | Ms. Ming Chen                                                          |   | Shareholder                 |   |               | 355,761    |   |                                    |   | 884    |            |   |   | 90,680                       |   |   |               | 30,342    |   |                        |   | 296,307 |   |   |   | 296,307 |   |
| 18    |   | Mr. Shengli Wang                                                       |   | Prior director of Xidenghui |   |               | 778,029    |   |                                    |   | 1,934  |            |   |   | -                            |   |   |               | -         |   |                        |   | 779,963 |   |   |   | 779,963 |   |
| Total |   |                                                                   |   |                        |   |               | 14,318,396 |   |                                    |   | 35,546 |            |   |   | 2,403,854                    |   |   |               | 3,145,820 |   |                        |   | 15,095,908 |   |   |   | 15,950,123 |   |

----

| For the Year Ended December 31, 2008 |   |                                                                   |   |                        |   |               |       |   |                                    |   |    |            |   |   |                         |   |   |               |
|--------------------------------------|--------|------------------------------------------------------------------------|--------|-----------------------------|--------|--------------------|------------|--------|-----------------------------------------|--------|---------|-----------------|--------|--------|------------------------------|--------|--------|--------------------|
| No.                                  |   |  Name of Related-party                                            |   |  Description           |   | Balance @ 12/31/07 |       |   | Effects of foreign currency translation |   |    | Payback in 2008 |   |   | Additional borrowing in 2008 |   |   | Balance @ 12/31/08 |   |   | Highest Balance during 2008 |   |
| 1                                    |   | Shaanxi Dukang Group Co., Ltd.                                         |   | Affiliate                   |   |               | -          |   |                                    |   | -       |            |   |   | -                            |   |   |               | 471,244 |   |   |   | 471,277 |   |   |   | 471,244 |   |
| 2                                    |   | Shaanxi Zhongke Spaceflight Agriculture Development Stock Co., Ltd     |   | Affiliate                   |   |               | 31,405     |   |                                    |   | 2,107   |            |   |   | -                            |   |   |               | - |   |   |   | 33,512 |   |   |   | 33,512 |   |
| 3                                    |   | Shaanxi Baishui Dukang Marketing Management  Co. Ltd         |   | Affiliate                   |   |               | 13,286     |   |                                    |   | 891     |            |   |   | 173,484                      |   |   |               | 160,486 |   |   |   | 1,179 |   |   |   | 68,707 |   |
| 4                                    |   | Shaanxi Baishui Dukang Commercial and Trade Co. Ltd                    |   | Affiliate                   |   |               | 68,975     |   |                                    |   | 4,530   |            |   |   | 53,939                       |   |   |               | 53,187 |   |   |   | 72,853 |   |   |   | 85,487 |   |
| 5                                    |   | Shaanxi Baishui Dukang Spirits Industry  Development Co. Ltd |   | Affiliate                   |   |               | 444,148    |   |                                    |   | 29,802  |            |   |   | 703,726                      |   |   |               | 1,106,497 |   |   |   | 876,721 |   |   |   | 1,054,845 |   |
| 6                                    |   | Shaanxi Changjiang Electric Power and Energy Sources Co. Ltd           |   | Affiliate                   |   |               | -          |   |                                    |   | -       |            |   |   | -                            |   |   |               | 291,792 |   |   |   | 291,792 |   |   |   | 291,792 |   |
| 7                                    |   | Shaanxi Baishui Dukang Trade Co.ltd                                    |   | Affiliate                   |   |               | -          |   |                                    |   | -       |            |   |   | -                            |   |   |               | - |   |   |   | - |   |   |   | - |   |
| 8                                    |   | Shaanxi Lantian Fuping Investment Co., Ltd.                            |   | Affiliate                   |   |               | -          |   |                                    |   | -       |            |   |   | -                            |   |   |               | - |   |   |   | - |   |   |   | - |   |
| 9                                    |   | Shaanxi Baishui Shiye Co., Ltd.                                        |   | Affiliate                   |   |               | -          |   |                                    |   | -       |            |   |   | -                            |   |   |               | - |   |   |   | - |   |   |   | - |   |
| 10                                   |   | Shaanxi Changjiang Petrol Co., Ltd.                                    |   | Affiliate                   |   |               | -          |   |                                    |   | -       |            |   |   | -                            |   |   |               | - |   |   |   | - |   |   |   | - |   |
| 11                                   |   | Mr. Hongjun Zhang                                                      |   | Shareholder                 |   |               | 2,742,484  |   |                                    |   | 184,014 |            |   |   | 10,863                       |   |   |               | 143,185 |   |   |   | 3,058,821 |   |   |   | 3,058,821 |   |
| 12                                   |   | Mr. Guoqi Diao                                                         |   | Prior director of Xidenghui |   |               | 367,452    |   |                                    |   | 24,655  |            |   |   |                         |   |   |               | - |   |   |   | 392,107 |   |   |   | 392,107 |   |
| 13                                   |   | Ms. Ping Li                                                            |   | Secretary of the Board      |   |               | 544,878    |   |                                    |   | 36,560  |            |   |   |                         |   |   |               | - |   |   |   | 581,438 |   |   |   | 581,438 |   |
| 14                                   |   | Mr. Pingjun Nie                                                        |   | Shareholder                 |   |               | 4,104,843  |   |                                    |   | 275,425 |            |   |   |                         |   |   |               | - |   |   |   | 4,380,258 |   |   |   | 4,380,298 |   |
| 15                                   |   | Ms. Hong Ge                                                            |   | Prior director of Xidenghui |   |               | 247,392    |   |                                    |   | 16,599  |            |   |   |                         |   |   |               | - |   |   |   | 253,991 |   |   |   | 253,991 |   |
| 16                                   |   | Mr.Hailong Tian                                                        |   | Prior director of Xidenghui |   |               | 2,587,092  |   |                                    |   | 173,588 |            |   |   |                         |   |   |               | - |   |   |   | 2,760,680 |   |   |   | 2,760,680 |   |
| 17                                   |   | Ms. Ming Chen                                                          |   | Shareholder                 |   |               | 333,391    |   |                                    |   | 22,370  |            |   |   |                         |   |   |               | - |   |   |   | 355,761 |   |   |   | 355,761 |   |
| 18                                   |   | Mr. Shengli Wang                                                       |   | Prior director of Xidenghui |   |               | 721,164    |   |                                    |   | 56,865  |            |   |   |                         |   |   |               | - |   |   |   | 778,029 |   |   |   | 778,029 |   |
| Total                                |   |                                                                   |   |                        |   |               | 12,206,510 |   |                                    |   | 827,506 |            |   |   | 942,012                      |   |   |               | 3,145,820 |   |   |   | 14,318,396 |   |   |   | 14,576,682 |   |

----

| For the Year ended December 31, 2009 |   |                                             |   |                                    |    |               |    |   |                                    |   |   |                       |    |   |               |   |    |               |
|--------------------------------------|--------|--------------------------------------------------|--------|-----------------------------------------|---------|--------------------|---------|--------|-----------------------------------------|--------|--------|----------------------------|---------|--------|--------------------|--------|---------|--------------------|
|                                 |   |                                             |   |                                    |    |               |    |   |                                    |   |   |                       |    |   |               |   |    |               |
| No.                                  |   |  Name of Related-party                      |   |  Description                       |    | Balance @ 12/31/08 |    |   | Effects of foreign currency translation |   |   | Additional Advance in 2009 |    |   | Collection in 2009 |   |    | Balance @ 12/31/09 |   |   | Highest Balance during 2009 |   |
|                                 |   | Shaanxi Yellow-river Wetlands Park Co., Ltd.     |   | Non-consolidated, 7.9% owned subsidiary |    |               | 116,717 |   |                                    |   | 290    |                       |    |   | 621,599            |   |    |               | - |   |   |   | 738,606 |   |   |   | 738,606 |   |
| 7                                    |   | Shaanox Baishui Dukang Trading Co.               |   | Affiliate                               |    |               | 48,332  |   |                                    |   | 120    |                       |    |   | -                  |   |    |               | 48,452 |   |   |   | - |   |   |   | 48,452 |   |
| 9                                    |   | Shaanxi Gurong Agriculture Development Co., Ltd. |   | Affiliate                               |    |               | -       |   |                                    |   | -      |                       |    |   | 372,960            |   |    |               | - |   |   |   | 372,960 |   |   |   | 372,960 |   |
|                                 |   | Mr. Wang, Yong Sheng                             |   | CEO                                     |    |               | 41,580  |   |                                    |   | 104    |                       |    |   | -                  |   |    |               | 41,684 |   |   |   | - |   |   |   | 41,684 |   |
|                                 |   | Ms. Nie, Fen Ying                                |   | Director                                |    |               | 21,884  |   |                                    |   | 54     |                       |    |   | -                  |   |    |               | 21,938 |   |   |   | - |   |   |   | 21,938 |   |
| Total                                |   |                                             |   |                                    | 228,513 |               |    |   | 568                                     |   |   |                       | 994,559 |   |               |   | 112,074 |               |   |   | 1,111,566 |   |   |   | 1,223,640 |   |

| For the Year ended December 31, 2008 |   |                                             |   |                                    |   |               |   |   |                                    |   |   |                       |    |   |               |   |   |               |
|--------------------------------------|--------|--------------------------------------------------|--------|-----------------------------------------|--------|--------------------|--------|--------|-----------------------------------------|--------|--------|----------------------------|---------|--------|--------------------|--------|--------|--------------------|
|                                 |   |                                             |   |                                    |   |               |   |   |                                    |   |   |                       |    |   |               |   |   |               |
| No.                                  |   |  Name of Related-party                      |   |  Description                       |   | Balance @ 12/31/07 |   |   | Effects of foreign currency translation |   |   | Additional Advance in 2008 |    |   | Collection in 2008 |   |   | Balance @ 12/31/08 |   |   | Highest Balance during 2008 |   |
|                                 |   | Shaanxi Yellow-river Wetlands Park Co., Ltd.     |   | Non-consolidated, 7.9% owned subsidiary |   |               | -      |   |                                    |   | -      |                       |    |   | 116,717            |   |   |               | - |   |   |   | 116,717 |   |   |   | 116,717 |   |
| 9                                    |   | Shaanxi Gurong Agriculture Development Co., Ltd. |   | Affiliate                               |   |               | -      |   |                                    |   | -      |                       |    |   | -                  |   |   |               | - |   |   |   | - |   |   |   | - |   |
| 7                                    |   | Shaanox Baishui Dukang Trading Co.               |   | Affiliate                               |   |               | 7,214  |   |                                    |   | -      |                       |    |   | 52,060             |   |   |               | 10,942 |   |   |   | 48,332 |   |   |   | 48,332 |   |
| 10                                   |   | Shaanix Mining New Energy Co., Ltd.              |   | Affiliate                               |   |               | -      |   |                                    |   | -      |                       |    |   | -                  |   |   |               | - |   |   |   | - |   |   |   | - |   |
|                                 |   | Mr. Wang, Yong Sheng                             |   | CEO                                     |   |               | -      |   |                                    |   | -      |                       |    |   | 41,580             |   |   |               | - |   |   |   | 41,580 |   |   |   | 41,580 |   |
|                                 |   | Ms. Nie, Fen Ying                                |   | Director                                |   |               | -      |   |                                    |   | -      |                       |    |   | 21,884             |   |   |               | - |   |   |   | 21,884 |   |   |   | 21,884 |   |
| Total                                |   |                                             |   |                                    | 7,214  |               |   |   | -                                       |   |   |                       | 232,241 |   |               |   | 10,942 |               |   |   | 228,513 |   |   |   | 228,513 |   |

----

| Inventories consist of following: |   |         |        |   |         |   |
|-----------------------------------|--------|--------------|-------------|--------|--------------|--------|
|                              |   | December 31, |        |   | December 31, |   |
|                              |   | 2009         |        |   | 2008         |   |
| Finished goods                    |   | $            | 769,619     |   |         | $      | 1,131,381 |   |
| Work-in-progress                  |   |         | 1,789,276   |   |         |   | 1,564,281 |   |
| Raw materials                     |   |         | 51,910      |   |         |   | 95,218 |   |
| Supplies and packing materials    |   |         | 83,971      |   |         |   | 168,715 |   |
|  Total                       |   | $            | 2, 694 ,596 |   |         | $      | 2,959,595 |   |

----

| -   | research and development |
|---------------|--------------------------|

| -   | general and administrative costs |
|---------------|----------------------------------|

| -   | and other operating expenses. |
|---------------|-------------------------------|

----

----

----

----

| NAME            |   | AGE    |   | TITLE  |                    | DATE OF APPOINTMENT |            | PERCENT OF TIME DEVOTED |   |
|-----------------|--------|--------|--------|--------|-------------------------|---------------------|-----------------|-------------------------|--------|
| Wang, Yongsheng |   |   | 36     |   | CEO                     |                | January 5, 2008 |                    |   | 100 | % |
| Liu, Su Ying    |   |   | 58     |   | Chief Financial Officer |                | January 5, 2008 |                    |   | 100 | % |
| Nie, Fen Ying   |   |   | 43     |   | Director                |                | January 5, 2008 |                    |   | 100 | % |

----

----

| • | Honest and ethical conduct, including the ethical handling of actual or apparent conflicts of interest between personal and professional relationships                                                                          |
|---------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | Full, fair, accurate, timely and understandable disclosure in reports and documents that a small business issuer files with, or submits to, the Commission and in other public communications made by the small business issuer |
| • | Compliance with applicable governmental laws, rules and regulations                                                                                                                                                             |

| • | The prompt internal reporting of violations of the code to an appropriate person or persons identified in the code |
|---------|--------------------------------------------------------------------------------------------------------------------|
| • | Accountability for adherence to the code                                                                           |

----

| SUMMARY COMPENSATION TABLE     |   |
|--------------------------------|--------|
| Name and principal position(a) |   | Year(b) |   |   | Salary ($)(c) |   |   | Bonus ($)(d) |   |   | StockAwards ($)(e) |   |   | OptionAwards ($)(f) |   |   | Non-EquityIncentive PlanCompensation ($)(g) |   |   | NonqualifiedDeferredCompensationEarnings ($)(h) |   |   | All OtherCompensation ($)(i) |   |   | Total ($) (j) |   |
|                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Wang,                          |   | 2009 |   |   | $ | 3,026 |   |   |   | 0 |   |   |   | 0 |   |   |   | 0 |   |   |   | 0 |   |   |   | 0 |   |   |   | 0 |   |   | $ | 3,026 |   |
| Yongsheng                      |   | 2008 |   |   | $ | 3,026 |   |   |   | 0 |   |   |   | 0 |   |   |   | 0 |   |   |   | 0 |   |   |   | 0 |   |   |   | 0 |   |   | $ | 3,026 |   |
| CEO                            |   | 2007 |   |   | $ | 3,474 |   |   |   | 0 |   |   |   | 0 |   |   |   | 0 |   |   |   | 0 |   |   |   | 0 |   |   |   | 0 |   |   | $ | 3,474 |   |
|                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Liu, Su Ying                   |   | 2009 |   |   | $ | 3,550 |   |   |   | 0 |   |   |   | 0 |   |   |   | 0 |   |   |   | 0 |   |   |   | 0 |   |   |   | 0 |   |   | $ | 3,550 |   |
| CFO                            |   | 2008 |   |   | $ | 3,550 |   |   |   | 0 |   |   |   | 0 |   |   |   | 0 |   |   |   | 0 |   |   |   | 0 |   |   |   | 0 |   |   | $ | 3,550 |   |
|                           |   | 2007 |   |   | $ | 3,250 |   |   |   | 0 |   |   |   | 0 |   |   |   | 0 |   |   |   | 0 |   |   |   | 0 |   |   |   | 0 |   |   | $ | 3,250 |   |
|                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Ni, Fen Ying                   |   | 2009 |   |   | $ | 3,447 |   |   |   | 0 |   |   |   | 0 |   |   |   | 0 |   |   |   | 0 |   |   |   | 0 |   |   |   | 0 |   |   | $ | 3,447 |   |
| Director                       |   | 2008 |   |   | $ | 3,447 |   |   |   | 0 |   |   |   | 0 |   |   |   | 0 |   |   |   | 0 |   |   |   | 0 |   |   |   | 0 |   |   | $ | 3,447 |   |
|                           |   | 2007 |   |   | $ | 3,150 |   |   |   | 0 |   |   |   | 0 |   |   |   | 0 |   |   |   | 0 |   |   |   | 0 |   |   |   | 0 |   |   | $ | 3,150 |   |

----

| Name and Position                           |   |  Shares    |   | Percentage   |
|---------------------------------------------|--------|-----------------|--------|--------------|
|                                        |   |            |   |         |
| Wang, YongshengCEO, Director                |   |  9,030,000 |   |  9.052% |
|                                        |   |            |   |         |
| Liu, Su YingChief Financial OfficerDirector |   | 0               |   | 0 %          |
|                                        |   |            |   |         |
| Nie, Fen YingDirector                       |   | 4,000,000       |   | 4.01%        |
|                                        |   |            |   |         |
| Deng Guo Gang                               |   | 8,800,000       |   | 8.822%       |
|                                        |   |            |   |         |
| Totals                                      |   | 13,030,000      |   | 13.062 %     |

| NAME            |   | AGE |   | TITLE                   |   | DATE OF APPOINTMENT |   | PERCENT OF TIME DEVOTED |   |
|-----------------|--------|-----|--------|-------------------------|--------|---------------------|--------|-------------------------|--------|
| Wang, Yongsheng |   | 36  |   | CEO                     |   | January 5, 2008     |   | 100                     | %      |
| Liu, Su Ying    |   | 58  |   | Chief Financial Officer |   | January 5, 2008     |   | 100                     | %      |
| Nie, Fen Ying   |   | 43  |   | Director                |   | January 5, 2008     |   | 100                     | %      |

----

| For the Year Ended December 31, 2009 |   |                                                                   |   |                        |   |               |       |   |                                    |   |   |            |   |   |                         |   |   |               |
|--------------------------------------|--------|------------------------------------------------------------------------|--------|-----------------------------|--------|--------------------|------------|--------|-----------------------------------------|--------|--------|-----------------|--------|--------|------------------------------|--------|--------|--------------------|
| No.                                  |   |  Name of Related-party                                            |   |  Description           |   | Balance @ 12/31/08 |       |   | Effects of foreign currency translation |   |   | Payback in 2009 |   |   | Additional borrowing in 2009 |   |   | Balance @ 12/31/09 |   |   | Highest Balance during 2009 |   |
| 1                                    |   | Shaanxi Dukang Group Co., Ltd.                                         |   | Affiliate                   |   |               | 471,244    |   |                                    |   | 1,172  |            |   |   | 1,274,734                    |   |   |               | 1,391,175 |   |   |   | 588,857 |   |   |   | 881,375 |   |
| 2                                    |   | Shaanxi Zhongke Spaceflight Agriculture Development Stock Co., Ltd     |   | Affiliate                   |   |               | 33,512     |   |                                    |   | 31     |            |   |   | -                            |   |   |               | - |   |   |   | 33,543 |   |   |   | 33,543 |   |
| 3                                    |   | Shaanxi Baishui Dukang Marketing Management  Co. Ltd         |   | Affiliate                   |   |               | 1,179      |   |                                    |   | 3      |            |   |   | 104,868                      |   |   |               | 116,553 |   |   |   | 12,867 |   |   |   | 27,508 |   |
| 4                                    |   | Shaanxi Baishui Dukang Commercial and Trade Co. Ltd                    |   | Affiliate                   |   |               | 72,853     |   |                                    |   | 180    |            |   |   | 2,290                        |   |   |               | 1,463 |   |   |   | 72,206 |   |   |   | 74,496 |   |
| 5                                    |   | Shaanxi Baishui Dukang Spirits Industry  Development Co. Ltd |   | Affiliate                   |   |               | 876,721    |   |                                    |   | 2,179  |            |   |   | 349,644                      |   |   |               | 739,200 |   |   |   | 1,268,456 |   |   |   | 1,353,844 |   |
| 6                                    |   | Shaanxi Changjiang Electric Power and Energy Sources Co. Ltd           |   | Affiliate                   |   |               | 291,792    |   |                                    |   | 725    |            |   |   | 292,517                      |   |   |               | - |   |   |   | - |   |   |   | 292,517 |   |
| 7                                    |   | Shaanxi Baishui Dukang Trade Co.ltd                                    |   | Affiliate                   |   |               | -          |   |                                    |   | -      |            |   |   | 193,849                      |   |   |               | 355,923 |   |   |   | 162,074 |   |   |   | 328,935 |   |
| 8                                    |   | Shaanxi Lantian Fuping Investment Co., Ltd.                            |   | Affiliate                   |   |               | -          |   |                                    |   | -      |            |   |   | -                            |   |   |               | 292,517 |   |   |   | 292,517 |   |   |   | 292,517 |   |
| 9                                    |   | Shaanxi Baishui Shiye Co., Ltd.                                        |   | Affiliate                   |   |               | -          |   |                                    |   | -      |            |   |   | -                            |   |   |               | - |   |   |   | - |   |   |   | - |   |
| 10                                   |   | Shaanxi Changjiang Petrol Co., Ltd.                                    |   | Affiliate                   |   |               | -          |   |                                    |   | -      |            |   |   | -                            |   |   |               | - |   |   |   | - |   |   |   | - |   |
| 11                                   |   | Mr. Hongjun Zhang                                                      |   | Shareholder                 |   |               | 3,058,821  |   |                                    |   | 7,605  |            |   |   | 95,272                       |   |   |               | 218,647 |   |   |   | 3,189,801 |   |   |   | 3,189,801 |   |
| 12                                   |   | Mr. Guoqi Diao                                                         |   | Prior director of Xidenghui |   |               | 392,107    |   |                                    |   | 975    |            |   |   | -                            |   |   |               | - |   |   |   | 393,082 |   |   |   | 393,082 |   |
| 13                                   |   | Ms. Ping Li                                                            |   | Secretary of the Board      |   |               | 581,438    |   |                                    |   | 1,446  |            |   |   | -                            |   |   |               | - |   |   |   | 582,884 |   |   |   | 582,884 |   |
| 14                                   |   | Mr. Pingjun Nie                                                        |   | Shareholder                 |   |               | 4,380,268  |   |                                    |   | 10,891 |            |   |   | -                            |   |   |               | - |   |   |   | 4,391,159 |   |   |   | 4,391,159 |   |
| 15                                   |   | Ms. Hong Ge                                                            |   | Prior director of Xidenghui |   |               | 263,991    |   |                                    |   | 657    |            |   |   | -                            |   |   |               | - |   |   |   | 264,648 |   |   |   | 264,648 |   |
| 16                                   |   | Mr.Hailong Tian                                                        |   | Prior director of Xidenghui |   |               | 2,760,680  |   |                                    |   | 6,864  |            |   |   | -                            |   |   |               | - |   |   |   | 2,767,544 |   |   |   | 2,767,544 |   |
| 17                                   |   | Ms. Ming Chen                                                          |   | Shareholder                 |   |               | 355,761    |   |                                    |   | 884    |            |   |   | 90,680                       |   |   |               | 30,342 |   |   |   | 296,307 |   |   |   | 296,307 |   |
| 18                                   |   | Mr. Shengli Wang                                                       |   | Prior director of Xidenghui |   |               | 778,029    |   |                                    |   | 1,934  |            |   |   | -                            |   |   |               | - |   |   |   | 779,963 |   |   |   | 779,963 |   |
| Total                                |   |                                                                   |   |                        |   |               | 14,318,396 |   |                                    |   | 35,546 |            |   |   | 2,403,854                    |   |   |               | 3,145,820 |   |   |   | 15,095,908 |   |   |   | 15,950,123 |   |

----

| For the Year Ended December 31, 2008 |   |                                                                   |   |                        |   |               |       |   |                                    |   |    |            |   |   |                         |   |   |               |
|--------------------------------------|--------|------------------------------------------------------------------------|--------|-----------------------------|--------|--------------------|------------|--------|-----------------------------------------|--------|---------|-----------------|--------|--------|------------------------------|--------|--------|--------------------|
| No.                                  |   |  Name of Related-party                                            |   |  Description           |   | Balance @ 12/31/07 |       |   | Effects of foreign currency translation |   |    | Payback in 2008 |   |   | Additional borrowing in 2008 |   |   | Balance @ 12/31/08 |   |   | Highest Balance during 2008 |   |
| 1                                    |   | Shaanxi Dukang Group Co., Ltd.                                         |   | Affiliate                   |   |               | -          |   |                                    |   | -       |            |   |   | -                            |   |   |               | 471,244 |   |   |   | 471,277 |   |   |   | 471,244 |   |
| 2                                    |   | Shaanxi Zhongke Spaceflight Agriculture Development Stock Co., Ltd     |   | Affiliate                   |   |               | 31,405     |   |                                    |   | 2,107   |            |   |   | -                            |   |   |               | - |   |   |   | 33,512 |   |   |   | 33,512 |   |
| 3                                    |   | Shaanxi Baishui Dukang Marketing Management  Co. Ltd         |   | Affiliate                   |   |               | 13,286     |   |                                    |   | 891     |            |   |   | 173,484                      |   |   |               | 160,486 |   |   |   | 1,179 |   |   |   | 68,707 |   |
| 4                                    |   | Shaanxi Baishui Dukang Commercial and Trade Co. Ltd                    |   | Affiliate                   |   |               | 68,975     |   |                                    |   | 4,530   |            |   |   | 53,939                       |   |   |               | 53,187 |   |   |   | 72,853 |   |   |   | 85,487 |   |
| 5                                    |   | Shaanxi Baishui Dukang Spirits Industry  Development Co. Ltd |   | Affiliate                   |   |               | 444,148    |   |                                    |   | 29,802  |            |   |   | 703,726                      |   |   |               | 1,106,497 |   |   |   | 876,721 |   |   |   | 1,054,845 |   |
| 6                                    |   | Shaanxi Changjiang Electric Power and Energy Sources Co. Ltd           |   | Affiliate                   |   |               | -          |   |                                    |   | -       |            |   |   | -                            |   |   |               | 291,792 |   |   |   | 291,792 |   |   |   | 291,792 |   |
| 7                                    |   | Shaanxi Baishui Dukang Trade Co.ltd                                    |   | Affiliate                   |   |               | -          |   |                                    |   | -       |            |   |   | -                            |   |   |               | - |   |   |   | - |   |   |   | - |   |
| 8                                    |   | Shaanxi Lantian Fuping Investment Co., Ltd.                            |   | Affiliate                   |   |               | -          |   |                                    |   | -       |            |   |   | -                            |   |   |               | - |   |   |   | - |   |   |   | - |   |
| 9                                    |   | Shaanxi Baishui Shiye Co., Ltd.                                        |   | Affiliate                   |   |               | -          |   |                                    |   | -       |            |   |   | -                            |   |   |               | - |   |   |   | - |   |   |   | - |   |
| 10                                   |   | Shaanxi Changjiang Petrol Co., Ltd.                                    |   | Affiliate                   |   |               | -          |   |                                    |   | -       |            |   |   | -                            |   |   |               | - |   |   |   | - |   |   |   | - |   |
| 11                                   |   | Mr. Hongjun Zhang                                                      |   | Shareholder                 |   |               | 2,742,484  |   |                                    |   | 184,014 |            |   |   | 10,863                       |   |   |               | 143,185 |   |   |   | 3,058,821 |   |   |   | 3,058,821 |   |
| 12                                   |   | Mr. Guoqi Diao                                                         |   | Prior director of Xidenghui |   |               | 367,452    |   |                                    |   | 24,655  |            |   |   |                         |   |   |               | - |   |   |   | 392,107 |   |   |   | 392,107 |   |
| 13                                   |   | Ms. Ping Li                                                            |   | Secretary of the Board      |   |               | 544,878    |   |                                    |   | 36,560  |            |   |   |                         |   |   |               | - |   |   |   | 581,438 |   |   |   | 581,438 |   |
| 14                                   |   | Mr. Pingjun Nie                                                        |   | Shareholder                 |   |               | 4,104,843  |   |                                    |   | 275,425 |            |   |   |                         |   |   |               | - |   |   |   | 4,380,258 |   |   |   | 4,380,298 |   |
| 15                                   |   | Ms. Hong Ge                                                            |   | Prior director of Xidenghui |   |               | 247,392    |   |                                    |   | 16,599  |            |   |   |                         |   |   |               | - |   |   |   | 253,991 |   |   |   | 253,991 |   |
| 16                                   |   | Mr.Hailong Tian                                                        |   | Prior director of Xidenghui |   |               | 2,587,092  |   |                                    |   | 173,588 |            |   |   |                         |   |   |               | - |   |   |   | 2,760,680 |   |   |   | 2,760,680 |   |
| 17                                   |   | Ms. Ming Chen                                                          |   | Shareholder                 |   |               | 333,391    |   |                                    |   | 22,370  |            |   |   |                         |   |   |               | - |   |   |   | 355,761 |   |   |   | 355,761 |   |
| 18                                   |   | Mr. Shengli Wang                                                       |   | Prior director of Xidenghui |   |               | 721,164    |   |                                    |   | 56,865  |            |   |   |                         |   |   |               | - |   |   |   | 778,029 |   |   |   | 778,029 |   |
| Total                                |   |                                                                   |   |                        |   |               | 12,206,510 |   |                                    |   | 827,506 |            |   |   | 942,012                      |   |   |               | 2,226,392 |   |   |   | 14,318,396 |   |   |   | 14,576,682 |   |

----

| For the Year ended December 31, 2009 |   |                                             |   |                                    |    |               |    |   |                                    |   |   |                       |    |   |               |   |    |               |
|--------------------------------------|--------|--------------------------------------------------|--------|-----------------------------------------|---------|--------------------|---------|--------|-----------------------------------------|--------|--------|----------------------------|---------|--------|--------------------|--------|---------|--------------------|
|                                 |   |                                             |   |                                    |    |               |    |   |                                    |   |   |                       |    |   |               |   |    |               |
| No.                                  |   |  Name of Related-party                      |   |  Description                       |    | Balance @ 12/31/08 |    |   | Effects of foreign currency translation |   |   | Additional Advance in 2009 |    |   | Collection in 2009 |   |    | Balance @ 12/31/09 |   |   | Highest Balance during 2009 |   |
|                                 |   | Shaanxi Yellow-river Wetlands Park Co., Ltd.     |   | Non-consolidated, 7.9% owned subsidiary |    |               | 116,717 |   |                                    |   | 290    |                       |    |   | 621,599            |   |    |               | - |   |   |   | 738,606 |   |   |   | 738,606 |   |
| 7                                    |   | Shaanox Baishui Dukang Trading Co.               |   | Affiliate                               |    |               | 48,332  |   |                                    |   | 120    |                       |    |   | -                  |   |    |               | 48,452 |   |   |   | - |   |   |   | 48,452 |   |
| 9                                    |   | Shaanxi Gurong Agriculture Development Co., Ltd. |   | Affiliate                               |    |               | -       |   |                                    |   | -      |                       |    |   | 372,960            |   |    |               | - |   |   |   | 372,960 |   |   |   | 372,960 |   |
|                                 |   | Mr. Wang, Yong Sheng                             |   | CEO                                     |    |               | 41,580  |   |                                    |   | 104    |                       |    |   | -                  |   |    |               | 41,684 |   |   |   | - |   |   |   | 41,684 |   |
|                                 |   | Ms. Nie, Fen Ying                                |   | Director                                |    |               | 21,884  |   |                                    |   | 54     |                       |    |   | -                  |   |    |               | 21,938 |   |   |   | - |   |   |   | 21,938 |   |
| Total                                |   |                                             |   |                                    | 228,513 |               |    |   | 568                                     |   |   |                       | 994,559 |   |               |   | 112,074 |               |   |   | 1,111,566 |   |   |   | 1,223,640 |   |

| For the Year ended December 31, 2008 |   |                                             |   |                                    |   |               |   |   |                                    |   |   |                       |    |   |               |   |   |               |
|--------------------------------------|--------|--------------------------------------------------|--------|-----------------------------------------|--------|--------------------|--------|--------|-----------------------------------------|--------|--------|----------------------------|---------|--------|--------------------|--------|--------|--------------------|
|                                 |   |                                             |   |                                    |   |               |   |   |                                    |   |   |                       |    |   |               |   |   |               |
| No.                                  |   |  Name of Related-party                      |   |  Description                       |   | Balance @ 12/31/07 |   |   | Effects of foreign currency translation |   |   | Additional Advance in 2008 |    |   | Collection in 2008 |   |   | Balance @ 12/31/08 |   |   | Highest Balance during 2008 |   |
|                                 |   | Shaanxi Yellow-river Wetlands Park Co., Ltd.     |   | Non-consolidated, 7.9% owned subsidiary |   |               | -      |   |                                    |   | -      |                       |    |   | 116,717            |   |   |               | - |   |   |   | 116,717 |   |   |   | 116,717 |   |
| 9                                    |   | Shaanxi Gurong Agriculture Development Co., Ltd. |   | Affiliate                               |   |               | -      |   |                                    |   | -      |                       |    |   | -                  |   |   |               | - |   |   |   | - |   |   |   | - |   |
| 7                                    |   | Shaanox Baishui Dukang Trading Co.               |   | Affiliate                               |   |               | 7,214  |   |                                    |   | -      |                       |    |   | 52,060             |   |   |               | 10,942 |   |   |   | 48,332 |   |   |   | 48,332 |   |
| 10                                   |   | Shaanix Mining New Energy Co., Ltd.              |   | Affiliate                               |   |               | -      |   |                                    |   | -      |                       |    |   | -                  |   |   |               | - |   |   |   | - |   |   |   | - |   |
|                                 |   | Mr. Wang, Yong Sheng                             |   | CEO                                     |   |               | -      |   |                                    |   | -      |                       |    |   | 41,580             |   |   |               | - |   |   |   | 41,580 |   |   |   | 41,580 |   |
|                                 |   | Ms. Nie, Fen Ying                                |   | Director                                |   |               | -      |   |                                    |   | -      |                       |    |   | 21,884             |   |   |               | - |   |   |   | 21,884 |   |   |   | 21,884 |   |
| Total                                |   |                                             |   |                                    | 7,214  |               |   |   | -                                       |   |   |                       | 232,241 |   |               |   | 10,942 |               |   |   | 228,513 |   |   |   | 228,513 |   |

----

|                                                                           |   |        |   | For the Year Ended |    |
|--------------------------------------------------------------------------------|--------|-------------|--------|--------------------|---------|
|                                                                           |   |        |   | December 31,       |    |
| Name of Related-party                                                          |   | Description |   | 2009               |    |   | 2008 |   |
|                                                                           |   |        |   |               |    |   |   |   |
| Shaanxi Dukang Group Co., Ltd.                                                 |   | Affiliate 1 |   | $                  | 594,731 |   |   | $ |         252,813 |   |
| Shaanxi Baishui Dukang Marketing Management  Co., Ltd.               |   | Affiliate 3 |   |               | 72,149  |   |   |   |         117,370 |   |
| Shaanxi Baishui Dukang Commercial and Trade Co., Ltd.                          |   | Affiliate 4 |   |               | 1,538   |   |   |   |           44,608 |   |
| Shaanxi Baishui Dukang Spirits Industry  Development Co., Ltd.       |   | Affiliate 5 |   |               | 129,866 |   |   |   |         321,127 |   |
| Shaanxi Baishui Shiye Co., Ltd. (F/K/A Shaanxi Baishui Dukang Trade Co., Ltd.) |   | Affiliate 6 |   |               | 98,772  |   |   |   | 118,797 |   |
| Total                                                                          |   |        |   | $                  | 897,056 |   |   | $ | 854,715 |   |

----

| Year Ended December 31             |   | 2009(2) |   |   | 2008(2) |   |
|------------------------------------|--------|---------|--------|--------|---------|--------|
|                               |   |    |   |   |    |   |
| Audit Fees (1)                |   | $       | 50,000 |   |    | $      | 40,000 |   |
| Audit-Related Fees (4)        |   |    | --     |   |    |   | -- |   |
| Tax Fees (5)                  |   |    | --     |   |    |   | -- |   |
| All Other Fees (6)            |   |    | --     |   |    |   | -- |   |
| Total Accounting Fees and Services |   | $       | 50,000 |   |    | $      | 40,000 |   |

|   | (1) | Audit Fees. These are fees for professional services for the audit of our annual financial statements, , and for services that are normally provided in connection with statutory and regulatory filings or engagements. |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|     | (2) | The amounts shown in 2009 and 2008 relate to (i) the audit of our annual financial statements for the fiscal years ended December 31, 2009 and 2008. We did not become a reporting company until January, 2010 so there were no quarterly reports or other reports that required review prior to this filing. |
|---------------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (4) | Audit-Related Fees. These are fees for the assurance and related services reasonably related to the performance of the audit or the review of our financial statements. |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (5) | Tax Fees. These are fees for professional services with respect to tax compliance, tax advice, and tax planning. |
|--------|-----|------------------------------------------------------------------------------------------------------------------|

|   | (6) | All Other Fees. These are fees for permissible work that does not fall within any of the other fee categories, i.e., Audit Fees, Audit-Related Fees, or Tax Fees. |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|                                                                                                                             |   | PAGE   |         |
|----------------------------------------------------------------------------------------------------------------------------------|--------|--------|--------------|
| Report of Independent Registered Public Accounting Firm                                                                          |   |   | 53      |   |
| Consolidated Balance Sheet s at December 31, 2009 and 2008 (Restated)                                                            |   |   | 54      |   |
| Consolidated Statements of Operations - for the years ended December 31, 2009 and 2008 (Restated)                           |   |   | 55      |   |
| Consolidated Statements of Changes in Shareholders’ Equity (Deficit)-for the years ended December 2009 and 2008 (Restated) |   |   | 56      |   |
| Consolidated Statements of Comprehensive Income-for the year ended December 31, 2009 and 2008 (Restated)                         |   |   | 57      |   |
| Notes to Consolidated Financial Statements                                                                                  |   |   | 59-102  |   |

----

| CHINA DU KANG CO., LTD. AND SUBSIDIARIES       |
|------------------------------------------------|
| F/K/A AMSTAR FINANCIAL HOLDINGS, INC.          |
|                                           |   |   |
|                                           |   |   |
|                                           |   |   |
|                                           |   |   |
| FINANCIAL REPORT                               |
| (Restated)                                     |
|                                           |   |   |
| At December 31, 2009 and 2008 and              |
| For the Years Ended December 31, 2009 and 2008 |

----

|                                                                            |   | PAGE   |   |
|---------------------------------------------------------------------------------|--------|--------|--------|
|                                                                            |   |   |   |
| REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM                         |   |   | 53     |   |
|                                                                            |   |   |   |   |
| CONSOLIDATED BALANCE SHEETS (RESTATED)                                          |   |   | 54     |   |
|                                                                            |   |   |   |   |
| CONSOLIDATED STATEMENTS OF OPERATIONS (RESTATED)                                |   |   | 55     |   |
|                                                                            |   |   |   |   |
| CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (DEFICIT) (RESTATED) |   |   | 56     |   |
|                                                                            |   |   |   |   |
| CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (RESTATED)                      |   |   | 57     |   |
|                                                                            |   |   |   |   |
| CONSOLIDATED STATEMENTS OF CASH FLOWS (RESTATED)                                |   |   | 58     |   |
|                                                                            |   |   |   |   |
| NOTES TO CONSOLIDATED FINANCIAL STATEMENTS                                      |   |   | 59-102 |   |

----

| KEITH K. ZHEN, CPA                                                                                               |
|------------------------------------------------------------------------------------------------------------------|
| CERTIFIED PUBLIC ACCOUNTANT                                                                                      |
| 2070 WEST 6TH STREET - BROOKLYN, NY 11223 - TEL (347) 408-0693 - FAX (347) 602-4868 - EMAIL :KEITHZHEN@GMAIL.COM |
|                                                                                                             |
|                                                                                                             |
| REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM                                                          |
|                                                                                                             |
| Board of Directors                                                                                               |
| China Du Kang Co., Ltd.                                                                                          |
| (f/k/a Amstar Financial Holdings, Inc.)                                                                          |

----

| CHINA DU KANG CO., LTD. AND SUBSIDIARIES                                                                                                                            |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| F/K/A AMSTAR FINANCIAL HOLDINGS, INC.                                                                                                                               |
|                                                                                                                                                                |   |   |   |   |   |   |
| CONSOLIDATED BALANCE SHEETS                                                                                                                                         |
| (Restated)                                                                                                                                                          |
|                                                                                                                                                                |   |
|                                                                                                                                                                |   | December 31, |   |   | December 31, |   |
|                                                                                                                                                                |   | 2009 |   |   | 2008 |   |
| ASSETS                                                                                                                                                              |
| Current Assets:                                                                                                                                                     |   |   |   |   |   |   |
| Cash and cash equivalents                                                                                                                                           |   | $ | 619,472 |   |   | $ | 698,050 |   |
| Others receivable                                                                                                                                                   |   |   | 67,134 |   |   |   | 3,494 |   |
| Prepaid expenses (Note 6)                                                                                                                                           |   |   | 506,992 |   |   |   | 138,398 |   |
| Inventories (Note 7)                                                                                                                                                |   |   | 2,694,596 |   |   |   | 2,959,595 |   |
| Total current assets                                                                                                                                                |   |   | 3,888,194 |   |   |   | 3,799,537 |   |
|                                                                                                                                                                |   |   |   |   |   |   |   |   |
| Property, Plant and Equipment, net (Note 8)                                                                                                                         |   |   | 4,283,850 |   |   |   | 4,728,891 |   |
| Intangible assets, net (Note 9)                                                                                                                                     |   |   | 66,456 |   |   |   | 76,083 |   |
| Long-term investment                                                                                                                                                |   |   | 1,755,104 |   |   |   | 1,750,751 |   |
|                                                                                                                                                                |   |   |   |   |   |   |   |   |
| Total Assets                                                                                                                                                        |   | $ | 9,993,604 |   |   | $ | 10,355,262 |   |
|                                                                                                                                                                |   |   |   |   |   |   |   |   |
| LIABILITIES AND SHAREHOLDERS' EQUITY                                                                                                                                |
| Current Liabilities:                                                                                                                                                |   |   |   |   |   |   |   |   |
| Bank loans (Note 14)                                                                                                                                                |   | $ | 292,517 |   |   | $ | - |   |
| Accounts payable                                                                                                                                                    |   |   | 856,270 |   |   |   | 844,240 |   |
| Accrued expenses (Note 11)                                                                                                                                          |   |   | 92,546 |   |   |   | 96,627 |   |
| Others payable                                                                                                                                                      |   |   | 56,711 |   |   |   | 28,200 |   |
| Taxes payable                                                                                                                                                       |   |   | 196,104 |   |   |   | 49,243 |   |
| Deferred revenue                                                                                                                                                    |   |   | 329,092 |   |   |   | 395,426 |   |
| Due to related parties (Note 12)                                                                                                                                    |   |   | 15,095,908 |   |   |   | 14,318,396 |   |
| Employee security deposit                                                                                                                                           |   |   | 77,225 |   |   |   | 78,786 |   |
| Lease liability-current                                                                                                                                             |   |   | 129,722 |   |   |   | 107,469 |   |
| Total Current Liabilities                                                                                                                                           |   |   | 17,126,095 |   |   |   | 15,918,387 |   |
|                                                                                                                                                                |   |   |   |   |   |   |   |   |
| Long-term Liabilities:                                                                                                                                              |   |   |   |   |   |   |   |   |
| Lease liability-long-term                                                                                                                                           |   |   | 1,025,588 |   |   |   | 1,152,445 |   |
| Total Long-term Liabilities                                                                                                                                         |   |   | 1,025,588 |   |   |   | 1,152,445 |   |
| Total Liabilities                                                                                                                                                   |   |   | 18,151,683 |   |   |   | 17,070,832 |   |
|                                                                                                                                                                |   |   |   |   |   |   |   |   |
| Commitments and Contingencies (Note 19)                                                                                                                             |   |   | - |   |   |   | - |   |
|                                                                                                                                                                |   |   |   |   |   |   |   |   |
| Shareholders' Equity:                                                                                                                                               |   |   |   |   |   |   |   |   |
| China Du Kang Co., Ltd. Shareholders' Equity                                                                                                                        |   |   |   |   |   |   |   |   |
| Preferred stock, par value $0.001, 5,000,000 shares authorized;                                                                                                     |   |   |   |   |   |   |   |   |
|             none issued and outstanding as ofno shares issued and outstanding as of                     |   |   |   |   |   |   |   |   |
| December 31, 2009 and 2008                                                                                                                                          |   |   | - |   |   |   | - |   |
| Common stock, par value $0.001, 250,000,000 shares authorized;                                                                                                      |   |   |   |   |   |   |   |   |
| 100,113,791 shares issued and outstanding as of                                                                                                                     |   |   |   |   |   |   |   |   |
|             86,000,000 shares issued and outstanding as of September 30, 2008December 31, 2009 and 2008 |   |   | 100,114 |   |   |   | 100,114 |   |
| Additional paid-in capital                                                                                                                                          |   |   | 13,749,971 |   |   |   | 12,916,060 |   |
| Accumulated deficit                                                                                                                                                 |   |   | (20,442,045 | ) |   |   | (19,120,989 | ) |
| Accumulated other comprehensive income                                                                                                                              |   |   | (443,773 | ) |   |   | (427,258 | ) |
| Due from related parties (Note 10)                                                                                                                                  |   |   | (1,111,566 | ) |   |   | (228,513 | ) |
| Total China Du Kang Co., Ltd.  Shareholders' equity (deficit)                                                                                             |   |   | (8,147,299 | ) |   |   | (6,760,586 | ) |
| Noncontrolling Interest                                                                                                                                             |   |   | (10,780 | ) |   |   | 45,016 |   |
| Total Equity (Deficit)                                                                                                                                              |   |   | (8,158,079 | ) |   |   | (6,715,570 | ) |
|   Total Liabilities and Equity (Deficit)                                                                                                                       |   | $ | 9,993,604 |   |   | $ | 10,355,262 |   |

----

| CHINA DU KANG CO., LTD. AND SUBSIDIARIES |
|------------------------------------------|
| F/K/A AMSTAR FINANCIAL HOLDINGS, INC.    |
|                                     |   |   |   |   |   |   |
| CONSOLIDATED STATEMENTS OF OPERATIONS    |
| (Restated)                               |
|                                     |   |

|                                                     |   | For the Year Ended December 31, |        |
|----------------------------------------------------------|--------|---------------------------------|-------------|
|                                                     |   | 2009                            |        |   | 2008 |   |
| Revenues                                                 |   |                            |        |   |   |   |
| Sales of Liquor                                          |   | $                               | 1,059,694   |   |   | $ | 953,751 |   |
| License Fees                                             |   |                            | 927,965     |   |   |   | 189,444 |   |
| Gross Profit                                             |   |                            | 1,987,659   |   |   |   | 1,143,195 |   |
|                                                     |   |                            |        |   |   |   |   |   |
| Costs of Revenues                                        |   |                            |        |   |   |   |   |   |
| Costs of Liquor Sold                                     |   |                            | 1,119,996   |   |   |   | 889,229 |   |
| Costs of Franchise Fees                                  |   |                            | -           |   |   |   | - |   |
| Total Costs of Sales                                     |   |                            | 1,119,996   |   |   |   | 889,229 |   |
|                                                     |   |                            |        |   |   |   |   |   |
| Gross Profit                                             |   |                            | 867,663     |   |   |   | 253,966 |   |
|                                                     |   |                            |        |   |   |   |   |   |
| Operating Expenses                                       |   |                            |        |   |   |   |   |   |
| Selling Expenses                                         |   |                            |        |   |   |   |   |   |
| Adverting expenses                                       |   |                            | 135,966     |   |   |   | 136,006 |   |
| Package design                                           |   |                            | 17,039      |   |   |   | 73,252 |   |
| Promotion expenses                                       |   |                            | 256,417     |   |   |   | 120,592 |   |
| Travel and entertainment                                 |   |                            | 56,327      |   |   |   | 41,547 |   |
|  Total Selling Expenses                             |   |                            | 465,749     |   |   |   | 371,397 |   |
|                                                     |   |                            |        |   |   |   |   |   |
| General and administrative expenses                      |   |                            |        |   |   |   |   |   |
| Payroll                                                  |   |                            | 266,278     |   |   |   | 248,828 |   |
| Employee benefit and pension                             |   |                            | 19,846      |   |   |   | 15,510 |   |
| Depreciation and amortization expenses                   |   |                            | 151,244     |   |   |   | 152,953 |   |
| Professional fees and consultancy fees                   |   |                            | 60,565      |   |   |   | 388,645 |   |
| Office expenses                                          |   |                            | 83,332      |   |   |   | 222,774 |   |
| Vehicle expenses                                         |   |                            | 30,168      |   |   |   | 42,034 |   |
| Loss on physical inventory count                         |   |                            | 121,595     |   |   |   | 67,673 |   |
| Travel and entertainment                                 |   |                            | 145,908     |   |   |   | 224,041 |   |
| Other general and administrative expenses                |   |                            | 12,391      |   |   |   | 15,828 |   |
| Total General and Administrative Expenses                |   |                            | 891,327     |   |   |   | 1,378,286 |   |
|                                                     |   |                            |        |   |   |   |   |   |
| Total Operating Expenses                                 |   |                            | 1,357,076   |   |   |   | 1,749,683 |   |
|                                                     |   |                            |        |   |   |   |   |   |
| Income (Loss) from Operation                             |   |                            | (489,413    | ) |   |   | (1,495,717 | ) |
|                                                     |   |                            |        |   |   |   |   |   |
| Other Income (Expenses)                                  |   |                            |        |   |   |   |   |   |
| Interest income                                          |   |                            | 1,485       |   |   |   | 3,000 |   |
| Interest expenses                                        |   |                            | (18,780     | ) |   |   | - |   |
| Imputed interest                                         |   |                            | (833,911    | ) |   |   | (765,057 | ) |
| Charity donation                                         |   |                            | (1,535      | ) |   |   | (15,296 | ) |
| Governmental subsidy                                     |   |                            | 73,090      |   |   |   | - |   |
| Other income (expense)                                   |   |                            | 1,433       |   |   |   | (1,284 | ) |
| Total other income (expenses)                            |   |                            | (778,218    | ) |   |   | (778,637 | ) |
|                                                     |   |                            |        |   |   |   |   |   |
| Income (Loss) before Provision for Income Tax            |   |                            | (1,267,631  | ) |   |   | (2,274,354 | ) |
|                                                     |   |                            |        |   |   |   |   |   |
| Provision for Income Tax                                 |   |                            | (109,302    | ) |   |   | - |   |
|                                                     |   |                            |        |   |   |   |   |   |
| Net Income (Loss)                                        |   |                            | (1,376,933  | ) |   |   | (2,274,354 | ) |
|                                                     |   |                            |        |   |   |   |   |   |
| Less: Net income attributable to noncontrolling interest |   |                            | 55,877      |   |   |   | 87,257 |   |
|                                                     |   |                            |        |   |   |   |   |   |
| Net Income (Loss) attributable to                        |   |                            |        |   |   |   |   |   |
|      China Du Kang Co., Ltd.    |   | $                               | (1,321,056  | ) |   | $ | (2,187,097 | ) |
|                                                     |   |                            |        |   |   |   |   |   |
| Basic and Fully Diluted Earnings per Share               |   | $                               | (0.01       | ) |   | $ | (0.02 | ) |
|                                                     |   |                            |        |   |   |   |   |   |
| Weighted average shares outstanding                      |   |                            | 100,113,791 |   |   |   | 98,730,800 |   |

----

|                                                                                                     |   | China Du Kang Co., Ltd. Shareholders |        |   |       |   |    |        |   |   |          |   |
|----------------------------------------------------------------------------------------------------------|--------|-------------------------------------------|-------------|--------|------------|--------|---------|-------------|--------|--------|---------------|--------|
|                                                                                                     |   |                                      |        |   |       |   |    |        |   |   |          |   |   | Accumulated |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                     |   | Common Stock                              |        |   | Additional |   |    |        |   |   | Other         |   |   | Due from |   |   | Total |   |   |   |   |   |   |   |   |   |   |
|                                                                                                     |   | $0.001 Par Value                          |        |   | Paid-in    |   |    | Accumulated |   |   | Comprehensive |   |   | Related |   |   | Shareholders' |   |   | Noncontrolling |   |   | Comprehensive |   |   | Total |   |
|                                                                                                     |   | Shares                                    |        |   | Amount     |   |    | Capital     |   |   | Deficit       |   |   | Income |   |   | Parties |   |   | Equity |   |   | Interest |   |   | Income |   |   | Equity |   |
| Balances at                                                                                              |   |                                      |        |   |       |   |    |        |   |   |          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|     December 31, 2007                                                                |   |                                      | 88,000,000  |   |       | $      | 88,000  |        |   | $      | 12,163,117    |   |   | $ | (16,933,892 | ) |   | $ | (84,942 | ) |   | $ | (7,214 | ) |   | $ | (4,774,931 | ) |   | $ | 125,246 |   |   |   |   |   | $ | (4,649,685 | ) |
|                                                                                                     |   |                                      |        |   |       |   |    |        |   |   |          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Reverse merger adjustment*                                                                               |   |                                      | 12,113,791  |   |       |   | 12,114  |        |   |   | (12,114       | )      |   |   | - |   |   |   | - |   |   |   |   |   |   |   | - |   |   |   | - |   |   |   |   |   |   | - |   |
|                                                                                                     |   |                                      |        |   |       |   |    |        |   |   |          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Proceeds from additional paid-in capital                                                                 |   |                                      |        |   |       |   |    |        |   |   |          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|     contribution-Merit                                                               |   |                                      | -           |   |       |   | -       |        |   |   | 136,722       |   |   |   | - |   |   |   | - |   |   |   |   |   |   |   | 136,722 |   |   |   | - |   |   |   |   |   |   | 136,722 |   |
|                                                                                                     |   |                                      |        |   |       |   |    |        |   |   |          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Cash used for Merit to                                                                                   |   |                                      |        |   |       |   |    |        |   |   |          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|     acquire Huitong                                                                  |   |                                      | -           |   |       |   | -       |        |   |   | (136,722      | )      |   |   | - |   |   |   | - |   |   |   |   |   |   |   | (136,722 | ) |   |   | - |   |   |   |   |   |   | (136,722 | ) |
|                                                                                                     |   |                                      |        |   |       |   |    |        |   |   |          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Imputed interest allocated                                                                               |   |                                      | -           |   |       |   | -       |        |   |   | 765,057       |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 765,057 |   |   |   | - |   |   |   |   |   |   | 765,057 |   |
|                                                                                                     |   |                                      |        |   |       |   |    |        |   |   |          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Comprehensive income                                                                                     |   |                                      |        |   |       |   |    |        |   |   |          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|      Net income                                                                 |   |                                      | -           |   |       |   | -       |        |   |   | -             |   |   |   | (2,187,097 | ) |   |   | - |   |   |   |   |   |   |   | (2,187,097 | ) |   |   | (87,257 | ) |   | $ | (2,274,354 | ) |   |   | (2,274,354 | ) |
|      Other comprehensive income, net of tax:                                    |   |                                      |        |   |       |   |    |        |   |   |          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|            Effects of foreign currency conversion |   |                                      | -           |   |       |   | -       |        |   |   | -             |   |   |   | - |   |   |   | (342,316 | ) |   |   |   |   |   |   | (342,316 | ) |   |   | 7,027 |   |   |   | (335,289 | ) |   |   | (335,289 | ) |
| Total comprehensive income                                                                               |   |                                      |        |   |       |   |    |        |   |   |          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | $ | (2,609,643 | ) |   |   |   |   |
|                                                                                                     |   |                                      |        |   |       |   |    |        |   |   |          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Due from related parties                                                                                 |   |                                      | -           |   |       |   | -       |        |   |   | -             |   |   |   | - |   |   |   | - |   |   |   | (221,299 | ) |   |   | (221,299 | ) |   |   | - |   |   |   |   |   |   |   | (221,299 | ) |
| Balances at                                                                                              |   |                                      |        |   |       |   |    |        |   |   |          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|     December 31, 2008                                                                |   |                                      | 100,113,791 |   |       | $      | 100,114 |        |   | $      | 12,916,060    |   |   | $ | (19,120,989 | ) |   | $ | (427,258 | ) |   | $ | (228,513 | ) |   | $ | (6,760,586 | ) |   | $ | 45,016 |   |   |   |   |   |   | $ | (6,715,570 | ) |
|                                                                                                     |   |                                      |        |   |       |   |    |        |   |   |          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Imputed interest allocated                                                                               |   |                                      | -           |   |       |   | -       |        |   |   | 833,911       |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 833,911 |   |   |   | - |   |   |   |   |   |   |   | 833,911 |   |
|                                                                                                     |   |                                      |        |   |       |   |    |        |   |   |          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Comprehensive income                                                                                     |   |                                      |        |   |       |   |    |        |   |   |          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|      Net income                                                                 |   |                                      | -           |   |       |   | -       |        |   |   | -             |   |   |   | (1,321,056 | ) |   |   | - |   |   |   | - |   |   |   | (1,321,056 | ) |   |   | (55,877 | ) |   | $ | (1,376,933 | ) |   |   | (1,376,933 | ) |
|      Other comprehensive income, net of tax:                                    |   |                                      |        |   |       |   |    |        |   |   |          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|            Effects of foreign currency conversion |   |                                      | -           |   |       |   | -       |        |   |   | -             |   |   |   | - |   |   |   | (16,515 | ) |   |   | - |   |   |   | (16,515 | ) |   |   | 81 |   |   |   | (16,434 | ) |   |   | (16,434 | ) |
| Total comprehensive income                                                                               |   |                                      |        |   |       |   |    |        |   |   |          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | $ | (1,393,367 | ) |   |   |   |   |
|                                                                                                     |   |                                      |        |   |       |   |    |        |   |   |          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Due from related parties                                                                                 |   |                                      | -           |   |       |   | -       |        |   |   | -             |   |   |   | - |   |   |   | - |   |   |   | (883,053 | ) |   |   | (883,053 | ) |   |   | - |   |   |   |   |   |   |   | (883,053 | ) |
| Balances at                                                                                              |   |                                      |        |   |       |   |    |        |   |   |          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|     December 31, 2009                                                                |   |                                      | 100,113,791 |   |       | $      | 100,114 |        |   | $      | 13,749,971    |   |   | $ | (20,442,045 | ) |   | $ | (443,773 | ) |   | $ | (1,111,566 | ) |   | $ | (8,147,299 | ) |   | $ | (10,780 | ) |   |   |   |   |   | $ | (8,158,079 | ) |

----

| CHINA DU KANG CO., LTD. AND SUBSIDIARIES                                                            |
|-----------------------------------------------------------------------------------------------------|
| F/K/A AMSTAR FINANCIAL HOLDINGS, INC.                                                               |
|                                                                                                |   |   |   |   |   |   |
| CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME                                                     |
| (Restated)                                                                                          |
|                                                                                                |   |   |   |   |   |   |
|                                                                                                | For the Year Ended |   |
|                                                                                                | December 31, |   |
|                                                                                                |   | 2009 |   |   | 2008 |   |
|                                                                                                |   |   |   |   |   |   |
| Net income                                                                                          |   | $ | (1,376,933 | ) |   | $ | (2,274,354 | ) |
| Other comprehensive income, net of tax:                                                             |   |   |   |   |   |   |   |   |
|       Effects of foreign currency conversion                          |   |   | (16,434 | ) |   |   | (335,289 | ) |
| Total other comprehensive, net of tax                                                               |   |   | (16,434 | ) |   |   | (335,289 | ) |
| Comprehensive income                                                                                |   |   | (1,393,367 | ) |   |   | (2,609,643 | ) |
|      Comprehensive income attributable to                                  |   |   |   |   |   |   |   |   |
|             the noncontrolling interest |   |   | 55,796 |   |   |   | 80,230 |   |
| Comprehensive income attributable to                                                                |   |   |   |   |   |   |   |   |
|      China Du Kang Co., Ltd.                                               |   | $ | (1,337,571 | ) |   | $ | (2,529,413 | ) |

----

| CHINA DU KANG CO., LTD. AND SUBSIDIARIES                                 |
|--------------------------------------------------------------------------|
| F/K/A AMSTAR FINANCIAL HOLDINGS, INC.                                    |
|                                                                     |   |   |   |   |   |   |
| CONSOLIDATED STATEMENTS OF CASH FLOWS                                    |
| (Restated)                                                               |
|                                                                     |   |   |   |   |   |   |
|                                                                     |   | For the Year Ended |   |
|                                                                     |   | December 31, |   |
|                                                                     |   | 2009 |   |   | 2008 |   |
| Cash Flows from Operating Activities                                     |   |   |   |   |   |   |
|                                                                     |   |   |   |   |   |   |
| Net income (loss) including noncontrolling interest                      |   | $ | (1,376,933 | ) |   | $ | (2,274,354 | ) |
| Adjustments to reconcile net income (loss)                               |   |   |   |   |   |   |   |   |
|    including noncontrolling interest to net cash          |   |   |   |   |   |   |   |   |
|    provided (used) by operating activities:               |   |   |   |   |   |   |   |   |
|         Imputed interest         |   |   | 833,911 |   |   |   | 765,057 |   |
|         Depreciation             |   |   | 368,554 |   |   |   | 358,327 |   |
|         Amortization             |   |   | 9,810 |   |   |   | 9,639 |   |
| Changes in operating assets and liabilities:                             |   |   |   |   |   |   |   |   |
|    (Increase)/Decrease in others payable                  |   |   | (63,597 | ) |   |   | 5,225 |   |
|    (Increase)/Decrease in prepaid expenses                |   |   | (368,052 | ) |   |   | 516,860 |   |
|    (Increase)/Decrease in inventories                     |   |   | 272,211 |   |   |   | (531,695 | ) |
|     Increase/(Decrease) in accounts payable          |   |   | 9,926 |   |   |   | (221,103 | ) |
|     Increase/(Decrease) in accrued expenses          |   |   | (4,319 | ) |   |   | 12,254 |   |
|     Increase/(Decrease) in other payable             |   |   | 28,426 |   |   |   | 1,244 |   |
|     Increase/(Decrease) in taxes payable             |   |   | 146,660 |   |   |   | 4,143 |   |
|     Increase/(Decrease) in deferred revenue          |   |   | (67,281 | ) |   |   | 389,289 |   |
|     Increase/(Decrease) in employee security deposit |   |   | (1,756 | ) |   |   | 77,563 |   |
|     Increase/(Decrease) in lease liability           |   |   | (107,679 | ) |   |   | (137,209 | ) |
| Net cash (used) by operating activities                                  |   |   | (320,119 | ) |   |   | (1,024,760 | ) |
|                                                                     |   |   |   |   |   |   |   |   |
| Cash Flows from Investing Activities                                     |   |   |   |   |   |   |   |   |
|                                                                     |   |   |   |   |   |   |   |   |
| Cash used to acquire Huitong                                             |   |   | - |   |   |   | (136,722 | ) |
| Purchase of fixed assets                                                 |   |   | (107,641 | ) |   |   | (200,195 | ) |
| Proceeds from disposal of fixed assets                                   |   |   | 77,449 |   |   |   | - |   |
| Advances to related parties                                              |   |   | (994,084 | ) |   |   | (228,330 | ) |
| Collections of advances to related parties                               |   |   | 112,074 |   |   |   | 10,942 |   |
| Net cash (used) by investing activities                                  |   |   | (912,202 | ) |   |   | (554,305 | ) |
|                                                                     |   |   |   |   |   |   |   |   |
| Cash Flows from Financing Activities                                     |   |   |   |   |   |   |   |   |
|                                                                     |   |   |   |   |   |   |   |   |
| Bank loans                                                               |   |   | 292,360 |   |   |   | - |   |
| Proceeds from capital contribution                                       |   |   | - |   |   |   | 136,722 |   |
| Proceeds from related parties                                            |   |   | 3,145,366 |   |   |   | 2,214,807 |   |
| Repayments to related parties                                            |   |   | (2,403,854 | ) |   |   | (942,012 | ) |
| Net cash provided by financing activities                                |   |   | 1,033,872 |   |   |   | 1,409,517 |   |
|                                                                     |   |   |   |   |   |   |   |   |
| Increase (decrease) in cash                                              |   |   | (198,449 | ) |   |   | (169,548 | ) |
| Effects of exchange rates on cash                                        |   |   | 119,871 |   |   |   | 129,780 |   |
| Cash at beginning of period                                              |   |   | 698,050 |   |   |   | 737,818 |   |
| Cash at end of period                                                    |   | $ | 619,472 |   |   | $ | 698,050 |   |
|                                                                     |   |   |   |   |   |   |   |   |
| Supplemental Disclosures of Cash Flow Information:                       |   |   |   |   |   |   |   |   |
|    Cash paid (received) during year for:                  |   |   |   |   |   |   |   |   |
|        Interest                       |   | $ | 18,780 |   |   | $ | - |   |
|        Income taxes                   |   | $ | - |   |   | $ | - |   |

----

| Note 1- | RESTATEMENT OF PREVIOUSLY ISSUED FINANCIAL STATEMENTS (restated)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
|---------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
|    | The United States Securities and Exchange Commission (the "Commission") issued comment letters on the Company’s previously issued financial statements. We provided responses and amended our financial statements per such comments.  Management believes such restatements reflect corrections of errors and omissions of material disclosures in the historical financial statements, in accordance with US GAAP.                                                                                                                                                                                                                                                      |
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
|    | Restatement to imputed interest                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
|    | The Company has taken loans from the related parties to finance its operation due to lack of cash resources. We did not record imputed interest for these loans in our previously issued reports. We now have concluded that we should present the imputed interest expense in our financial statements. The interest rate used in the calculation of imputed interest for the year ended December 31, 2009 and 2008 was 5.753% and 5.753%, respectively, which approximates the interest rate of our bank loans.                                                                                                                                                                         |
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
|    | Restatement to depreciation of capital lease                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
|    | In the previously issued report, we depreciated a capital lease in a 50-year period, which approximates the beneficial period of the land use right of the land the capital leased assets attached. We now have conclude that the capital lease should be depreciated over the lease duration, a 30-year period.                                                                                                                                                                                                                                                                                                                                                                          |
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
|    | Restatement to due from related parties                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
|    | We presented due from related parties in the asset in our previously issued reports. We now have concluded that we should present due from related parties in the equity as an offset to the shareholders' equity.                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
|    | Restatement to noncontrolling interest in the cash flows                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
|    | In the previously issued reports, we presented the noncontrolling interest (minority interest) as a separate line item in the cash flows from operating activities. We now have concluded that we should present the noncontrolling interest (minority interest) included into the line item "Net income (loss) including noncontrolling interest".                                                                                                                                                                                                                                                                                                                                       |
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
|    | Restatement to cash flows from due to/from related parties                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
|    | In the previously issued reports, we net the cash flows from investing activities the amounts of cash loaned to related parties and the cash received in repayment of the loans; and net the cash flows from financing activities the amounts of cash proceeds from related party borrowings and the cash repayments of related party borrowings. We now have concluded that we should present as investing activities the amounts of cash loaned to related parties separately from the cash received in repayment of loans; and present as financing activities the amounts of cash proceeds from related party borrowings separately from cash repayments of related party borrowings. |
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
|    | Restatement to condensed parent company financial statements                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
|    | We did not present the condensed parent company financial information in our previously issued reports.  We now have concluded that we should present the condensed parent company financial statements in accordance with Rule 12-04, Schedule I of Regulation S-X.                                                                                                                                                                                                                                                                                                                                                                                                            |
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
|    | These adjustments had effects in the consolidated balance sheets as of December 31, 2009 and 2008, and the consolidated statements of operations, the consolidated statements of changes in shareholders' equity (deficit), and the consolidated statements of cash flows in the year ended December 31, 2009 and 2008, and the notes to these consolidated financial statements, as more fully disclosed in the following.                                                                                                                                                                                                                                                               |

----

| Note 1- | RESTATEMENT OF PREVIOUSLY ISSUED FINANCIAL STATEMENTS (continued)                                 |
|---------|---------------------------------------------------------------------------------------------------|
|    |                                                                                              |
|    | The following tables present the impact of the adjustments and restatements on a condensed basis: |

|   |                                                                 |   | Amount Previously |        |
|--------|----------------------------------------------------------------------|--------|-------------------|-------------|
|   |                                                                 |   | Reported          |        |   | As Adjusted |   |
|   |                                                                 |   |              |        |   |   |   |
|   | Consolidated balance sheet as of December 31, 2009                   |   |              |        |   |   |   |   |   |
|   |                                                                 |   |              |        |   |   |   |   |   |
|   |      Other current assets                   |   | $                 | 3,888,194   |   |   | $ | 3,888,194 |   |
|   |      Due from related parties               |   |              | 1,111,566   |   |   |   | - |   |
|   |      Property, Plant and Equipment, net     |   |              | 4,631,698   |   |   |   | 4,283,850 |   |
|   |      Intangible assets, net                 |   |              | 66,456      |   |   |   | 66,456 |   |
|   |      Long-term investment                   |   |              | 1,755,104   |   |   |   | 1,755,104 |   |
|   |      Other current liabilities              |   |              | 16,800,269  |   |   |   | 16,800,269 |   |
|   |      Taxes payable                          |   |              | 198,965     |   |   |   | 196,104 |   |
|   |      Lease liability-current                |   |              | 129,722     |   |   |   | 129,722 |   |
|   |      Lease liability-long-term              |   |              | 1,025,588   |   |   |   | 1,025,588 |   |
|   |      Common stock                           |   |              | 100,114     |   |   |   | 100,114 |   |
|   |      Additional paid-in capital             |   |              | 10,671,262  |   |   |   | 13,749,971 |   |
|   |      Accumulated deficit                    |   |              | (17,078,877 | ) |   |   | (20,442,045 | ) |
|   |      Accumulated other comprehensive income |   |              | (421,776    | ) |   |   | (443,773 | ) |
|   |      Due from related parties               |   |              | -           |   |   |   | (1,111,566 | ) |
|   |      Noncontrolling Interest                |   | $                 | 27,751      |   |   | $ | (10,780 | ) |
|   |                                                                 |   |              |        |   |   |   |   |   |
|   | Consolidated balance Sheet as of December 31, 2008                   |   |              |        |   |   |   |   |   |
|   |                                                                 |   |              |        |   |   |   |   |   |
|   |      Other current assets                   |   | $                 | 3,799,537   |   |   | $ | 3,799,537 |   |
|   |      Due from related parties               |   |              | 228,513     |   |   |   | - |   |
|   |      Property, Plant and Equipment, net     |   |              | 5,047,159   |   |   |   | 4,728,891 |   |
|   |      Intangible assets, net                 |   |              | 76,083      |   |   |   | 76,083 |   |
|   |      Long-term investment                   |   |              | 1,750,751   |   |   |   | 1,750,751 |   |
|   |      Other current liabilities              |   |              | 15,761,675  |   |   |   | 15,761,675 |   |
|   |      Taxes payable                          |   |              | 49,243      |   |   |   | 49,243 |   |
|   |      Lease liability-current                |   |              | 107,469     |   |   |   | 107,469 |   |
|   |      Lease liability-long-term              |   |              | 1,152,445   |   |   |   | 1,152,445 |   |
|   |      Common stock                           |   |              | 100,114     |   |   |   | 100,114 |   |
|   |      Additional paid-in capital             |   |              | 10,671,262  |   |   |   | 12,916,060 |   |
|   |      Accumulated deficit                    |   |              | (16,618,614 | ) |   |   | (19,120,989 | ) |
|   |      Accumulated other comprehensive income |   |              | (405,969    | ) |   |   | (427,258 | ) |
|   |      Due from related parties               |   |              | -           |   |   |   | (228,513 | ) |
|   |      Noncontrolling Interest                |   | $                 | 84,418      |   |   | $ | 45,016 |   |

----

| Note 1- | RESTATEMENT OF PREVIOUSLY ISSUED FINANCIAL STATEMENTS (continued) |
|---------|-------------------------------------------------------------------|

|   |                                                                                                     |   | Amount Previously |      |
|--------|----------------------------------------------------------------------------------------------------------|--------|-------------------|-----------|
|   |                                                                                                     |   | Reported          |      |   | As Adjusted |   |
|   |                                                                                                     |   |              |      |   |   |   |
|   | Consolidated statement of operations for the fiscal year ended  December 31, 2009              |   |              |      |   |   |   |
|   |                                                                                                     |   |              |      |   |   |   |
|   | Revenue                                                                                                  |   | $                 | 1,987,659 |   |   | $ | 1,987,659 |   |
|   | Costs of revenue                                                                                         |   |              | 1,091,224 |   |   |   | 1,119,996 |   |
|   |      Gross Profit                                                               |   |              | 896,435   |   |   |   | 867,663 |   |
|   | Operating Expenses                                                                                       |   |              |      |   |   |   |   |   |
|   |      Selling expenses                                                           |   |              | 465,749   |   |   |   | 465,749 |   |
|   |      General and administrative expenses                                        |   |              | 891,327   |   |   |   | 891,327 |   |
|   |         Total Operating Expenses                                 |   |              | 1,357,076 |   |   |   | 1,357,076 |   |
|   | Income (Loss) from Operation                                                                             |   |              | (460,641  | ) |   |   | (489,413 | ) |
|   | Other Income (Expenses)                                                                                  |   |              |      |   |   |   |   |   |
|   |      Imputed interest                                                           |   |              | -         |   |   |   | (833,911 | ) |
|   |      Other income (expenses)                                                    |   |              | 55,693    |   |   |   | 55,693 |   |
|   |         Total Other Income (Expenses)                            |   |              | 55,693    |   |   |   | (778,218 | ) |
|   | Income (Loss) before Provision for Income Tax                                                            |   |              | (404,948  | ) |   |   | (1,267,631 | ) |
|   | Provision for Income Tax                                                                                 |   |              | (112,161  | ) |   |   | (109,302 | ) |
|   | Net Income (Loss)                                                                                        |   |              | (517,109  | ) |   |   | (1,376,933 | ) |
|   |         Less: Net income attributable to noncontrolling interest |   |              | 56,846    |   |   |   | 55,877 |   |
|   | Net Income (Loss) attributable to                                                                        |   |              |      |   |   |   |   |   |
|   |      China Du Kang Co., Ltd.                                                    |   |              | (460,263  | ) |   |   | (1,321,056 | ) |
|   | Other Comprehensive Income                                                                               |   |              |      |   |   |   |   |   |
|   |     Effects of Foreign Currency Conversion                                           |   |              | (15,807   | ) |   |   | (16,515 | ) |
|   | Comprehensive Income (Loss)                                                                              |   | $                 | (476,070  | ) |   | $ | (1,337,571 | ) |

| Consolidated statement of operations for the fiscal year ended December 31, 2008 |
|---------------------------------------------------------------------------------------|

|   | Revenue                                                                                                  |   | $      | 1,143,195  |   |   | $      | 1,143,195  |   |
|--------|----------------------------------------------------------------------------------------------------------|--------|--------|------------|--------|--------|--------|------------|--------|
|   | Costs of revenue                                                                                         |   |   | 860,959    |   |   |   | 889,229    |   |
|   |      Gross Profit                                                               |   |   | 282,236    |   |   |   | 253,966    |   |
|   | Operating Expenses                                                                                       |   |   |       |   |   |   |       |   |
|   |      Selling expenses                                                           |   |   | 371,397    |   |   |   | 371,397    |   |
|   |      General and administrative expenses                                        |   |   | 1,378,286  |   |   |   | 1,378,286  |   |
|   |         Total Operating Expenses                                 |   |   | 1,749,683  |   |   |   | 1,749,683  |   |
|   | Income (Loss) from Operation                                                                             |   |   | (1,467,447 | )      |   |   | (1,495,717 | )      |
|   | Other Income (Expenses)                                                                                  |   |   |       |   |   |   |       |   |
|   |      Imputed interest                                                           |   |   | -          |   |   |   | (765,057   | )      |
|   |      Other income (expenses)                                                    |   |   | (13,580    | )      |   |   | (13,580    | )      |
|   |         Total Other Income (Expenses)                            |   |   | (13,580    | )      |   |   | (778,637   | )      |
|   | Income (Loss) before Provision for Income Tax                                                            |   |   | (1,481,027 | )      |   |   | (2,274,354 | )      |
|   | Provision for Income Tax                                                                                 |   |   | -          |   |   |   | -          |   |
|   | Net Income (Loss)                                                                                        |   |   | (1,481,027 | )      |   |   | (2,274,354 | )      |
|   |         Less: Net income attributable to noncontrolling interest |   |   | 79,212     |   |   |   | 87,257     |   |
|   | Net Income (Loss) attributable to                                                                        |   |   |       |   |   |   |       |   |
|   |      China Du Kang Co., Ltd.                                                    |   | $      | (1,401,815 | )      |   | $      | (2,187,097 | )      |
|   | Other Comprehensive Income                                                                               |   |   |       |   |   |   |       |   |
|   |     Effects of Foreign Currency Conversion                                           |   |   | (325,755   | )      |   |   | (342,316   | )      |
|   | Comprehensive Income (Loss)                                                                              |   | $      | (1,727,570 | )      |   | $      | (2,529,413 | )      |

----

| Note 1 - | RESTATEMENT OF PREVIOUSLY ISSUED FINANCIAL STATEMENTS (continued) |
|----------|-------------------------------------------------------------------|

|                                                                                                     |   |             |        |   |       |   |    |        |   |   |          |   |   |    |        |   |           | Accumulated |     |          |   |   |          |   |   |   |    |   |   |   |       |   |   |   |       |
|----------------------------------------------------------------------------------------------------------|--------|------------------|-------------|--------|------------|--------|---------|-------------|--------|--------|---------------|--------|--------|---------|-------------|--------|----------------|-------------|----------|---------------|--------|--------|---------------|--------|--------|--------|---------|--------|--------|--------|------------|--------|--------|--------|------------|
|                                                                                                     |   | Common Stock     |        |   | Additional |   |    |        |   |   |          | Other  |   |    | Due from    |   |           |        |     |          |   | Total  |          |   |   |   |    |
|                                                                                                     |   | $0.001 Par Value |        |   | Paid-in    |   |    | Accumulated |   |   | Comprehensive |   |   | Related |        |   | Noncontrolling |        |     | Shareholders' |   |   | Comprehensive |   |
|                                                                                                     |   | Shares           |        |   | Amount     |   |    | Capital     |   |   | Deficit       |   |   | Income  |        |   | Parties        |        |     | Interest      |   |   | Equity        |   |   | Income |    |
| Balances at                                                                                              |   |             |        |   |       |   |    |        |   |   |          |   |   |    |        |   |           |        |     |          |   |   |          |   |   |   |    |   |   |   |       |   |   |   |       |   |
|     December 31, 2007                                                                |   |             | 88,000,000  |   |       | $      | 88,000  |        |   | $      | 10,683,376    |   |   | $       | (15,216,799 | )      |           | $           | (80,214  | )             |   | $      | -             |   |   | $      | 154,512 |   |   | $      | (4,371,125 | )      |   |   |       |   |
|                                                                                                     |   |             |        |   |       |   |    |        |   |   |          |   |   |    |        |   |           |        |     |          |   |   |          |   |   |   |    |   |   |   |       |   |   |   |       |   |
| Reverse merger adjustment*                                                                               |   |             | 12,113,791  |   |       |   | 12,114  |        |   |   | (12,114       | )      |   |    | -           |   |           |        | -        |          |   |   | -             |   |   |   | -       |   |   |   | -          |   |   |   |       |   |
|                                                                                                     |   |             |        |   |       |   |    |        |   |   |          |   |   |    |        |   |           |        |     |          |   |   |          |   |   |   |    |   |   |   |       |   |   |   |       |   |
| Proceeds from additional paid-in capital                                                                 |   |             |        |   |       |   |    |        |   |   |          |   |   |    |        |   |           |        |     |          |   |   |          |   |   |   |    |   |   |   |       |   |   |   |       |   |
|     contribution-Merit                                                               |   |             | -           |   |       |   | -       |        |   |   | 136,722       |   |   |    | -           |   |           |        | -        |          |   |   | -             |   |   |   | -       |   |   |   | 136,722    |   |   |   |       |   |
|                                                                                                     |   |             |        |   |       |   |    |        |   |   |          |   |   |    |        |   |           |        |     |          |   |   |          |   |   |   |    |   |   |   |       |   |   |   |       |   |
| Cash used for Merit to                                                                                   |   |             |        |   |       |   |    |        |   |   |          |   |   |    |        |   |           |        |     |          |   |   |          |   |   |   |    |   |   |   |       |   |   |   |       |   |
|     acquire Huitong                                                                  |   |             | -           |   |       |   | -       |        |   |   | (136,722      | )      |   |    | -           |   |           |        | -        |          |   |   | -             |   |   |   | -       |   |   |   | (136,722   | )      |   |   |       |   |
|                                                                                                     |   |             |        |   |       |   |    |        |   |   |          |   |   |    |        |   |           |        |     |          |   |   |          |   |   |   |    |   |   |   |       |   |   |   |       |   |
| Comprehensive income                                                                                     |   |             |        |   |       |   |    |        |   |   |          |   |   |    |        |   |           |        |     |          |   |   |          |   |   |   |    |   |   |   |       |   |   |   |       |   |
|      Net income                                                                 |   |             | -           |   |       |   | -       |        |   |   | -             |   |   |    | (1,401,815  | )      |           |        | -        |          |   |   | -             |   |   |   | (79,212 | )      |   |   | (1,481,027 | )      |   | $      | (1,481,027 | ) |
|      Other comprehensive income, net of tax:                                    |   |             |        |   |       |   |    |        |   |   |          |   |   |    |        |   |           |        |     |          |   |   |          |   |   |   |    |   |   |   |       |   |   |   |       |   |
|            Effects of foreign currency conversion |   |             | -           |   |       |   | -       |        |   |   | -             |   |   |    | -           |   |           |        | (325,755 | )             |   |   | -             |   |   |   | 9,118   |   |   |   | (316,637   | )      |   |   | (316,637   | ) |
|      Total other comprehensive income                                           |   |             |        |   |       |   |    |        |   |   |          |   |   |    |        |   |           |        |     |          |   |   |          |   |   |   |    |   |   |   |       |   |   |   | (316,637   | ) |
| Total comprehensive income                                                                               |   |             |        |   |       |   |    |        |   |   |          |   |   |    |        |   |           |        |     |          |   |   |          |   |   |   |    |   |   |   |       |   |   | $      | (1,797,664 | ) |
|                                                                                                     |   |             |        |   |       |   |    |        |   |   |          |   |   |    |        |   |           |        |     |          |   |   |          |   |   |   |    |   |   |   |       |   |   |   |       |   |
| Balances at                                                                                              |   |             |        |   |       |   |    |        |   |   |          |   |   |    |        |   |           |        |     |          |   |   |          |   |   |   |    |   |   |   |       |   |   |   |       |   |
|     December 31, 2008                                                                |   |             | 100,113,791 |   |       | $      | 100,114 |        |   | $      | 10,671,262    |   |   | $       | (16,618,614 | )      |           | $           | (405,969 | )             |   | $      | -             |   |   | $      | 84,418  |   |   | $      | (6,168,789 | )      |   |   |       |   |
|                                                                                                     |   |             |        |   |       |   |    |        |   |   |          |   |   |    |        |   |           |        |     |          |   |   |          |   |   |   |    |   |   |   |       |   |   |   |       |   |
| Comprehensive income                                                                                     |   |             |        |   |       |   |    |        |   |   |          |   |   |    |        |   |           |        |     |          |   |   |          |   |   |   |    |   |   |   |       |   |   |   |       |   |
|      Net income                                                                 |   |             | -           |   |       |   | -       |        |   |   | -             |   |   |    | (460,263    | )      |           |        | -        |          |   |   | -             |   |   |   | (56,846 | )      |   |   | (517,109   | )      |   | $      | (517,109   | ) |
|      Other comprehensive income, net of tax:                                    |   |             |        |   |       |   |    |        |   |   |          |   |   |    |        |   |           |        |     |          |   |   |          |   |   |   |    |   |   |   |       |   |   |   |       |   |
|            Effects of foreign currency conversion |   |             | -           |   |       |   | -       |        |   |   | -             |   |   |    | -           |   |           |        | (15,807  | )             |   |   | -             |   |   |   | 179     |   |   |   | (15,628    | )      |   |   | (15,628    | ) |
|      Total other comprehensive income                                           |   |             |        |   |       |   |    |        |   |   |          |   |   |    |        |   |           |        |     |          |   |   |          |   |   |   |    |   |   |   |       |   |   |   | (15,628    | ) |
| Total comprehensive income                                                                               |   |             |        |   |       |   |    |        |   |   |          |   |   |    |        |   |           |        |     |          |   |   |          |   |   |   |    |   |   |   |       |   |   | $      | (532,737   | ) |
|                                                                                                     |   |             |        |   |       |   |    |        |   |   |          |   |   |    |        |   |           |        |     |          |   |   |          |   |   |   |    |   |   |   |       |   |   |   |       |   |
| Balances at                                                                                              |   |             |        |   |       |   |    |        |   |   |          |   |   |    |        |   |           |        |     |          |   |   |          |   |   |   |    |   |   |   |       |   |   |   |       |   |
|     December 31, 2009                                                                |   |             | 100,113,791 |   |       | $      | 100,114 |        |   | $      | 10,671,262    |   |   | $       | (17,078,877 | )      |           | $           | (421,776 | )             |   | $      | -             |   |   | $      | 27,751  |   |   | $      | (6,701,526 | )      |   |   |       |   |

----

|                                                                                                     |   | China Du Kang Co., Ltd. Shareholders |        |   |       |   |    |        |   |   |          |   |
|----------------------------------------------------------------------------------------------------------|--------|-------------------------------------------|-------------|--------|------------|--------|---------|-------------|--------|--------|---------------|--------|
|                                                                                                     |   |                                      |        |   |       |   |    |        |   |   |          |   |   | Accumulated |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                     |   | Common Stock                              |        |   | Additional |   |    |        |   |   | Other         |   |   | Due from |   |   | Total |   |   |   |   |   |   |   |   |   |   |
|                                                                                                     |   | $0.001 Par Value                          |        |   | Paid-in    |   |    | Accumulated |   |   | Comprehensive |   |   | Related |   |   | Shareholders' |   |   | Noncontrolling |   |   | Comprehensive |   |   | Total |   |
|                                                                                                     |   | Shares                                    |        |   | Amount     |   |    | Capital     |   |   | Deficit       |   |   | Income |   |   | Parties |   |   | Equity |   |   | Interest |   |   | Income |   |   | Equity |   |
| Balances at                                                                                              |   |                                      |        |   |       |   |    |        |   |   |          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|     December 31, 2007                                                                |   |                                      | 88,000,000  |   |       | $      | 88,000  |        |   | $      | 12,163,117    |   |   | $ | (16,933,892 | ) |   | $ | (84,942 | ) |   | $ | (7,214 | ) |   | $ | (4,774,931 | ) |   | $ | 125,246 |   |   |   |   |   | $ | (4,649,685 | ) |
|                                                                                                     |   |                                      |        |   |       |   |    |        |   |   |          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Reverse merger adjustment*                                                                               |   |                                      | 12,113,791  |   |       |   | 12,114  |        |   |   | (12,114       | )      |   |   | - |   |   |   | - |   |   |   |   |   |   |   | - |   |   |   | - |   |   |   |   |   |   | - |   |
|                                                                                                     |   |                                      |        |   |       |   |    |        |   |   |          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Proceeds from additional paid-in capital                                                                 |   |                                      |        |   |       |   |    |        |   |   |          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|     contribution-Merit                                                               |   |                                      | -           |   |       |   | -       |        |   |   | 136,722       |   |   |   | - |   |   |   | - |   |   |   |   |   |   |   | 136,722 |   |   |   | - |   |   |   |   |   |   | 136,722 |   |
|                                                                                                     |   |                                      |        |   |       |   |    |        |   |   |          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Cash used for Merit to                                                                                   |   |                                      |        |   |       |   |    |        |   |   |          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|     acquire Huitong                                                                  |   |                                      | -           |   |       |   | -       |        |   |   | (136,722      | )      |   |   | - |   |   |   | - |   |   |   |   |   |   |   | (136,722 | ) |   |   | - |   |   |   |   |   |   | (136,722 | ) |
|                                                                                                     |   |                                      |        |   |       |   |    |        |   |   |          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Imputed interest allocated                                                                               |   |                                      | -           |   |       |   | -       |        |   |   | 765,057       |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 765,057 |   |   |   | - |   |   |   |   |   |   | 765,057 |   |
|                                                                                                     |   |                                      |        |   |       |   |    |        |   |   |          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Comprehensive income                                                                                     |   |                                      |        |   |       |   |    |        |   |   |          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|      Net income                                                                 |   |                                      | -           |   |       |   | -       |        |   |   | -             |   |   |   | (2,187,097 | ) |   |   | - |   |   |   |   |   |   |   | (2,187,097 | ) |   |   | (87,257 | ) |   | $ | (2,274,354 | ) |   |   | (2,274,354 | ) |
|      Other comprehensive income, net of tax:                                    |   |                                      |        |   |       |   |    |        |   |   |          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|            Effects of foreign currency conversion |   |                                      | -           |   |       |   | -       |        |   |   | -             |   |   |   | - |   |   |   | (342,316 | ) |   |   |   |   |   |   | (342,316 | ) |   |   | 7,027 |   |   |   | (335,289 | ) |   |   | (335,289 | ) |
| Total comprehensive income                                                                               |   |                                      |        |   |       |   |    |        |   |   |          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | $ | (2,609,643 | ) |   |   |   |   |
|                                                                                                     |   |                                      |        |   |       |   |    |        |   |   |          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Due from related parties                                                                                 |   |                                      | -           |   |       |   | -       |        |   |   | -             |   |   |   | - |   |   |   | - |   |   |   | (221,299 | ) |   |   | (221,299 | ) |   |   | - |   |   |   |   |   |   |   | (221,299 | ) |
| Balances at                                                                                              |   |                                      |        |   |       |   |    |        |   |   |          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|     December 31, 2008                                                                |   |                                      | 100,113,791 |   |       | $      | 100,114 |        |   | $      | 12,916,060    |   |   | $ | (19,120,989 | ) |   | $ | (427,258 | ) |   | $ | (228,513 | ) |   | $ | (6,760,586 | ) |   | $ | 45,016 |   |   |   |   |   |   | $ | (6,715,570 | ) |
|                                                                                                     |   |                                      |        |   |       |   |    |        |   |   |          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Imputed interest allocated                                                                               |   |                                      | -           |   |       |   | -       |        |   |   | 833,911       |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 833,911 |   |   |   | - |   |   |   |   |   |   |   | 833,911 |   |
|                                                                                                     |   |                                      |        |   |       |   |    |        |   |   |          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Comprehensive income                                                                                     |   |                                      |        |   |       |   |    |        |   |   |          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|      Net income                                                                 |   |                                      | -           |   |       |   | -       |        |   |   | -             |   |   |   | (1,321,056 | ) |   |   | - |   |   |   | - |   |   |   | (1,321,056 | ) |   |   | (55,877 | ) |   | $ | (1,376,933 | ) |   |   | (1,376,933 | ) |
|      Other comprehensive income, net of tax:                                    |   |                                      |        |   |       |   |    |        |   |   |          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|            Effects of foreign currency conversion |   |                                      | -           |   |       |   | -       |        |   |   | -             |   |   |   | - |   |   |   | (16,515 | ) |   |   | - |   |   |   | (16,515 | ) |   |   | 81 |   |   |   | (16,434 | ) |   |   | (16,434 | ) |
| Total comprehensive income                                                                               |   |                                      |        |   |       |   |    |        |   |   |          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | $ | (1,393,367 | ) |   |   |   |   |
|                                                                                                     |   |                                      | -           |   |       |   | -       |        |   |   | -             |   |   |   | - |   |   |   | - |   |   |   | (883,053 | ) |   |   | (883,053 | ) |   |   | - |   |   |   |   |   |   |   | (883,053 | ) |
| Balances at                                                                                              |   |                                      |        |   |       |   |    |        |   |   |          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|     December 31, 2009                                                                |   |                                      | 100,113,791 |   |       | $      | 100,114 |        |   | $      | 13,749,971    |   |   | $ | (20,442,045 | ) |   | $ | (443,773 | ) |   | $ | (1,111,566 | ) |   | $ | (8,147,299 | ) |   | $ | (10,780 | ) |   |   |   |   |   | $ | (8,158,079 | ) |

----

| Note 1- | RESTATEMENT OF PREVIOUSLY ISSUED FINANCIAL STATEMENTS (continued) |
|---------|-------------------------------------------------------------------|

|                                                                                             |   | Amount Previously |      |
|--------------------------------------------------------------------------------------------------|--------|-------------------|-----------|
|                                                                                             |   | Reported          |      |   | As Adjusted |   |
|                                                                                             |   |              |      |   |   |   |
| Consolidated statement of cash flows for the fiscal year ended  December 31, 2009      |   |              |      |   |   |   |
|                                                                                             |   |              |      |   |   |   |
| Cash Flows from Operating Activities                                                             |   |              |      |   |   |   |
|                                                                                             |   |              |      |   |   |   |
| Net income (loss) including noncontrolling interest                                              |   | $                 | (460,263  | ) |   | $ | (1,376,933 | ) |
| Adjustments to reconcile net income (loss)                                                       |   |              |      |   |   |   |   |   |
|    including noncontrolling interest to net cash                                  |   |              |      |   |   |   |   |   |
|    provided (used) by operating activities:                                       |   |              |      |   |   |   |   |   |
|         Minority interest                                |   |              | (56,846   | ) |   |   | - |   |
|         Imputed interest                                 |   |              | -         |   |   |   | 833,911 |   |
|         Depreciation                                     |   |              | 339,782   |   |   |   | 368,554 |   |
|         Amortization                                     |   |              | 9,810     |   |   |   | 9,810 |   |
| Changes in operating assets and liabilities:                                                     |   |              |      |   |   |   |   |   |
|    (Increase)/Decrease in assets                                                  |   |              | (159,438  | ) |   |   | (159,438 | ) |
|     Increase/(Decrease) in other liabilities                                 |   |              | (142,683  | ) |   |   | (142,683 | ) |
|     Increase/(Decrease) in taxes payable                                     |   |              | 149,519   |   |   |   | 146,660 |   |
|         Net cash provided (used) by operating activities |   |              | (320,119  | ) |   |   | (320,119 | ) |
|                                                                                             |   |              |      |   |   |   |   |   |
| Cash Flows from Investing Activities                                                             |   |              |      |   |   |   |   |   |
|                                                                                             |   |              |      |   |   |   |   |   |
| Purchase of fixed assets                                                                         |   |              | (107,641  | ) |   |   | (107,641 | ) |
| Proceeds from disposal of fixed assets                                                           |   |              | -         |   |   |   | 77,449 |   |
| Advances to related parties                                                                      |   |              | (668,432  | ) |   |   | (994,084 | ) |
| Collections of advances to related parties                                                       |   |              | -         |   |   |   | 112,074 |   |
|      Net cash (used) by investing activities                            |   |              | (776,073  | ) |   |   | (912,202 | ) |
|                                                                                             |   |              |      |   |   |   |   |   |
| Cash Flows from Financing Activities                                                             |   |              |      |   |   |   |   |   |
|                                                                                             |   |              |      |   |   |   |   |   |
| Bank loans                                                                                       |   |              | 292,360   |   |   |   | 292,360 |   |
| Proceeds from related parties                                                                    |   |              | 741,512   |   |   |   | 3,145,366 |   |
| Repayments to related parties                                                                    |   |              | -         |   |   |   | (2,403,854 | ) |
|      Net cash provided (used) by financing activities                   |   |              | 1,033,872 |   |   |   | 1,033,872 |   |
|                                                                                             |   |              |      |   |   |   |   |   |
| Increase (decrease) in cash                                                                      |   |              | (62,320   | ) |   |   | (198,449 | ) |
| Effects of exchange rates on cash                                                                |   |              | (16,258   | ) |   |   | 119,871 |   |
| Cash at beginning of period                                                                      |   |              | 698,050   |   |   |   | 698,050 |   |
| Cash at end of period                                                                            |   | $                 | 619,472   |   |   | $ | 619,472 |   |
|                                                                                             |   |              |      |   |   |   |   |   |
| Supplemental Disclosures of Cash Flow Information:                                               |   |              |      |   |   |   |   |   |
|    Cash paid (received) during year for:                                          |   |              |      |   |   |   |   |   |
|        Interest                                               |   | $                 | 18,780    |   |   | $ | 18,780 |   |
|        Income taxes                                           |   | $                 | -         |   |   | $ | - |   |

----

| Note 1- | RESTATEMENT OF PREVIOUSLY ISSUED FINANCIAL STATEMENTS (continued) |
|---------|-------------------------------------------------------------------|

|   |                                                                                       |   | Amount Previously |       |
|--------|--------------------------------------------------------------------------------------------|--------|-------------------|------------|
|   |                                                                                       |   | Reported          |       |   | As Adjusted |   |
|   |                                                                                       |   |              |       |   |   |   |
|   | Cash Flows from Operating Activities                                                       |   |              |       |   |   |   |
|   |                                                                                       |   |              |       |   |   |   |
|   | Net income (loss) including noncontrolling interest                                        |   | $                 | (1,401,815 | ) |   | $ | (2,274,354 | ) |
|   | Adjustments to reconcile net income (loss)                                                 |   |              |       |   |   |   |   |   |
|   |    including noncontrolling interest to net cash                            |   |              |       |   |   |   |   |   |
|   |    provided (used) by operating activities:                                 |   |              |       |   |   |   |   |   |
|   |         Minority interest                          |   |              | ( 79,212   | ) |   |   | - |   |
|   |         Imputed interest                           |   |              | -          |   |   |   | 765,057 |   |
|   |         Depreciation                               |   |              | 330,057    |   |   |   | 358,327 |   |
|   |         Amortization                               |   |              | 9,639      |   |   |   | 9,639 |   |
|   | Changes in operating assets and liabilities:                                               |   |              |       |   |   |   |   |   |
|   |    (Increase)/Decrease in assets                                            |   |              | (9,610     | ) |   |   | (9,610 | ) |
|   |     Increase/(Decrease) in other liabilities                           |   |              | 126,181    |   |   |   | 126,181 |   |
|   |        Net cash provided (used) by operating activities |   |              | (1,024,760 | ) |   |   | (1,024,760 | ) |
|   |                                                                                       |   |              |       |   |   |   |   |   |
|   | Cash Flows from Investing Activities                                                       |   |              |       |   |   |   |   |   |
|   |                                                                                       |   |              |       |   |   |   |   |   |
|   | Cash used to acquire Huitong                                                               |   |              | (136,722   | ) |   |   | (136,722 | ) |
|   | Purchase of fixed assets                                                                   |   |              | (200,195   | ) |   |   | (200,195 | ) |
|   | Advances to related parties                                                                |   |              | (217,388   | ) |   |   | (228,330 | ) |
|   | Collections of advances to related parties                                                 |   |              | -          |   |   |   | 10,942 |   |
|   |        Net cash (used) by investing activities          |   |              | (554,305   | ) |   |   | (554,305 | ) |
|   |                                                                                       |   |              |       |   |   |   |   |   |
|   | Cash Flows from Financing Activities                                                       |   |              |       |   |   |   |   |   |
|   |                                                                                       |   |              |       |   |   |   |   |   |
|   | Proceeds from capital contribution                                                         |   |              | 136,722    |   |   |   | 136,722 |   |
|   | Proceeds from related parties                                                              |   |              | -          |   |   |   | 2,214,807 |   |
|   | Repayments to related parties                                                              |   |              | 1,272,795  |   |   |   | (942,012 | ) |
|   |        Net cash provided (used) by financing activities |   |              | 1,409,517  |   |   |   | 1,409,517 |   |
|   |                                                                                       |   |              |       |   |   |   |   |   |
|   | Increase (decrease) in cash                                                                |   |              | (169,548   | ) |   |   | (169,548 | ) |
|   | Effects of exchange rates on cash                                                          |   |              | 129,780    |   |   |   | 129,780 |   |
|   | Cash at beginning of period                                                                |   |              | 737,818    |   |   |   | 737,818 |   |
|   | Cash at end of period                                                                      |   | $                 | 698,050    |   |   | $ | 698,050 |   |
|   |                                                                                       |   |              |       |   |   |   |   |   |
|   | Supplemental Disclosures of Cash Flow Information:                                         |   |              |       |   |   |   |   |   |
|   |    Cash paid (received) during year for:                                    |   |              |       |   |   |   |   |   |
|   |        Interest                                         |   | $                 | -          |   |   | $ | - |   |
|   |        Income taxes                                     |   | $                 | -          |   |   | $ | - |   |

----

| Note 2- | ORGANIZATION AND BUSINESS BACKGROUND                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
|---------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
|    | China Du Kang Co., Ltd (“China Du Kang” or the “Company”) was incorporated as U. S. Power Systems, Inc., in the State of Nevada on January 16, 1987.  On or about June 8, 2006 the Company’s name was changed to Premier Organic Farms Group, Inc. On or about November 30, 2006 the name was changed to Amstar Financial Holdings, Inc. (“AFLH”). On or about March 18, 2008 the name was changed to its current name of China Du Kang Co., Ltd. with its corporate charter still residing in Nevada.  The Company changed its fiscal year ending from September 30 to December 31 in February 2008.                                                                                                                                                                                                                                |
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
|    | The Company had been engaged in the business to provide various financial services since it's incorporated.  The Company was not successful and discontinued the majority of its operation by December 31, 2007.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
|    | On January 10, 2008, the Company entered into a Plan of Exchange Agreement (the “Exchange Agreement”) with Hong Kong Merit Enterprise Limited (“Merit”), a holding company incorporated in Hong Kong.  Pursuant to the terms of the Exchange Agreement, the Company agreed to issue post split 88,000,000 shares of its common stock to the shareholders of Merit in exchange for Merit to transfer all of its issued and outstanding shares of common stock to the Company, thereby causing Merit to become a wholly-owned subsidiary of the Company.  The parties closed the transaction contemplated by the Agreement on February 11, 2008.                                                                                                                                                                                                         |
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
|    | This transaction is being accounted for as a reverse merger, since the shareholders of Merit owns a majority of the outstanding shares of the Company’s common stock immediately following the share exchange.  Merit is deemed to be the acquirer in the reverse merger.  Consequently, the assets and liabilities and the historical operations that will reflected in the consolidated financial statements for periods prior to the share exchange will be those of Merit and its subsidiaries and will be recorded at the historical cost basis.  After completion of the share exchange, the Company‘s consolidated financial statements will include the assets and liabilities of both Du Kang and Merit, the historical operations of Merit and the operations of the Company and its subsidiaries from the closing date of the share exchange. |
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
|    | Merit was incorporated on September 8, 2006 in Hong Kong under the Companies Ordinances as a Limited Liability company.  Merit 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.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |

----

| Note 2- | ORGANIZATION AND BUSINESS BACKGROUND (continued)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
|---------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
|    | On January 22, 2008, Merit entered into a Share Purchase Agreement (the “Purchase Agreement”) with the owners of Shaanxi Huitong Food Co., Inc. ("Huitong"), a limited liability company incorporated in the People's Republic of China ("PRC") on August 9, 2007 with a registered capital of $128,200 (RMB1,000,000).  Pursuant to the Purchase Agreement,  Merit agreed to purchase 100% of the equity ownership in  Huitong for a cash consideration of $136,722 (RMB 1,000,000).  The local government approved the transaction on February 1, 2008.  Subsequent to the completion of the acquisition, Huitong became a wholly-owned subsidiary of Merit.                             |
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
|    | Huitong 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.  On December  26, 2007, Huitong executed an acquisition agreement with shareholders of Shaanxi Xidenghui Technology Stock Co., Ltd. ("Xidenghui"), whereby Huitong agreed to acquire 98.24% of the equity ownership of Xidenghui from the shareholders.  Subsequent to completion of the acquisition agreement,  Xidenghui became a majority-owned subsidiary of Huitong.                                                                                                                                                 |
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
|    | Xidenghui was incorporated  in Weinan City, Shaanxi Province, PRC on March 29, 2001 under the Company Law of PRC.  Xidenghui was engaged in the business of production and distribution of distilled spirit with a brand name of “Xidenghui”.  Currently, its principal business is to hold an equity ownership interest in Shannxi Baishui Dukang Liquor Co., Ltd. (“Baishui Dukang”) and Shaanxi Baishui Dukang Liquor Brand Management Co., Ltd. (“Brand Management”).                                                                                                                                                                                                              |
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
|    | Baishui Dukang was incorporated in Baishui County, Shanxi Province, PRC on March 1, 2002 under the Company Law of PRC.  Baishui Dukang was principally engaged in the business of production and distribution of distilled spirit (liquor) with a brand name of “Baishui Du Kang”. On May 15, 2002, Xidenghui invested inventory and fixed assets with a total fair value of $ 4,470,219 (RMB 37,000,000) to Baishui Dukang and owns 90.51% of Baishui Dukang’s equity interest ownership, thereby causing Baishui Dukang to become a majority-owned subsidiary of Xidenghui.                                                                                                                                                |
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
|    | On October 30, 2007, Xidenghui executed an agreement with Mr. Zhang Hongjun, a PRC citizen, to establish a joint venture, Shaanxi Baishui Dukang Liquor Brand Management Co., Ltd. ("Brand Management").  Pursuant to the agreement, Xidenghui contributed cash of $95,704 (RMB 700,000), and owns 70% equity interest ownership therein.  Brand Management was subsequently incorporated on November 12, 2007.  Upon the completion of incorporation, Brand Management became a majority-owned subsidiary of the Xidenghui.  Brand Management is principally engaged in the business of distribution of Baishui Dukang’s liquor and manage the franchise of the “Baishui Du Kang” brand name. |

----

| Note 2- | ORGANIZATION AND OPERATIONS (continued)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
|---------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
|    | Baishui Dukang and Brand Management are the two of these affiliated companies that are engaged in business operations.  Du Kang, Merit, Huitong, and Xidenghui are holding companies, whose business is to hold an equity ownership interest in Baishui Dukang and Brand Management.   All these affiliated companies are hereafter referred to as the "Company".  Currently, the Company is principally engaged in the business of production and distribution of distilled spirit with the brand name of “Baishui Dukang”. The Company also licenses the brand name to other liquor manufactures and liquor stores.  The Company's structure is summarized in the following chart. |

|   | Under the PRC regulations on acquisition of businesses, commonly referred to as "SAFE" regulations (State Administration of Foreign Exchange), which were jointly  adopted on August 8,   2006   by six PRC regulatory agencies with jurisdictional Authority, a Chinese entity may not be owned or controlled directly by foreign investors or shareholders but may be acquired in a two-step transaction with a wholly owned foreign enterprise (“WOFE”). |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| Note 2- | ORGANIZATION AND OPERATIONS (continued)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
|---------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
|    | China Du Kang is the US holding company for Merit, a Hong Kong entity organized under the Companies Ordinance as a limited liability company. Merit was established as a WOFE corporation for the purpose of effecting an acquisition transaction with Huitong, a WOFE corporation incorporated in PRC. Huitong in turn majority owns Xidenghui, which was a Chinese holding company. Xidenghui had two subsidiaries, Baishui Dukang and Brand Management.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
|    | This arrangement provides separate holding companies for the United States, Hong Kong, and PRC. This allows the Company to lawfully conduct operations in China while ownership is represented in shares of the U. S. holding company.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
| Note 3- | CONTROL BY PRINCIPAL OWNERS                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
|    | The directors, executive officers, their affiliates, and related parties own, directly or indirectly, beneficially and in the aggregate, the majority of the voting power of the outstanding capital of the Company. Accordingly, directors, executive officers and their affiliates, if they voted their shares uniformly, would have the ability to control the approval of most corporate actions, including approving significant expenses, increasing the authorized capital and the dissolution, merger or sale of the Company's assets.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
| Note 4- | GOING CONCERN (restated)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
|    | As reflected in the accompanying consolidated financial statements, the Company had an accumulated deficit of $ 20,442,045 at December 31, 2009 that includes losses of $ 1,376,933 and $ 2,274,354 for the year ended December 31, 2009 and 2008, respectively.   In addition, The Company had a working capital deficiency of $ 13,237,901 and a shareholders' deficiency of $ 8,158,079 at December 31, 2009.  These factors raise substantial doubt about its ability to continue as a going concern.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
|    | Management has taken steps to revise the Company's operating and financial requirements.  The Company is actively pursuing additional funding and a potential merger or acquisition candidate and strategic partners, which would enhance owners' investment.  However, there can be no assurance that sufficient funds required during the next year or thereafter will be generated from operations or that funds will be available from external sources such as debt or equity financings or other potential sources. The lack of additional capital resulting from the inability to generate cash flow from operations or to raise capital from external sources would force the Company to substantially curtail or cease operations and would, therefore, have a material adverse effect on its business. Furthermore, there can be no assurance that any such required funds, if available, will be available on attractive terms or that they will not have a significant dilutive effect on the Company's existing stockholders. |
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
|    | The accompanying financial statements do not include any adjustments related to the recoverability or classification of asset-carrying amounts or the amounts and classification of liabilities that may result should the Company be unable to continue as a going concern.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
|    | The Company relied heavily for its financing needs on its affiliates, shareholders/directors as more fully disclosed in Note 12 .                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |

----

| Note 5- | SIGNIFICANT ACCOUNTING POLICIES                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
|---------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
|    | Basis of Presentation                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
|    | The accompanying 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 consolidated financial statements is immaterial. |
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
|    | 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.                                                                                                                                                                                                                                                                                                                                                                                                |
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
|    | Certain amounts in the prior year's consolidated financial statements and notes have been revised to conform to the current year presentation.                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
|    | Use of Estimates                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
|    | The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenue and expenses during the reporting period.  Actual results when ultimately realized could differ from those estimates.                                                                                                                                      |
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
|    | Subsequent Events                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
|    | The Company evaluated subsequent events through the date of issuance of these financial statements. 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 consolidated financial statements.                                                                                                                                                                                                                                                                                                       |

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| Note 5- | SIGNIFICANT ACCOUNTING POLICIES (continued)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
|---------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
|    | Foreign Currencies Translation (restated)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
|    | The Company maintains its books and accounting records in PRC currency "Renminbi" ("RMB"), which is determined as the functional currency.  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 currencies other than RMB 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 owners' equity.  Gain and losses resulting from foreign currency transactions are included in operations. |
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
|    | The Company’s financial statements are translated into the reporting currency, the United States Dollar (“US$”).  Assets and liabilities of the Company are translated at the prevailing exchange rate at each reporting period end. Contributed capital accounts are translated using the historical rate of exchange when capital is injected. Income and expense accounts are translated at the average rate of exchange during the reporting period.  Translation adjustments resulting from translation of these consolidated financial statements are reflected as accumulated other comprehensive income (loss) in the consolidated statement of shareholders’ equity.                       |
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
|    | Translation adjustments resulting from this process are included in accumulated other comprehensive income (loss) in the statement of changes in owners’ equity and amounted to $ (443,773) and $ (427,258) as of December 31, 2009 and 2008, respectively.  The balance sheet amounts with the exception of equity at December 31, 2009 were translated at 6.837 RMB to $1.00 USD as compared to 6.854 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 years ended December 31, 2009 and 2008 were 6.841 RMB and 6.962 RMB, respectively.                                                            |
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
|    | Statement of Cash Flows                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
|    | In accordance with FASB guidance, cash flows from the Company’s operations is 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.                                                                                                                                                                                                                                                                                                                                                                                                         |

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| Note 5- | SIGNIFICANT ACCOUNTING POLICIES (continued)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
|---------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
|    | Revenue Recognition                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
|    | The Company recognizes revenue when the earnings process is complete, both title and the risks and rewards of ownership are transferred or services have been rendered and accepted, the selling price is fixed or determinable, and collectability is reasonably assured.                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
|    | (1) Sales of Liquor                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
|    | The Company generally sells liquor to liquor distributors with which the Company executed an exclusive distributor contract, pursuant to which the distributor cannot act as a distributor for any other products of the third party.  The Company recognizes liquor sales revenue when the significant risks and rewards of ownership have been transferred pursuant to PRC law, including such factors as when persuasive evidence of an arrangement exists, delivery has occurred, the sales price is fixed or determinable, sales and value-added tax laws have been complied with, and collectability is reasonably assured. The Company generally recognizes revenue from sales of liquor when its products are shipped. |
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
|    | The Company does not provide an unconditional right of return, price protection or any other concessions to our customers.  Sales returns and other allowances have been immaterial in our operation.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
|    | (2) License Fees                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
|    | (a) License fees from liquor manufactures                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
|    | We authorize liquor manufacturers who comply with our requirements to use certain sub brand names of “Baishui Dukang” to process the production of liquor and to sell to customers within the designated area in a certain period of time. The amount of license fee varies based on the sales territory and the number of sub brand names. We generally collect the entire license fee when the license agreement is executed, and then recognize license fee revenue over the beneficial period described by the agreement, as the revenue is realized or realizable and earned.                                                                                                                                           |
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
|    | (b) License fees from liquor stores                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
|    | We also authorize liquor stores who comply with our requirements to exclusively sell certain sub brand names of “Baishui Dukang” products within the designated area in a certain period of time. The amount of license fee varies based on the sales territory and the number of sub brand names. We generally collect the entire license fee when the agency agreement is executed, and then recognize license fee revenue over the beneficial period described by the agreement, as the revenue is realized or realizable and earned.                                                                                                                                                                                     |

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| Note 5- | SIGNIFICANT ACCOUNTING POLICIES (continued)                                                                                                                                                                                                                                                                                                                                                                                                                     |
|---------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   |   |   |   |   |   |   |   |
|    | Deferred Revenue                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |   |   |   |   |   |   |   |
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
|    | Deferred revenue consists of prepayments to the Company for products that have not yet been delivered to the customers and franchise fees received upfront for services have not yet been rendered and accepted.  Payments received prior to satisfying the Company’s revenue recognition criteria are recorded as deferred revenue.                                                                                                            |
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   |   |   |   |   |   |   |   |
|    | Cost of License Fees                                                                                                                                                                                                                                                                                                                                                                                                                                            |   |   |   |   |   |   |   |   |
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   |   |   |   |   |   |   |   |
|    | Costs of franchise fees principally include the costs to prepare the franchise contracts and the payroll to employees who are responsible for inspection and monitoring the franchisees. These expenses are immaterial and therefore included in the general and administrative expenses.                                                                                                                                                                       |
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   |   |   |   |   |   |   |   |
|    | Cash and Cash Equivalents                                                                                                                                                                                                                                                                                                                                                                                                                                       |   |   |   |   |   |   |   |
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
|    | Cash and cash equivalents include cash on hand, deposits in banks with maturities of three months or less, and all highly liquid investments which are unrestricted as to withdrawal or use, and which have original maturities of three months or less.                                                                                                                                                                                                        |
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   |   |   |   |   |   |   |   |
|    | Others Receivable                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |   |   |   |   |   |   |   |
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   |   |   |   |   |   |   |   |
|    | Others receivable principally includes advance to employees who are working on projects on behalf of the Company.  After the work is finished, they will submit expense reports with supporting documents to the accounting department. Upon being properly approved, the expenses are debited into the relevant accounts and the advances are credited out. Cash flows from these activities are classified as cash flows from operating activities. |
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   |   |   |   |   |   |   |   |
|    | 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.  Deposits held with banks in PRC may not be insured or exceed the amount of insurance provided on such deposits.  Generally these deposits may be redeemed upon demand and therefore bear minimal risk.                 |
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   |   |   |   |   |   |   |   |
|    | Fair Value of Financial Instruments                                                                                                                                                                                                                                                                                                                                                                                                                             |   |   |   |   |   |   |
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   |   |   |   |   |   |   |   |
|    | The carrying value of financial instruments including cash and cash equivalents, receivables, prepaid expenses, accounts payable, and accrued expenses, approximates their fair value due to the relatively short-term nature of these instruments.                                                                                                                                                                                                             |

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| Note 5- | SIGNIFICANT ACCOUNTING POLICIES (continued)                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |   |   |   |   |
|---------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|--------|--------|--------|
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |   |   |   |   |   |   |   |
|    | Inventories                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |   |   |   |   |   |   |   |
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |   |   |   |   |   |   |   |
|    | Inventories are stated at the lower of cost or market value. Actual cost is used to value raw materials and supplies. Finished goods and work-in-progress are valued on the weighted-average-cost method. Elements of costs in finished good and work-in-progress include raw materials, direct labor, and manufacturing overhead.                                                                                                                                                                  |
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |   |   |   |   |   |   |   |
|    | Baishui Dukang, one of our subsidiaries, is engaged in the distillery business.  Pursuant to the production requirement, all spirits that are newly distilled from sorghum, so call “liquor base”, must be barrel-aged for several years, so we bottle and sell only a portion of our liquor base inventory each year.  We classify barreled liquor base as work-in-progress. Following industry practice, we classify all barreled liquor base as a current asset. |
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |   |   |   |   |   |   |   |
|    | Property, Plant and Equipment                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   |   |   |   |   |   |
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |   |   |   |   |   |   |   |
|    | Property, plant and equipment are carried at cost.  The cost of repairs and maintenance is expensed as incurred; major replacements and improvements are capitalized.                                                                                                                                                                                                                                                                                                                     |
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |   |   |   |   |   |   |   |
|    | When assets are retired or disposed of, the cost and accumulated depreciation are removed from the accounts, and any resulting gains or losses are included in income in the year of disposition.                                                                                                                                                                                                                                                                                                   |
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |   |   |   |   |   |   |   |
|    | Depreciation is calculated on a straight-line basis over the estimated useful life of the assets without residual value.  The percentages or depreciable life applied are:                                                                                                                                                                                                                                                                                                                |

| Building and warehouses        | 20 years       |
|--------------------------------|----------------|
| Machinery and equipment        | 7-10 years     |
| Office equipment and furniture | 5 years        |
| Motor vehicles                 | 5 years        |
| Leased assets                  | Lease duration |

|   | Intangible Assets                                                                                                                                                                                                                      |   |   |   |   |   |   |   |   |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|--------|--------|--------|--------|--------|--------|
|   |                                                                                                                                                                                                                                   |   |   |   |   |   |   |   |   |
|   | Intangible assets are carried at cost.  Amortization is calculated on a straight-line basis over the estimated useful life of the assets without residual value.  The percentages or amortizable life applied are: |

| Land use right | 50 years |
|----------------|----------|
| Trade Mark     | 10 years |

----

| Note 5- | SIGNIFICANT ACCOUNTING POLICIES (continued)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   |   |   |   |   |
|---------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|--------|--------|--------|
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   |   |   |   |   |   |   |   |
|    | Land Use Right                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   |   |   |   |   |   |   |   |
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   |   |   |   |   |   |   |   |
|    | All land belongs to the State in PRC.  Enterprises and individuals can pay the State a fee to obtain a right to use a piece of land for commercial purpose or residential purpose for an initial period of 50 years or 70 years, respectively.  The land use right can be sold, purchased, and exchanged in the market.  The successor owner of the land use right will reduce the amount of time which has been consumed by the predecessor owner.                                                                                                                                                                                                     |
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   |   |   |   |   |   |   |   |
|    | The Company owns the right to use a piece of land, approximately 657 acre, located in Weinan City, Shaanxi Province for a fifty-year period ended February 9, 2051.   The costs of these land use rights are amortized over their prospective beneficial period, using the straight-line method with no residual value.                                                                                                                                                                                                                                                                                                                                                |
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   |   |   |   |   |   |   |   |
|    | Valuation of Long-Lived 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. |
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   |   |   |   |   |   |   |   |
|    | Long-term Investment                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   |   |   |   |   |   |   |   |
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   |   |   |   |   |   |   |   |
|    | On March 1, 2006, Xidenghui executed an investment agreement with Shaanxi Yichuan Nature Park Co., Inc., pursuant to which, Xidenghui agreed to invest cash of $1,596,254 (RMB 12,000,000) to establish a joint-venture named Shaanxi Yellow-river Wetlands Park Co., Ltd., and owns 7.9% equity ownership interest therein. Shaanxi Yellow-river Wetlands Park Co., Ltd. is engaged in the business of recreation and entertainment.                                                                                                                                                                                                                                                 |
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   |   |   |   |   |   |   |   |
|    | Xidenghui finished the investment contribution in September 2007.  As the project is currently ongoing, the Management believes the amount invested approximates the fair value and uses the cost method to record the investment.                                                                                                                                                                                                                                                                                                                                                                                                                                          |
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   |   |   |   |   |   |   |   |
|    | Advertising Costs                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |   |   |   |   |   |   |   |
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   |   |   |   |   |   |   |   |
|    | Advertising costs are expensed as incurred. The advertising costs were $ 135,966 , and $ 136,006 for the years ended December 31, 2009 and 2008, respectively.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |

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| Note 5- | SIGNIFICANT ACCOUNTING POLICIES (continued)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   |   |   |   |   |
|---------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|--------|--------|--------|
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |   |   |   |   |   |   |   |
|    | Research and Development Costs                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |   |   |   |   |   |
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |   |   |   |   |   |   |   |
|    | Research and development costs will be charged to expense as incurred. Research and development costs were immaterial for the year ended December 31, 2009 and 2008, respectively.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |   |   |   |   |   |   |   |
|    | Value-added Tax ("VAT")                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |   |   |   |   |   |   |
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |   |   |   |   |   |   |   |
|    | Sales revenue represents the invoiced value of goods, net of a value-added tax (VAT).  All of the Company’s products that are sold in PRC are subject to a Chinese value-added tax at a rate of 17% of the gross sales price or at a rate approved by the Chinese local government.  This VAT may be offset by VAT paid on purchase of raw materials included in the cost of producing the finished goods. The Company presents VAT on a net basis.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |   |   |   |   |   |   |   |
|    | Sales Tax                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   |   |   |   |   |   |   |   |
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |   |   |   |   |   |   |   |
|    | Baishui Dukang produces and distributes distilled liquor, which is subject to sales tax in PRC. Sales tax rate is $0.14 (RMB1.00) per kilogram and 10%-20% of gross sales revenue. The Company presents sales tax on a net basis.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |   |   |   |   |   |   |   |
|    | Related Parties                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   |   |   |   |   |   |   |   |
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |   |   |   |   |   |   |   |
|    | A party is considered to be related to the Company if the party directly or indirectly or through one or more intermediaries, controls, is controlled by, or is under common control with the Company. Related parties also include principal owners of the Company, its management, members of the immediate families of principal owners of the Company and its management and other parties with which the Company may deal if one party controls or can significantly influence the management or operating policies of the other to an extent that one of the transacting parties might be prevented from fully pursuing its own separate interests. A party which can significantly influence the management or operating policies of the transacting parties or if it has an ownership interest in one of the transacting parties and can significantly influence the other to an extent that one or more of the transacting parties might be prevented from fully pursuing its own separate interests is also a related party. |
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |   |   |   |   |   |   |   |
|    | Due from/to Affiliates                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |   |   |   |   |   |   |
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |   |   |   |   |   |   |   |
|    | Due from/to affiliates represent temporally short-term loans to/from affiliates, which are directly or indirectly, beneficially and in the aggregate, majority-owned and controlled by directors and principal shareholders of the Company.  These loans are unsecured, non-interest bearing and have no fixed terms of repayment, therefore, deemed payable on demand.  Cash flows from due from related parties are classified as cash flows from investing activities.  Cash flows from due to related parties are classified as cash flows from financing activities.                                                                                                                                                                                                                                                                                                                                                                                                                                |
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |   |   |   |   |   |   |   |
|    | Loans from Directors and Officers                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |   |   |   |   |   |   |
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |   |   |   |   |   |   |   |
|    | Loans from directors and officers are temporally short-term loans from our directors and officers to finance the Company’s operation 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 activates.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |

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| Note 5- | SIGNIFICANT ACCOUNTING POLICIES (continued)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |   |   |   |   |
|---------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|--------|--------|--------|
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |   |   |   |   |   |   |   |   |
|    | Imputed Interest                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   |   |   |   |   |   |   |   |
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |   |   |   |   |   |   |   |   |
|    | The Company has financed it business operation through short-term borrowings from various related parties. These short-term borrowings are non-secured, non-interest bearing with no fixed repayment date. The imputed interests are assessed as an expense to the business operation and an addition to the paid-in capital. The calculation is performed quarterly  based on the average outstanding balance and the market interest rate. The interest rate used in the calculation of imputed interest for the year ended December 31, 2009 and 2008 was 5.753% and 5.753%, respectively, which approximates the interest rate of our bank loans.                           |
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |   |   |   |   |   |   |   |   |
|    | Pension and Employee Benefits                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |   |   |   |   |   |
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |   |   |   |   |   |   |   |   |
|    | Full time employees of the PRC entities participate in a government mandated multi-employer defined contribution plan pursuant to which certain pension benefits, medical care, unemployment insurance, employee housing fund and other welfare benefits are provided to employees. Chinese labor regulations require the Company to accrue for these benefits based on certain percentages of the employees' salaries. The Management believes full time employees who have passed the probation period are entitled to such benefits.  The total provisions for such employee benefits was $ 19,846 and $ 15,510 for the year ended December 31, 2009 and 2008, respectively. |
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |   |   |   |   |   |   |   |   |
|    | Government Subsidies                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |   |   |   |   |   |   |   |
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |   |   |   |   |   |   |   |   |
|    | The Company records government grants as current liabilities upon reception.   A government subsidy revenue is recognized only when there is reasonable assurance that the Company has complied with all conditions attached to the grant.  The Company recognized government subsidy of $ 73,050 and $ 0 for the year ended December 31, 2009 and 2008, respectively.                                                                                                                                                                                                                                                                                           |

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| Note 5- | SIGNIFICANT ACCOUNTING POLICIES (continued)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   |   |   |   |
|---------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|--------|--------|
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |   |   |   |   |   |   |   |
|    | Income Taxes                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |   |   |   |   |   |   |   |
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |   |   |   |   |   |   |   |
|    | The Company accounts for income tax in accordance with FASB ASC 740-10-25, which requires the asset and liability approach for financial accounting and reporting for income taxes.  Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases.  Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled.  The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date.  A valuation allowance related to deferred tax assets is recorded when it is more likely than not that some portion or all of the deferred tax assets will not be realized. |
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |   |   |   |   |   |   |   |
|    | The Company has accumulated deficit in its operation.  Because there is no certainty that we will realize taxable income in the future, we did no record any deferred tax benefit as a result of these losses.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |   |   |   |   |   |   |   |
|    | Effective January 1, 2007, the Company adopted a new FASB guidance, which clarifies the accounting for uncertainty in income taxes recognized in an enterprise’s financial statements. The new FASB guidance 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.  The new FASB guidance 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 the new FASB guidance, the Company performed a self-assessment and concluded that there were no significant uncertain tax positions requiring recognition in its consolidated financial statements.                                                                                                                                            |
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |   |   |   |   |   |   |   |
|    | The Company accounts for income taxes in interim periods in accordance with FASB ASC 740-270, "Interim Reporting".  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.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |

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| 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.  Beginning from January 1, 2006, enterprise is no more required to make appropriation to the statutory public welfare fund.  The Company does not make appropriations to the discretionary surplus reserve fund. |
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |   |   |   |   |   |   |   |
|    | Since the Company has been accumulating deficiency, no contribution has been made to statutory surplus reserve fund and statutory public welfare reserve fund to date. The company will be required to make contribution to the statutory surplus reserve fund and statutory public welfare reserve fund upon the achievement of positive retained earnings, which means elimination of accumulated deficit and making further positive net income.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |   |   |   |   |   |   |   |
|    | Comprehensive Income                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |   |   |   |   |   |   |
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |   |   |   |   |   |   |   |
|    | FASB guidance 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 statements of changes in owners' 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.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |   |   |   |   |   |   |   |
|    | Segment Reporting                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   |   |   |   |   |   |   |   |
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |   |   |   |   |   |   |   |
|    | FASB guidance 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 currently operates in two principal business segments.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |

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| Note 5- | SIGNIFICANT ACCOUNTING POLICIES (continued)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |                                                                                                                                                                                                                                                                                                                              |   |   |   |   |
|---------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|--------|--------|
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |                                                                                                                                                                                                                                                                                                                              |   |   |   |   |   |   |
|    | Earnings (Loss) Per Share                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |                                                                                                                                                                                                                                                                                                                              |   |   |   |   |   |
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |                                                                                                                                                                                                                                                                                                                              |   |   |   |   |   |   |
|    | The Company reports earnings per share in accordance with FASB ASC 260, “Earnings Per Share”, which 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 years ended December 31, 2009 and 2008, respectively. |
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |                                                                                                                                                                                                                                                                                                                              |   |   |   |   |   |   |
|    | Fair Value of Measurements                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |                                                                                                                                                                                                                                                                                                                              |   |   |   |   |   |
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |                                                                                                                                                                                                                                                                                                                              |   |   |   |   |   |   |
|    | Accounting principles generally accepted in the United States define fair value as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants at the measurement date. Additionally, the inputs used to measure fair value are prioritized based on a three-level hierarchy. This hierarchy requires entities to maximize the use of observable inputs and minimize the use of unobservable inputs. The three levels of inputs used to measure fair value are as follows:                                                                                                                                                                                                                                                                                                          |
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |                                                                                                                                                                                                                                                                                                                              |   |   |   |   |   |   |
|    | 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) |   |   |   |   |   |
|---------|---------------------------------------------|--------|--------|--------|--------|--------|
|    |                                        |   |   |   |   |   |   |   |   |   |
|    | Recent Accounting Pronouncements            |   |   |   |   |   |   |   |

|   | In October 2009, the FASB issued ASU No. 2009-14, Certain Revenue Arrangements That Include Software Elements—a consensus of the FASB Emerging Issues Task Force, that reduces the types of transactions that fall within the current scope of software revenue recognition guidance. Existing software revenue recognition guidance requires that its provisions be applied to an entire arrangement when the sale of any products or services containing or utilizing software when the software is considered more than incidental to the product or service. As a result of the amendments included in ASU No. 2009-14, many tangible products and services that rely on software will be accounted for under the multiple-element arrangements revenue recognition guidance rather than under the software revenue recognition guidance. Under the ASU, the following components would be excluded from the scope of software revenue recognition guidance:  the tangible element of the product, software products bundled with tangible products where the software components and non-software components function together to deliver the product’s essential functionality, and undelivered components that relate to software that is essential to the tangible product’s functionality. The ASU also provides guidance on how to allocate transaction consideration when an arrangement contains both deliverables within the scope of software revenue guidance (software deliverables) and deliverables not within the scope of that guidance (non-software deliverables). The ASU is effective beginning January 1, 2011. We are currently evaluating the impact of this standard on our financial position and results of operations. |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | In October 2009, the FASB issued ASU No. 2009-14, Certain Revenue Arrangements That Include Software Elements—a consensus of the FASB Emerging Issues Task Force, that reduces the types of transactions that fall within the current scope of software revenue recognition guidance. Existing software revenue recognition guidance requires that its provisions be applied to an entire arrangement when the sale of any products or services containing or utilizing software when the software is considered more than incidental to the product or service. As a result of the amendments included in ASU No. 2009-14, many tangible products and services that rely on software will be accounted for under the multiple-element arrangements revenue recognition guidance rather than under the software revenue recognition guidance. Under the ASU, the following components would be excluded from the scope of software revenue recognition guidance:  the tangible element of the product, software products bundled with tangible products where the software components and non-software components function together to deliver the product’s essential functionality, and undelivered components that relate to software that is essential to the tangible product’s functionality. The ASU also provides guidance on how to allocate transaction consideration when an arrangement contains both deliverables within the scope of software revenue guidance (software deliverables) and deliverables not within the scope of that guidance (non-software deliverables). The ASU is effective beginning January 1, 2011. We are currently evaluating the impact of this standard on our financial position and results of operations. |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| Note 5- | SIGNIFICANT ACCOUNTING POLICIES (continued)  |   |   |   |   |   |
|---------|----------------------------------------------|--------|--------|--------|--------|--------|
|    |                                         |   |   |   |   |   |   |   |   |   |
|    | Recent Accounting Pronouncements (continued) |   |   |   |   |   |   |

|   | In December 2007, the FASB amended its guidance on accounting for business combinations. The new accounting guidance resulted in a change in our accounting policy effective January 1, 2009, and is being applied prospectively to all business combinations subsequent to the effective date. Among other things, the new guidance amends the principles and requirements for how an acquirer recognizes and measures in its financial statements the identifiable assets acquired, the liabilities assumed, any noncontrolling interest in the acquiree and the goodwill acquired. It also establishes new disclosure requirements to enable the evaluation of the nature and financial effects of the business combination. The adoption of this new accounting policy did not have a significant impact on our consolidated financial statements. In December 2007, the FASB issued new accounting and disclosure guidance related to noncontrolling interests in subsidiaries (previously referred to as "minority interests"), which resulted in a change in our accounting policy effective January 1, 2009. Among other things, the new guidance requires that a noncontrolling interest in a subsidiary be accounted for as a component of equity separate from the parent's equity, rather than as a liability. The new guidance is being applied prospectively, except for the presentation and disclosure requirements, which have been applied retrospectively. The adoption of this new accounting policy did not have a significant impact on our consolidated financial statements In December 2007, the FASB issued new accounting guidance that defines collaborative arrangements and establishes reporting requirements for transactions between participants in a collaborative arrangement and between participants in the arrangement and third parties. It also establishes the appropriate income statement presentation and classification for joint operating activities and payments between participants, as well as the sufficiency of the disclosures related to those arrangements. This new accounting guidance was effective for our Company on January 1, 2009, and its adoption did not have a significant impact on our consolidated financial statements.  In February 2007, the FASB issued new accounting guidance that permits entities to choose to measure many financial instruments and certain other items at fair value. Unrealized gains and losses on items for which the fair value option has been elected will be recognized in earnings at each subsequent reporting date. This new accounting guidance was effective for our Company on January 1, 2008. The Company did not elect the fair value option for any financial instruments or other items permitted under this guidance; therefore, its adoption had no impact on our consolidated financial statements.  In September 2006, the FASB issued new accounting guidance that defines fair value, establishes a framework for measuring fair value, and expands disclosure requirements about fair value measurements. However, in February 2008, the FASB delayed the effective date of the new accounting guidance for all nonfinancial assets and nonfinancial liabilities, except those that are recognized or disclosed at fair value in the financial statements on a recurring basis (at least annually), until January 1, 2009. The accounting guidance related to recurring fair value measurements was effective for our Company on January 1, 2008. The adoption of this accounting guidance did not have a significant impact on our consolidated financial statements. |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| Note 6- | PREPAID EXPENSES                                |   |         |    |   |         |   |
|---------|-------------------------------------------------|--------|--------------|---------|--------|--------------|--------|
|    |                                            |   |         |    |   |         |   |
|    | Prepaid expenses consist of the following:      |   |         |    |   |         |   |
|    |                                            |   | December 31, |    |   | December 31, |   |
|    |                                            |   | 2009         |    |   | 2008         |   |
|    |                                            |   |         |    |   |         |   |
|    | Machinery and parts                             |   | $            | -       |   |         | $      | 10,664 |   |
|    | Raw materials and supplies                      |   |         | 285,106 |   |         |   | 16,129 |   |
|    | Packing and supply materials                    |   |         | 221,842 |   |         |   | 103,727 |   |
|    | Project advance                                 |   |         | -       |   |         |   | 7,878 |   |
|    | Prepaid office expenses                         |   |         | 44      |   |         |   | - |   |
|    |        Total |   | $            | 506,992 |   |         | $      | 138,398 |   |

| Note 7- | INVENTORIES                                     |   |         |      |   |         |   |      |   |
|---------|-------------------------------------------------|--------|--------------|-----------|--------|--------------|--------|-----------|--------|
|    |                                            |   |         |      |   |         |   |      |   |
|    | Inventory-short-term consist of following:      |   |         |      |   |         |   |      |   |
|    |                                            |   | December 31, |      |   | December 31, |   |
|    |                                            |   |         | 2009      |   |         |   | 2008      |   |
|    |                                            |   |         |      |   |         |   |      |   |
|    | Finished goods                                  |   | $            | 769,619   |   |         | $      | 1,131,381 |   |
|    | Work-in-progress                                |   |         | 1,789,276 |   |         |   | 1,564,281 |   |
|    | Raw materials                                   |   |         | 51,910    |   |         |   | 95,218    |   |
|    | Supplies and packing materials                  |   |         | 83,791    |   |         |   | 168,715   |   |
|    |        Total |   | $            | 2,694,596 |   |         | $      | 2,959,595 |   |

----

| Note 8- | PROPERTY, PLANT AND EQUIPMENT (restated)                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   |         |       |   |         |   |       |   |
|---------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------------|------------|--------|--------------|--------|------------|--------|
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   |         |       |   |         |   |       |   |
|    | The following is a summary of property, plant and equipment:                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |         |       |   |         |   |       |   |
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   | December 31, |       |   | December 31, |   |
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   |         | 2009       |   |         |   | 2008       |   |
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   |         |       |   |         |   |       |   |
|    | Building and warehouses                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   | $            | 2,963,873  |   |         | $      | 2,913,855  |   |
|    | Machinery and equipment                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   |         | 1,857,877  |   |         |   | 1,820,095  |   |
|    | Office equipment and furniture                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |         | 194,394    |   |         |   | 191,029    |   |
|    | Motor vehicles                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |         | 329,815    |   |         |   | 491,005    |   |
|    | Leased Assets                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   |         | 2,159,053  |   |         |   | 2,153,698  |   |
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   |         | 7,505,012  |   |         |   | 7,569,682  |   |
|    | Less: Accumulated depreciation                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |         | (3,262,315 | )      |         |   | (2,853,022 | )      |
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   |         | 4,242,697  |   |         |   | 4,716,660  |   |
|    | Add: Construction in progress                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   |         | 41,153     |   |         |   | 12,231     |   |
|    |      Total                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   | $            | 4,283,850  |   |         | $      | 4,728,891  |   |
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   |         |       |   |         |   |       |   |
|    | Depreciation expense was $368,554 and $358,327 for the years ended December 31, 2009 and 2008 respectively. Depreciation expense with respect to production equipment that was charged to costs of sales was $227,120 and $215,013 for the years ended December 31, 2009 and 2008, respectively. Depreciation expense attributable to equipment used in administration included in general and administrative expenses was $141,434 and $143,314 for the years ended December 31, 2009 and 2008, respectively. |

| Note 9- | INTANGIBLE ASSETS                                                                                                              |   |         |    |   |         |   |
|---------|--------------------------------------------------------------------------------------------------------------------------------|--------|--------------|---------|--------|--------------|--------|
|    |                                                                                                                           |   |         |    |   |         |   |
|    | The following is a summary of intangible assets, less amortization:                                                            |   |         |    |   |         |   |
|    |                                                                                                                           |   |         |    |   |         |   |
|    |                                                                                                                           |   | December 31, |    |   | December 31, |   |
|    |                                                                                                                           |   | 2009         |    |   | 2008         |   |
|    |                                                                                                                           |   |         |    |   |         |   |
|    | Land use right                                                                                                                 |   | $            | 58,616  |   |         | $      | 58,471 |   |
|    | Trade Mark of "Xidenghui"                                                                                                      |   |         | 65,816  |   |         |   | 65,653 |   |
|    | Trade Mark of "Baishui Du Kang"                                                                                                |   |         | 24,133  |   |         |   | 24,073 |   |
|    |                                                                                                                           |   |         | 148,565 |   |         |   | 148,197 |   |
|    | Less: Accumulated amortization                                                                                                 |   |         | (82,109 | )      |         |   | (72,114 | ) |
|    |    Total                                                                                                        |   | $            | 66,456  |   |         | $      | 76,083 |   |
|    |                                                                                                                           |   |         |    |   |         |   |   |   |
|    | Amortization expense charged to operations was $9,810 and $9,639 for the years ended December 31, 2009 and 2008, respectively. |   |

----

| Note 10- | DUE FROM RELATED PARTIES                            |   |                  |   |         |      |   |         |   |    |   |
|----------|-----------------------------------------------------|--------|-----------------------|--------|--------------|-----------|--------|--------------|--------|---------|--------|
|     |                                                |   |                  |   |         |      |   |         |   |    |   |
|     | Due from related parties consists of the following: |   |                  |   |         |      |   |         |   |    |   |
|     |                                                |   |                  |   |         |      |   |         |   |    |   |
|     |                                                |   |                  |   | December 31, |      |   | December 31, |   |
|     | Name of Related Party                               |   | Description           |   |         | 2009      |   |         |   | 2008    |   |
|     |                                                |   |                  |   |         |      |   |         |   |    |   |
|     |                                                |   | Non-consolidated,     |   |         |      |   |         |   |    |   |
|     | Shaanxi Yellow-river Wetlands Park Co., Ltd.        |   | 7.9% owned subsidiary |   | $            | 738,606   |   |         | $      | 116,717 |   |
|     | Shaanxi Baishui Dukang Trade Co., Ltd.              |   | Affiliate 6           |   |         | -         |   |         |   | 48,332  |   |
|     | Shaanxi Gurong Agriculture Development Co., Ltd.    |   | Affiliate 9           |   |         | 372,960   |   |         |   | -       |   |
|     | Ms. Fenying Nie                                     |   | Director              |   |         | -         |   |         |   | 41,580  |   |
|     | Mr. Yongsheng Wang                                  |   | CEO                   |   |         | -         |   |         |   | 21,884  |   |
|     |        Total     |   |                  |   | $            | 1,111,566 |   |         | $      | 228,513 |   |

|   | The nature of the affiliation of each related party is as follows:                                                                                                        |   |   |   |   |   |   |   |   |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|--------|--------|--------|--------|--------|--------|
|   | Affiliate 6--The CEO of the Company is the sole director of Shaanxi Baishui Dukang Trade Co., Ltd. and has significant influence on the operations therein.               |
|   | Affiliate 9--The sole director of the Company is a director of Shaanxi Gurong Agriculture Development Co., Ltd., and has significant influence on the operations therein. |

| Note 11- | ACCRUED EXPENSES                                |   |         |   |   |         |   |   |   |
|----------|-------------------------------------------------|--------|--------------|--------|--------|--------------|--------|--------|--------|
|     |                                            |   |         |   |   |         |   |   |   |
|     | Accrued expenses consist of the following:      |   |         |   |   |         |   |   |   |
|     |                                            |   |         |   |   |         |   |   |   |
|     |                                            |   | December 31, |   |   | December 31, |   |
|     |                                            |   |         | 2009   |   |         |   | 2008   |   |
|     |                                            |   |         |   |   |         |   |   |   |
|     | Accrued payroll                                 |   | $            | 27,357 |   |         | $      | 29,374 |   |
|     | Accrued employee benefits                       |   |         | 60,490 |   |         |   | 63,331 |   |
|     | Accrued office expenses                         |   |         | 4,699  |   |         |   | 3,922  |   |
|     |        Total |   | $            | 92,546 |   |         | $      | 96,627 |   |

----

| Note 12- | DUE TO RELATED PARTIES                                                        |                        |   |         |       |   |         |   |
|----------|-------------------------------------------------------------------------------|-----------------------------|--------|--------------|------------|--------|--------------|--------|
|     |                                                                          |                        |   |         |       |   |         |   |
|     | Due to related parties consists of the following:                             |                        |   |         |       |   |         |   |
|     |                                                                          |                   |   | December 31, |       |   | December 31, |   |
|     | Name of Related Party                                                         | Description                 |   | 2009         |       |   | 2008         |   |
|     |                                                                          |                        |   |         |       |   |         |   |
|     | Shaanxi Dukang Group Co., Ltd.                                                | Affiliate 1                 |   | $            | 588,857    |   |         | $      | 471,244 |   |
|     | Shaanxi Zhongke Spaceflight Agriculture Development Stock Co., Ltd.           | Affiliate 2                 |   |         | 33,543     |   |         |   | 33,512 |   |
|     | Shaanxi Baishui Dukang Marketing Management  Co., Ltd.              | Affiliate 3                 |   |         | 12,867     |   |         |   | 1,179 |   |
|     | Shaanxi Baishui Dukang Commercial and Trade Co., Ltd.                         | Affiliate 4                 |   |         | 72,206     |   |         |   | 72,853 |   |
|     | Shaanxi Baishui Dukang Spirits Industry  Development Co., Ltd.      | Affiliate 5                 |   |         | 1,268,456  |   |         |   | 876,721 |   |
|     | Shaanxi Changjiang Electric Power and Energy Sources Co., Ltd.                | Affiliate 10                |   |         | -          |   |         |   | 291,792 |   |
|     | Shaanxi Baishui Shiye Co., Ltd.(F/K/A Shaanxi Baishui Dukang Trade Co., Ltd.) | Affiliate 6                 |   |         | 162,074    |   |         |   | - |   |
|     | Shanxi Lantian Fuping Investment Co., Ltd.                                    | Affiliate 7                 |   |         | 292,517    |   |         |   | - |   |
|     | Mr. Hongjun Zhang                                                             | Shareholder                 |   |         | 3,189,801  |   |         |   | 3,058,821 |   |
|     | Mr. Guoqi Diao                                                                | Prior director of Xidenghui |   |         | 393,082    |   |         |   | 392,107 |   |
|     | Ms. Ping Li                                                                   | Secretary of the Board      |   |         | 582,884    |   |         |   | 581,438 |   |
|     | Mr. Pingjun Nie                                                               | Shareholder                 |   |         | 4,391,159  |   |         |   | 4,380,268 |   |
|     | Ms. Hong Ge                                                                   | Prior director of Xidenghui |   |         | 264,648    |   |         |   | 263,991 |   |
|     | Mr.Hailong Tian                                                               | Prior director of Xidenghui |   |         | 2,767,544  |   |         |   | 2,760,680 |   |
|     | Ms. Ming Chen                                                                 | Shareholder                 |   |         | 296,307    |   |         |   | 355,761 |   |
|     | Mr. Shengli Wang                                                              | Prior director of Xidenghui |   |         | 779,963    |   |         |   | 778,029 |   |
|     |        Total                               |                        |   | $            | 15,095,908 |   |         | $      | 14,318,396 |   |

|   | The "Due to related party" are working capital loans. Imputed interest expense charged to operations was $833,911 and $765,057 for the year ended December 31, 2009 and 2010, respectively. |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                                        |   |   |   |   |   |   |   |   |   |
|   |                                                                                                                                                                                        |   |   |   |   |   |   |   |   |   |
|   | The nature of the affiliation of each related party is as follows:                                                                                                                          |   |   |   |   |   |   |   |   |   |
|   | Affiliate 1--The CEO of the Company is a director of Shaanxi Dukang Group Co., Ltd. and has significant influence on the operations therein.                                                |   |
|   | Affiliate 2--This company is indirectly, majority owned, and controlled by the Company's sole director's siblings.                                                                          |   |   |   |   |   |   |   |   |
|   | Affiliate 3--This company is wholly owned and controlled by the Company's sole director's siblings.                                                                                         |   |   |   |   |   |   |   |   |
|   | Affiliate 4--The CEO of the Company is the sole director of Shaanxi Baishui Dukang Commercial and Trade Co., Ltd. and has significant influence on the operations therein.                  |   |
|   | Affiliate 5--This company is wholly owned and controlled by the Company's sole director's siblings.                                                                                         |   |   |   |   |   |   |   |   |
|   | Affiliate 6--The CEO of the Company is the sole director of Shaanxi Baishui Shiye Co., Ltd. and has significant influence on the operations therein.                                        |   |
|   | Affiliate 7--This company is majority owned and controlled by the Company's sole director's siblings.                                                                                       |   |   |   |   |   |   |   |   |
|   | Affiliate 10--The Company's sole director's spouse is a director of Shaanxi Changjiang Electric Power and Energy Sources Co., Ltd., and has significant influence on the operation therein. |   |

----

| Note 13- | SALES OF LIQUOR TO RELATED PARTY (restated)                                                                                                                                                                                                                                                                                                                                            |   |   |   |   |   |   |   |   |   |
|----------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|
|     |                                                                                                                                                                                                                                                                                                                                                                                   |   |   |   |   |   |   |   |   |   |
|     | The Company generally sells liquor to liquor distributors. Some of these liquor distributors are our affiliates, which are directly or indirectly, beneficially and in the aggregate, majority-owned and controlled by directors and principal shareholders of the Company. The price will be different if we sell to third parties. The amount sold to these affiliates follows: |

|   |                                                                        |        |   | For the Year Ended |
|--------|-----------------------------------------------------------------------------|-------------|--------|--------------------|
|   |                                                                        |        |   | December 31,       |
|   | Name of Related Party                                                       | Description |   |               | 2009 |   |   |   | 2008 |   |
|   |                                                                        |        |   |               |   |   |   |   |   |   |
|   | Shaanxi Dukang Group Co., Ltd.                                              | Affiliate 1 |   | $                  | 594,731 |   |   | $ | 252,813 |   |
|   | Shaanxi Baishui Dukang Marketing Management  Co., Ltd.            | Affiliate 3 |   |               | 72,149 |   |   |   | 117,370 |   |
|   | Shaanxi Baishui Dukang Commercial and Trade Co., Ltd.                       | Affiliate 4 |   |               | 1,538 |   |   |   | 44,608 |   |
|   | Shaanxi Baishui Dukang Spirits Industry  Development Co., Ltd.    | Affiliate 5 |   |               | 129,866 |   |   |   | 321,127 |   |
|   | Shaanxi Baishui Dukang Trade Co., Ltd. a/k/a Shanxi Baishui Shiye Co., Ltd. | Affiliate 6 |   |               | 98,772 |   |   |   | 118,797 |   |
|   |                                                                        |        |   | $                  | 897,056 |   |   | $ | 854,715 |   |
|   | Refer to Note 12 for the nature of the affiliation of each related party.   |        |   |               |   |   |   |   |   |   |

| Note 14- | BANK LOANS                                                                                                                                                                                                                                                                                                  |   |   |    |     |                  |          |   |         |
|----------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|---------|----------|-----------------------|---------------|--------|--------------|
|     |                                                                                                                                                                                                                                                                                                        |   |   |    |     |                  |          |   |         |
|     | Bank loan consists of the following as of December 31, 2009:                                                                                                                                                                                                                                                |   |   |    |     |                  |          |
|     |                                                                                                                                                                                                                                                                                                        |   |   |    |     |                  |          |   |         |
|     |                                                                                                                                                                                                                                                                                                        |   | Loan   |    |     |                  | Monthly       |   | Guaranteed   |
|     | Financial Institutions                                                                                                                                                                                                                                                                                      |   | Amount |    | Duration |                  | Interest Rate |   | By           |
|     |                                                                                                                                                                                                                                                                                                        |   |   |    |     |                  |          |   |         |
|     | Baishui Branch of Agriculture Bank of China                                                                                                                                                                                                                                                                 |   | $      | 292,517 |     | 01/20/2009-01/19/2010 |          |   | 5.753‰ |   | Liquor Base |
|     |                                                                                                                                                                                                                                                                                                        |   |   |    |     |                  |          |   |         |   |   |
|     | Total                                                                                                                                                                                                                                                                                                       |   | $      | 292,517 |     |                  |          |   |         |   |   |
|     |                                                                                                                                                                                                                                                                                                        |   |   |    |     |                  |          |   |         |   |   |
|     | Interest expense charged to operations for this bank loan was $ 18,780 for the year ended December 31, 2009. The weighted-average outstanding bank loan balance is $292,360 ; and the weighted-average monthly interest rate is 5.753‰ . The Company subsequently paid off this loan in January 2010. |

----

| Note 15- | SEGMENT REPORTING (restated)                                                                                                                                                                                                          |   |   |   |   |   |   |   |   |   |   |
|----------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|
|     |                                                                                                                                                                                                                                  |   |   |   |   |   |   |   |   |   |   |
|     | The Company operates in two reportable business segments that are determined based upon differences in products and services. Summarized information by business segment for the year ended December 31, 2009 and 2008 is as follows: |

|   |                                                |   | For the Year Ended |      |
|--------|-----------------------------------------------------|--------|--------------------|-----------|
|   |                                                |   | December 31,       |      |
|   |                                                |   | 2009               |      |   | 2008 |   |
|   | REVENUE                                             |   |               |      |   |   |   |
|   |       Sales of Liquor |   | $                  | 1,059,694 |   |   | $ | 953,751 |   |
|   |       License Fees    |   |               | 927,965   |   |   |   | 189,444 |   |
|   |                                                |   |               |      |   |   |   |   |   |
|   | COST OF SALES                                       |   |               |      |   |   |   |   |   |
|   |       Sales of Liquor |   | $                  | 1,119,996 |   |   | $ | 889,229 |   |
|   |       License Fees    |   |               | -         |   |   |   | - |   |
|   |                                                |   |               |      |   |   |   |   |   |
|   | GROSS PROFITS                                       |   |               |      |   |   |   |   |   |
|   |       Sales of Liquor |   | $                  | (60,302   | ) |   | $ | 64,522 |   |
|   |       License Fees    |   |               | 927,965   |   |   |   | 189,444 |   |

|   |                                               |   | December 31, |      |   | December 31, |   |
|--------|----------------------------------------------------|--------|--------------|-----------|--------|--------------|--------|
|   |                                               |   |         | 2009      |   |         |   | 2008 |   |
|   |                                               |   |         |      |   |         |   |   |   |
|   | TOTAL ASSETS OF LIQUOR PRODUCTION AND DISTRIBUTION |   | $            | 7,234,824 |   |         | $      | 7,347,941 |   |
|   |                                               |   |         |      |   |         |   |   |   |
|   | TOTAL ASSETS OF BRAND NAME FRANCHISE               |   | $            | 1,513,335 |   |         | $      | 253,988 |   |

----

| Note 15- | SEGMENT REPORTING (restated) (continued)                                                                                                   |   |   |   |   |   |   |   |   |   |
|----------|--------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|
|     |                                                                                                                                       |   |   |   |   |   |   |   |   |   |   |
|     | Major Customers (restated)                                                                                                                 |   |   |   |   |   |   |   |   |   |
|     |                                                                                                                                       |   |   |   |   |   |   |   |   |   |   |
|     | There were five major customers who made sales approximately 5% or more of the Company’s total sales as summarized in the following: |

|   |                                                                                     |        |   | For the Year Ended December 31, |      |
|--------|------------------------------------------------------------------------------------------|-------------|--------|---------------------------------|-----------|
|   |                                                                                     |        |   | 2009                            |      |   | 2008 |   |
|   | Major                                                                                    | Type of     |   |                            |      |   | Percentage of |   |   |   |   |   | Percentage of |   |
|   | Customer                                                                                 | Customer    |   | Revenue                         |      |   | Total Revenue |   |   | Revenue |   |   | Total Revenue |   |
|   |                                                                                     |        |   |                            |      |   |   |   |   |   |   |   |   |   |
|   | Shaanxi Dukang Group Co., Ltd.                                                           | Distributor |   | $                               | 594,731   |   |   |   | 29.92 | % |   | $ | 252,813 |   |   |   | 22.11 | % |
|   | Shaanxi Baishui Dukang Spirits Industry  Development Co., Ltd.                 | Distributor |   |                            | 129,866   |   |   |   | 6.53 | % |   |   | 321,127 |   |   |   | 28.09 | % |
|   | Shaanxi HuangMaJia Wuliu Co., LTD                                                        | Distributor |   |                            | 122,026   |   |   |   | 6.14 | % |   |   | - |   |   |   | - |   |
|   | Shaanxi Baishui Dukang Marketing Management  Co., Ltd.                         | Distributor |   |                            | 72,149    |   |   |   | 3.63 | % |   |   | 117,370 |   |   |   | 10.27 | % |
|   | Shaanxi Baishui Dukang Trade Co., Ltd.a/k/a Shanxi Baishui Shiye Co., Ltd.               | Distributor |   |                            | 98,772    |   |   |   | 4.97 | % |   |   | 118,797 |   |   |   | 10.39 | % |
|   | Shanxi Baishui Xingjijiu Marketing Co., Ltd.a/k/a Lanzhou Jiuxing Liquor Trade Co., Ltd. | Licensee    |   |                            | 299,455   |   |   |   | 15.07 | % |   |   | - |   |   |   | - |   |
|   | Henan Zhechenxian Eastern Liquor Co., Ltd.                                               |        |   |                            | 23,610    |   |   |   | 1.19 | % |   |   | - |   |   |   | - |   |
|   | Total                                                                                    |        |   | $                               | 1,340,609 |   |   |   | 67.45 | % |   | $ | 810,107 |   |   |   | 70.86 | % |

|   | There were eight major customers who made sales approximately 5% or more of the Company’s total sales as summarized in the following: |   |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------|--------|
|   |                                                                                                                                        |   |   |   |   |   |   |   |   |   |   |   |   |
|   |                                                                                                                                        |   | For the Year Ended December 31, |   |
|   |                                                                                                                                        |   | 2009 |   |   | 2008 |   |
|   | Major                                                                                                                                       |   |   |   |   | Percentage of |   |   |   |   |   | Percentage of |   |
|   | Suppliers                                                                                                                                   |   | Purchase |   |   | Total Purchase |   | Purchase |   |   | Total Purchase |   |
|   |                                                                                                                                        |   |   |   |   |   |   |   |   |   |   |   |   |
|   | Sichuan Yibingong Mould Factory Co., Ltd.                                                                                                   |   | $ | 82,499 |   |   |   | 14.25 | % |   | $ | 202,445 |   |   |   | 22.57 | % |
|   | Sichuan Yibin Huanqiu Gelas Glass Manufacturing Co., Ltd.                                                                                   |   |   | - |   |   |   | - |   |   |   | 88,570 |   |   |   | 9.88 | % |
|   | Shanxi Wenxiyingfa Glass Co., Ltd.                                                                                                          |   |   | 97,543 |   |   |   | 16.85 | % |   |   | 71,431 |   |   |   | 7.96 | % |
|   | Yuncheng Aofeng Glass Co., Ltd.                                                                                                             |   |   | 75,572 |   |   |   | 13.06 | % |   |   | - |   |   |   | - |   |
|   | Hunan Xinshiji Taochi Co., Ltd.                                                                                                             |   |   | 53,303 |   |   |   | 9.21 | % |   |   | - |   |   |   | - |   |
|   | Xi'an Global Co., Ltd.                                                                                                                      |   |   | 33,569 |   |   |   | 5.80 | % |   |   | - |   |   |   | - |   |
|   | Xi'an Huanqiu Co., Ltd.                                                                                                                     |   |   | - |   |   |   | - |   |   |   | 62,194 |   |   |   | 6.93 | % |
|   | Wuxi Jiasheng printing Co., Ltd.                                                                                                            |   |   | 7,044 |   |   |   | 1.22 | % |   |   | 59,243 |   |   |   | 6.61 | % |
|   | Total                                                                                                                                       |   | $ | 349,530 |   |   |   | 60.39 | % |   | $ | 483,883 |   |   |   | 53.95 | % |

----

| Note 16- | INCOME TAX (restated)                                                                                                                                                                                                                                                                                                |   |   |   |   |   |   |
|----------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|--------|--------|--------|--------|
|     |                                                                                                                                                                                                                                                                                                                 |   |   |   |   |   |   |   |   |
|     | Merit is a holding company registered in Hong Kong and has no operating profit or tax liabilities during the period. The Company is subject to 16.5% income tax on its taxable income generated from operations in Hong Kong.  Merit had no income during the periods presented.                           |
|     |                                                                                                                                                                                                                                                                                                                 |   |   |   |   |   |   |   |   |
|     | PRC income tax                                                                                                                                                                                                                                                                                                       |   |   |   |   |   |   |   |   |
|     |                                                                                                                                                                                                                                                                                                                 |   |   |   |   |   |   |   |   |
|     | The Company’s PRC subsidiaries, Huitong, Xidenghui, Dukang, and Brand Management, are governed by the Enterprise Income Tax Law of PRC concerning Foreign Investment Enterprises and Foreign Enterprises and various local income tax laws ("the Income Tax Laws").                                            |
|     |                                                                                                                                                                                                                                                                                                                 |   |   |   |   |   |   |   |   |
|     | Beginning January 1, 2008, the new Enterprise Income Tax (“EIT”) law has replaced the old laws for Domestic Enterprises (“DES”) and Foreign Invested Enterprises (“FIEs”).                                                                                                       |
|     |                                                                                                                                                                                                                                                                                                                 |   |   |   |   |   |   |   |   |
|     | The key changes are:                                                                                                                                                                                                                                                                                                 |   |   |   |   |   |   |   |
|     |                                                                                                                                                                                                                                                                                                                 |   |   |   |   |   |   |   |   |
|     | a. The new standard EIT rate of 25% replaces the 33% rate applicable to both DES and FIEs, except for High Tech companies that pay a reduced rate of 15%;                                                                                                                                                            |
|     |                                                                                                                                                                                                                                                                                                                 |   |   |   |   |   |   |   |
|     | b. Companies established before March 16, 2007 continue to enjoy tax holiday treatment approved by local government for a grace period of either for the next 5 years or until the tax holiday term is completed, whichever is sooner.                                                                               |
|     |                                                                                                                                                                                                                                                                                                                 |   |   |   |   |   |   |   |   |
|     | In addition, the new EIT also grants tax holidays to entities operating in certain beneficial industries, such as the agriculture, fishing, and environmental protection. Entities in beneficial industries enjoy a three-year period tax exempt and a three-year period with 50% reduction in the income tax rates. |
|     |                                                                                                                                                                                                                                                                                                                 |   |   |   |   |   |   |   |   |
|     | The Company’s PRC subsidiaries, Huitong Xidenghui, Dukang, and Brand Management are subject to effective income tax rate of 25% beginning from January 1, 2008.                                                                                                                                                |
|     |                                                                                                                                                                                                                                                                                                                 |   |   |   |   |   |   |   |   |
|     | The provision for income taxes consisted of the following:                                                                                                                                                                                                                                                           |   |   |   |   |

----

|   |                                                                                                                                                                            |   | For the Year Ended |    |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------------------|---------|
|   |                                                                                                                                                                            |   | December 31,       |    |
|   |                                                                                                                                                                            |   | 2009               |    |   | 2008 |   |
|   | Provision for US Income Tax                                                                                                                                                     |   | $                  | -       |   |   | $ | - |   |
|   | Provision for PRC national income tax *                                                                                                                                         |   |               | 109,302 |   |   |   | - |   |
|   | Provision for PRC local income tax                                                                                                                                              |   |               | -       |   |   |   | - |   |
|   |    Total provision for income taxes                                                                                                                              |   | $                  | 109,302 |   |   | $ | - |   |
|   |                                                                                                                                                                            |   |               |    |   |   |   |   |   |
|   | * While the Company occurred a loss in both 2009 and 2008, one of our subsidiary, Brand Management, occurred a profit in 2009 and accordingly accrued a income tax of $109,302. |   |
|   |                                                                                                                                                                            |   |               |    |   |   |   |   |   |
|   |                                                                                                                                                                            |   |               |    |   |   |   |   |   |
|   | The following table reconciles the PRC statutory rates to the Company’s effective tax rate:                                                                               |   |               |    |   |   |
|   |                                                                                                                                                                            |   |               |    |   |   |   |   |   |
|   |                                                                                                                                                                            |   | For the Year Ended |    |
|   |                                                                                                                                                                            |   | December 31,       |    |
|   |                                                                                                                                                                            |   |               | 2009    |   |   |   | 2008 |   |
|   | U.S. Statutory rate                                                                                                                                                             |   |               | 34.00   | % |   |   | 34.00 | % |
|   | Foreign income not recognized in USA                                                                                                                                            |   |               | -34.00  | % |   |   | -34.00 | % |
|   | PRC income tax rate                                                                                                                                                             |   |               | 25.00   | % |   |   | 25.00 | % |
|   |      Effective income tax rate                                                                                                                         |   |               | 25.00   | % |   |   | 25.00 | % |

----

| Note 16- | INCOME TAX (restated) (continued)                          |   |   |   |   |
|----------|------------------------------------------------------------|--------|--------|--------|--------|
|     |                                                       |   |   |   |   |
|     | The provision for income taxes consisted of the following: |   |   |   |   |

|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   | For the Year Ended |       |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------------------|------------|
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   | December 31,       |       |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   | 2009               |       |   | 2008 |   |
|   | Current Income Tax *                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   | $                  | 109,302    |   |   | $ | - |   |
|   | Deferred Income Tax                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |               | -          |   |   |   | - |   |
|   |    Total provision for income taxes                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   | $                  | -          |   |   | $ | - |   |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |               |       |   |   |   |   |   |
|   | The components of deferred tax assets and deferred tax liabilities consisted of the following:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |   |               |       |   |   |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |               |       |   |   |   |   |   |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   | For the Year Ended |       |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   | December 31,       |       |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |               | 2009       |   |   |   | 2008 |   |
|   | Deferred Tax Assets                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |               |       |   |   |   |   |   |
|   |      Net operating loss carry-forward                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |   | $                  | 3,615,300  |   |   | $ | 3,779,805 |   |
|   |      Less:  valuation allowance                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   |               | (3,615,300 | ) |   |   | (3,779,805 | ) |
|   |              Net deferred tax assets                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   | $                  | -          |   |   | $ | - |   |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |               |       |   |   |   |   |   |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   | For the Year Ended |       |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   | December 31,       |       |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |               | 2009       |   |   |   | 2008 |   |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |               |       |   |   |   |   |   |
|   | Deferred Tax Liabilities                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   | $                  | -          |   |   | $ | - |   |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |               |       |   |   |   |   |   |
|   | As of December 31, 2009 and 2008, the Company had net operating losses of approximately $14,103,639 and $14,833,471 carried forward from prior years. Although the PRC Income Tax Law allows the enterprises to offset their future taxable income with operating losses carried forward in a 5-year period, enterprises need approval from local tax authority before they can claim such tax benefit, and the outcome of the application is generally uncertain. In addition, the Management believes that there is no certainty that the Company will realize taxable income in the future. Therefore, the Management established a 100% valuation allowance for the operation losses carried forward and no deferred tax assets have been recorded as a result of these losses. |

----

| Note 17- | OWNERS' EQUITY                                                                                                                                                                                                                                                                                                                                                                |   |   |   |   |   |   |   |
|----------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|--------|--------|--------|--------|--------|
|     |                                                                                                                                                                                                                                                                                                                                                                          |   |   |   |   |   |   |   |   |
|     | Amstar Financial Holdings, Inc. ("AFLH")                                                                                                                                                                                                                                                                                                                                      |   |   |   |   |   |   |
|     |                                                                                                                                                                                                                                                                                                                                                                          |   |   |   |   |   |   |   |   |
|     | In February 2008, the Company effected a reverse stock split of its common stock in the ratio of 1:10.  The number of common stocks issued and outstanding immediately after the reverse stock split was 1,951,574. All share and per share information included in these consolidated financial statements have been adjusted to reflect this reverse stock split. |
|     |                                                                                                                                                                                                                                                                                                                                                                          |   |   |   |   |   |   |   |   |
|     | In February 2008, the Company issue post split 8,800,000 shares of common stock to a shareholder for $260,000. Since this issuance happened before the reverse merge, the transactions have no affect on the consolidated financial statements presented.                                                                                                                     |
|     |                                                                                                                                                                                                                                                                                                                                                                          |   |   |   |   |   |   |   |   |
|     | In February 2008, the Company issue post split 362,214 shares of common stock to a shareholder for it consultant services. Since this issuance happened before the reverse merge, the transactions have no affect on the financial statements presented.                                                                                                                      |
|     |                                                                                                                                                                                                                                                                                                                                                                          |   |   |   |   |   |   |   |   |
|     | In February 2008, the Company issue post split 1,000,000 shares of common stock to an consultant and the Company security legal counsel for their consultant services. Since this issuance happened before the reverse merge, the transactions have no affect on the financial statements presented.                                                                          |
|     |                                                                                                                                                                                                                                                                                                                                                                          |   |   |   |   |   |   |   |   |
|     | In February 2008, the Company issued post split 88,000,000 shares of its common stock to acquire 100% of Merit's equity ownership interest, thereby causing Merit to become a wholly-owned subsidiary of the Company.                                                                                                                                                         |
|     |                                                                                                                                                                                                                                                                                                                                                                          |   |   |   |   |   |   |   |   |
|     | Hong Kong Merit Enterprise Limited ("Merit")                                                                                                                                                                                                                                                                                                                                  |   |   |   |   |   |
|     |                                                                                                                                                                                                                                                                                                                                                                          |   |   |   |   |   |   |   |   |
|     | The Articles of Incorporation authorized Merit to issue 10,000 shares of common stock with a par value of $0.128 (HK$ 1.00).  Upon formation of the Company, one share of common stock was issued for $0.128 (HK$ 1.00) on September 8, 2006.                                                                                                                       |
|     |                                                                                                                                                                                                                                                                                                                                                                          |   |   |   |   |   |   |   |   |
|     | In January 2008, the shareholders contributed $136,722 (RMB 1,000,000) as additional paid-in capital for the acquisition of Huitong.  The proceed was subsequently paid to the prior owners of Huitong.                                                                                                                                                             |

----

| Note 17- | OWNERS' EQUITY (continued)                                                                                                                                                                                                                                                                                                                                             |   |   |   |   |   |   |
|----------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|--------|--------|--------|--------|
|     |                                                                                                                                                                                                                                                                                                                                                                   |   |   |   |   |   |   |   |   |
|     | Shaanxi Huitong Food Development Co., Ltd. ("Huitong")                                                                                                                                                                                                                                                                                                                 |   |   |   |   |
|     |                                                                                                                                                                                                                                                                                                                                                                   |   |   |   |   |   |   |   |   |
|     | In accordance with the Articles of Incorporation of Huitong, the registered capital at the date of incorporation on August 9, 2007 was $136,722 (RMB1,000,000), which was fully paid in cash by two individual owners.                                                                                                                                                 |
|     |                                                                                                                                                                                                                                                                                                                                                                   |   |   |   |   |   |   |   |   |
|     | Shaanxi Xidenghui Technology Stock Co., Ltd. ("Xidenghui")                                                                                                                                                                                                                                                                                                             |   |   |   |   |
|     |                                                                                                                                                                                                                                                                                                                                                                   |   |   |   |   |   |   |   |   |
|     | In accordance with the Articles of Incorporation of Xidenghui, the registered capital at the date of incorporation on March 29, 2001 was $5,557,569 (RMB46,000,000).  Upon formation of Xidenghui, owners  contributed cash of $1,915,549 (RMB 15,855,000) and properties of $3,642,020 (RMB 30,145,000) into Xidenghui toward registered capital. |
|     |                                                                                                                                                                                                                                                                                                                                                                   |   |   |   |   |   |   |   |   |
|     | On December 15, 2001, Xidenghui amended its Bylaws to increase its registered capital to $10,825,176 (RMB 89,600,000). New owners contributed cash of $ 5,076,717(RMB 42,020,000) and property of $190,890 (RMB 1,580,000) into Xidenghui toward registered capital.                                                                                                   |
|     |                                                                                                                                                                                                                                                                                                                                                                   |   |   |   |   |   |   |   |   |
|     | On March 1, 2005, Xidenghui amended its Bylaws to increase its registered capital to $19,485,320 (RMB 161,280,000).                                                                                                                                                                                                                                                    |
|     |                                                                                                                                                                                                                                                                                                                                                                   |   |   |   |   |   |   |   |   |
|     | Shaanxi Baishui Dukang Liquor Co., Ltd. ("Baishui Dukang")                                                                                                                                                                                                                                                                                                             |   |   |   |   |
|     |                                                                                                                                                                                                                                                                                                                                                                   |   |   |   |   |   |   |   |   |
|     | In accordance with the Articles of Incorporation of Baishui Dukang, the registered capital at the date of incorporation on March 1, 2002 was $362,450 (RMB3,000,000), , which was fully paid in cash by two individual owners.                                                                                                                                         |
|     |                                                                                                                                                                                                                                                                                                                                                                   |   |   |   |   |   |   |   |   |
|     | On May 15, 2002, Baishui Dukang amended its Bylaws to increase its registered capital to $4,832,669 (RMB 40,000,000).  A new owner, Xidenghui, contributed properties of $4,470,219 (RMB 37,000,000) to Baishui Dukang toward registered capital, and owns 90.51% equity ownership interest in Baishui Dukang.                                               |
|     |                                                                                                                                                                                                                                                                                                                                                                   |   |   |   |   |   |   |   |   |
|     | Shaanxi Baishui Dukang Liquor Brand Management Co., Ltd. ("Brand Management")                                                                                                                                                                                                                                                                                          |   |   |
|     |                                                                                                                                                                                                                                                                                                                                                                   |   |   |   |   |   |   |   |   |
|     | In accordance with the Articles of Incorporation of Brand Management, the registered capital at the date of incorporation on November 12, 2007 was $136,722 (RMB1,000,000), which was fully paid in cash by two individual owners.                                                                                                                                     |

----

| Note 18- | NONCONTROLLING INTEREST                                       |   |   |   |   |   |   |   |   |   |   |   |   |
|----------|---------------------------------------------------------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|
|     |                                                          |   |   |   |   |   |   |   |   |   |   |   |   |
|     | Balance of Noncontrolling Interest consists of the following: |   |   |   |   |   |   |   |   |   |   |

|   |                                                     |   | Subsidiary and Noncontrolling Interest percentage |    |   | Total NoncontrollingInterest |   |
|--------|----------------------------------------------------------|--------|---------------------------------------------------|---------|--------|------------------------------|--------|
|   |                                                     |   | Brand Management                                  |    |   | Baishui Dukang               |   |   | Xidenghui |   |   |   |
|   |                                                     |   |                                              | 30.00%  |   |                         | 9.49%  |   |   | 1.76% |   |   |
|   |                                                     |   |                                              |    |   |                         |   |   |   |   |   |   |   |   |   |   |
|   | Balance @ December 31, 2007                              |   | $                                                 | 40,057  |   |                         | $      | 85,189 |   |   | $ | - |   | (1) | $ | 125,246 |   |
|   |                                                     |   |                                              |    |   |                         |   |   |   |   |   |   |   |   |   |   |   |
|   | Noncontrolling Interest income (Loss)                    |   |                                              | (42,081 | )      |                         |   | (45,176 | ) |   |   | - |   |   |   | (87,258 | ) |
|   |                                                     |   |                                              |    |   |                         |   |   |   |   |   |   |   |   |   |   |   |
|   | Other Comprehensive Income (Loss)-                       |   |                                              |    |   |                         |   |   |   |   |   |   |   |   |   |   |   |
|   |    effects of Foreign Currency Conversion |   |                                              | 2,024   |   |                         |   | 5,003 |   |   |   | - |   |   |   | 7,028 |   |
|   |                                                     |   |                                              |    |   |                         |   |   |   |   |   |   |   |   |   |   |   |
|   | Balance @ December 31, 2008                              |   | $                                                 | -       |   |                         | $      | 45,016 |   |   | $ | - |   |   | $ | 45,016 |   |
|   |                                                     |   |                                              |    |   |                         |   |   |   |   |   |   |   |   |   |   |   |
|   | Noncontrolling Interest income (Loss)                    |   |                                              | 28,071  |   |                         |   | (60,287 | ) |   |   | (23,661 | ) |   |   | (55,878 | ) |
|   |                                                     |   |                                              |    |   |                         |   |   |   |   |   |   |   |   |   |   |   |
|   | Other Comprehensive Income (Loss)-                       |   |                                              |    |   |                         |   |   |   |   |   |   |   |   |   |   |   |
|   |    effects of Foreign Currency Conversion |   |                                              | 15      |   |                         |   | 79 |   |   |   | (13 | ) |   |   | 82 |   |
|   |                                                     |   |                                              |    |   |                         |   |   |   |   |   |   |   |   |   |   |   |
|   | Balance @ December 31, 2009                              |   | $                                                 | 28,086  |   |                         | $      | (15,192 | ) |   | $ | (23,674 | ) |   | $ | (10,780 | ) |

----

| Note 18- | NONCONTROLLING INTEREST (continued)                       |   |   |   |   |   |   |   |   |   |   |   |   |
|----------|-----------------------------------------------------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|
|     |                                                      |   |   |   |   |   |   |   |   |   |   |   |   |
|     | Noncontrolling interest income consists of the following: |   |   |   |   |   |   |   |   |   |   |

|   |                                                        | For the Year Ended December 31, 2009 |         |
|--------|-------------------------------------------------------------|--------------------------------------|--------------|
|   |                                                        |                                 |         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   | Name of Subsidiary                                          | Brand Management                     |         |   | Baishui Dukang |   |   | Xidenghui |   |   | Parent/Holding Company |   |
|   |                                                        |                                 | Total Income |   |   | Noncontrolling Interest Income |   |   | Total Income |   |   | Noncontrolling Interest Income |   |   | Total Income |   |   | Noncontrolling Interest Income |   |   | Total Income |   | Noncontrolling Interest Income |   |
|   |                                                        |                                 | 100%         |   |   | 30% |   |   | 100% |   |   | 9.49% |   |   | 100% |   |   | 1.76% |   |   |   |   |
|   |                                                        |                                 |         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   | Net Income (Loss)                                           |                                 | $            | 327,906 |   |   | $ | 98,372 |   |   | $ | (635,269 | ) |   | $ | (60,287 | ) |   | $ | (1,056,036 | ) |   | $ | (18,586 | ) |   | $ | (313 | ) | $ | - |   |
|   |                                                        |                                 |         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   | Adjustment to intercompany profit                           |                                 |         | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | (13,211 | ) |   |   | (233 | ) |   |   | - |   |   | - |   |
|   |                                                        |                                 |         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   | Income (Loss) from subsidiary                               |                                 |         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   |      (equity method)               |                                 |         | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | (275,147 | ) |   |   | (4,843 | ) |   |   | (1,320,732 | ) |   | (55,878 | ) |
|   |                                                        |                                 |         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   | Total Income (Loss)                                         |                                 |         | 327,906 |   |   |   | 98,372 |   |   |   | (635,269 | ) |   |   | (60,287 | ) |   |   | (1,344,393 | ) |   |   | (23,661 | ) |   |   | (1,321,045 | ) |   | (55,878 | ) |
|   |                                                        |                                 |         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| (1)    | Adjustment to noncontrolling interest                       |                                 |         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   |     to absorb prior accumulated deficit |                                 |         | - |   |   |   | (70,301 | ) |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   | - |   |
|   |                                                        |                                 |         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   | Less: Income (Loss) attributable to                         |                                 |         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   |       noncontrolling interest |                                 |         | (28,071 | ) |   |   | - |   |   |   | 60,287 |   |   |   | - |   |   |   | 23,661 |   |   |   | - |   |   |   | - |   |   | - |   |
|   |                                                        |                                 |         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   | Income (Loss) attributable to Majority                      |                                 | $            | 299,835 |   |   |   |   |   |   | $ | (574,982 | ) |   |   |   |   |   | $ | (1,320,732 | ) |   |   |   |   |   | $ | (1,321,045 | ) |   | (3 | ) |
|   | Income (Loss) attributable to                               |                                 |         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   |     noncontrolling interest             |                                 |         |   |   |   | $ | 28,071 |   |   |   |   |   |   | $ | (60,287 | ) |   |   |   |   |   | $ | (23,661 | ) |   |   |   |   | $ | (55,878 | ) |

----

|   |                                                             |   | For the Year Ended December 31, 2008 |     |
|--------|------------------------------------------------------------------|--------|--------------------------------------|----------|
|   | Name of Subsidiary                                               |   | Brand Management                     |     |   | Baishui Dukang |   |   | Xidenghui |   |   | Parent/Holding Company |   |
|   |                                                             |   | TotalIncome                          |     |   | Noncontrolling InterestIncome |   |   | TotalIncome |   |   | Noncontrolling Interest Income |   |   | TotalIncome |   |   | Noncontrolling InterestIncome |   |   | Total Income |   |   | Noncontrolling Interest Income |   |
|   |                                                             |   |                                 | 100%     |   |   |   | 30% |   |   |   | 100% |   |   |   | 9.49% |   |   |   | 100% |   |   |   | 1.76% |   |
|   |                                                             |   |                                 |     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   | Net Income (Loss)                                                |   | $                                    | (370,523 | ) |   | $ | (111,157 | ) |   | $ | ( 476,041 | ) |   | $ | ( 45,176 | ) |   | $ | ( 1,419,377 | ) |   | $ | ( 24,981 | ) |   | $ | (8,401 | ) |   | $ | - |   |
|   |                                                             |   |                                 |     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   | Income (Loss) from subsidiary                                    |   |                                 |     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   |      (equity method)                    |   |                                 | -        |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | ( 759,307 | ) |   |   | ( 13,364 | ) |   |   | ( 2,178,684 | ) |   |   | ( 87,258 | ) |
|   |                                                             |   |                                 |     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   | Total Income (Loss)                                              |   |                                 | (370,523 | ) |   |   | (111,157 | ) |   |   | ( 476,041 | ) |   |   | ( 45,176 | ) |   |   | ( 2,178,684 | ) |   |   | ( 38,345 | ) |   |   | ( 2,187,084 | ) |   |   | ( 87,258 | ) |
|   |                                                             |   |                                 |     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| (1)    | Majority absorbed the current period loss                        |   |                                 |     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   |     up to the extent that  brought |   |                                 |     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   |     the Noncontrolling Interest to zero      |   |                                 | -        |   |   |   | 69,076 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 38,345 |   |   |   | - |   |   |   | - |   |
|   |                                                             |   |                                 |     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   | Less: Income (Loss) attributable to                              |   |                                 |     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   |       noncontrolling interest      |   |                                 | 42,081   |   |   |   | - |   |   |   | 45,176 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |
|   |                                                             |   |                                 |     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   | Income (Loss) attributable to Majority                           |   | $                                    | (328,442 | ) |   |   |   |   |   | $ | ( 430,865 | ) |   |   |   |   |   | $ | ( 2,178,684 | ) |   |   |   |   |   | $ | ( 2,187,084 | ) |   |   | (3 | ) |
|   |                                                             |   |                                 |     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   | Income (Loss) attributable to                                    |   |                                 |     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   |     noncontrolling interest                  |   |                                 |     |   |   | $ | (42,081 | ) |   |   |   |   |   | $ | ( 45,176 | ) |   |   |   |   |   | $ | - |   |   |   |   |   |   | $ | ( 87,258 | ) |

| (1)    |   | Prior to January 1, 2009, before we adopted ASC 810 (or FAS 160), if the current period loss attributed to the noncontrolling interest resulted in a deficit noncotrolling interest balance, the majority absorbed the current period loss up to the extent that  brought the minority interest back to zero. Any subsequent period income attributed to such noncontrolling interest will first absorb the amount that was absorbed by the majority in the prior period, the balance, if any, will attribute to the noncontrolling interest. |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
| (2)    |   | After we adopted ASC 810 on January 1, ASC 810-10-45-21 requires that the noncontrolling interest continue to be attributed its share of losses even if that attribution results in a deficit noncontrolling interest balance.                                                                                                                                                                                                                                                                                                                          |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
| (3)    |   | The minor variance between the amount on the table and the amount on the consolidated statements of operations was due to the rounding of foreign currency translation.                                                                                                                                                                                                                                                                                                                                                                                 |

----

| CHINA DU KANG CO., LTD. AND SUBSIDIARIES   |
|--------------------------------------------|
| F/K/A AMSTAR FINANCIAL HOLDINGS, INC.      |
|                                       |   |   |   |   |   |   |   |   |   |   |
| NOTES TO CONSOLIDATED FINANCIAL STATEMENTS |
|                                       |
| Note 19-                                   | COMMITMENTS AND CONTINGENCIES |   |   |   |   |   |

|   | Contingent Liability from Prior Operation                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
|   | Prior to the merger with Hong Kong Merit Enterprise Limited on February 11, 2008, the Company has not been active since discontinuing its financial service operations by December 31,2007.  Management believes that there are no valid outstanding liabilities from prior operations. If a creditor were to come forward and claim a liability, the Company has committed to contest such claim to the fullest extent of the law.  No amount has been accrued in the financial statements for this contingent liability.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
|   | The Company’s assets are located in PRC and revenues are derived from operations in PRC.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
|   | In terms of industry regulations and policies, the economy of PRC has been transitioning from a planned economy to market oriented economy. Although in recent years the Chinese government has implemented measures emphasizing the utilization of market forces for economic reforms, the reduction of state ownership of productive assets and the establishment of sound corporate governance in business enterprises, a substantial portion of productive assets in PRC are still owned by the Chinese government. For example, all lands are state owned and are leased to business entities or individuals through governmental granting of Land Use Rights. The Chinese government also exercises significant control over PRC’s economic growth through the allocation of resources and providing preferential treatment to particular industries or companies. Uncertainties may arise with changing of governmental policies and measures.                                                                                                                                                                                                                                                                                                                                                                                     |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
|   | 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.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
|   | Lease                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
|   | On March 4, 2002, Baishui Dukang signed a lease agreement with Shaanxi Sanjiu Dukang Liquor Production Co., Ltd ("Sanjiu"), pursuant to which Baishui Dukang agreed to lease the liquor production facility of Sanjiu, including all the fixed assets and the piece of land that the fixed assets attached, for a period of 20 years, which was latterly extended to 30 year. On February 3, 2005, Sanjiu was acquired by Shannxi Baishui Dukang Liquor Development Co., Ltd, an affiliate of the Company. On April 30, 2005, Baishui Dukang signed a complementary lease agreement with Shannxi Baishui Dukang Liquor Development Co., Ltd, pursuant to which Baishui Dukang agreed to continue to lease the liquor production facility for the rest of the original 30-year period. Baishui Dukang also agreed to pay $362,450 (RMB 3,000,000) to the local government to continue the lease and to absorb the pension and unemployment insurance expenses of Sanjiu's original employees. All the pension and unemployment insurance payments were to be made directly to the local China Social Security Administration to satisfy all of the pension and unemployment insurance expenses that were required in connection with the original Sanjiu employees.                                                                              |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
|   | Pursuant to the lease agreement, Baishui Dukang is required to absorb the pension and unemployment insurance expenses of Sanjiu's original employees until they all reach their retirement age.  Pursuant to the applicable laws in PRC, male employees retire when they reach 60 years old, while female employees retire when they reach 55 years old. Accordingly, Sanjiu’s original employees will gradually retire until Year 2032.  The pension and unemployment insurance expenses are based on a certain percentage of the employees’ gross payroll. The percentage may be changed as the applicable law is amended.  In practice, the expenses can be based on the local average salary published by the local government.  Over the life of the lease, the Management anticipates the percentage will remain the same while the local average salary will increase 4% annually.  The number of employees that we need to absorb their pension and unemployment insurance expenses will gradually decrease as Sanjiu’s original employees reach their retirement ages.  To the best of our estimation, we anticipate the future payment for pension and unemployment insurance expenses for Sanjiu’s original employees as rental payment follows: |

----

| Note 19- | COMMITMENTS AND CONTINGENCIES (continued) |   |   |   |   |   |
|----------|-------------------------------------------|--------|--------|--------|--------|--------|
|     |                                      |   |   |   |   |   |   |   |   |   |
|     | Lease (continued)                         |   |   |   |   |   |   |   |   |   |

| Year   | Pension Insurance Expense            |                 | Unemployment Insurance Expense |             | Total                                                                               |                           | Present Value as of December 31, 2009(the incremental interest rate is 8%) |
|--------|--------------------------------------|----------------------|--------------------------------|------------------|-------------------------------------------------------------------------------------|--------------------------------|----------------------------------------------------------------------------|
|   | Province average salary (RMB)        | Annual increase rate | Percentage                     | No. of employees | Estimated pension insurance expense(RMB)                                            | City average salary (RMB)      | Annual increase rate                                                       | Percentage | No. of employees | Estimated pension insurance expense | USD$1.00=RMB¥6.83720@12/31/2009 |
| (RMB)  | (USD)                                | (RMB)                | (USD)                          |
| 2009   |      13,254 | 4%                   | 20%                            | 325              |          861,494                       |     10,558 | 4%                                                                         | 2.50% | 325 |          85,784 |         947,279 |        138,548 |   |   |
| 2010   |      13,784 | 4%                   | 20%                            | 316              |          871,143                       |     10,980 | 4%                                                                         | 2.50% | 316 |          86,745 |         957,888 |        140,100 |       886,934 |       129,722 |
| 2011   |      14,335 | 4%                   | 20%                            | 309              |          885,919                       |     11,420 | 4%                                                                         | 2.50% | 309 |          88,217 |         974,136 |        142,476 |       835,165 |       122,150 |
| 2012   |      14,909 | 4%                   | 20%                            | 301              |          897,502                       |     11,876 | 4%                                                                         | 2.50% | 301 |          89,370 |         986,872 |        144,339 |       783,411 |       114,581 |
| 2013   |      15,505 | 4%                   | 20%                            | 282              |          874,483                       |     12,351 | 4%                                                                         | 2.50% | 282 |          87,078 |         961,561 |        140,637 |       706,776 |       103,372 |
| 2014   |      16,125 | 4%                   | 20%                            | 268              |          864,312                       |     12,846 | 4%                                                                         | 2.50% | 268 |          86,065 |         950,377 |        139,001 |       646,811 |         94,602 |
| 2015   |      16,770 | 4%                   | 20%                            | 258              |          865,344                       |     13,359 | 4%                                                                         | 2.50% | 258 |          86,168 |         951,512 |        139,167 |       599,614 |         87,699 |
| 2016   |      17,441 | 4%                   | 20%                            | 244              |          851,123                       |     13,894 | 4%                                                                         | 2.50% | 244 |          84,752 |         935,875 |        136,880 |       546,074 |         79,868 |
| 2017   |      18,139 | 4%                   | 20%                            | 228              |          827,124                       |     14,449 | 4%                                                                         | 2.50% | 228 |          82,362 |         909,486 |        133,020 |       491,367 |         71,867 |
| 2018   |      18,864 | 4%                   | 20%                            | 215              |          811,162                       |     15,027 | 4%                                                                         | 2.50% | 215 |          80,772 |         891,935 |        130,453 |       446,189 |         65,259 |
| 2019   |      19,619 | 4%                   | 20%                            | 199              |          780,828                       |     15,629 | 4%                                                                         | 2.50% | 199 |          77,752 |         858,580 |        125,575 |       397,689 |         58,165 |
| 2020   |      20,404 | 4%                   | 20%                            | 173              |          705,963                       |     16,254 | 4%                                                                         | 2.50% | 173 |          70,297 |         776,260 |        113,535 |       332,925 |         48,693 |
| 2021   |      21,220 | 4%                   | 20%                            | 148              |          628,103                       |     16,904 | 4%                                                                         | 2.50% | 148 |          62,544 |         690,647 |        101,013 |       274,265 |         40,114 |
| 2022   |      22,068 | 4%                   | 20%                            | 135              |          595,849                       |     17,580 | 4%                                                                         | 2.50% | 135 |          59,332 |         655,182 |          95,826 |       240,909 |         35,235 |
| 2023   |      22,951 | 4%                   | 20%                            | 113              |          518,698                       |     18,283 | 4%                                                                         | 2.50% | 113 |          51,650 |         570,348 |          83,418 |       194,181 |         28,401 |
| 2024   |      23,869 | 4%                   | 20%                            | 102              |          486,933                       |     19,015 | 4%                                                                         | 2.50% | 102 |          48,487 |         535,420 |          78,310 |       168,787 |         24,687 |
| 2025   |      24,824 | 4%                   | 20%                            | 77               |          382,290                       |     19,775 | 4%                                                                         | 2.50% | 77 |          38,067 |         420,357 |          61,481 |       122,698 |         17,946 |
| 2026   |      25,817 | 4%                   | 20%                            | 52               |          268,497                       |     20,566 | 4%                                                                         | 2.50% | 52 |          26,736 |         295,233 |          43,180 |         79,792 |         11,670 |
| 2027   |      26,850 | 4%                   | 20%                            | 41               |          220,167                       |     21,389 | 4%                                                                         | 2.50% | 41 |          21,923 |         242,091 |          35,408 |         60,583 |           8,861 |
| 2028   |      27,924 | 4%                   | 20%                            | 25               |          139,618                       |     22,244 | 4%                                                                         | 2.50% | 25 |          13,903 |         153,521 |          22,454 |         35,573 |           5,203 |
| 2029   |      29,041 | 4%                   | 20%                            | 18               |          104,546                       |     23,134 | 4%                                                                         | 2.50% | 18 |          10,410 |         114,957 |          16,813 |         24,664 |           3,607 |
| 2030   |      30,202 | 4%                   | 20%                            | 12               |            72,485            |     24,059 | 4%                                                                         | 2.50% | 12 |            7,218 |          79,703 |          11,657 |         15,834 |           2,316 |
| 2031   |      31,410 | 4%                   | 20%                            | 6                |            37,692            |     25,022 | 4%                                                                         | 2.50% | 6 |            3,753 |          41,446 |           6,062 |           7,624 |           1,115 |
| 2032   |      32,667 | 4%                   | 20%                            | 1                |              6,533 |     26,023 | 4%                                                                         | 2.50% | 1 |               651 |            7,184 |           1,051 |           1,224 |             179 |
| Total  |                                 |                 |                           |             |      12,696,318                                            |                           |                                                                       |   |   |      1,264,252 |    13,960,570 |     2,180,403 |    7,899,087 |    1,155,310 |

| We consolidate Sanjiu into our consolidated financial statement based on FASB ASC 810-10-25 (FIN 46R). Since Sanjiu had ceased operation when we executed the lease agreement, we will consolidate the leased assets and the lease payment obligation, including the $362,450 (RMB 3,000,000) paid directly to the local government and the payments that were to be made directly to the local China Social Security Administration to satisfy all of the pension and unemployment insurance payments that were required in connection with the original Sanjiu employees in our consolidated financial statements. |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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| Note 20- | CONDENSED PARENT COMPANY FINANCIAL INFORMATION                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |
|----------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
|     | Basis of Presentation                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
|     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
|     | The condensed parent company financial statements have been prepared in accordance with Rule 12-04, Schedule I of Regulation S-X, as the restricted net assets of the subsidiaries of China Du Kang Co., Ltd. exceed 25% of the consolidated net assets of China Du Kang Co., Ltd. The ability of the Company’s Chinese operating subsidiaries to pay dividends may be restricted due to the foreign exchange control policies and availability of cash balances of the Chinese operating subsidiaries. Because substantially all of the Company’s operations are conducted in China and a substantial majority of its revenues are generated in China, a majority of the Company’s revenue being earned and currency received are denominated in Renminbi (RMB). RMB is subject to the exchange control regulation in China, and, as a result, the Company may be unable to distribute any dividends outside of China due to PRC exchange control regulations that restrict its ability to convert RMB into US Dollars. |
|     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
|     | The condensed parent company financial statements have been prepared using the same accounting principles and policies described in the notes to the consolidated financial statements, with the only exception being that the parent company accounts for its subsidiaries using the equity method. Refer to the consolidated financial statements and notes presented above for additional information and disclosures with respect to these financial statements.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |

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| Note 20- | CONDENSED PARENT COMPANY FINANCIAL INFORMATION (CONTINUED) |
|----------|------------------------------------------------------------|
|     |                                                       |
|     | CHINA DU KANG CO., LTD.                                    |
|     | CONDENSED PARENT COMPANY BALANCE SHEETS                    |
|     | (Dollars in Thousands)                                     |

|                                                            |   | December 31, |    |   | December 31, |   |
|-----------------------------------------------------------------|--------|--------------|---------|--------|--------------|--------|
|                                                            |   | 2009         |    |   | 2008         |   |
| ASSETS                                                          |   |         |    |   |         |   |
| Investment in subsidiaries, at equity in net assets             |   |         | (8,147  | )      |         |   | (6,761 | ) |
| Total Assets                                                    |   | $            | (8,147  | )      |         | $      | (6,761 | ) |
|                                                            |   |         |    |   |         |   |   |   |
| LIABILITIES AND SHAREHOLDERS' EQUITY                            |   |         |    |   |         |   |   |   |
| Liabilities                                                     |   |         | -       |   |         |   | - |   |
|                                                            |   |         |    |   |         |   |   |   |
| Commitments and Contingencies                                   |   |         | -       |   |         |   | - |   |
|                                                            |   |         |    |   |         |   |   |   |
| Shareholders' Equity:                                           |   |         |    |   |         |   |   |   |
| Preferred stock, par value $0.001, 5,000,000 shares authorized; |   |         |    |   |         |   |   |   |
| no shares issued and outstanding as of                          |   |         |    |   |         |   |   |   |
| December 31, 2009 and 2008                                      |   |         | -       |   |         |   | - |   |
| Common stock, par value $0.001, 250,000,000 shares authorized;  |   |         |    |   |         |   |   |   |
| 100,113,791 shares issued and outstanding as of                 |   |         |    |   |         |   |   |   |
| December 31, 2009 and 2008                                      |   |         | 100     |   |         |   | 100 |   |
| Additional paid-in capital                                      |   |         | 13,750  |   |         |   | 12,916 |   |
| Accumulated deficit                                             |   |         | (20,442 | )      |         |   | (19,121 | ) |
| Accumulated other comprehensive income                          |   |         | (444    | )      |         |   | (427 | ) |
| Due from related parties                                        |   |         | (1,112  | )      |         |   | (229 | ) |
| Total Shareholders' equity (deficit)                            |   |         | (8,147  | )      |         |   | (6,761 | ) |

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| Note 19- | CONDENSED PARENT COMPANY FINANCIAL INFORMATION (CONTINUED) |
|----------|------------------------------------------------------------|
|     |                                                       |
|     | CHINA DU KANG CO., LTD.                                    |
|     | CONDENSED PARENT COMPANY STATEMENT OF OPERATIONS           |
|     | (Dollars in Thousands)                                     |

|   |                                           |   | For the Year EndedDecember 31, |
|--------|------------------------------------------------|--------|--------------------------------|
|   |                                           |   | 2009                           |   |   | 2008 |   |
|   |                                           |   |                           |   |   |   |   |
|   | Operating Expenses                             |   | $                              | - |   |   | $ | - |   |
|   |                                           |   |                           |   |   |   |   |   |   |
|   | Equity in undistributed income of subsidiaries |   |                           | (1,377 | ) |   |   | (2,274 | ) |
|   | Net Income                                     |   | $                              | (1,377 | ) |   | $ | (2,274 | ) |

| CHINA DU KANG CO., LTD.                          |   |   |   |   |   |   |   |   |
|--------------------------------------------------|--------|--------|--------|--------|--------|--------|--------|--------|
| CONDENSED PARENT COMPANY STATEMENT OF CASH FLOWS |   |   |   |   |   |   |   |   |
| (Dollars in Thousands)                           |   |   |   |   |   |   |   |   |

|   |                                                                 |   | For the Year EndedDecember 31, |   |
|--------|----------------------------------------------------------------------|--------|--------------------------------|--------|
|   |                                                                 |   |                           | 2010   |   |   |   | 2009 |   |
|   |                                                                 |   |                           |   |   |   |   |   |   |
|   | Cash Flows from Operating Activities                                 |   |                           |   |   |   |   |   |   |
|   | Net income                                                           |   | $                              | (1,377 | ) |   | $ | (2,274 | ) |
|   | Adjustments to reconcile net income (loss)                           |   |                           |   |   |   |   |   |   |
|   |      provided by cash flows from operations |   |                           |   |   |   |   |   |   |
|   | Equity in undistributed income of subsidiaries                       |   |                           | 1,377  |   |   |   | 2,274 |   |
|   | Net cash provided by operating activities                            |   |                           | -      |   |   |   | - |   |
|   |                                                                 |   |                           |   |   |   |   |   |   |
|   | Increase (decrease) in cash                                          |   |                           | -      |   |   |   | - |   |
|   | Cash at beginning of period                                          |   |                           | -      |   |   |   | - |   |
|   | Cash at end of period                                                |   | $                              | -      |   |   | $ | - |   |

----

| Exhibit No. |   | Descriptions                                                                                                                         |   | Reference |
|-------------|--------|--------------------------------------------------------------------------------------------------------------------------------------|--------|-----------|
| 1           |   | Underwriting agreement                                                                                                               |   |      |
| 2           |   | Plan of acquisition, reorganization, arrangement, liquidation or succession                                                          |   |      |
| 3           |   | (i) Articles of incorporation – Amended and Restate Articles of Incorporation                                                  |   | 3.1*      |
|        |   | (ii) By-laws                                                                                                                         |   | 3.2*      |
| 4           |   | Instruments defining the rights of security holders, including indentures                                                            |   |      |
| 4.1         |   | Common Stock Certificate                                                                                                             |   | 4.1*      |
| 4           |   | Opinion re legality                                                                                                                  |   |      |
| 7           |   | Correspondence from an independent accountant regarding non-reliance on a previously issued audit report or completed interim review |   |      |
| 8           |   | Opinion re tax matters                                                                                                               |   |      |
| 9           |   | Voting trust agreement                                                                                                               |   |      |
| 10.1        |   | Distribution Agreement – Shaanxi Dukang Liquor Group Co., Ltd.                                                                 |   | 6*        |
| 10.2        |   | Distribution Agreement – Shaanxi Baishui Dukang Spirits Industry Development Co., Ltd.                                         |   | 6*        |
| 10.3        |   | Distribution Agreement – Shaanxi Dukang Liquor Marketing Management Co., Ltd.                                                  |   | 6*        |
| 10.4        |   | Distribution Agreement – Shaanxi Baishui Dukang Shiye Co., Ltd.                                                                |   | 6*        |
| 10.5        |   | Distribution Agreement – Shaanxi Dukang Liquor Group Co., Ltd.                                                                 |   | 6*        |
| 10.6        |   | Loan Agreement – Shaanxi Yellow River Wetlands Park Co., Ltd.                                                                  |   | 6*        |
| 10.7        |   | Loan Agreement – Shaanxi Yellow River Wetlands Park Co., Ltd.                                                                  |   | 6*        |
| 10.8        |   | Loan Agreement – Shaanxi Yellow River Wetlands Park Co., Ltd.                                                                  |   | 6*        |
| 10.9        |   | Loan Agreement – Ms. Piong Li                                                                                                  |   | 6*        |
| 10.10       |   | Loan Agreement – Ms. Min Chen                                                                                                  |   | 6*        |
| 10.11       |   | Loan Agreement – Ms. Hong Ge                                                                                                   |   | 6*        |
| 10.12       |   | Loan Agreement – Ms. Shengli Wang                                                                                              |   | 6*        |
| 10.13       |   | Loan Agreement – Ms. Pingjun Nie                                                                                               |   | 6*        |
| 10.14       |   | Loan Agreement – Ms. Hongjun Zhang                                                                                             |   | 6*        |
| 10.15       |   | Loan Agreement – Mr. Hailong Tian.                                                                                             |   | 6*        |
| 10.16       |   | Loan Agreement – Mr. Guogi Diao                                                                                                |   | 6*        |
| 10.17       |   | Loan Agreement – Shanxi Xi Deng Hui Science and Technology Industrial Stock Co., Ltd.                                          |   | 6*        |
| 10.18       |   | Loan Agreement – Shaanxi Huitong Food Development Co., Inc.                                                                    |   | 6*        |
| 10.19       |   | Loan Agreement – Shanxi Gurong Agricultural Development co., Ltd.                                                              |   | 6*        |
| 10.20       |   | Loan Agreement – Shanxi Baishui Dukang Brand Management Co., Ltd.                                                              |   | 6*        |
| 10.21       |   | Loan Agreement – Shanxi Lantian Investment Co., Ltd.                                                                           |   | 6*        |
| 10.22       |   | Loan Agreement – Shanxi Zhongke Spaceflight Agriculture Development Co., Ltd.                                                  |   | 6*        |
| 10.23       |   | Loan Agreement – Shanxi Baishui Dukang Trade Co., Ltd.                                                                         |   | 6*        |
| 10.24       |   | Loan Agreement – Ms. Min Chen                                                                                                  |   | 6*        |
| 10.25       |   | Loan Agreement – Shanxi Baishui Dukang Marketing Management Co., Ltd.                                                          |   | 6*        |
| 10.26       |   | Loan Agreement – Shanxi Dukang Liquor Group Co., Ltd.                                                                          |   | 6*        |
| 10.27       |   | Loan Agreement – Shaanxi Baishui Dukang Commercial and Trade Co., Ltd.                                                         |   | 6*        |
| 10.28       |   | Loan Agreement – Shanxi Baishui Shiye Co., Ltd.                                                                                |   | 6*        |

----

| 10.29 |   | Loan Agreement – Shanxi Baishui Dukan Spirits Industry Development Co., Ltd.                                  |   | 6*     |
|-------|--------|---------------------------------------------------------------------------------------------------------------------|--------|--------|
| 10.30 |   | Agency Agreement – Dong Sue                                                                                   |   | 6*     |
| 10.31 |   | Agency Agreement – Dong Sue                                                                                   |   | 6*     |
| 10.32 |   | Agency Agreement – Xue Aixian                                                                                 |   | 6*     |
| 10.33 |   | Agency Agreement – Dong Sue                                                                                   |   | 6*     |
| 10.34 |   | Licensing Agreement –Henan Zhechenxian Eastern Liquor Co. Ltd. (Trademark)                                    |   | 6*     |
| 10.35 |   | Licensing Agreement –Henan Zhechenxian Eastern Liquor Co. Ltd. (Complimentary)                                |   | 6*     |
| 10.36 |   | Licensing Agreement – Lanzhou Jinxing Liquor Trade Co. Ltd. aka Shaanxi Baishui Xingjijiu Marketing Co., Ltd. |   | 6*     |
| 10.37 |   | State owned Land Use Certificate                                                                                    |   | 2*     |
| 10.38 |   | Complementary Agreement - Shaanxi Bai Shui Du Kang Co., Ltd                                                         |   | 2**    |
| 10.39 |   | Equity Transfer Agreement                                                                                           |   | 3*     |
| 10.40 |   | Plan of Exchange Agreement                                                                                          |   | 7*     |
| 10.41 |   | Land Use Rights                                                                                                     |   | 8*     |
| 10.42 |   | Lease Agreement - Baishui Du Kang Liquor Co., Ltd.                                                                  |   | 9*     |
| 10.43 |   | Distribution Agreement - Baishui Dukang Development Co., Ltd                                                        |   | 10*    |
| 10.44 |   | Distribution Agreement - Bashui DuKang Liquor Group Co., Ltd.                                                       |   | 11*    |
| 10.45 |   | Distribution Agreement - Shaanxi Du Kang Liquor Sales Management Co., Ltd.                                          |   | 12*    |
| 10.46 |   | Sanitation License                                                                                                  |   | 13*    |
| 10.47 |   | Loan Agreement - Shaanxi Changjiang Electric Power and Energy Sources Co., Ltd.                                     |   | 14*    |
| 10.48 |   | Assets Lease Agreement - Shaanxi BaiShui Du Kang Liquor Co., Ltd.                                                   |   | 15*    |
| 11    |   | (11) Statement Regarding computation of per share earnings                                                          |   |   |
| 12    |   | (12) Statements Regarding computation of ratios                                                                     |   |   |
| 13    |   | (13) Annual report to security holders, Form 10-Q or quarterly report to security holders                           |   |   |
| 14    |   | (14) Code of Ethics                                                                                                 |   |   |
| 15    |   | (15) Letter regarding unaudited interim financial information                                                       |   |   |
| 16    |   | (16) Letter regarding change in certifying accountant                                                               |   |   |
| 17    |   | (17) Correspondence on departure of director                                                                        |   |   |
| 18    |   | (18) Letter re change in accounting principles                                                                      |   |   |
| 19    |   | (19) Report furnished to security holders                                                                           |   |   |
| 20    |   | (20) Other documents or statements to security holders                                                              |   |   |
| 21    |   | (21) Subsidiaries of the registrant                                                                                 |   | 2***   |
| 22    |   | (22) Published report regarding matters submitted to vote of security holders                                       |   |   |
| 23    |   | (23) Consents of experts and counsel                                                                                |   |   |
| 24    |   | (24) Power of attorney                                                                                              |   |   |
| 25    |   | (25) Statement of eligibility of trustee                                                                            |   |   |
| 26    |   | (26) Invitations for competitive bids                                                                               |   |   |

----

| 31.1 |   | (i) Rule 13a-14(a)/ 15d-14(a) Certifications                                                       |   |   |
|------|--------|----------------------------------------------------------------------------------------------------|--------|--------|
| 31.2 |   | (ii) Rule 13a-14(d)/ 15d-14(d) Certifications                                                      |   |   |
| 32   |   | Section 1350 Certifications                                                                        |   |   |
| 33   |   | Report on assessment of compliance with servicing criteria for asset-backed issuers                |   |   |
| 34   |   | Attestation report on assessment of compliance with servicing criteria for asset-backed securities |   |   |
| 35   |   | Servicer compliance statement                                                                      |   |   |
| 99   |   | Additional exhibits                                                                                |   |   |
| 100  |   | XBRL-Related Documents                                                                             |   |   |

| 2*             | Filed as Exhibit 10.2 to Form 10 Amendment 2 on 12-04-2009                             |
|----------------------------------------------|----------------------------------------------------------------------------------------|
| 2**                      | Filed as Exhibit 10.3 to Form 10 Amendment 2 on 12-04-2009                             |
| 2***                               | Filed as Exhibit 21.1 to Form 10 Amendment 2 on 12-04-2009                             |
| 3*        | Equity Transfer Agreement Filed as Exhibit 10.1 to Form 10 Amendment 3 on 1-21-2010    |
| 3.1*                     | Filed as Exhibit 3.1 to Form 10 Amendment 4 on 4-22-2010                               |
| 3.2*                     | Filed as Exhibit 3.2 to Form 10 Amendment 4 on 4-22-2010                               |
| 4.1*                     | Filed as Exhibit 4.1 to Form 10 Amendment 4 on 4-22-2010                               |
| 6*                                 | Filed under corresponding Exhibit Number to Form 10 Amendment 6 on 1-24-2011           |
| 7*                                 | Plan of Exchange Filed as Exhibit 10.1 to Form 10 Amendment 4 on 4-22-2010             |
| 8*                                 | Land Use Rights Filed as Exhibit 10.2 to Form 10 Amendment 4 on 4-22-2010              |
| 9*                                 | Lease Agreement Filed as Exhibit 10.3 to Form 10 Amendment 4 on 4-22-2010              |
| 10*                                | Distribution Agreement Filed as Exhibit 10.4 to Form 10 Amendment 4 Filed on 4-22-2010 |
| 11*                                | Distribution Agreement Filed as Exhibit 10.5 to Form 10 Amendment 4 Filed on 4-22-2010 |
| 12*                                | Distribution Agreement Filed as Exhibit 10.6 to Form 10 Amendment 4 Filed on 4-24-2010 |
| 13*                                | Sanitation License Filed as Exhibit 10.7 to Form 10 Amendment 4 Filed 4-22-2010        |
| 14*                                | Loan Agreement Filed as Exhibit 10.44 to Form 10 Amendment 7 on 03-24-2011             |
| 15*                                          | Asset Lease Agreement Filed as Exhibit 10.46 to Form 10 Amendment 8 on 10-04-2011      |

----

|                   | China Du Kang Co., Ltd. |                                  |
|------------------------|-------------------------|---------------------------------------|
|                   |                    |                                  |   |
| Date: November 7, 2011 | By:                     | /s/ Wang Yongsheng                    |   |
|                   |                    | Wang Yongsheng,                       |   |
|                   |                    | President and Chief Executive Officer |   |
|                   |                    |                                  |   |

| /s/  Wang Yongsheng                                                                               |   |   |             |
|--------------------------------------------------------------------------------------------------------|--------|--------|------------------|
| Chief Executive Officer (Principal Executive Officer, President, and Director)     |   |   | November 7, 2011 |
|                                                                                                   |   |   |             |
| /s/  Liu Su Ying                                                                                  |   |   | November 7, 2011 |
| Chief Financial Officer (Principal Financial Officer)                                                  |   |   |             |

----