----

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| [X] | Annual Report Under Section 13 or 15(d) of The Securities Exchange Act of 1934 for the Fiscal Year Ended December 31, 2010 |
|-----|----------------------------------------------------------------------------------------------------------------------------|

| [  ] | Transition Report Under Section 13 or 15(d) of The Securities Exchange Act of 1934 for the Transition Period from _______ to _______ |
|-----------|--------------------------------------------------------------------------------------------------------------------------------------|

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----

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

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

----

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

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| PART I:     |                                                                                                               |   |
|-------------|--------------------------------------------------------------------------------------------------------------------|--------|
|        |                                                                                                               |   |
| Item 1.     | Business                                                                                                           | 1      |
| Item 1A.    | Risk Factors                                                                                                       | 10     |
| Item 1B.    | Unresolved Staff Comments                                                                                          | 16     |
| Item 2.     | Properties                                                                                                         | 17     |
| Item 3      | Legal Proceedings                                                                                                  | 19     |
| Item 4.     | Submission of Matters to a Vote of Security Holders                                                                | 19     |
|        |                                                                                                               |   |
| PART II:    |                                                                                                               |   |
|        |                                                                                                               |   |
| Item 5.     | Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities | 19     |
| Item 6.     | Selected Financial Data                                                                                            | 21     |
| Item 7.     | Management’s Discussion and Analysis or Plan of Operation                                                    | 22     |
| Item 7A.    | Quantitative and Qualitative Disclosures About Market Risk                                                         | 42     |
| Item 8.     | Financial Statements and Supplementary Data                                                                        | 43     |
| Item 9.     | Changes in and Disagreements with Accountants on Accounting and Financial Disclosure                               | 38     |
| Item 9A.    | Controls and Procedures                                                                                            | 38     |
| Item 9A(T). | Controls and Procedures                                                                                            | 38     |
| Item 9B.    | Other Information                                                                                                  | 38     |
|        |                                                                                                               |   |
| PART III:   |                                                                                                               |   |
|        |                                                                                                               |   |
| Item 10.    | Directors, Executive Officers and Corporate Governance                                                             | 38     |
| Item 11.    | Executive Compensation                                                                                             | 40     |
| Item 12.    | Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters                     | 41     |
| Item 13.    | Certain Relationships and Related Transactions, and Director Independence                                          | 42     |
| Item 14.    | Principal Accounting Fees and Services                                                                             | 43     |
|        |                                                                                                               |   |
| PART IV:    |                                                                                                               |   |
|        |                                                                                                               |   |
| Item 15.    | Exhibits, Financial Statement Schedules                                                                            | 44     |
|        |                                                                                                               |   |
| SIGNATURES: |                                                                                                               | 48     |

----

| Item 1. | Business |
|---------|----------|

----

----

----

|   | l | 90.51% and controls Shaanxi Bai Shui Du Kang Liquor Co., Ltd., and holds |
|--------|---|--------------------------------------------------------------------------|

|   | l | 70% Shaanxi Bai Shui Du Kang Brand Management Co., Ltd.; |
|--------|---|----------------------------------------------------------|

|   | · | Bai Shui Du Kang |
|--------|--------|------------------|

|   | · | Thirteen Dynasties and |
|--------|--------|------------------------|

|   | · | Jiu Zu Gong. |
|--------|--------|--------------|

----

|   | · | Sales of liquor within China generally through long-term liquor distributors (“distributor”). |
|--------|--------|-----------------------------------------------------------------------------------------------------------|

|   | · | Fees from agent liquor stores/retailers (“agent”) |
|--------|--------|---------------------------------------------------------------|

|   | · | Our subsidiary, Shaanxi Bai Shui Du Kang Brand Management Co., Ltd. grants the licensee of using “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. The distributor agreements provide a 5-year exclusive territory with liquor distributors subject to performance requirements. |
|--------|----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 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. |
|--------|----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 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. |
|--------|----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|        |   | For the Year Ended |      |
|-------------|--------|--------------------|-----------|
|        |   | 2010               |      |   | 2009 |   |
|        |   |               |      |   | Percentage |   |   |   |   |   | Percentage |   |
| Type of     |   |               |      |   | of Total |   |   |   |   |   | of Total |   |
| Customer    |   | Revenue            |      |   | Revenue |   |   | Revenue |   |   | Revenue |   |
| Distributor |   | $                  | 1,270,136 |   |   |   | 51.06 | % |   | $ | 1,059,694 |   |   |   | 53.31 | % |
| Licensee    |   |               | 806,535   |   |   |   | 32.42 | % |   |   | 731,711 |   |   |   | 36.81 | % |
| Agent       |   |               | 410,784   |   |   |   | 16.51 | % |   |   | 196,254 |   |   |   | 9.87 | % |
|        |   | $                  | 2,487,454 |   |   |   | 100.00 | % |   | $ | 1,987,659 |   |   |   | 100.00 | % |

----

|                  |   | For the Year Ended |      |
|-----------------------|--------|--------------------|-----------|
|                  |   | 2010               |      |   | 2009 |   |
|                  |   |               |      |   | Percentage |   |   |   |   |   | Percentage |   |
| Name of               |   |               |      |   | of Total |   |   |   |   |   | of Total |   |
| Province              |   | Revenue            |      |   | Revenue |   |   | Revenue |   |   | Revenue |   |
| Shaanxi Province      |   | $                  | 1,732,035 |   |   |   | 69.63 | % |   | $ | 1,587,641 |   |   |   | 79.87 | % |
| Henan Province        |   |               | 535,064   |   |   |   | 21.51 | % |   |   | 147,707 |   |   |   | 7.43 | % |
| Shandong Province     |   |               | 89,452    |   |   |   | 3.60 | % |   |   | 105,612 |   |   |   | 5.31 | % |
| Hebei Province        |   |               | 6,970     |   |   |   | 0.28 | % |   |   | - |   |   |   | - |   |
| Anhui Province        |   |               | 27,184    |   |   |   | 1.09 | % |   |   | 71,147 |   |   |   | 3.58 | % |
| Hubei Province        |   |               | 83,644    |   |   |   | 3.36 | % |   |   | - |   |   |   | - |   |
| Gansu Province        |   |               | -         |   |   |   | - |   |   |   | 23,034 |   |   |   | 1.16 | % |
| Zhejiang Province     |   |               | 6,134     |   |   |   | 0.25 | % |   |   | 35,242 |   |   |   | 1.77 | % |
| Heilongjiang Province |   |               | 6,970     |   |   |   | 0.28 | % |   |   | 17,276 |   |   |   | 0.87 | % |
|                  |   | $                  | 2,487,454 |   |   |   | 100.00 | % |   | $ | 1,987,659 |   |   |   | 100.00 | % |

|                                                                     |        |   | For the Year Ended December 31, |      |
|--------------------------------------------------------------------------|-------------|--------|---------------------------------|-----------|
|                                                                     |        |   | 2010                            |      |   | 2009 |   |
|                                                                     |        |   |                            |      |   |   |   |   |   |   |   |   |   |
| Major                                                                    | Type of     |   |                            |      |   | Percentage of |   |   |   |   |   | Percentage of |   |
| Customer                                                                 | Customer    |   | Revenue                         |      |   | Total Revenue |   |   | Revenue |   |   | Total Revenue |   |
| Shaanxi Dukang Group Co., Ltd.                                           | Distributor |   | $                               | 1,028,897 |   |   |   | 41.36 | % |   | $ | 594,731 |   |   |   | 29.92 | % |
| Shaanxi Baishui Dukang Spirits Industry  Development Co., Ltd. | Distributor |   |                            | 148       |   |   |   | 0.01 | % |   |   | 129,866 |   |   |   | 6.53 | % |
| Shaanxi Baishui Dukang Marketing Management  Co., Ltd.         | Distributor |   |                            | -         |   |   |   | - |   |   |   | 72,149 |   |   |   | 3.63 | % |
| Shaanxi Baishui Dukang Shiye Co., Ltd.                                   | Distributor |   |                            | 162,214   |   |   |   | 6.52 | % |   |   | 98,772 |   |   |   | 4.97 | % |
| Shaanxi HuangMaJia Wuliu Co., LTD                                        | Distributor |   |                            | -         |   |   |   | - |   |   |   | 122,026 |   |   |   | 6.14 | % |
| Shanxi Baishui Xingjijiu Marketing Co., Ltd.                             | Licensee    |   |                            | -         |   |   |   | - |   |   |   | 299,455 |   |   |   | 15.07 | % |
| Henan Zhechenxian Eastern Liquor Co., Ltd.                               | Licensee    |   |                            | 20,330    |   |   |   | 0.82 | % |   |   | 23,610 |   |   |   | 1.19 | % |
| Henan Jiuquan Liquor Co., Ltd.                                           | Licensee    |   |                            | 355,254   |   |   |   | 14.28 | % |   |   | - |   |   |   | - |   |
| Mr. Jincai Bai'                                                          | Licensee    |   |                            | 125,466   |   |   |   | 5.04 | % |   |   | - |   |   |   | - |   |
| Mr. Anxian Xie                                                           | Agent       |   |                            | 160,317   |   |   |   | 6.45 | % |   |   | - |   |   |   | - |   |
| Ms. Sue Dong                                                             | Agent       |   |                            | 138,942   |   |   |   | 5.59 | % |   |   | - |   |   |   | - |   |
| Total                                                                    |        |   | $                               | 1,991,568 |   |   |   | 80.06 | % |   | $ | 1,340,609 |   |   |   | 67.45 | % |

----

----

----

| Item 1A. | Risk Factors |
|----------|--------------|

----

----

----

----

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----

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

----

| ITEM 2. | PROPERTIES. |
|---------|-------------|

|                                |   | December 31, |       |   | December 31, |   |
|-------------------------------------|--------|--------------|------------|--------|--------------|--------|
|                                |   | 2010         |       |   | 2009         |   |
|                                |   |         |       |   |         |   |
| Building and warehouses             |   | $            | 3,171,057  |   |         | $      | 2,963,873 |   |
| Machinery and equipment             |   |         | 2,015,433  |   |         |   | 1,857,877 |   |
| Office equipment and furniture      |   |         | 182,278    |   |         |   | 194,394 |   |
| Motor vehicles                      |   |         | 341,059    |   |         |   | 329,815 |   |
| Leased assets*                      |   |         | 2,300,810  |   |         |   | 2,159,053 |   |
|                                |   |         | 8,010,637  |   |         |   | 7,505,012 |   |
|                                |   |         |       |   |         |   |   |   |
| Less: Accumulated depreciation      |   |         | (3,849,240 | )      |         |   | (3,262,315 | ) |
|                                |   |         | 4,161,397  |   |         |   | 4,242,697 |   |
|                                |   |         |       |   |         |   |   |   |
| Add: Construction in progress       |   |         | 262,665    |   |         |   | 41,153 |   |
|                                |   |         |       |   |         |   |   |   |
|      Total |   | $            | 4,424,062  |   |         | $      | 4,283,850 |   |

----

| Year   | Pension Insurance Expense      |                 |       | Unemployment Insurance Expense |                                                                    | Total                     | Present Value as of December 31, 2010(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¥6.61180@12/31/2010 |   |   |
|   |                           |                 |       |                           |                                                                    |                      |                                                                       |   |   |   | (RMB) | (USD) | (RMB) | (USD) |
| 2010   |     13,784 | 4%                   | 20%        | 316                            |        871,143                       |  10,980              | 4%                                                                         | 2.50% | 316 |       86,745 |         957,888 |     144,876 |   |   |
| 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  |                           |                 |       |                           |   11,825,175                                        |                      |                                                                       |   |   |  1,177,507 |    13,002,682 |  1,966,587 |  7,012,153 |  1,060,551 |

----

| ITEM 3. | LEGAL PROCEEDINGS. |
|---------|--------------------|

|   | l | in any bankruptcy petition |
|--------|---|----------------------------|

|   | l | in any conviction of a criminal proceeding or involved in a pending criminal proceeding (excluding traffic violations and minor offenses) |
|--------|---|-------------------------------------------------------------------------------------------------------------------------------------------|

|   | l | 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, |
|--------|---|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | l | or has been found to have violated a federal or state securities or commodities law. |
|--------|---|--------------------------------------------------------------------------------------|

| ITEM 4. | SUBMISSION OF MATTERS TO A VOTE OF SECURITIES HOLDERS |
|---------|-------------------------------------------------------|

| ITEM 5. | MARKET FOR REGISTRANT’S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES. |
|---------|---------------------------------------------------------------------------------------------------------------------|

----

| CALENDAR YEARS | BY QUARTER | BID PRICE |
|----------------|------------|-----------|
|           |       | LOW       | HIGH |
|           |       |      |   |
| 2010           | First      | $0.02     | 0.09 |
|           | Second     | 0.08      | 0.15 |
|           | Third      | 0.137     | 0.002 |
|           | Fourth     | 0.002     | 0.13 |
|           |       |      |   |
| 2009           | First      | $0.01     | $0.13 |
|           | Second     | 0.015     | 0.025 |
|           | Third      | 0.017     | 0.025 |
|           | Fourth     | 0.01      | 0.02 |

----

| ITEM 6. | SELECTED FINANCIAL DATA |
|---------|-------------------------|

----

| ITEM 7. | MANAGEMENT’S DISCUSSION AND ANALYSIS OR PLAN OF OPERATION |
|---------|-----------------------------------------------------------------|

----

----

----

----

----

----

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----

----

| INVENTORIES                       |   |         |      |   |         |   |
|-----------------------------------|--------|--------------|-----------|--------|--------------|--------|
|                              |   |         |      |   |         |   |
| Inventories consist of following: |   |         |      |   |         |   |
|                              |   | December 31, |      |   | December 31, |   |
|                              |   | 2010         |      |   | 2009         |   |
|                              |   |         |      |   |         |   |
| Finished goods                    |   | $            | 948,300   |   |         | $      | 769,619 |   |
| Work-in-progress                  |   |         | 1,985,260 |   |         |   | 1,789,276 |   |
| Raw materials                     |   |         | 102,934   |   |         |   | 51,910 |   |
| Supplies and packing materials    |   |         | 237,499   |   |         |   | 83,791 |   |
|                              |   | $            | 3,273,993 |   |         | $      | 2,694,596 |   |

----

----

----

| Name of Related Party                                              | Description | Balance @ 12/31/08 | Effects of foreign currency conversion | Additional advance in 2009 | Collection of advance in 2009 | Balance @ 12/31/09 | Highest balance during 2009 |
|--------------------------------------------------------------------|-------------|--------------------|----------------------------------------|----------------------------|-------------------------------|--------------------|-----------------------------|
| Shaanxi Baishui Dukang Trade Co., Ltd.                             | Affiliate   | 48,332             |  120                              |  -                    |  48,452                  |  -            |  48,452                |
| Shaanxi Yellow-river Wetlands Park Co., Ltd.                       | Affiliate   | 116,717            |  290                              |  621,599              |  -                       |  738,606      |  738,606               |
| Shaanxi Gurong Agriculture Development Co., Ltd.                   | Affiliate   | -                  |  -                                |  372,960              |  -                       |  372,960      |  372,960               |
| Ms. Nie, Fenying                                                   | Director    |  21,884       |  54                               |  -                    |  21,938                  |  -            |  21,938                |
| Mr. Wang, Yongsheng                                                | CEO         |  41,580       |  104                              |  -                    |  41,684                  |  -            |  41,684                |
| Total                                                              |      |  228,513      |  568                              |  994,559              |  112,074                 |  1,111,566    |  1,223,640             |
|                                                               |        |               |                                   |                       |                          |               |                        |
| Name of Related Party                                              | Description | Balance @ 12/31/09 | Effects of foreign currency conversion | Additional advance in 2010 | Collection of advance in 2010 | Balance @ 12/31/10 | Highest balance during 2010 |
| Shaanxi Baishui Dukang Trade Co., Ltd.                             | Affiliate   |  -            |  -                                |  -                    |  -                       |  -            |  -                     |
| Shaanxi Yellow-river Wetlands Park Co., Ltd.                       | Affiliate   |  738,606      |  50,137                           |  1,135,903            |  147,520                 |  1,777,126    |  1,777,126             |
| Shaanxi Gurong Agriculture Development Co., Ltd.                   | Affiliate   |  372,960      |  12,714                           |  -                    |  -                       |  385,674      |  385,674               |
| Shaanxi Zhongke Spaceflight Agriculture Development Stock Co., Ltd | Affiliate   |  -            |  372                              |  14,752               |  22                      |  15,102       |  15,102                |
| Shaanxi Mining New Energy Co., Ltd.                                | Affiliate   |  -            |  9,834                            |  389,452              |  -                       |  399,286      |  399,286               |
| Ms. Nie, Fenying                                                   | Director    |  -            |  -                                |  -                    |  -                       |  -            |  -                     |
| Mr. Wang, Yongsheng                                                | CEO         |  -            |  -0                               |  11,802               |  11,802                  |  -            |  12,100                |
| Total                                                              |      |  1,111,566    |  73,056                           |  1,551,909            |  159,343                 |  2,577,188    |  2,589,288             |

----

|  No.           |  Name of Related-party                                           |  Description           | 2009                                                                                                                            |
|---------------------|-----------------------------------------------------------------------|-----------------------------|---------------------------------------------------------------------------------------------------------------------------------|
|                |                                                                  |                        |  Balance @ 12/31/08                                                                                                        |  Effects of foreign currency transaltion |  Payback in 2009 |  Additional borrowing in 2009 |  Balance @ 12/31/09 |  Highest Balance during 2009 |
|    3 | Shaanxi Dukang Group Co., Ltd.                                        | Affiliate                   |          471,244                                                                   |           1,172 |   1,274,734 |   1,391,175 |            588,857 |         881,375 |
|    4 | Shaanxi Zhongke Spaceflight Agriculture Development Stock Co., Ltd    | Affiliate                   |             33,512                                                  |                 31 |                  - |                  - |              33,543 |            33,543 |
|    1 | Shaanxi Baishui Dukang Marketing Management  Co.Ltd         | Affiliate                   |               1,179                                       |                   3 |       104,868 |       116,553 |              12,867 |            27,508 |
|    2 | 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 |

| 2010                                                                                                                            |
|---------------------------------------------------------------------------------------------------------------------------------|
|  Balance @ 12/31/09                                                                                                        |  Effects of foreign currency transaltion |  Payback in 2010 |  Additional borrowing in 2010 |  Balance @ 12/31/10 |  Highest Balance during 2010 |
|          588,857                                                                   |         87,695 |  2,030,787 |   4,708,783 |       3,354,548 |        3,354,548 |
|             33,543                                                  |               290 |       33,833 |                  - |                      - |              34,687 |
|             12,867                                                  |               439 |                 - |                  - |             13,306 |              13,306 |
|             72,206                                                  |           2,462 |                 - |                  - |             74,668 |              74,668 |
|       1,268,456                                                                                   |         32,249 |     435,402 |                  - |           865,303 |        1,311,699 |
|                      - |                  - |                 - |                  - |                      - |                       - |
|          162,074                                                                   |           9,005 |       89,360 |       227,183 |           308,902 |            315,728 |
|          292,517                                                                   |           9,972 |                 - |                  - |           302,489 |            302,489 |
|                      - |           2,235 |     114,584 |       203,096 |             90,747 |            208,224 |
|                      - |           6,221 |                 - |       246,358 |           252,579 |            252,579 |
|       3,189,801                                                                                   |         79,125 |  1,175,938 |           2,970 |       2,095,957 |        3,298,544 |
|          393,082                                                                   |         13,400 |                 - |                  - |           406,482 |            406,482 |
|          582,884                                                                   |         19,871 |                 - |                  - |           602,755 |            602,755 |
|       4,391,159                                                                                   |       149,332 |       14,457 |                  - |       4,526,035 |        4,540,857 |
|          264,648                                                                   |           9,022 |                 - |                  - |           273,670 |            273,670 |
|       2,767,544                                                                                   |         94,347 |                 - |                  - |       2,861,891 |        2,861,891 |
|          296,307                                                                   |           7,048 |     120,966 |                  - |           182,389 |            306,407 |
|          779,963                                                                   |         26,590 |                 - |                  - |           806,553 |            806,553 |
|     15,095,908                                                                                              |       549,301 |  4,015,327 |   5,388,390 |     17,018,272 |      18,965,085 |

----

----

----

----

----

----

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----

| ITEM 8. | FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA |
|---------|---------------------------------------------|

| CHINA DU KANG CO., LTD. AND SUBSIDIARIES       |   |
|------------------------------------------------|--------|
| F/K/A AMSTAR FINANCIAL HOLDINGS, INC.          |   |
|                                           |   |   |
|                                           |   |   |
|                                           |   |   |
|                                           |   |   |
| FINANCIAL REPORT                               |   |
|                                           |   |   |
| At December 31, 2010 and  2009 and   |   |
| For the Years Ended December 31, 2010 and 2009 |   |

----

| CHINA DU KANG CO., LTD. AND SUBSIDIARIES                             |
|----------------------------------------------------------------------|
| F/K/A AMSTAR FINANCIAL HOLDINGS, INC.                                |
|                                                                 |   |   |   |   |   |   |   |   |   |
| INDEX                                                                |
|                                                                 |   |   |   |   |   |   |   |   |   |
|                                                                 |   |   |   |   |   |   |   |   | PAGE |
|                                                                 |   |   |   |   |   |   |   |   |   |
| REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM              |   | 2-F |
|                                                                 |   |   |   |   |   |   |   |   |   |
| CONSOLIDATED BALANCE SHEETS                                          |   |   |   |   |   | 3-F |
|                                                                 |   |   |   |   |   |   |   |   |   |
| CONSOLIDATED STATEMENTS OF OPERATIONS                                |   |   |   |   | 4-F |
|                                                                 |   |   |   |   |   |   |   |   |   |
| CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (DEFICIT) | 5-F |
|                                                                 |   |   |   |   |   |   |   |   |   |
| CONSOLIDATED STATEMENTS OF CASH FLOWS                                |   |   |   |   | 6-F |
|                                                                 |   |   |   |   |   |   |   |   |   |
| NOTES TO CONSOLIDATED FINANCIAL STATEMENTS                           |   |   |   | 7-F-37-F |

----

| 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.)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
| We have audited the accompanying consolidated balance sheets of China Du Kang Co., Ltd. and subsidiaries as of  December 31, 2010 and 2009, and the related consolidated statements of income, stockholders' equity and comprehensive income, and cash flows for each of the years in the two-year period ended  December 31, 2010.  China Du Kang Co., Ltd.’s management is responsible for these consolidated financial statements. Our responsibility is to express an opinion on these financial statements based on our audits.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
| We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. The company is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. Our audit included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the company’s internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
| In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of China Du Kang Co., Ltd. and subsidiaries as of  December 31, 2010 and 2009, and the results of its operations and its cash flows for each of the years in the two-year period ended  December 31, 2010 in conformity with accounting principles generally accepted in the United States of America.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
| The accompanying consolidated financial statements have been prepared assuming that the Company will continue as a going concern. As discussed in Note 3 to the consolidated financial statements, the Company has incurred an operating loss for each of the years in the two-year period ended  December 31, 2010, and as of December 31, 2010, has a working capital deficiency and a shareholders' deficiency.  These factors raise substantial doubt about its ability to continue as a going concern. Management’s plans concerning these matters are also described in Note 3. The accompanying financial statements do not include any adjustments that might result from the outcome of this uncertainty.                                                                                                                                                                                                                                                                                                                                                                                                         |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |

|                       |
|-----------------------|
|                  |
| /s/Keith K. Zhen, CPA |
| Keith K. Zhen, CPA    |
| Brooklyn, New York    |
| April 15, 2011        |

----

| CHINA DU KANG CO., LTD. AND SUBSIDIARIES       |
|------------------------------------------------|
| F/K/A AMSTAR FINANCIAL HOLDINGS, INC.          |
|                                           |   |   |   |   |   |   |   |   |   |   |   |   |
| CONSOLIDATED BALANCE SHEETS                    |
|                                           |   |   |   |   |   |   |   |   |   |   |   |   |
|                                           |   |   |   |   |   |   |   |   |   | December 31, |   | December 31, |
|                                           |   |   |   |   |   |   |   |   |   | 2010 |   | 2009 |
| ASSETS                                         |   |   |   |   |   | (restated) |
| Current Assets:                                |   |   |   |   |   |   |   |   |   |
|                                           | Cash and cash equivalents |   |   |   |   | $ |          1,994,126 | $ |            619,472 |
|                                           | Others receivable |   |   |   |   |   |               74,210 |   |              67,134 |
|                                           | Prepaid expenses (Note 5) |   |   |   |   |   |             625,696 |   |            506,992 |
|                                           | Inventories (Note 6) |   |   |   |   |   |          3,273,993 |   |         2,694,596 |
|                                           | Due from related parties (Note 9) |   |   |   |   |          2,577,187 |   |         1,111,566 |
|                                           |   | Total current assets |   |   |   |   |   |          8,545,212 |   |         4,999,760 |
|                                           |   |   |   |   |   |   |   |   |   |   |   |   |
| Property, Plant and Equipment, net (Note 7)    |   |   |   |          4,424,062 |   |         4,283,850 |
| Intangible assets, net (Note 8)                |   |   |   |   |   |          2,003,122 |   |              66,456 |
| Long-term investment                           |   |   |   |   |   |          1,814,937 |   |         1,755,104 |
|                                           |   |   |   |   |   |   |   |   |   |   |   |   |
| Total Assets                                   |   |   |   |   |   |   | $ |        16,787,333 | $ |       11,105,170 |
|                                           |   |   |   |   |   |   |   |   |   |   |   |   |
| LIABILITIES AND SHAREHOLDERS' EQUITY           |   |   |   |   |   |   |
| Current Liabilities:                           |   |   |   |   |   |   |   |   |   |
|                                           | Bank loans (Note 13) |   |   |   |   | $ |             756,224 | $ |            292,517 |
|                                           | Accounts payable |   |   |   |   |   |             891,409 |   |            856,270 |
|                                           | Accrued expenses (Note 10) |   |   |   |   |   |             160,512 |   |              92,546 |
|                                           | Others payable |   |   |   |   |   |               64,136 |   |              56,711 |
|                                           | Land use right purchase payable |   |   |   |   |   |          1,946,792 |   |                     - |
|                                           | Taxes payable |   |   |   |   |   |   |             502,574 |   |            198,965 |
|                                           | Deferred revenue |   |   |   |   |   |          1,587,115 |   |            329,092 |
|                                           | Due to related parties (Note 11) |   |   |   |   |        17,018,272 |   |       15,095,908 |
|                                           | Employee security deposit |   |   |   |   |   |               43,860 |   |              77,225 |
|                                           | Lease liability-current |   |   |   |   |   |             126,314 |   |            129,722 |
|                                           |   | Total Current Liabilities |   |   |   |   |   |        23,097,208 |   |       17,128,956 |
|                                           |   |   |   |   |   |   |   |   |   |   |   |   |
| Long-term Liabilities:                         |   |   |   |   |   |   |   |   |
|                                           | Lease liability-long-term |   |   |   |   |   |             934,237 |   |         1,025,588 |
|                                           |   | Total Long-term Liabilities |   |   |   |   |   |             934,237 |   |         1,025,588 |
| Total Liabilities                              |   |   |   |   |   |   |        24,031,445 |   |       18,154,544 |
|                                           |   |   |   |   |   |   |   |   |   |   |   |   |
| 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; |   |   |   |   |
|                                           |   |   | no shares issued and outstanding as of |   |   |   |   |   |   |
|                                           |   |   | September 30, 2010 and December 31, 2009 |   |   |                      - |   |                     - |
|                                           |   | Common stock, par value $0.001, 250,000,000 shares authorized; |   |   |   |   |
|                                           |   |   | 100,113,791 shares issued and outstanding as of |   |   |   |   |
|                                           |   |   | December 31, 2010 and 2009 |   |   |   |             100,114 |   |            100,114 |
|                                           |   | Additional paid-in capital |   |   |   |   |   |        10,671,262 |   |       10,671,262 |
|                                           |   | Accumulated deficit |   |   |   |   |   |      (17,329,753) |   |     (17,227,682) |
|                                           |   | Accumulated other comprehensive income |   |   |   |           (881,220) |   |          (636,822) |
|                                           |   |   |   | Total China Du Kang Co., Ltd.  Shareholders' equity (deficit) |   |        (7,439,597) |   |       (7,093,128) |
|                                           | Noncontrolling Interest |   |   |   |   |   |             195,485 |   |              43,754 |
|                                           |   | Total Shareholders' Equity (Deficit) |   |   |   |        (7,244,112) |   |       (7,049,374) |
|                                           |   |   | Total Liabilities and Shareholders' Equity (Deficit) | $ |        16,787,333 | $ |       11,105,170 |
|                                           |   |   |   |   |   |   |   |   |   |   |   |   |
| See Notes to Consolidated Financial Statements |

----

| CHINA DU KANG CO., LTD. AND SUBSIDIARIES              |
|-------------------------------------------------------|
| F/K/A AMSTAR FINANCIAL HOLDINGS, INC.                 |
|                                                  |   |   |   |   |   |   |   |   |   |   |
| CONSOLIDATED STATEMENTS OF OPERATIONS                 |
|                                                  |   |   |   |   |   |   |   |   |   |   |
|                                                  |   |   |   |   |   |   | For the Year Ended |
|                                                  |   |   |   |   |   |   | December 31, |
|                                                  |   |   |   |   |   |   |   | 2010 |   | 2009 |
|                                                  |   |   |   |   |   |   |   |   |   | (restated) |
| Revenues                                              |   |   |   |   |   |   |   |   |   |
|                                                  | Sales of Liquor |   |   |   | $ |          1,270,135 | $ |          1,059,694 |
|                                                  | License Fees |   |   |   |   |          1,217,319 |   |             927,965 |
|                                                  |   | Gross Profit |   |   |   |   |          2,487,454 |   |          1,987,659 |
|                                                  |   |   |   |   |   |   |   |   |   |   |
| Costs of Revenues                                     |   |   |   |   |   |   |   |
|                                                  | Costs of Liquor Sold |   |   |   |   |          1,244,310 |   |          1,119,996 |
|                                                  | Costs of License Fees |   |   |   |   |                       - |   |                       - |
|                                                  |   | Total Costs of Sales |   |   |   |   |          1,244,310 |   |          1,119,996 |
|                                                  |   |   |   |   |   |   |   |   |   |   |
| Gross Profit                                          |   |   |   |   |   |          1,243,144 |   |             867,663 |
|                                                  |   |   |   |   |   |   |   |   |   |   |
| Operating Expenses                                    |   |   |   |   |   |   |   |
|                                                  |   |   |   |   |   |   |   |   |   |   |
|                                                  | Selling Expenses |   |   |   |   |   |   |   |
|                                                  |   | Advertising expenses |   |   |   |   |               23,258 |   |             135,966 |
|                                                  |   | Package design |   |   |   |   |                 5,266 |   |               17,039 |
|                                                  |   | Promotion expenses |   |   |   |   |               98,709 |   |             256,417 |
|                                                  |   | Travel and entertainment |   |   |   |   |               14,979 |   |               56,327 |
|                                                  |   |   |  Total Selling Expenses |   |   |   |   |             142,212 |   |             465,749 |
|                                                  |   |   |   |   |   |   |   |   |   |   |
|                                                  | General and administrative expenses |   |   |   |   |   |   |   |
|                                                  |   | Payroll |   |   |   |   |             214,338 |   |             266,278 |
|                                                  |   | Employee benefit and pension |   |   |   |   |               76,654 |   |               19,846 |
|                                                  |   | Depreciation and amortization expenses |   |   |   |   |             140,703 |   |             151,244 |
|                                                  |   | Professional fees and consultancy fees |   |   |   |   |             122,914 |   |               60,565 |
|                                                  |   | Office expenses |   |   |   |   |               68,077 |   |               83,332 |
|                                                  |   | Vehicle expenses |   |   |   |   |               38,469 |   |               30,168 |
|                                                  |   | Loss on physical inventory count |   |   |   |   |               32,849 |   |             121,595 |
|                                                  |   | Travel and entertainment |   |   |   |   |             175,976 |   |             145,908 |
|                                                  |   | Other general and administrative expenses |   |   |   |   |               33,518 |   |               12,391 |
|                                                  |   |   | Total General and Administrative Expenses |   |   |             903,498 |   |             891,327 |
|                                                  |   |   |   |   |   |   |   |   |   |   |
| Total Operating Expenses                              |   |   |   |   |          1,045,710 |   |          1,357,076 |
|                                                  |   |   |   |   |   |   |   |   |   |   |
| Income (Loss) from Operation                          |   |   |   |   |             197,434 |   |            (489,413) |
|                                                  |   |   |   |   |   |   |   |   |   |   |
| Other Income (Expenses)                               |   |   |   |   |   |   |   |
|                                                  | Interest income |   |   |   |   |                 2,865 |   |                 1,485 |
|                                                  | Interest expenses |   |   |   |   |              (20,124) |   |              (18,780) |
|                                                  | Charity donation |   |   |   |   |                       - |   |                (1,535) |
|                                                  | Governmental subsidy |   |   |   |   |               75,279 |   |               73,090 |
|                                                  | Other income (expense) |   |   |   |   |              (10,213) |   |                 1,433 |
|                                                  |   | Total other income (expenses) |   |   |   |   |               47,807 |   |               55,693 |
|                                                  |   |   |   |   |   |   |   |   |   |   |
| Income (Loss) before Provision for Income Tax         |   |   |   |   |             245,241 |   |            (433,720) |
|                                                  |   |   |   |   |   |   |   |   |   |   |
| Provision for Income Tax                              |   |   |   |   |            (200,773) |   |            (112,161) |
|                                                  |   |   |   |   |   |   |   |   |   |   |
| Net Income (Loss)                                     |   |   |   |   |               44,468 |   |            (545,881) |
|                                                  |   |   |   |   |   |   |   |   |   |   |
|                                                  | Less: Net income attributable to noncontrolling interest |   |   |             146,539 |   |              (29,930) |
|                                                  |   |   |   |   |   |   |   |   |   |   |
| Net Income (Loss) attributable to                     |   |   |   |   |   |   |   |
|      China Du Kang Co., Ltd. |   |   |   | $ |            (102,071) | $ |            (515,951) |
|                                                  |   |   |   |   |   |   |   |   |   |   |
| Basic and Fully Diluted Earnings per Share            |   |   |   | $ |                  (0.00) | $ |                  (0.01) |
|                                                  |   |   |   |   |   |   |   |   |   |   |
| Weighted average shares outstanding                   |   |   |   |   |      100,113,791 |   |      100,113,791 |
|                                                  |   |   |   |   |   |   |   |   |   |   |
| See Notes to Consolidated Financial Statements        |

----

| CHINA DU KANG CO., LTD. AND SUBSIDIARIES                                                                                                                 |
|----------------------------------------------------------------------------------------------------------------------------------------------------------|
| F/K/A AMSTAR FINANCIAL HOLDINGS, INC.                                                                                                                    |
|                                                                                                                                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (DEFICIENCY)                                                                                  |
|                                                                                                                                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| FOR THE YEAR ENDED DECEMBER 31, 2010 AND 2009                                                                                                            |
|                                                                                                                                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                                                     |   |   |   |   |   |   |   |   |   | Accumulated |   |   |   |   |   |   |
|                                                                                                                                                     |   | Common Stock |   | Additional |   |   |   | Other |   |   |   | Total |   |   |
|                                                                                                                                                     |   | $0.001 Par Value |   | Paid-in |   | Accumulated |   | Comprehensive |   | Noncontrolling |   | Shareholders' |   | Comprehensive |
|                                                                                                                                                     |   | Shares |   | Amount |   | Capital |   | Deficit |   | Income |   | Interest |   | Equity |   | Income |
| Balances at                                                                                                                                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|     December 31, 2008                                                                                                                |   |   100,113,791 | $ |          100,114 | $ |     10,671,262 | $ |   (16,711,731) | $ |        (620,219) | $ |            73,517 | $ |     (6,487,057) |   |   |
|                                                                                                                                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Comprehensive income                                                                                                                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|      Net income                                                                                                                 |   |                   - |   |                   - |   |                   - |   |        (515,951) |   |                   - |   |          (29,930) |   |        (545,881) | $ |        (545,881) |
|      Other comprehensive income, net of tax:                                                                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|            Effects of foreign currency conversion                                                 |                   - |   |                   - |   |                   - |   |                   - |   |          (16,603) |   |                 167 |   |          (16,436) |   |          (16,436) |
|      Total other comprehensive income                                                                                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |          (16,436) |
| Total comprehensive income                                                                                                                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   | $ |        (562,317) |
|                                                                                                                                                     |   |                   - |   |                   - |   |   |   |   |   |   |   |   |   |   |   |   |
| Balances at                                                                                                                                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|     December 31, 2009                                                                                                                |   |   100,113,791 | $ |          100,114 | $ |     10,671,262 | $ |   (17,227,682) | $ |        (636,822) | $ |            43,754 | $ |     (7,049,374) |   |   |
|                                                                                                                                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Comprehensive income                                                                                                                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|      Net income                                                                                                                 |   |                   - |   |                   - |   |                   - |   |        (102,071) |   |                   - |   |          146,539 |   |            44,468 | $ |           44,468 |
|      Other comprehensive income, net of tax:                                                                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|            Effects of foreign currency conversion                                                 |                   - |   |                   - |   |                   - |   |                   - |   |        (244,398) |   |              5,192 |   |        (239,206) |   |        (239,206) |
|      Total other comprehensive income                                                                                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |        (239,206) |
| Total comprehensive income                                                                                                                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   | $ |        (194,738) |
|                                                                                                                                                     |   |                   - |   |                   - |   |   |   |   |   |   |   |   |   |   |   |   |
| Balances at                                                                                                                                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|     December 31, 2010                                                                                                                |   |   100,113,791 | $ |          100,114 | $ |     10,671,262 | $ |   (17,329,753) | $ |        (881,220) | $ |          195,485 | $ |     (7,244,112) |   |   |
|                                                                                                                                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|  * The reverse merger adjustment represents the recording of the minority shareholders’ shares outstanding at the time of the reverse merger. |
|                                                                                                                                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| See Notes to Financial Statements                                                                                                                        |

----

| CHINA DU KANG CO., LTD. AND SUBSIDIARIES                                 |
|--------------------------------------------------------------------------|
| F/K/A AMSTAR FINANCIAL HOLDINGS, INC.                                    |
|                                                                     |   |   |   |   |   |   |   |   |   |
| CONSOLIDATED STATEMENTS OF CASH FLOWS                                    |
|                                                                     |   |   |   |   |   |   |   |   |   |
|                                                                     |   |   |   |   |   |   | For the Year Ended |
|                                                                     |   |   |   |   |   |   | December 31, |
|                                                                     |   |   |   |   |   |   | 2010 |   | 2009 |
|                                                                     |   |   |   |   |   |   |   |   | (restated) |
| Operating Activities                                                     |   |   |   |   |   |   |   |   |
|                                                                     |   |   |   |   |   |   |   |   |   |
| Net income (loss)                                                        |   |   |   |   | $ |            (102,071) | $ |            (515,951) |
| Adjustments to reconcile net income (loss) to                            |   |   |   |   |   |   |   |   |
|    net cash provided (used) by operating activities:      |   |   |   |   |   |   |   |   |
|         Minority interest        |   |   |   |   |   |              146,539 |   |              (29,930) |
|         Depreciation             |   |   |   |   |   |              366,490 |   |              368,554 |
|         Amortization             |   |   |   |   |   |                12,087 |   |                  9,810 |
| Changes in operating assets and liabilities:                             |   |   |   |   |   |   |   |   |
|    (Increase)/Decrease in others payable                  |   |   |   |   |   |                (4,669) |   |              (63,597) |
|    (Increase)/Decrease in prepaid expenses                |   |   |   |   |   |              (98,923) |   |            (368,052) |
|    (Increase)/Decrease in inventories                     |   |   |   |   |   |            (475,529) |   |              272,211 |
|     Increase/(Decrease) in accounts payable          |   |   |   |   |   |                  5,802 |   |                  9,926 |
|     Increase/(Decrease) in accrued expenses          |   |   |   |   |   |                63,215 |   |                (4,319) |
|     Increase/(Decrease) in other payable             |   |   |   |   |   |              (42,590) |   |                28,426 |
|     Increase/(Decrease) in taxes payable             |   |   |   |   |   |              289,516 |   |              149,519 |
|     Increase/(Decrease) in deferred revenue          |   |   |   |   |   |           1,216,097 |   |              (67,281) |
|     Increase/(Decrease) in employee security deposit |   |   |   |   |   |              (35,111) |   |                (1,756) |
|     Increase/(Decrease) in lease liabilities         |   |   |   |   |   |            (130,840) |   |            (107,679) |
| Net cash provided (used) by operating activities                         |   |   |   |   |   |           1,210,013 |   |            (320,119) |
|                                                                     |   |   |   |   |   |   |   |   |   |
| Investing Activities                                                     |   |   |   |   |   |   |   |   |
|                                                                     |   |   |   |   |   |   |   |   |   |
| Purchase of fixed assets                                                 |   |   |   |   |   |            (458,311) |   |            (107,641) |
| Advances to related parties                                              |   |   |   |   |   |         (1,551,909) |   |            (780,506) |
| Collections of advances to related parties                               |   |   |   |   |   |              159,345 |   |              112,074 |
| Net cash (used) by investing activities                                  |   |   |   |   |   |         (1,850,875) |   |            (776,073) |
|                                                                     |   |   |   |   |   |   |   |   |   |
| Financing Activities                                                     |   |   |   |   |   |   |   |   |
|                                                                     |   |   |   |   |   |   |   |   |   |
| Bank loans                                                               |   |   |   |   |   |   |              442,560 |   |              292,360 |
| Proceeds from related parties                                            |   |   |   |   |   |           5,388,390 |   |           3,145,366 |
| Repayments to related parties                                            |   |   |   |   |   |         (4,015,324) |   |         (2,403,854) |
| Net cash provided (used) by financing activities                         |   |   |   |   |   |           1,815,626 |   |           1,033,872 |
|                                                                     |   |   |   |   |   |   |   |   |   |
| Increase (decrease) in cash                                              |   |   |   |   |   |           1,174,764 |   |              (62,320) |
| Effects of exchange rates on cash                                        |   |   |   |   |   |              199,890 |   |              (16,258) |
| Cash at beginning of period                                              |   |   |   |   |   |              619,472 |   |              698,050 |
| Cash at end of period                                                    |   |   |   |   | $ |           1,994,126 | $ |              619,472 |
|                                                                     |   |   |   |   |   |   |   |   |   |
| Supplemental Disclosures of Cash Flow Information:                       |   |   |   |   |   |   |   |   |
|    Cash paid (received) during year for:                  |   |   |   |   |   |   |   |   |
|        Interest                       |   |   |   |   |   | $ |                20,124 | $ |                18,780 |
|        Income taxes                   |   |   |   |   | $ |                       - | $ |                       - |
|                                                                     |   |   |   |   |   |   |   |   |   |
| See Notes to Consolidated Financial Statements                           |

----

| CHINA DU KANG CO., LTD. AND SUBSIDIARIES   |
|--------------------------------------------|
| F/K/A AMSTAR FINANCIAL HOLDINGS, INC.      |
|                                       |   |   |   |   |   |   |   |   |   |
| NOTES TO CONSOLIDATED FINANCIAL STATEMENTS |
|                                       |   |   |   |   |   |   |   |   |   |
| Note 1-                                    | 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. |

----

| CHINA DU KANG CO., LTD. AND SUBSIDIARIES   |
|--------------------------------------------|
| F/K/A AMSTAR FINANCIAL HOLDINGS, INC.      |
|                                       |   |   |   |   |   |   |   |   |   |
| NOTES TO CONSOLIDATED FINANCIAL STATEMENTS |
|                                       |   |   |   |   |   |   |   |   |   |
| Note 1-                                    | 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. |

----

| CHINA DU KANG CO., LTD. AND SUBSIDIARIES   |
|--------------------------------------------|
| F/K/A AMSTAR FINANCIAL HOLDINGS, INC.      |
|                                       |   |   |   |   |   |   |   |   |   |
| NOTES TO CONSOLIDATED FINANCIAL STATEMENTS |
|                                       |   |   |   |   |   |   |   |   |   |
| Note 1-                                    | 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”). |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| CHINA DU KANG CO., LTD. AND SUBSIDIARIES   |
|--------------------------------------------|
| F/K/A AMSTAR FINANCIAL HOLDINGS, INC.      |
|                                       |   |   |   |   |   |   |   |   |   |
| NOTES TO CONSOLIDATED FINANCIAL STATEMENTS |
|                                       |   |   |   |   |   |   |   |   |   |
| Note 1-                                    | 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 2-                                    | 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 3-                                    | GOING CONCERN |   |   |   |   |   |   |   |
|                                       |   |   |   |   |   |   |   |   |   |
|                                       | As reflected in the accompanying consolidated financial statements, the Company had an accumulated deficit of $17,329,753 at December 31, 2010 that includes losses of $102,071 and $515,951 for the year ended December 31, 2010 and 2009, respectively.   In addition, The Company had a working capital deficiency of $14,551,996 and a shareholders' deficiency of $7,244,112 at December 31, 2010.  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 11. |

----

| CHINA DU KANG CO., LTD. AND SUBSIDIARIES   |
|--------------------------------------------|
| F/K/A AMSTAR FINANCIAL HOLDINGS, INC.      |
|                                       |   |   |   |   |   |   |   |   |   |
| NOTES TO CONSOLIDATED FINANCIAL STATEMENTS |
|                                       |   |   |   |   |   |   |   |   |   |
| Note 4-                                    | 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. |

----

| CHINA DU KANG CO., LTD. AND SUBSIDIARIES   |
|--------------------------------------------|
| F/K/A AMSTAR FINANCIAL HOLDINGS, INC.      |
|                                       |   |   |   |   |   |   |
| NOTES TO CONSOLIDATED FINANCIAL STATEMENTS |
|                                       |   |   |   |   |   |   |
| Note 4-                                    | SIGNIFICANT ACCOUNTING POLICIES (continued) |   |   |
|                                       |   |   |   |   |   |   |
|                                       | Foreign Currencies Translation |   |   |   |   |
|                                       |   |   |   |   |   |   |
|                                       | 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 statements of changes in shareholders’ equity. |
|                                       |   |   |   |   |   |   |
|                                       | The exchange rates used for foreign currency translation were as follows (USD$1 = RMB): |   |
|                                       |   |   |   |   |   |   |
|                                       |   Period Covered |   |   | Balance Sheet Date Rates | Average Rates |
|                                       |   |   |   |   |   |   |
|                                       | Year ended December 31, 2010 |   |   | 6.61180 | 6.77875 |
|                                       | Year ended December 31, 2009 |   |   | 6.83720 | 6.84088 |
|                                       |   |   |   |   |   |   |
|                                       | Statement of Cash Flows |   |   |   |   |
|                                       |   |   |   |   |   |   |
|                                       | In accordance with FASB ASC 830-230, “Statement of Cash Flows”, 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. |

----

| CHINA DU KANG CO., LTD. AND SUBSIDIARIES   |
|--------------------------------------------|
| F/K/A AMSTAR FINANCIAL HOLDINGS, INC.      |
|                                       |   |   |   |   |   |   |   |   |   |
| NOTES TO CONSOLIDATED FINANCIAL STATEMENTS |
|                                       |   |   |   |   |   |   |   |   |   |
| Note 4-                                    | 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. |

----

| CHINA DU KANG CO., LTD. AND SUBSIDIARIES   |
|--------------------------------------------|
| F/K/A AMSTAR FINANCIAL HOLDINGS, INC.      |
|                                       |   |   |   |   |   |   |   |   |   |
| NOTES TO CONSOLIDATED FINANCIAL STATEMENTS |
|                                       |   |   |   |   |   |   |   |   |   |
| Note 4-                                    | 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. |

----

| CHINA DU KANG CO., LTD. AND SUBSIDIARIES   |
|--------------------------------------------|
| F/K/A AMSTAR FINANCIAL HOLDINGS, INC.      |
|                                       |   |   |   |   |   |   |   |   |   |
| NOTES TO CONSOLIDATED FINANCIAL STATEMENTS |
|                                       |   |   |   |   |   |   |   |   |   |
| Note 4-                                    | 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 |   |   |

----

| CHINA DU KANG CO., LTD. AND SUBSIDIARIES   |
|--------------------------------------------|
| F/K/A AMSTAR FINANCIAL HOLDINGS, INC.      |
|                                       |   |   |   |   |   |   |   |   |   |
| NOTES TO CONSOLIDATED FINANCIAL STATEMENTS |
|                                       |   |   |   |   |   |   |   |   |   |
| Note 4-                                    | 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 three pieces of land, approximately 657 acre, 2.4 acre, and 7.8 acre, located in Weinan City, Shaanxi Province for through February, 2051, March 2055, and May 2059.   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 |   |   |   |   |   |   |   |
|                                       |   |   |   |   |   |   |   |   |   |
|                                       | The Company expenses advertising costs as incurred or the first time the advertising takes place, whichever is earlier, in accordance with the FASB ASC 720-35, “Advertising Costs”. . The advertising costs were $25,452, and $135,966 for the years ended December 31, 2010 and 2009, respectively. |

----

| CHINA DU KANG CO., LTD. AND SUBSIDIARIES   |
|--------------------------------------------|
| F/K/A AMSTAR FINANCIAL HOLDINGS, INC.      |
|                                       |   |   |   |   |   |   |   |   |   |
| NOTES TO CONSOLIDATED FINANCIAL STATEMENTS |
|                                       |   |   |   |   |   |   |   |   |   |
| Note 4-                                    | SIGNIFICANT ACCOUNTING POLICIES (continued) |   |   |   |   |
|                                       |   |   |   |   |   |   |   |   |   |
|                                       | Research and Development Costs |   |   |   |   |   |   |
|                                       |   |   |   |   |   |   |   |   |   |
|                                       | Research and development costs relating to the development of new products and processes, including significant improvements and refinements to existing products, are expensed when incurred in accordance with the FASB ASC 730, "Research and Development". Research and development costs were immaterial for the year ended December 31, 2010 and 2009, 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 |   |   |   |   |   |   |   |   |
|                                       |   |   |   |   |   |   |   |   |   |
|                                       | For the purposes of these financial statements, parties are considered to be related if one party has the ability, directly or indirectly, to control the party or exercise significant influence over the party in making financial and operating decisions, or vice versa, or where the Company and the party are subject to common control or common significant influence. Related parties may be individuals or other entities. |
|                                       |   |   |   |   |   |   |   |   |   |
|                                       | 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. |

----

| CHINA DU KANG CO., LTD. AND SUBSIDIARIES   |
|--------------------------------------------|
| F/K/A AMSTAR FINANCIAL HOLDINGS, INC.      |
|                                       |   |   |   |   |   |   |   |   |   |
| NOTES TO CONSOLIDATED FINANCIAL STATEMENTS |
|                                       |   |   |   |   |   |   |   |   |   |
| Note 4-                                    | SIGNIFICANT ACCOUNTING POLICIES (continued) |   |   |   |   |
|                                       |   |   |   |   |   |   |   |   |   |
|                                       | 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: |

----

| CHINA DU KANG CO., LTD. AND SUBSIDIARIES                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| F/K/A AMSTAR FINANCIAL HOLDINGS, INC.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| NOTES TO CONSOLIDATED FINANCIAL STATEMENTS                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Note 4-                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              | SIGNIFICANT ACCOUNTING POLICIES (continued) |   |   |   |   |   |   |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 | Lease (continued) |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Estimated Pension and Unemployment Insurance Expenses                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| 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¥6.61180@12/31/2010 | Present Value as of December 31, 2010(the incremental interest rate is 8%) |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |   |   |   |   |   |   |   |   |   | (RMB) | (USD) | (RMB) | (USD) |
| 2010                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |     13,784 | 4% | 20% | 316 |        871,143 |  10,980 | 4% | 2.50% | 316 |       86,745 |         957,888 |     144,876 |   |   |
| 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                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |   |   |   |   11,825,175 |   |   |   |   |  1,177,507 |    13,002,682 |  1,966,587 |  7,012,153 |  1,060,551 |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| 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. |

----

| CHINA DU KANG CO., LTD. AND SUBSIDIARIES   |
|--------------------------------------------|
| F/K/A AMSTAR FINANCIAL HOLDINGS, INC.      |
|                                       |   |   |   |   |   |   |   |   |   |
| NOTES TO CONSOLIDATED FINANCIAL STATEMENTS |
|                                       |   |   |   |   |   |   |   |   |   |
| Note 4-                                    | SIGNIFICANT ACCOUNTING POLICIES (continued) |   |   |   |   |
|                                       |   |   |   |   |   |   |   |   |   |
|                                       | 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 $76,654 and $19,846 for the year ended December 31, 2010 and 2009, 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 $75,279 and $73,050 for the year ended December 31, 2010 and 2009, respectively. |
|                                       |   |   |   |   |   |   |   |   |   |
|                                       | 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. |
|                                       |   |   |   |   |   |   |   |   |   |
|                                       | 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. |

----

| CHINA DU KANG CO., LTD. AND SUBSIDIARIES   |
|--------------------------------------------|
| F/K/A AMSTAR FINANCIAL HOLDINGS, INC.      |
|                                       |   |   |   |   |   |   |   |   |   |
| NOTES TO CONSOLIDATED FINANCIAL STATEMENTS |
|                                       |   |   |   |   |   |   |   |   |   |
| Note 4-                                    | 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 ASC 220, “Comprehensive Income”, establishes standards for reporting and display of comprehensive income, its components and accumulated balances.  Comprehensive income as defined includes all changes in equity during a period from non-owner sources. Accumulated comprehensive income, as presented in the accompanying 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 ASC 820, “Segments Reporting”, establishes standards for reporting information about operating segments on a basis consistent with the Company’s internal organization structure as well as information about geographical areas, business segments and major customers in financial statements. The Company currently operates in two principal business segments. |

----

| CHINA DU KANG CO., LTD. AND SUBSIDIARIES   |
|--------------------------------------------|
| F/K/A AMSTAR FINANCIAL HOLDINGS, INC.      |
|                                       |   |   |   |   |   |   |   |   |
| NOTES TO CONSOLIDATED FINANCIAL STATEMENTS |
|                                       |   |   |   |   |   |   |   |   |
| Note 4-                                    | 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 year ended December 31, 2010 and 2009, 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. |

----

| CHINA DU KANG CO., LTD. AND SUBSIDIARIES   |
|--------------------------------------------|
| F/K/A AMSTAR FINANCIAL HOLDINGS, INC.      |
|                                       |   |   |   |   |   |   |   |   |   |
| NOTES TO CONSOLIDATED FINANCIAL STATEMENTS |
|                                       |   |   |   |   |   |   |   |   |   |
| Note 4-                                    | SIGNIFICANT ACCOUNTING POLICIES (continued) |   |   |   |   |
|                                       |   |   |   |   |   |   |   |   |   |
|                                       | Recent Accounting Pronouncements |   |   |   |   |   |   |
|                                       |   |   |   |   |   |   |   |   |   |
|                                       | In December 2010, FASB issued an amendment to the disclosure of supplementary pro forma information for business combinations. The amendments in this ASU specify that if a public entity presents comparative financial statements, the entity should disclose revenue and earnings of the combined entity as though the business combination that occurred during the current year had occurred as of the beginning of the comparable prior annual reporting period only. The amendments also expand the supplemental pro forma disclosures to include a description of the nature and amount of material, nonrecurring pro forma adjustments directly attributable to the business combination included in the reported pro forma revenue and earnings. The amendments are effective prospectively for business combinations for which the acquisition date is on or after the beginning of the first annual reporting period beginning on or after December 15, 2010. Early adoption is permitted. The adoption of this new guidance did not have a material effect on the Company’s financial position and results of operations. |
|                                       |   |   |   |   |   |   |   |   |   |
|                                       | In December 2010, FASB issued an amendment to goodwill impairment test. The amendments modify Step 1 of the goodwill impairment test for reporting units with zero or negative carrying amounts. For those reporting units, an entity is required to perform Step 2 of the goodwill impairment test if it is more likely than not that a goodwill impairment exists. In determining whether it is more likely than not that goodwill impairment exists, an entity should consider whether there are any adverse qualitative factors indicating that impairment may exist. The qualitative factors are consistent with the existing guidance and examples, which require that goodwill of a reporting unit be tested for impairment between annual tests if an event occurs or circumstances change that would more likely than not reduce the fair value of a reporting unit below its carrying amount. The amendments are effective for fiscal years, and interim periods within those years, beginning after December 15, 2010. Early adoption is not permitted. The adoption of this new guidance did not have a material effect on the Company’s financial position and results of operations. |
|                                       |   |   |   |   |   |   |   |   |   |
|                                       | In July 2010, the Financial Accounting Standards Board ("FASB") issued amendments to the disclosure requirements about the credit quality of financing receivables and the allowance for credit losses. The purpose of the additional disclosures is to enable users of financial statements to better understand the nature of credit risk inherent in an entity’s portfolio of financing receivables and how that risk is analyzed. For end of period balances, the new disclosures are required to be made in all interim and annual periods ending on or after December 15, 2010. For activity during a reporting period, the disclosures are required to be made in all interim and annual periods after January 1, 2011. The Management does not expect these changes will have a material impact on  the Company’s financial position and results of operations as this guidance only relates to additional disclosures. |

----

| CHINA DU KANG CO., LTD. AND SUBSIDIARIES   |
|--------------------------------------------|
| F/K/A AMSTAR FINANCIAL HOLDINGS, INC.      |
|                                       |   |   |   |   |   |   |   |   |   |
| NOTES TO CONSOLIDATED FINANCIAL STATEMENTS |
|                                       |   |   |   |   |   |   |   |   |   |
| Note 4-                                    | SIGNIFICANT ACCOUNTING POLICIES (continued) |   |   |   |   |
|                                       |   |   |   |   |   |   |   |   |   |
|                                       | Recent Accounting Pronouncements (continued) |   |   |   |   |
|                                       |   |   |   |   |   |   |   |   |   |
|                                       | In April 2010, FASB issued an amendment to Stock Compensation. The amendment clarifies that an employee stock-based payment award with an exercise price denominated in the currency of a market in which a substantial portion of the entity’s equity shares trades should not be considered to contain a condition that is not a market, performance, or service condition. Therefore, an entity would not classify such an award as a liability if it otherwise qualifies as equity. The amendments are effective for fiscal years, and interim periods within those fiscal years, beginning on or after December 15, 2010. The  adoption of this new guidance did not have a material effect on the Company’s financial position and results of operations. |
|                                       |   |   |   |   |   |   |   |   |   |
|                                       | In January 2010, the FASB issued additional disclosure requirements for fair value measurements. The guidance requires previous fair value hierarchy disclosures to be further disaggregated by class of assets and liabilities. A class is often a subset of assets or liabilities within a line item in the statement of financial position. In addition, significant transfers between Levels 1 and 2 of the fair value hierarchy are required to be disclosed. These additional requirements became effective January 1, 2010 for quarterly and annual reporting.  The  adoption of this new guidance did not have a material effect on the Company’s financial position and results of operations. In addition, the fair value disclosure amendments also require more detailed disclosures of the changes in Level 3 instruments. These changes will be effective January 1, 2011 and the Management does not expect the  adoption of this new guidance will have a material effect on the Company’s financial position and results of operations. |
|                                       |   |   |   |   |   |   |   |   |   |
|                                       | In October 2009, the FASB issued ASU No. 2009-13, Multiple-Deliverable Revenue Arrangements—a consensus of the FASB Emerging Issues Task Force, that provides amendments to the criteria for separating consideration in multiple-deliverable arrangements. As a result of these amendments, multiple-deliverable revenue arrangements will be separated in more circumstances than under existing U.S. GAAP. The ASU does this by establishing a selling price hierarchy for determining the selling price of a deliverable. The selling price used for each deliverable will be based on vendor-specific objective evidence if available, third-party evidence if vendor-specific objective evidence is not available, or estimated selling price if neither vendor-specific objective evidence nor third-party evidence is available. A vendor will be required to determine its best estimate of selling price in a manner that is consistent with that used to determine the price to sell the deliverable on a standalone basis. This ASU also eliminates the residual method of allocation and will require that arrangement consideration be allocated at the inception of the arrangement to all deliverables using the relative selling price method, which allocates any discount in the overall arrangement proportionally to each deliverable based on its relative selling price. Expanded disclosures of qualitative and quantitative information regarding application of the multiple-deliverable revenue arrangement guidance are also required under the ASU. The ASU does not apply to arrangements for which industry specific allocation and measurement guidance exists, such as long-term construction contracts and software transactions.  The ASU is effective beginning January 1, 2011. The Management does not expect the  adoption of this new guidance will have a material effect on the Company’s financial position and results of operations. |

----

| CHINA DU KANG CO., LTD. AND SUBSIDIARIES   |
|--------------------------------------------|
| F/K/A AMSTAR FINANCIAL HOLDINGS, INC.      |
|                                       |   |   |   |   |   |   |   |   |   |
| NOTES TO CONSOLIDATED FINANCIAL STATEMENTS |
|                                       |   |   |   |   |   |   |   |   |   |
| Note 5-                                    | PREPAID EXPENSES |   |   |   |   |   |   |
|                                       |   |   |   |   |   |   |   |   |   |
|                                       | Prepaid expenses consist of the following: |   |   |   |   |   |   |
|                                       |   |   |   |   |   |   | December 31, |   | December 31, |
|                                       |   |   |   |   |   |   | 2010 |   | 2009 |
|                                       |   |   |   |   |   |   |   |   |   |
|                                       | Machinery and parts |   |   |   | $ |              39,626 | $ |                     - |
|                                       | Raw materials and supplies |   |   |   |            485,372 |   |            285,106 |
|                                       | Packing and supply materials |   |   |   |              96,626 |   |            221,842 |
|                                       | Office expenses |   |   |   |   |   |                4,072 |   |                     44 |
|                                       |        Total |   |   |   |   | $ |            625,696 | $ |            506,992 |
|                                       |   |   |   |   |   |   |   |   |   |
| Note 6-                                    | INVENTORIES |   |   |   |   |   |   |   |   |
|                                       |   |   |   |   |   |   |   |   |   |
|                                       | Inventories consist of following: |   |   |   |   |   |   |
|                                       |   |   |   |   |   |   | December 31, |   | December 31, |
|                                       |   |   |   |   |   |   | 2010 |   | 2009 |
|                                       |   |   |   |   |   |   |   |   |   |
|                                       | Finished goods |   |   |   |   | $ |            948,300 | $ |            769,619 |
|                                       | Work-in-progress |   |   |   |   |   |         1,985,260 |   |         1,789,276 |
|                                       | Raw materials |   |   |   |   |   |            102,934 |   |              51,910 |
|                                       | Supplies and packing materials |   |   |   |            237,499 |   |              83,791 |
|                                       |   |   |   |   |   | $ |         3,273,993 | $ |         2,694,596 |
|                                       |   |   |   |   |   |   |   |   |   |
| Note 7-                                    | PROPERTY, PLANT AND EQUIPMENT |   |   |   |   |   |
|                                       |   |   |   |   |   |   |   |   |   |
|                                       | The following is a summary of property, plant and equipment: |   |   |   |   |
|                                       |   |   |   |   |   |   | December 31, |   | December 31, |
|                                       |   |   |   |   |   |   | 2010 |   | 2009 |
|                                       |   |   |   |   |   |   |   |   |   |
|                                       | Building and warehouses |   |   | $ |         3,171,057 | $ |         2,963,873 |
|                                       | Machinery and equipment |   |   |   |         2,015,433 |   |         1,857,877 |
|                                       | Office equipment and furniture |   |   |   |            182,278 |   |            194,394 |
|                                       | Motor vehicles |   |   |   |   |   |            341,059 |   |            329,815 |
|                                       | Leased assets |   |   |   |   |   |         2,300,810 |   |         2,159,053 |
|                                       |   |   |   |   |   |   |         8,010,637 |   |         7,505,012 |
|                                       |   |   |   |   |   |   |   |   |   |
|                                       | Less: Accumulated depreciation |   |   |   |       (3,849,240) |   |       (3,262,315) |
|                                       |   |   |   |   |   |   |         4,161,397 |   |         4,242,697 |
|                                       |   |   |   |   |   |   |   |   |   |
|                                       | Add: Construction in progress |   |   |   |            262,665 |   |              41,153 |
|                                       |   |   |   |   |   |   |   |   |   |
|                                       |      Total |   |   |   |   | $ |         4,424,062 | $ |         4,283,850 |
|                                       |   |   |   |   |   |   |   |   |   |
|                                       | Depreciation expense charged to operations was $366,490 and $368,554 for the year ended December 31, 2010 and 2009, respectively. |

----

| CHINA DU KANG CO., LTD. AND SUBSIDIARIES   |
|--------------------------------------------|
| F/K/A AMSTAR FINANCIAL HOLDINGS, INC.      |
|                                       |   |   |   |   |   |   |   |
| NOTES TO CONSOLIDATED FINANCIAL STATEMENTS |
|                                       |   |   |   |   |   |   |   |
| Note 8-                                    | INTANGIBLE ASSETS |   |   |   |   |   |
|                                       |   |   |   |   |   |   |   |
|                                       | The following is a summary of intangible assets, less amortization: |   |   |   |   |
|                                       |   |   |   |   |   |   |   |
|                                       |   |   |   |   | December 31, |   | December 31, |
|                                       |   |   |   |   | 2010 |   | 2009 |
|                                       |   |   |   |   |   |   |   |
|                                       | Land use right |   |   | $ |         2,007,407 | $ |              58,616 |
|                                       | Trade Mark of "Xidenghui" |   |   |              68,060 |   |              65,816 |
|                                       | Trade Mark of "Baishui Du Kang" |   |   |              24,955 |   |              24,133 |
|                                       |       Total intangible assets |   |   |         2,100,422 |   |            148,565 |
|                                       |   |   |   |   |   |   |   |
|                                       | Less: Accumulated amortization |   |   |            (97,300) |   |            (82,109) |
|                                       |   |   |   |   |   |   |   |
|                                       |    Total intangible assets, net |   | $ |         2,003,122 | $ |              66,456 |
|                                       |   |   |   |   |   |   |   |
|                                       | Amortization expense charged to operations was $12,087 and $9,810 for the year ended December 31, 2010 and 2009, respectively. |
|                                       |   |   |   |   |   |   |   |
| Note 9-                                    | DUE FROM RELATED PARTIES |   |   |   |   |
|                                       |   |   |   |   |   |   |   |
|                                       | Due from related parties consists of the following: |   |   |   |   |
|                                       |   |   |   |   |   |   |   |
|                                       |   |   |   |   | December 31, |   | December 31, |
|                                       | Name of Related Party | Description |   | 2010 |   | 2009 |
|                                       |   |   |   |   |   |   |   |
|                                       |   |   | Non-consolidated |   |   |   |   |
|                                       | Shaanxi Yellow-river Wetlands Park Co., Ltd. | subsidiary | $ |         1,777,125 | $ |            738,606 |
|                                       | Shaanxi Gurong Agriculture Development Co., Ltd. | Affiliate |   |            385,674 |   |            372,960 |
|                                       | Shaanxi Zhongke Spaceflight Agriculture |   |   |   |   |   |
|                                       |       Development Stock Co., Ltd. | Affiliate |   |              15,102 |   |                     - |
|                                       | Shaanix Mining New Energy Co., Ltd. | Affiliate |   |            399,286 |   |                     - |
|                                       |        Total |   |   | $ |         2,577,187 | $ |         1,111,566 |
|                                       |   |   |   |   |   |   |   |
| Note 10-                                   | ACCRUED EXPENSES |   |   |   |   |   |
|                                       |   |   |   |   |   |   |   |
|                                       | Accrued expenses consist of the following: |   |   |   |   |
|                                       |   |   |   |   |   |   |   |
|                                       |   |   |   |   | December 31, |   | December 31, |
|                                       |   |   |   |   | 2010 |   | 2009 |
|                                       |   |   |   |   |   |   |   |
|                                       | Accrued payroll |   |   | $ |              26,448 | $ |              27,357 |
|                                       | Accrued employee benefits |   |   |              59,312 |   |              60,490 |
|                                       | Accrued pension and employee benefit |   |   |              69,824 |   |                     - |
|                                       | Accrued office expenses |   |   |                4,928 |   |                4,699 |
|                                       |        Total |   |   | $ |            160,512 | $ |              92,546 |

----

| CHINA DU KANG CO., LTD. AND SUBSIDIARIES   |
|--------------------------------------------|
| F/K/A AMSTAR FINANCIAL HOLDINGS, INC.      |
|                                       |   |   |   |   |   |   |   |
| NOTES TO CONSOLIDATED FINANCIAL STATEMENTS |
|                                       |   |   |   |   |   |   |   |
| Note 11-                                   | DUE TO RELATED PARTIES |   |   |   |   |   |   |
|                                       |   |   |   |   |   |   |   |
|                                       | Due to related parties consists of the following: |   |   |   |   |   |   |
|                                       |   |   |   |   | December 31, |   | December 31, |
|                                       | Name of Related Party |   | Description |   | 2010 |   | 2009 |
|                                       |   |   |   |   |   |   |   |
|                                       | Shaanxi Dukang Group Co., Ltd. |   | Affiliate | $ |       3,354,548 | $ |          588,857 |
|                                       | Shaanxi Zhongke Spaceflight Agriculture Development Stock Co., Ltd. | Affiliate |   |                   - |   |            33,543 |
|                                       | Shaanxi Baishui Dukang Marketing Management  Co., Ltd. | Affiliate |   |            13,306 |   |            12,867 |
|                                       | Shaanxi Baishui Dukang Commercial and Trade Co., Ltd. | Affiliate |   |            74,668 |   |            72,206 |
|                                       | Shaanxi Baishui Dukang Spirits Industry  Development Co., Ltd. | Affiliate |   |          865,303 |   |       1,268,456 |
|                                       | Shaanxi Baishui Shiye Co., Ltd. |   | Affiliate |   |          399,649 |   |          162,074 |
|                                       | Shaanxi Lantian Fuping Investment Co., Ltd. |   | Affiliate |   |          302,489 |   |          292,517 |
|                                       | Shaanxi Changjiang Petrol Co., Ltd. |   | Affiliate |   |          252,579 |   |                   - |
|                                       | Mr. Hongjun Zhang |   | Shareholder |   |       2,095,957 |   |       3,189,801 |
|                                       | Mr. Guoqi Diao |   | Prior director of Xidenghui |   |          406,482 |   |          393,082 |
|                                       | Ms. Ping Li |   | Secretary of the Board |   |          602,755 |   |          582,884 |
|                                       | Mr. Pingjun Nie |   | Shareholder |   |       4,526,035 |   |       4,391,159 |
|                                       | Ms. Hong Ge |   | Prior director of Xidenghui |   |          273,670 |   |          264,648 |
|                                       | Mr.Hailong Tian |   | Prior director of Xidenghui |   |       2,861,891 |   |       2,767,544 |
|                                       | Ms. Ming Chen |   | Shareholder |   |          182,387 |   |          296,307 |
|                                       | Mr. Shengli Wang |   | Prior director of Xidenghui |   |          806,553 |   |          779,963 |
|                                       |        Total |   |   | $ |     17,018,272 | $ |     15,095,908 |
|                                       |   |   |   |   |   |   |   |
| Note 12-                                   | SALES OF LIQUOR TO RELATED PARTY |   |   |   |   |   |   |
|                                       |   |   |   |   |   |   |   |
|                                       | 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 amount sold to these affiliates follows: |
|                                       |   |   |   |   |   |   |   |
|                                       |   |   |   |   | For the Year Ended |
|                                       |   |   |   |   | December 31, |
|                                       | Name of Related Party | Description |   |   | 2010 |   | 2009 |
|                                       |   |   |   |   |   |   |   |
|                                       | Shaanxi Dukang Group Co., Ltd. | Affiliate |   | $ |       1,028,897 | $ |          594,731 |
|                                       | Shaanxi Baishui Dukang Marketing Management  Co., Ltd. | Affiliate |   |   |                   - |   |            72,149 |
|                                       | Shaanxi Baishui Dukang Commercial and Trade Co., Ltd. | Affiliate |   |   |                   - |   |              1,538 |
|                                       | Shaanxi Baishui Dukang Spirits Industry  Development Co., Ltd. | Affiliate |   |   |                   - |   |          129,866 |
|                                       | Shaanxi Baishui Dukang Trade Co., Ltd. | Affiliate |   |   |   |   |            98,772 |
|                                       | Shanxi Baishui Shiye Co., Ltd. | Affiliate |   |   |          162,214 |   |                   - |
|                                       |   |   |   | $ |       1,191,111 | $ |          897,056 |

----

| CHINA DU KANG CO., LTD. AND SUBSIDIARIES   |
|--------------------------------------------|
| F/K/A AMSTAR FINANCIAL HOLDINGS, INC.      |
|                                       |   |   |   |   |   |   |   |   |   |
| NOTES TO CONSOLIDATED FINANCIAL STATEMENTS |
|                                       |   |   |   |   |   |   |   |   |   |
| Note 13-                                   | BANK LOANS |   |   |   |   |   |   |   |   |
|                                       |   |   |   |   |   |   |   |   |   |
|                                       | Bank loan consists of the following as of December 31, 2010: |   |   |   |   |   |
|                                       |   |   | Loan |   |   |   | Annual |   | Guaranteed |
|                                       | Financial Institutions |   | Amount |   | Duration |   | Interest Rate |   | By |
|                                       | Baishui Branch of Agriculture Bank of China | $ |          756,224 | 08/02/2010-08/01/2011 | 6.372% |   | Buildings |
|                                       | Total | $ |          756,224 |   |   |   |   |   |   |
|                                       |   |   |   |   |   |   |   |   |   |
|                                       | Interest expense charged to operations for this bank loan was $20,124 for the year ended December 31, 2010. The weighted-average outstanding bank loan balance is $305,144; and the weighted-average monthly interest rate is 5.49‰. |
|                                       |   |   |   |   |   |   |   |   |   |
|                                       | 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 paid off this loan in January 2010. |
|                                       |   |   |   |   |   |   |   |   |   |
| Note 14-                                   | SEGMENT REPORTING |   |   |   |   |   |   |   |   |
|                                       |   |   |   |   |   |   |   |   |   |
|                                       | 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, 2010 and 2009 is as follows: |
|                                       |   |   |   |   |   |   |   |   |   |
|                                       |   |   |   |   |   |   | For the year Ended |
|                                       |   |   |   |   |   |   | December 31, |
|                                       |   |   |   |   |   |   | 2010 |   | 2009 |
|                                       | REVENUE |   |   |   |   |   |   |   |   |
|                                       |       Sales of Liquor |   |   |   |   | $ |       1,270,135 | $ |       1,059,694 |
|                                       |       Franchise Fees |   |   |   |   |   |       1,217,319 |   |          927,965 |
|                                       |   |   |   |   |   |   |   |   |   |
|                                       | COST OF SALES |   |   |   |   |   |   |   |   |
|                                       |       Sales of Liquor |   |   |   |   | $ |       1,244,310 | $ |       1,119,996 |
|                                       |       Franchise Fees |   |   |   |   |   |                    - |   |                    - |
|                                       |   |   |   |   |   |   |   |   |   |
|                                       | GROSS PROFITS |   |   |   |   |   |   |   |   |
|                                       |       Sales of Liquor |   |   |   |   | $ |            25,825 | $ |           (60,302) |
|                                       |       Franchise Fees |   |   |   |   |   |       1,217,319 |   |          927,965 |
|                                       |   |   |   |   |   |   |   |   |   |
|                                       |   |   |   |   |   |   | December 31, |   | December 31, |
|                                       |   |   |   |   |   |   | 2010 |   | 2009 |
|                                       |   |   |   |   |   |   |   |   |   |
|                                       | TOTAL ASSETS OF LIQUOR PRODUCTION AND DISTRIBUTION | $ |     12,314,784 | $ |       7,234,824 |
|                                       |   |   |   |   |   |   |   |   |   |
|                                       | TOTAL ASSETS OF BRAND NAME FRANCHISE |   |   | $ |       3,574,991 | $ |       1,513,335 |

----

| CHINA DU KANG CO., LTD. AND SUBSIDIARIES   |
|--------------------------------------------|
| F/K/A AMSTAR FINANCIAL HOLDINGS, INC.      |
|                                       |   |   |   |   |   |   |   |   |   |   |   |
| NOTES TO CONSOLIDATED FINANCIAL STATEMENTS |
|                                       |   |   |   |   |   |   |   |   |   |   |   |
| Note 14-                                   | SEGMENT REPORTING (continued) |   |   |   |   |   |   |   |   |   |
|                                       |   |   |   |   |   |   |   |   |   |   |   |
|                                       | Major Customers |   |   |   |   |   |   |   |   |   |
|                                       |   |   |   |   |   |   |   |   |   |   |   |
|                                       | There were eleven 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, |
|                                       |   |   |   |   | 2010 |   |   |   | 2009 |   |   |
|                                       |   |   |   |   |   |   |   |   |   |   |   |
|                                       | Major |   | Type of |   |   |   | Percentage of |   |   |   | Percentage of |
|                                       | Customer |   | Customer |   | Revenue |   | Total Revenue |   | Revenue |   | Total Revenue |
|                                       | Shaanxi Dukang Group Co., Ltd. | Distributor | $ |       1,028,897 |   | 41.36% | $ |          594,731 |   | 29.92% |
|                                       | Shaanxi Baishui Dukang Spirits Industry  Development Co., Ltd. | Distributor |   |                 148 |   | 0.01% |   |          129,866 |   | 6.53% |
|                                       | Shaanxi Baishui Dukang Marketing Management  Co., Ltd. | Distributor |   |                   - |   |                   - |   |            72,149 |   | 3.63% |
|                                       | Shaanxi Baishui Dukang Shiye Co., Ltd. | Distributor |   |          162,214 |   | 6.52% |   |            98,772 |   | 4.97% |
|                                       | Shaanxi HuangMaJia Wuliu Co., LTD | Distributor |   |                   - |   |                   - |   |          122,026 |   | 6.14% |
|                                       | Shanxi Baishui Xingjijiu Marketing Co., Ltd. | Licensee |   |                   - |   |                   - |   |          299,455 |   | 15.07% |
|                                       | Henan Zhechenxian Eastern Liquor Co., Ltd. | Licensee |   |            20,330 |   | 0.82% |   |            23,610 |   | 1.19% |
|                                       | Henan Jiuquan Liquor Co., Ltd. | Licensee |   |          355,254 |   | 14.28% |   |                   - |   |                   - |
|                                       | Mr. Jincai Bai' |   | Licensee |   |          125,466 |   | 5.04% |   |                   - |   |                   - |
|                                       | Mr. Anxian Xie |   | Agent |   |          160,317 |   | 6.45% |   |                   - |   |                   - |
|                                       | Ms. Sue Dong |   | Agent |   |          138,942 |   | 5.59% |   |                   - |   |                   - |
|                                       | Total |   |   | $ |       1,991,568 |   | 80.06% | $ |       1,340,609 |   | 67.45% |
|                                       |   |   |   |   |   |   |   |   |   |   |   |
|                                       | Major Suppliers |   |   |   |   |   |   |   |   |   |   |
|                                       |   |   |   |   |   |   |   |   |   |   |   |
|                                       | There were ten 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, |
|                                       |   |   |   |   | 2010 |   |   |   | 2009 |   |   |
|                                       |   |   |   |   |   |   |   |   |   |   |   |
|                                       | Major |   |   |   |   |   | Percentage of |   |   |   | Percentage of |
|                                       | Suppliers |   |   |   | Purchase |   | Total Purchase |   | Purchase |   | Total Purchase |
|                                       | Sichuan Yibingong Mould Factory Co., Ltd. |   | $ |            61,253 |   | 9.48% | $ |            82,499 |   | 14.25% |
|                                       | Xi'an Global Co., Ltd. |   |   |                   - |   |                   - |   |            33,569 |   | 5.80% |
|                                       | Hunan Xinshiji Taochi Co., Ltd. |   |   |          118,948 |   | 18.40% |   |            53,303 |   | 9.21% |
|                                       | Wuhan Huaruiyang Stainless Co., Ltd. |   |   |            60,317 |   | 9.33% |   |   |   |   |
|                                       | Hunan Fengling Liangyou China Co., Ltd. |   |   |            81,278 |   | 12.58% |   |                   - |   |   |
|                                       | Shanxi Wenxiyingfa Glass Co., Ltd. |   |   |            69,549 |   | 10.76% |   |            97,543 |   | 16.85% |
|                                       | Wuxi Jiasheng Printing Co., Ltd. |   |   |                   - |   |                   - |   |              7,044 |   | 1.22% |
|                                       | Mr. Liu, Zhiming |   |   |            45,047 |   | 6.97% |   |                   - |   |                   - |
|                                       | Chongqing World Guohua Technology Co., Ltd. |   |   |          105,163 |   | 16.27% |   |                   - |   |                   - |
|                                       | Yuncheng Aofeng Glass Co., Ltd. |   |   |                   - |   |                   - |   |            75,572 |   | 13.06% |
|                                       | Total |   |   | $ |          541,555 |   | 83.79% | $ |          349,530 |   | 60.39% |

----

| CHINA DU KANG CO., LTD. AND SUBSIDIARIES   |
|--------------------------------------------|
| F/K/A AMSTAR FINANCIAL HOLDINGS, INC.      |
|                                       |   |   |   |   |   |   |   |   |   |
| NOTES TO CONSOLIDATED FINANCIAL STATEMENTS |
|                                       |   |   |   |   |   |   |   |   |   |
| Note 15-                                   | INCOME TAX |   |   |   |   |   |   |   |   |
|                                       |   |   |   |   |   |   |   |   |   |
|                                       | 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%;  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, |
|                                       |   |   |   |   |   |   | 2010 |   | 2009 |
|                                       |   |   |   |   |   |   |   |   |   |
|                                       | Provision for US Income Tax |   |   | $ |                     - | $ |                     - |
|                                       | Provision for PRC national income tax * |   |   |            200,773 |   |            112,161 |
|                                       | Provision for PRC local income tax |   |   |   |                     - |   |                     - |
|                                       |    Total provision for income taxes |   |   | $ |            200,773 | $ |            112,161 |
|                                       |   |   |   |   |   |   |   |   |   |
|                                       | * While the Company occurred a loss in both 2010 and 2009, one of our subsidiary, Brand Management, occurred a profit in 2010 and 2009, and accordingly accrued a income tax of $200,773 and $112,161 for the year ended December 31, 2010 and 2009, respectively. |

----

| CHINA DU KANG CO., LTD. AND SUBSIDIARIES   |
|--------------------------------------------|
| F/K/A AMSTAR FINANCIAL HOLDINGS, INC.      |
|                                       |   |   |   |   |   |   |   |   |   |
| NOTES TO CONSOLIDATED FINANCIAL STATEMENTS |
|                                       |   |   |   |   |   |   |   |   |   |
| Note 15-                                   | INCOME TAX (continued) |   |   |   |   |   |   |
|                                       |   |   |   |   |   |   |   |   |   |
|                                       | The following table reconciles the PRC statutory rates to the Company’s effective tax rate: |
|                                       |   |   |   |   |   |   |   |   |   |
|                                       |   |   |   |   |   |   | For the Year Ended |
|                                       |   |   |   |   |   |   | December 31, |
|                                       |   |   |   |   |   |   | 2010 |   | 2009 |
|                                       |   |   |   |   |   |   |   |   |   |
|                                       | 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% |
|                                       |   |   |   |   |   |   |   |   |   |
|                                       | The provision for income taxes consisted of the following: |   |   |   |   |
|                                       |   |   |   |   |   |   | For the Year Ended |
|                                       |   |   |   |   |   |   | December 31, |
|                                       |   |   |   |   |   |   | 2010 |   | 2009 |
|                                       |   |   |   |   |   |   |   |   |   |
|                                       | Current Income Tax * |   |   |   | $ |            200,773 | $ |            112,161 |
|                                       | 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, |
|                                       |   |   |   |   |   |   | 2010 |   | 2009 |
|                                       | Deferred Tax Assets |   |   |   |   |   |   |   |
|                                       |      Net operating loss carry-forward |   |   | $ |         1,535,666 | $ |         3,615,300 |
|                                       |      Less:  valuation allowance |   |   |   |       (1,535,666) |   |       (3,615,300) |
|                                       |              Net deferred tax assets |   |   | $ |                     - | $ |                     - |
|                                       |   |   |   |   |   |   |   |   |   |
|                                       |   |   |   |   |   |   | For the Year Ended |
|                                       |   |   |   |   |   |   | December 31, |
|                                       |   |   |   |   |   |   | 2010 |   | 2009 |
|                                       |   |   |   |   |   |   |   |   |   |
|                                       | Deferred Tax Liabilities |   |   | $ |                     - | $ |                     - |
|                                       |   |   |   |   |   |   |   |   |   |
|                                       | As of December 31, 2010 and 2009, the Company had net operating losses of approximately $6,142,115 and $14,103,639 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. |

----

| CHINA DU KANG CO., LTD. AND SUBSIDIARIES   |
|--------------------------------------------|
| F/K/A AMSTAR FINANCIAL HOLDINGS, INC.      |
|                                       |   |   |   |   |   |   |   |   |   |
| NOTES TO CONSOLIDATED FINANCIAL STATEMENTS |
|                                       |   |   |   |   |   |   |   |   |   |
| Note 16-                                   | 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. |

----

| CHINA DU KANG CO., LTD. AND SUBSIDIARIES   |
|--------------------------------------------|
| F/K/A AMSTAR FINANCIAL HOLDINGS, INC.      |
|                                       |   |   |   |   |   |   |   |   |   |
| NOTES TO CONSOLIDATED FINANCIAL STATEMENTS |
|                                       |   |   |   |   |   |   |   |   |   |
| Note 16-                                   | 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. |

----

| CHINA DU KANG CO., LTD. AND SUBSIDIARIES   |
|--------------------------------------------|
| F/K/A AMSTAR FINANCIAL HOLDINGS, INC.      |
|                                       |   |   |   |   |   |   |   |   |   |   |
| NOTES TO CONSOLIDATED FINANCIAL STATEMENTS |
|                                       |   |   |   |   |   |   |   |   |   |   |
| Note 17-                                   | NONCONTROLLING INTEREST |   |   |   |   |   |   |   |   |   |
|                                       |   |   |   |   |   |   |   |   |   |   |
|                                       | Balance of Noncontrolling Interest consists of the following: |   |   |   |   |   |   |   |
|                                       |   |   |   |   |   |   |   |   |   |   |
|                                       |   | Subsidiary and Noncontrolling Interest percentage |   |   | Total Noncontrolling Interest |
|                                       |   |   | Brand Management | Baishui Dukang | Xidenghui |   |   |   |
|                                       |   |   | 30.00% |   | 9.49% |   | 1.76% |   |   |   |
|                                       |   |   |   |   |   |   |   |   |   |   |
|                                       | Balance @ December 31, 2007 | $ |              40,057 | $ |            106,793 | $ |                     - | (1) |  $ |            146,850 |
|                                       |   |   |   |   |   |   |   |   |   |   |
|                                       | Noncontrolling Interest income (Loss) |   |            (42,081) |   |            (39,814) |   |                     (0) |   |   |            (81,895) |
|                                       |   |   |   |   |   |   |   |   |   |   |
|                                       | Other Comprehensive Income (Loss)- |   |   |   |   |   |   |   |   |   |
|                                       |    effects of Foreign Currency Conversion |   |                2,024 |   |                6,538 |   |                     - |   |   |                8,562 |
|                                       |   |   |   |   |   |   |   |   |   |   |
|                                       | Balance @ December 31, 2008 | $ |                     - | $ |              73,517 | $ |                     (0) |   | $ |              73,517 |
|                                       |   |   |   |   |   |   |   |   |   |   |
|                                       | Noncontrolling Interest income (Loss) |   |              30,644 |   |            (51,336) |   |              (9,238) |   |   |            (29,930) |
|                                       |   |   |   |   |   |   |   |   |   |   |
|                                       | Other Comprehensive Income (Loss)- |   |   |   |   |   |   |   |   |   |
|                                       |    effects of Foreign Currency Conversion |   |                     17 |   |                   155 |   |                     (5) |   |   |                   167 |
|                                       |   |   |   |   |   |   |   |   |   |   |
|                                       | Balance @ December 31, 2009 | $ |              30,661 | $ |              22,336 | $ |              (9,243) |   | $ |              43,754 |
|                                       |   |   |   |   |   |   |   |   |   |   |
|                                       | Noncontrolling Interest income (Loss) |   |            180,695 |   |            (32,331) |   |              (1,825) |   |   |            146,540 |
|                                       |   |   |   |   |   |   |   |   |   |   |
|                                       | Other Comprehensive Income (Loss)- |   |   |   |   |   |   |   |   |   |
|                                       |    effects of Foreign Currency Conversion |   |                5,608 |   |                   (55) |   |                 (361) |   |   |                5,191 |
|                                       |   |   |   |   |   |   |   |   |   |   |
|                                       | Balance @ December 31, 2010 | $ |            216,964 | $ |            (10,050) | $ |            (11,429) |   | $ |            195,485 |

----

| CHINA DU KANG CO., LTD. AND SUBSIDIARIES   |
|--------------------------------------------|
| F/K/A AMSTAR FINANCIAL HOLDINGS, INC.      |
|                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| NOTES TO CONSOLIDATED FINANCIAL STATEMENTS |
|                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Note 17-                                   | NONCONTROLLING INTEREST (continued) |   |   |   |   |   |   |   |   |   |   |   |   |
|                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                       | Noncontrolling interest income consists of the following: |   |   |   |   |   |   |   |   |   |   |   |   |
|                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                       |   | For the Year Ended December 31, |
|                                       |   | 2010 |
|                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                       | 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) | $ |          602,318 | $ |              180,695 | $ |        (340,685) | $ |              (32,331) | $ |        (230,270) | $ |                (4,053) | $ |               (230) | $ |                       - |
|                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                       | Reverse adjustment made in prior year to |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                       |       intercompany profit |   |                    - |   |                       - |   |                    - |   |                       - |   |            13,332 |   |                     235 |   |                    - |   |                       - |
|                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                       | Income (Loss) from subsidiary |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                       |       (equity method) |   |                    - |   |                       - |   |                    - |   |                       - |   |          113,268 |   |                  1,994 |   |        (101,845) |   |              146,540 |
|                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                       | Total Income (Loss) |   |          602,318 |   |              180,695 |   |        (340,685) |   |              (32,331) |   |        (103,670) |   |                (1,825) |   |        (102,075) |   |              146,540 |
|                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                       | Less: Income (Loss) attributable to |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                       |       noncontrolling interest |   |        (180,695) |   |                       - |   |            32,331 |   |                       - |   |              1,825 |   |                       - |   |                    - |   |                       - |
|                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                       | Income (Loss) attributable to Majority | $ |          421,623 |   |   | $ |        (308,354) |   |   | $ |        (101,845) |   |   | $ |        (102,075) | (3) |   |
|                                       | Income (Loss) attributable to |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                       |      noncontrolling interest |   |   | $ |              180,695 |   |   | $ |              (32,331) |   |   | $ |                (1,825) |   |   | $ |              146,540 |
|                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                       |   | 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) | $ |          336,484 | $ |              100,945 | $ |        (540,952) | $ |              (51,336) | $ |        (327,892) | $ |                (5,771) | $ |               (313) | $ |                       - |
|                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                       | Adjustment to intercompany profit |   |                    - |   |                       - |   |                    - |   |                       - |   |          (13,211) |   |                   (233) |   |                    - |   |                       - |
|                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                       | Income (Loss) from subsidiary |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                       |      (equity method) |   |                    - |   |                       - |   |                    - |   |                       - |   |        (183,775) |   |                (3,234) |   |        (515,641) |   |              (29,930) |
|                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                       | Total Income (Loss) |   |          336,484 |   |              100,945 |   |        (540,952) |   |              (51,336) |   |        (524,878) |   |                (9,238) |   |        (515,954) |   |              (29,930) |
|                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| (1)                                        | Adjustment to noncontrolling interest |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                       |     to absorb prior accumulated deficit |                    - |   |              (70,301) |   |                    - |   |                       - |   |                    - |   |                       - |   |                    - |   |                       - |
|                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                       | Less: Income (Loss) attributable to |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                       |       noncontrolling interest |   |          (30,644) |   |                       - |   |            51,336 |   |                       - |   |              9,238 |   |                       - |   |                    - |   |                       - |
|                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                       | Income (Loss) attributable to Majority | $ |          305,840 |   |   | $ |        (489,615) |   |   | $ |        (515,641) |   |   | $ |        (515,954) | (3) |   |
|                                       | Income (Loss) attributable to |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                       |     noncontrolling interest |   |   | $ |                30,644 |   |   | $ |              (51,336) |   |   | $ |                (9,238) |   |   | $ |              (29,930) |

----

| CHINA DU KANG CO., LTD. AND SUBSIDIARIES   |
|--------------------------------------------|
| F/K/A AMSTAR FINANCIAL HOLDINGS, INC.      |
|                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| NOTES TO CONSOLIDATED FINANCIAL STATEMENTS |
|                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Note 17-                                   | NONCONTROLLING INTEREST (continued) |   |   |   |   |   |   |   |   |   |   |   |
|                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                       | Noncontrolling interest income consists of the following (continued): |   |   |   |   |   |   |   |
|                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                       |   | For the Year Ended December 31, |
|                                       |   | 2008 |
|                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                       | 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) | $ |        (370,523) | $ |            (111,157) | $ |        (419,537) | $ |              (39,814) | $ |        (710,838) | $ |              (12,511) | $ |            (8,401) | $ |                       - |   |
|                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                       | Income (Loss) from subsidiary |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                       |      (equity method) |   |                    - |   |                       - |   |                    - |   |                       - |   |        (708,164) |   |              (12,464) |   |     (1,419,002) |   |              (81,895) |   |
|                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                       | Total Income (Loss) |   |        (370,523) |   |            (111,157) |   |        (419,537) |   |              (39,814) |   |     (1,419,002) |   |              (24,974) |   |     (1,427,403) |   |              (81,895) |   |
|                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| (1)                                        | Majority absorbed the current period loss |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                       |     up to the extent that  brought |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                       | the Noncontrolling Interest tozero |                    - |   |                69,076 |   |                    - |   |                       - |   |                    - |   |                24,974 |   |                    - |   |                       - |   |
|                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                       | Less: Income (Loss) attributable to |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                       |       noncontrolling interest |   |            42,081 |   |                       - |   |            39,814 |   |                       - |   |                     0 |   |                       - |   |                    - |   |                       - |   |
|                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                       | Income (Loss) attributable to Majority | $ |        (328,442) |   |   | $ |        (379,723) |   |   | $ |     (1,419,002) |   |   | $ |     (1,427,403) | (3) |   |   |
|                                       | Income (Loss) attributable to |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                       |     noncontrolling interest |   |   | $ |              (42,081) |   |   | $ |              (39,814) |   |   | $ |                       (0) |   |   | $ |              (81,895) |   |
|                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                       | (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 18-                                   | STATEMENT OF CONSOLIDATED COMPRESENTATIVE INCOME |   |   |   |   |
|                                       |   |   |   |   |   |   |   |   |
|                                       |   |   |   |   |   | For the Year Ended |
|                                       |   |   |   |   |   | December 31, |
|                                       |   |   |   |   |   | 2010 |   | 2009 |
|                                       |   |   |   |   |   |   |   |   |
|                                       | Net income | $ |   |   | $ |            44,468 | $ |         (545,881) |
|                                       | Other comprehensive income, net of tax: |   |   |   |   |   |   |   |
|                                       |       Effects of foreign currency conversion |   |   |   |   |         (239,206) |   |           (16,436) |
|                                       | Total other comprehensive, not of tax |   |   |   |   |         (239,206) |   |           (16,436) |
|                                       | Comprehensive income |   |   |   |   |         (194,738) |   |         (562,317) |
|                                       |      Comprehensive income attributable to |   |   |   |   |   |   |   |
|                                       |             the noncontrolling interest |   |   |   |   |          151,731 |   |           (29,763) |
|                                       | Comprehensive income attributable to |   |   |   |   |   |   |   |
|                                       |      China Du Kang Co., Ltd. | $ |   |   | $ |         (346,469) | $ |         (532,554) |
|                                       |   |   |   |   |   |   |   |   |
| 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. |

----

| ITEM 9. | CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE. |
|---------|---------------------------------------------------------------------------------------|

| ITEM 9A. | CONTROLS AND PROCEDURES |
|----------|-------------------------|

| ITEM 9A(T). | CONTROLS AND PROCEDURES |
|-------------|-------------------------|

| ITEM 9B. | OTHER INFORMATION |
|----------|-------------------|

| ITEM 10. | DIRECTORS, EXECUTIVE OFFICERS, PROMOTERS AND CONTROL PERSONS; COMPLIANCE WITH SECTION 16(A) OF THE EXCHANGE ACT |
|----------|-----------------------------------------------------------------------------------------------------------------|

| 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 |
|---------|------------------------------------------|

| ITEM 11. | EXECUTIVE COMPENSATION |
|----------|------------------------|

----

| SUMMARY COMPENSATION TABLE     |    |
|--------------------------------|---------|
| Name and principal position(a) | Year(b) |   | Salary ($)(c) |   |   | Bonus($)(d) |   |   | Stock Awards ($)(e) |   |   | Option Awards ($)(f) |   |   | Non-Equity Incentive Plan Compensation($)(g) |   |   | Nonqualified Deferred Compensation Earnings ($)(h) |   |   | All Other Compensation ($)(i) |   |   | Total ($)(j) |   |
| Wang                           | 2008    |   | $ | 3,026 |   |   |   | 0 |   |   |   | 0 |   |   |   | 0 |   |   |   | 0 |   |   |   | 0 |   |   |   | 0 |   |   | $ | 3,026 |   |
| Yongsheng                      | 2009    |   | $ | 3,026 |   |   |   | 0 |   |   |   | 0 |   |   |   | 0 |   |   |   | 0 |   |   |   | 0 |   |   |   | 0 |   |   | $ | 3,026 |   |
| CEO                            | 2010    |   | $ | 9,707 |   |   |   | 0 |   |   |   | 0 |   |   |   | 0 |   |   |   | 0 |   |   |   | 0 |   |   |   | 0 |   |   | $ | 9,707 |   |
|                           |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Liu Su Ying                    | 2008    |   | $ | 3,550 |   |   |   | 0 |   |   |   | 0 |   |   |   | 0 |   |   |   | 0 |   |   |   | 0 |   |   |   | 0 |   |   | $ | 3,550 |   |
| CFO                            | 2009    |   | $ | 3,550 |   |   |   | 0 |   |   |   | 0 |   |   |   | 0 |   |   |   | 0 |   |   |   | 0 |   |   |   | 0 |   |   | $ | 3,550 |   |
|                           | 2010    |   |   | 2,964 |   |   |   | 0 |   |   |   | 0 |   |   |   | 0 |   |   |   | 0 |   |   |   | 0 |   |   |   | 0 |   |   | $ | 2,946 |   |
|                           |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Ni Fen Ying                    | 2008    |   | $ | 3,447 |   |   |   | 0 |   |   |   | 0 |   |   |   | 0 |   |   |   | 0 |   |   |   | 0 |   |   |   | 0 |   |   | $ | 3,447 |   |
| Director                       | 2009    |   | $ | 3,447 |   |   |   | 0 |   |   |   | 0 |   |   |   | 0 |   |   |   | 0 |   |   |   | 0 |   |   |   | 0 |   |   | $ | 3,447 |   |
|                           | 2010    |   |   | 0 |   |   |   | 0 |   |   |   | 0 |   |   |   | 0 |   |   |   | 0 |   |   |   | 0 |   |   |   | 0 |   |   | $ | 0 |   |

| ITEM 12. | SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCK HOLDER MATTERS |
|----------|-------------------------------------------------------------------------------------------------|

| Name and Position                          | Shares          | Percentage   |
|--------------------------------------------|-----------------|--------------|
| Wang YongshengCEO, Director                |  9,030,000 |  9.052% |
| Liu Su YingChief Financial OfficerDirector | 0               | 0 %          |
| Deng Guo Gang                              | 8,800,000       | 8.28%        |
| Totals                                     | 17,830,000      | 17.33 %      |

| 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%                    |

----

| ITEM 13. | CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR INDEPENDENCE |
|----------|---------------------------------------------------------------------------|

|  No.           |  Name of Related-party                                           |  Description           | 2009                                                                                                                                  |
|---------------------|-----------------------------------------------------------------------|-----------------------------|---------------------------------------------------------------------------------------------------------------------------------------|
|                |                                                                  |                        |  Balance @ 12/31/08                                                                                                              |  Effects of foreign currency transaltion |  Payback in 2009 |  Additional borrowing in 2009 |  Balance @ 12/31/09 |  Highest Balance during 2009 |
|    3 | Shaanxi Dukang Group Co., Ltd.                                        | Affiliate                   |           471,244                                                                   |           1,172 |   1,274,734 |   1,391,175 |           588,857 |             881,375 |
|    4 | Shaanxi Zhongke Spaceflight Agriculture Development Stock Co., Ltd    | Affiliate                   |             33,512                                                        |                 31 |                  - |                  - |             33,543 |               33,543 |
|    1 | Shaanxi Baishui Dukang Marketing Management  Co.Ltd         | Affiliate                   |                1,179                                       |                   3 |       104,868 |       116,553 |             12,867 |               27,508 |
|    2 | 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 |

| 2010                                                                                                                                                                      |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|  Balance @ 12/31/09                                                                                                                                                  |  Effects of foreign currency transaltion |  Payback in 2010 |  Additional borrowing in 2010 |  Balance @ 12/31/10 |  Highest Balance during 2010 |
|                  588,857                                                             |         87,695 |  2,030,787 |   4,708,783 |      3,354,548 |       3,354,548 |
|                    33,543                                                  |               290 |       33,833 |                  - |                     - |             34,687 |
|                    12,867                                                  |               439 |                 - |                  - |            13,306 |             13,306 |
|                    72,206                                                  |           2,462 |                 - |                  - |            74,668 |             74,668 |
|              1,268,456                                                                                   |         32,249 |     435,402 |                  - |         865,303 |       1,311,699 |
|                             - |                  - |                 - |                  - |                     - |                      - |
|                  162,074                                                             |           9,005 |       89,360 |       227,183 |         308,902 |          315,728 |
|                  292,517                                                             |           9,972 |                 - |                  - |         302,489 |          302,489 |
|                             - |           2,235 |     114,584 |       203,096 |            90,747 |          208,224 |
|                             - |           6,221 |                 - |       246,358 |         252,579 |          252,579 |
|              3,189,801                                                                                   |         79,125 |  1,175,938 |           2,970 |      2,095,957 |       3,298,544 |
|                  393,082                                                             |         13,400 |                 - |                  - |         406,482 |          406,482 |
|                  582,884                                                             |         19,871 |                 - |                  - |         602,755 |          602,755 |
|              4,391,159                                                                                   |       149,332 |       14,457 |                  - |      4,526,035 |       4,540,857 |
|                  264,648                                                             |           9,022 |                 - |                  - |         273,670 |          273,670 |
|              2,767,544                                                                                   |         94,347 |                 - |                  - |      2,861,891 |       2,861,891 |
|                  296,307                                                             |           7,048 |     120,966 |                  - |         182,389 |          306,407 |
|                  779,963                                                             |         26,590 |                 - |                  - |         806,553 |          806,553 |
|            15,095,908                                                                                              |       549,301 |  4,015,327 |   5,388,390 |    17,018,272 |     18,965,085 |

----

| ITEM 14. | PRINCIPAL ACCOUNTING FEES AND SERVICES |
|----------|----------------------------------------|

| Year Ended December 31             |   | 2009(2) |   |   | 2010(2) |   |
|------------------------------------|--------|---------|--------|--------|---------|--------|
|                               |   |    |   |   |    |   |
| Audit Fees (1)                     |   | $       | 50,000 |   |    | $      | 60,000 |   |
| Audit-Related Fees (4)             |   |    | --     |   |    |   | -- |   |
| Tax Fees (5)                       |   |    | --     |   |    |   | -- |   |
| All Other Fees (6)                 |   |    | --     |   |    |   | -- |   |
| Total Accounting Fees and Services |   | $       | 50,000 |   |    | $      | 60,000 |   |

|   | (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 20010 relate to (i) the audit of our annual financial statements for the fiscal years ended December 31, 2009 and 210. 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. |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| ITEM 15. | EXHIBITS, FINANCIAL STATEMENT SCHEDULES |
|----------|-----------------------------------------|

| (a) | Financial Statements |
|-----|----------------------|

----

|   | 1. | Exhibits |
|--------|----|----------|

| (b) | Exhibits |
|-----|----------|

| EXHIBIT TABLE                                                                                                                            |
|------------------------------------------------------------------------------------------------------------------------------------------|
|                                                                                                                                     |   |
| (1) Underwriting agreement                                                                                                               |   |
| (2) Plan of acquisition, reorganization, arrangement, liquidation or succession*                                                         |   |
| (3) (i) Articles of incorporation – Amended and Restate Articles of Incorporation                                                  | Exhibit 3.1* |
| (ii) By-laws                                                                                                                             | Exhibit 3.2* |
| (4) Instruments defining the rights of security holders, including indentures                                                            |   |
| (4.1) Common Stock Certificate                                                                                                           | Exhibit 4.1* |
| (5) Opinion re legality                                                                                                                  |   |
| (6) [Reserved]                                                                                                                           |   |
| (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) Material contracts                                                                                                                  |   |
| (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.               | 6*             |
| (10.35) Licensing Agreement –Henan Zhechenxian Eastern Liquor Co. Ltd.               | 6*             |
| (10.36) Licensing Agreement –Anzhou Jinxing Liquor Trade Co. Ltd.                    | 6*             |
| (10.37) State owned Land Use Certificate                                                   | 2*             |
| (10.38) Complemtary Agreement                                                              | 2**            |
| (10.39) Equity Transfer Agreement                                                          | 3*             |
| (10.40) Plan of Exchange Agreement                                                         | Exhibit 10.1*  |
| (10.41) Land Use Rights                                                                    | Exhibit 10.2*  |
| (10.42) Lease Agreement                                                                    | Exhibit 10.3*  |
| (10.43) Distribution Agreement                                                             | Exhibit 10.4*  |
| (10.44) Distribution Agreement                                                             | Exhibit 10.5*  |
| (10.45) Distribution Agreement                                                             | Exhibit 10.6*  |
| (10.43) Sanitation Licenset                                                                | Exhibit 10.7 * |
| (10.44) Loan Agreement with Shaanxi Changjiang Electric Power and Energy Sources Co., Ltd. | 4*             |
| (10.45) Licensing Agreement Henan Zhecheng (Complementary)Agreements                       | 4*             |
| (10.45) Licensing Agreement Henan Zhecheng (Trademark)Agreements                           | 4*             |
| (10.46) Assets Lease Agreement Shaanxi BaiShui Du Kang Liquor Co., Ltd.                    | 4*             |
| (10.47) Licnesing Agreement Shaanxi Baishui Xingjijiu Marketing Co., Ltd.                  | 4*             |
| (10.48) Licensing Agreement Henan Zhecheng (Complementary)Agreements                       | 4*             |
| (10.49) Licensing Agreement Henan Zhecheng (Trademark)Agreements                           | 4*             |
| (10.50) Licensing Agreement Henan Zhecheng (Complementary)Agreements                       | 4*             |
| (10.51) Licensing Agreement Henan Zhecheng (Complementary)Agreements                       | 4*             |
| (11) Statement re computation of per share earnings                                        |           |
| (12) Statements re computation of ratios                                                   |           |
| (13) Annual report to security holders, Form 10-Q or quarterly report to security holders3 |           |
| (14) Code of Ethics                                                                        |           |
| (15) Letter re unaudited interim financial information                                     |           |
| (16) Letter re change in certifying accountant4                                            |           |
| (17) Correspondence on departure of director                                               |           |
| (18) Letter re change in accounting principles                                             |           |
| (19) Report furnished to security holders                                                  |           |

----

| (20) Other documents or statements to security holders                                                  |   |
|---------------------------------------------------------------------------------------------------------|--------|
| (21) Subsidiaries of the registrant                                                                     | 2***   |
| (22) Published report regarding matters submitted to vote of security holders                           |   |
| (23) Consents of experts and counsel                                                                    |   |
| (24) Power of attorney                                                                                  |   |
| (25) Statement of eligibility of trustee                                                                |   |
| (26) Invitations for competitive bids                                                                   |   |
| (27) through (30) [Reserved]                                                                            |   |
| (31) (i) Rule 13a-14(a)/ 15d-14(a) Certifications                                                       |   |
| (ii) Rule 13a-14(d)/ 15d-14(d) Certifications                                                           |   |
| (32) Section 1350 Certifications6                                                                       |   |
| (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                                                                      |   |
| (36) through (98) [Reserved]                                                                            |   |
| (99) Additional exhibits                                                                                |   |
| (100) XBRL-Related Documents                                                                            |   |

| 2* | Filed as Exhibit 10.2 to Amendment 2 Filed 12-04-2009 |
|----|-------------------------------------------------------|

| 2** | Filed as Exhibit 10.3 to Amendment 2 Filed 12-04-2009 |
|-----|-------------------------------------------------------|

| 2*** | Filed as Exhibit 21.1 to Amendment 2 Filed 12-04-2009 |
|------|-------------------------------------------------------|

| 3* | Filed as Exhibit 10.1 to Amendment 3 Filed 1-21-2010 |
|----|------------------------------------------------------|

|   | 3.1 | Filed as Exhibit 3.1 to Amendment 4 Filed 4-22-2010 |
|--------|-----|-----------------------------------------------------|

|   | 3.2 | Filed as Exhibit 3.2 to Amendment 4 Filed 4-22-2010 |
|--------|-----|-----------------------------------------------------|

| 4* | Filed as an Exhibit to Form 10 on March 24, 2011 |
|----|--------------------------------------------------|

| 4.1 | Filed as Exhibit 4.1 to Amendment 4 Filed 4-22-2010 |
|-----|-----------------------------------------------------|

| 6* | Filed under the same exhibit Number in Amendment 6 Filed 1-24-11 |
|----|------------------------------------------------------------------|

| 10.1 | Plan of Exchange Filed as Exhibit 10.1 to Amendment 4 Filed 4-22-2010 |
|------|-----------------------------------------------------------------------|

| 10.2 | Land Use Rights Filed as Exhibit 10.2 to Amendment 4 Filed 4-22-2010 |
|------|----------------------------------------------------------------------|

| 10.3 | Lease Agreement Filed as Exhibit 10.3 to Amendment 4 Filed 4-22-2010 |
|------|----------------------------------------------------------------------|

| 10.4 | Distribution Agreement Filed as Exhibit 10.4 to Amendment 4 Filed 4-22-2010 |
|------|-----------------------------------------------------------------------------|

| 10.5 | Distribution Agreement Filed as Exhibit 10.5 to Amendment 4 Filed 4-22-2010 |
|------|-----------------------------------------------------------------------------|

| 10.6 | Distribution Agreement Filed as Exhibit 10.4 to Amendment 6 |
|------|-------------------------------------------------------------|

| 10.7 | Sanitation License Filed as Exhibit 10.7 to Amendment 4 Filed 4-22-2010 |
|------|-------------------------------------------------------------------------|

| 6* | Filed with Amendment 6 to Form 10-12g on 1-24-11. |
|----|---------------------------------------------------|

----

| Date: April 15, 2011                                                                                                                                                                                          |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                                                                                                                                                                          |
| China Du Kang Co., Ltd.                                                                                                                                                                                       |
|                                                                                                                                                                                                          |
| By:                                                                                                                                                                                                           |
| /s/ Wang Yongsheng                                                                                                                                                                                            |
| Wang Yongsheng,                                                                                                                                                                                               |
| President and Chief Executive Officer                                                                                                                                                                         |
|                                                                                                                                                                                                          |
| /s/ Lie Su Ying                                                                                                                                                                                               |
| Chief Financial Officer (Principal                                                                                                                                                                            |
| Financial Officer)                                                                                                                                                                                            | April 15, 2011 |
|                                                                                                                                                                                                          |
| Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed by the following persons on behalf of the Registrant and in the following capacities on the dates indicated. |
|                                                                                                                                                                                                          |
| Name & Title                                                                                                                                                                                              | Date |
|                                                                                                                                                                                                          |
| /s/ Wang Yongsheng                                                                                                                                                                                            |
| Chief Executive Officer (Principal                                                                                                                                                                            |
| Executive Officer), President, and Director                                                                                                                                                                   | April 15, 2011 |
|                                                                                                                                                                                                          |
| /s/ Lie Su Ying                                                                                                                                                                                               |
| Chief Financial Officer (Principal                                                                                                                                                                            |
| Financial Officer)                                                                                                                                                                                            | April 15, 2011 |