| x | ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934: For the Fiscal Year Ended December 31, 2010 |
|---|-----------------------------------------------------------------------------------------------------------------------------------|

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

| Nevada                          |   | 80-0329825          |
|---------------------------------|--------|---------------------|
| (State or other jurisdiction of |   | (I.R.S. Employer    |
| incorporation or organization)  |   | Identification No.) |

| Securities Registered Under Section 12(b) of the Exchange Act: | None                                     |
|----------------------------------------------------------------|------------------------------------------|
| Name of exchange on which registered:                          | None (OTCQB)                             |
| Securities registered pursuant to Section 12(g) of the Act:    | Common Stock, par value $0.001 per share |

| Large accelerated filer  ̈ | Accelerated filer  ̈ | Non-accelerated filer o |
|-------------------------------------|-------------------------------|------------------------------|
|                                | Smaller Reporting Company x   |                         |

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|          |                                                                                                                |   | Page   |
|---------------|---------------------------------------------------------------------------------------------------------------------|--------|--------|
| PART I        |                                                                                                                |   |   |
| Item 1.  | Business.                                                                                                           |   | 3      |
| Item 1A. | Risk Factors.                                                                                                       |   | 18     |
| Item 1B. | Unresolved Staff Comments.                                                                                          |   | 18     |
| Item 2.  | Properties.                                                                                                         |   | 18     |
| Item 3.  | Legal Proceedings.                                                                                                  |   | 19     |
| Item 4.  | (Removed and Reserved)                                                                                              |   | 19     |
|          |                                                                                                                |   |   |
| PART II       |                                                                                                                |   |   |
| Item 5.  | Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities. |   | 20     |
| Item 6.  | Selected Financial Data.                                                                                            |   | 22     |
| Item 7.  | Management’s Discussion and Analysis of Financial Condition and Results of Operations.                        |   | 22     |
|          |                                                                                                                |   |   |
| Item 7A. | Quantitative and Qualitative Disclosures about Market Risk.                                                         |   | 32     |
| Item 8.  | Financial Statements.                                                                                               |   | 32     |
| Item 9.  | Changes in and Disagreements with Accountants on Accounting and Financial Disclosure.                               |   | 33     |
| Item 9A. | Controls and Procedures.                                                                                            |   | 33     |
|          |                                                                                                                |   |   |
| PART III      |                                                                                                                |   |   |
| Item 10. | Directors, Executive Officers and Corporate Governance.                                                             |   | 35     |
| Item 11. | Executive Compensation.                                                                                             |   | 41     |
| Item 12. | Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters.                     |   | 45     |
| Item 13. | Certain Relationships and Related Transactions, and Director Independence.                                          |   | 47     |
| Item 14. | Principal Accountant Fees and Services.                                                                             |   | 48     |
|          |                                                                                                                |   |   |
| Part IV       |                                                                                                                |   |   |
| Item 15. | Exhibits and Financial Statement Schedules.                                                                         |   | 49     |
|          |                                                                                                                |   |   |
| SIGNATURES    |                                                                                                                | 52     |

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| ●  | Corn Products Division –Yongcheng and Yuliang process and distribute corn and corn byproducts. Yongcheng and Yuliang acquire unprocessed corn and perform value-added processes such as cleaning, drying and packaging.  Consumers range from corn oil/corn starch manufacturing companies, livestock feed companies and governmental procurement agencies in China.                                                                                                                                                                                                                                                                         |
|---------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|          |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
| ●       | “Simple Processed” Grain Product Division – Jinzhong Deyu procures and distributes with Detian Yu grain products including millet, green beans, soy beans, black rice, whole wheat flour and may other variety of grains traditionally grown and consumed in China. Jinzhong Deyu acquires unprocessed grains and performs simple value-added processes to the grains such as peeling, cleaning, grinding and packaging. The majority of our finished products are then sold directly to supermarkets and grain wholesalers.  One other type of product is packed dried noodles consisting of grains or grains mixed with wheat. |

| ● | “Deep Processed” Grain Products Division –Haoliangxin and Deyufarm have developed deep processed grain products for years and owns various consumer packed products, including non-fry organic instant noodles made of grains.  Haoliangxing has also developed instant drink grain soups and buckwheat teas and continues to develop new products.  Haoliangxin has grown rapidly due to the increased demand of more organic products in the PRC made of grains and instant daily food products, particularly in urban cities with a growing middle class and high-income consumers who tend to have less time to cook and eat.  Our expansion of our sales networks and brand name promotions have resulted in our brand name recognition which we believe have triggered strong sales for this division of our business. |
|---------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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| –   | If we achieve net income of at least 95% of $11,000,000, then 1,227,932 shares shall be returned to the majority shareholder. |
|---------------------|-------------------------------------------------------------------------------------------------------------------------------|

| –   | If we achieve net income of less than 50% of $11,000,000 (or $5,500,000), then 1,227,932 shares shall be released to the investors on a pro rata basis (based on the amount of each Investors investment). |
|---------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| –   | If we achieve net income of between 50% and less than 95% of $11,000,000, then a portion of the 1,227,932 shares held in escrow shall be disbursed to the Investors (the remaining shares will be returned to the majority shareholder.  The number of shares released to the Investors shall be determined by doubling the percentage missed between the actual net income as compared to the make good target and then multiplying that by the 1,227,932 escrow shares. |
|---------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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| –   | Shanxi Qinzhou Huang Millet Group Limited Company -  This company’s main products are high quality millets grown in the city of Qinzhou, in Shanxi Province. |
|---------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| –   | Shanxi Jin Wei Yuan Grains Company Limited - This Company mainly produces and sells high quality grains as well as deep processed grain products, including millets, corn powder, and soy beans. |
|---------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| –   | Heshun Province Xin Ma Millets Development Company Limited - This company produces and sells grains as well as deep processed products, including beans and flour. |
|---------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| –   | Ting Tsin International Group – They are a market leader in instant noodles, ready-to-drink teas and bottled water; best known for their "Master Kong" brand in China. |
|---------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| –   | White Elephant Group – Henan-based food company with “White Elephant” branded instant noodles. |
|---------------------|------------------------------------------------------------------------------------------------------------------|

| –   | Hualong Group – Hebei-based food company with “White Elephant” branded instant noodles. |
|---------------------|-----------------------------------------------------------------------------------------------------------|

| –   | Wu Gu Dao Chang Company – COFCO subsidiary with “Wu Gu Dao Chang” branded instant noodles. |
|---------------------|--------------------------------------------------------------------------------------------------------------|

| Item              | Weight | Unit |
|-------------------|--------|------|
| Fine millet       | 400g   | bag  |
| Fine millet       | 2,400g | bag  |
| Fine millet       | 5kg    | bag  |
| Gift box millet   | 400g   | bag  |
| Green bean        | 400g   | bag  |
| Green bean noodle | 800g   | bag  |
| Green bean        | 800g   | bag  |
| Corn grits        | 400g   | bag  |
| Corn flour        | 800g   | bag  |
| Soybean           | 400g   | bag  |
| Whole wheat flour | 5kg    | bag  |
| Whole wheat flour | 25kg   | bag  |
| Black rice        | 400kg  | bag  |
| Buckwheat noodle  | 800g   | bag  |
| Sorghum flour     | 800g   | bag  |
| Gift box grains   | 2,400g | bag  |
| Combo bean flour  | 2,400g | bag  |
| Combo red flour   | 2,400g | bag  |
| Health congee     | 936g   | bag  |

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|                                            |   | % of Gross Sales for the Years Ended December 31, |   |
|-------------------------------------------------|--------|---------------------------------------------------|--------|
|                                            |   | 2010                                              |   |   | 2009 |   |
| Corn Division:                                  |   |                                              |   |   |   |   |   |   |
| Shanghai Yihai Trading Co., Ltd., Shanxi Office |   |                                              | 23.8   | % |   |   | 48.6 | % |
| Sichuan Guangyuanhexi Provincial Grain Reserve  |   |                                              | 4.3    | % |   |   | 3.3 | % |
| Chengdu Zhengda Co., Ltd.                       |   |                                              | 3.7    | % |   |   | 2.2 | % |
| Top Three Customers as % of Total Gross Sales:  |   |                                              | 31.8   | % |   |   | 54.1 | % |

|                                          |   | % of Gross Sales for the Years Ended December 31, |   |
|-----------------------------------------------|--------|---------------------------------------------------|--------|
|                                          |   | 2010                                              |   |   | 2009 |   |
| Simple-Processed Grain Division:              |   |                                              |   |   |   |   |   |   |
| Tianjin Yimingda Grain Division               |   |                                              | 5.2    | % |   |   | - | % |
| Beijing Guanfu Food Products Co., Ltd.        |   |                                              | 5.1    | % |   |   | - | % |
| Beijing Qiheyuan Food Technology Co., Ltd.    |   |                                              | 3.1    | % |   |   | - | % |
| Top Three Customers as % of Total Gross Sales |   |                                              | 13.4   | % |   |   | - | % |

|                                              |   | % of Gross Sales for the Years Ended December 31, |   |
|---------------------------------------------------|--------|---------------------------------------------------|--------|
|                                              |   | 2010                                              |   |   | 2009 |   |
| Deep-Processed Grain Division:                    |   |                                              |   |   |   |   |   |   |
| Xinkeyuan                                         |   |                                              | 2.1    | % |   |   | - | % |
| Beijing Huanqiu Jindan E-Commerce Co., Ltd.       |   |                                              | 2.1    | % |   |   | - | % |
| Tiajin Hongfuyongsheng Business Trading Co., Ltd. |   |                                              | 1.1    | % |   |   | - | % |
| Top Three Customers as % of Total Gross Sales:    |   |                                              | 5.3    | % |   |   | - | % |

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| Year      | Beginning Balance | Supply  | Demand  | Supply Demand Gap | Closing Balance |
|-----------|-------------------|---------|---------|-------------------|-----------------|
| 2006/2007 | 125,110           | 713,130 | 728,080 | -14,950           | 110,160         |
| 2007/2008 | 110,160           | 789,810 | 778,880 | 10,930            | 121,090         |
| 2008/2009 | 130,350           | 787,830 | 778,600 | 9,230             | 1,395.8         |
| 2009/2010 | 139,580           | 785,140 | 796,520 | -11,380           | 1,281.9         |

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| ● | Supermarkets: At present, our sales network covers approximately 10,000 supermarkets and convenience stores with distribution to over 29 Provinces in China, including the cities of Shanxi, Beijing, Tianjin, Jinan, Fuzhou, Chengdu and Shijiazhuang.  Supermarkets include Hualian, RT-Mart Supermarket, Wal-Mart, Tiankelong, Yung-hui, China Resources Vanguard, Aoshi Kai, Sinopec Convenience Stores, Supermarkets, Tian Jia, the Tianhe supermarket chains and Sen Tian supermarket. |
|---------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |
| ● | Sales channels of unpackaged products:  We also sell unpackaged products of various kinds of grains in some supermarkets in Beijing open and loosely in baskets where customers can scoop the grains into plastic bags to determine the volume they want, and such sales strategy targets large use consumers.                                                                                                                                                                                         |

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|   | ■ | Production equipment is fully automated. Raw materials are moved through the production process via the elevator. The production process is fully enclosed for protection against any pollution or contamination.                                                        |
|--------|---------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |    |                                                                                                                                                                                                                                                                     |
|   | ■ | We installed equipment with advanced color selection technology for grains. The device is stable and reliable, and features automatic temperature control, automatic removal of dust and impurities, automatic air pressure detection, self injection and light testing. |
|   |    |                                                                                                                                                                                                                                                                     |
|   | ■ | We have a cooling system that helps millet maintain its nutritious components, color and appearance.                                                                                                                                                                     |
|   |    |                                                                                                                                                                                                                                                                     |
|   | ■ | Selective application of the polishing process helps maintain nutritional components.                                                                                                                                                                                    |

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| 1.   | “The Food Safety Law of the People’s Republic of China” (the “Food Safety Law”)                                            |
|----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------|
| 2.   | “Regulations on the Implementation of the Food Safety Law of the People’s Republic of China” (the “Regulations”)           |
| 3.   | “Law of the People’s Republic of China on Quality and Safety of Agricultural Products” and the Food Distribution Management Ordinance. |

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| ITEM 5.  | Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities |
|---------------|--------------------------------------------------------------------------------------------------------------------|

| Closing Bid Prices                           |   |
|----------------------------------------------|--------|
| Fiscal Year Ended December 31, 2010          |   |
|                                         |   | High ($) |   |   | Low ($) |   |
|                                         |   |   |   |   |   |   |
| 1st Quarter (January 4 – March 31):    |   | NONE |   |   | NONE |   |
|                                         |   |   |   |   |   |   |   |   |
| 2rd Quarter (April 1 – June 30):       |   | 7.10 |   |   | 5.00 |   |
|                                         |   |   |   |   |   |   |   |   |
| 3nd Quarter (July 1 – September 30):   |   | 7.75 |   |   | 6.00 |   |
|                                         |   |   |   |   |   |   |   |   |
| 4th Quarter (October 1 – December 31): |   | 7.00 |   |   | 3.00 |   |

|                                |   |                           |    |   |                          |   |   | Number of                          |   |
|-------------------------------------|--------|--------------------------------|---------|--------|-------------------------------|--------|--------|-----------------------------------------|--------|
|                                |   |                           |    |   |                          |   |   | securities remaining               |   |
|                                |   | Number of securities |    |   |                          |   |   | available for future          |   |
|                                |   | to be issued         |    |   | Weighted-average              |   |   | issuance under equity         |   |
|                                |   | upon exercise of     |    |   | exercise price of   |   |   | compensation plans                 |   |
|                                |   | outstanding options,      |    |   | outstanding options,     |   |   | (excluding securities              |   |
|                                |   | warrants and rights  |    |   | warrants and rights |   |   | reflected in column (a)) |   |
| Plan Category                  |   | (a)                            |    |   | (b)                           |   |   | (c)                                     |   |
| Equity compensation plans           |   |                           |    |   |                          |   |   |                                    |   |
| approved by security holders        |   |                           | --      |   |                          | $      | --     |                                    |   |   | -- |   |
|                                |   |                           |    |   |                          |   |   |                                    |   |   |   |   |
| Equity compensation plans           |   |                           |    |   |                          |   |   |                                    |   |   |   |   |
| not approved by security holders(1) |   |                           | 971,000 |   |                          |   | 4.40   |                                    |   |   | 29,000 |   |
|                                |   |                           |    |   |                          |   |   |                                    |   |   |   |   |
|     Total       |   |                           | 971,000 |   |                          | $      | 4.40   |                                    |   |   | 29,000 |   |

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| ·   | Level 1 – Inputs are quoted prices in active markets for identical assets or liabilities that the Company has the ability to access at the measurement date.  Valuation of these instruments does not require a high degree of judgment as the valuations are based on quoted prices in active markets that are readily and regularly available. |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Level 2 – Inputs other than quoted prices in active markets that are either directly or indirectly observable as of the measurement date, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Level 3 – Valuations based on inputs that are unobservable and not corroborated by market data.  The fair value for such assets and liabilities is generally determined using pricing models, discounted cash flow methodologies, or similar techniques that incorporate the assumptions a market participant would use in pricing the asset or liability. |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|                                                        |   | For The Years Ended December 31, |        |   |   |   |        |    |
|-------------------------------------------------------------|--------|----------------------------------|-------------|--------|--------|--------|-------------|---------|
|                                                        |   | 2010                             |        |   | 2009   |   |        | Change  |   | % |   |
|                                                        |   |                             |        |   |   |   |        |    |   |   |   |
| Net revenue                                                 |   | $                                | 89,175,633  |   |   | $      | 40,732,447  |    |   |   | 48,443,186 |   |   |   | 119 | % |
|                                                        |   |                             |        |   |   |   |        |    |   |   |   |   |   |   |   |   |
| Cost of goods sold                                          |   |                             | (66,921,540 | )      |   |   | (30,136,581 | )       |   |   | (36,784,959) |   |   |   | 122 | % |
|                                                        |   |                             |        |   |   |   |        |    |   |   |   |   |   |   |   |   |
| Gross Profit                                                |   |                             | 22,254,093  |   |   |   | 10,595,866  |    |   |   | 11,658,227 |   |   |   | 110 | % |
|                                                        |   |                             |        |   |   |   |        |    |   |   |   |   |   |   |   |   |
| Selling expenses                                            |   |                             | (7,047,808  | )      |   |   | (1,947,613  | )       |   |   | (5,100,195) |   |   |   | 262 | % |
| General and administrative expenses                         |   |                             | (4,129,458  | )      |   |   | (719,910    | )       |   |   | (3,409,548) |   |   |   | 474 | % |
| Other expenses                                              |   |                             | -           |   |   |   | (556,312    | )  |   |   | 556,312 |   |   |   | (100) | % |
| Research and development expenses                           |   |                             | (73,860     | )      |   |   | (98,087     | )       |   |   | 24,227 |   |   |   | (25) | % |
| Total Operating Expense                                     |   |                             | (11,251,126 | )      |   |   | (3,321,922  | )       |   |   | (7,929,204) |   |   |   | 239 | %  |
|                                                        |   |                             |        |   |   |   |        |    |   |   |   |   |   |   |   |   |
| Operating income                                            |   |                             | 11,002,967  |   |   |   | 7,273,944   |    |   |   | 3,729,023 |   |   |   | 51 | % |
|                                                        |   |                             |        |   |   |   |        |    |   |   |   |   |   |   |   |   |
| Interest income                                             |   |                             | 17,505      |   |   |   | 10,081      |    |   |   | 7,424 |   |   |   | 74 | % |
| Interest expense                                            |   |                             | (341,555    | )      |   |   | (102,893    | )       |   |   | (238,662) |   |   |   | 232 | % |
| Non-operating income                                        |   |                             | 12,404      |   |   |   | -           |    |   |   | (12,404) |   |   |   | - |   |
| Total Other Expense                                         |   |                             | (336,454    | )      |   |   | (92,812     | )       |   |   | (243,642) |   |   |   | 263 | % |
|                                                        |   |                             |        |   |   |   |        |    |   |   |   |   |   |   |   |   |
| Income before income taxes                                  |   |                             | 10,666,513  |   |   |   | 7,181,132   |    |   |   | 3,485,381 |   |   |   | 49 | % |
|  Income tax benefit                                    |   |                             | 1,163,461   |   |   |   | -           |    |   |   | 1,163,461 |   |   |   | - |   |
| Net income                                                  |   |                             | 11,829,974  |   |   |   | 7,181,132   |    |   |   | 4,648,842 |   |   |   | 65 | % |
|                                                        |   |                             |        |   |   |   |        |    |   |   |   |   |   |   |   |   |
| Preferred stock dividends                                   |   |                             | (327,721)   |   |   |   | -           |    |   |   | (327,721) |   |   |   | - |   |
|                                                        |   |                             |        |   |   |   |        |    |   |   |   |   |   |   |   |   |
| Net income available to common stockholders                 |   | $                                | 11,502,253  |   |   | $      | 7,181,132   |    |   |   | 4,321,121 |   |   |   | 60 | % |
|                                                        |   |                             |        |   |   |   |        |    |   |   |   |   |   |   |   |   |
| Net income per common share – basic                   |   | $                                | 1.36        |   |   | $      | 1.46        |    |   |   | (0.10) |   |   |   | (7) | % |
|                                                        |   |                             |        |   |   |   |        |    |   |   |   |   |   |   |   |   |
| Net income per common share – diluted                 |   | $                                | 1.15        |   |   | $      | 1.46        |    |   |   | (0.31) |   |   |   | (21) | % |
|                                                        |   |                             |        |   |   |   |        |    |   |   |   |   |   |   |   |   |
| Weighted average number of common shares outstanding- basic |   |                             | 8,445,880   |   |   |   | 4,930,000   |    |   |   | 3,515,880 |   |   |   | 71 | % |
|                                                        |   |                             |        |   |   |   |        |    |   |   |   |   |   |   |   |   |
| Weighted average number of common shares outstanding-dilute |   |                             | 10,249,041  |   |   |   | 4,930,000   |    |   |   | 5,319,041 |   |   |   | 108 | % |

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|              |   | For the Year Ended December 31, 2010 |    |   | For the Year Ended December 31, 2009 |   |
|------------------------|--------|--------------------------------------|---------|--------|--------------------------------------|--------|
|                   |   | Sales Volume (ton)                   |    |   | Gross Sales                          |   |   | Less Sales Discount |   |   | Net Sales |   |   | % of total sales |   |   | Sales Volume (ton) |   |   | Gross Sales |   |   | Less Sales Discount |   |   | Net Sales |   |   | % of total sales |   |
| Corn Division          |   |                                 | 240,375 |   |                                 |   | 69,516,954 |   |   |   | - |   |   |   | 69,516,954 |   |   |   | 78 | % |   |   | 133,260 |   |   |   | 32,212,159 |   |   |   | - |   |   |   | 32,212,159 |   |   |   | 79 | % |
| Simple Processed Grain |   |                                 | 10,035  |   |                                 |   | 19,063,353 |   |   |   | - |   |   |   | 19,063,353 |   |   |   | 21 | % |   |   | 7,096 |   |   |   | 9,368,136 |   |   |   | 847,849 |   |   |   | 8,520,288 |   |   |   | 21 | % |
| Deep Processed Grain   |   |                                 | -       |   |                                 |   | 595,327 |   |   |   | - |   |   |   | 595,327 |   |   |   | 1 | % |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |
|                   |   |                                 |    |   |                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total                  |   |                                 | 250,410 |   |                                 |   | 89,175,633 |   |   |   | - |   |   |   | 89,175,633 |   |   |   | 100 | % |   |   | 140,356 |   |   |   | 41,580,295 |   |   |   | 847,849 |   |   |   | 40,732,447 |   |   |   | 100 | % |

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|                                    |   | For The Years Ended December 31, |      |   |   |   |    |   |   |
|-----------------------------------------|--------|----------------------------------|-----------|--------|--------|--------|---------|--------|--------|
|                                    |   | 2010                             |      |   | 2009   |   |    | Change |   |   | % |   |
|                                    |   |                             |      |   |   |   |    |   |   |   |   |   |
| Payroll, welfare, and bonuses           |   | $                                | 1,798,696 |   |   | $      | 380,239 |   |   | $ | 1,418,457 |   |   |   | 373 | % |
| Professional service expense            |   |                             | 570,168   |   |   |   | 65,879  |   |   |   | 504,289 |   |   |   | 765 | % |
| Rent and utilities                      |   |                             | 355,769   |   |   |   | 16,065  |   |   |   | 339,704 |   |   |   | 2115 | % |
| Travel and lodging expense              |   |                             | 331,095   |   |   |   | -       |   |   |   | 331,095 |   |   |   | 100 | % |
| Depreciation & amortization Expense |   |                             | 213,210   |   |   |   | 104,116 |   |   |   | 109,094 |   |   |   | 105 | % |
| Others                                  |   |                             | 860,520   |   |   |   | 153,611 |   |   |   | 706,909 |   |   |   | 460 | % |
| Total                                   |   | $                                | 4,129,458 |   |   | $      | 719,910 |   |   | $ | 3,409,548 |   |   |   | 474 | % |

|   | (a) | The increase of our inventory on hand in anticipation of future price increases, |
|--------|-----|----------------------------------------------------------------------------------|

|   | (b) | The increase of terms of accounts receivable from customers in our simple- and deep- processed divisions, |
|--------|-----|-----------------------------------------------------------------------------------------------------------|

|   | (c) | The increase in cash purchases of corn and grains resulting from growing demand. |
|--------|-----|----------------------------------------------------------------------------------|

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|                                                        |   | 2010   |         |   | 2009   |   |
|-------------------------------------------------------------|--------|--------|--------------|--------|--------|--------|
| Net cash provided by operating activities                   |   | $      | 206,602      |   |   | $      | 1,622,346 |   |
| Net cash (used in) provided by investing activities         |   |   | (12,961,541) |   |   |   | 1,370,092 |   |
| Net cash provided by (used in) financing activities         |   |   | 16,143,588   |   |   |   | (763,746) |   |
| Effect of exchange rate change on cash and cash equivalents |   |   | 204,594      |   |   |   | 1,400 |   |
| Net increase in cash and cash equivalents                   |   | $      | 3,593,243    |   |   | $      | 2,230,092 |   |

----

| Constractual Obligations    |   | Total  |       |   | Less than 1 year |   |      | 1-3 years |   |   | 3-5 years |   |   | More than 5 years |    |
|-----------------------------|--------|--------|------------|--------|------------------|--------|-----------|-----------|--------|--------|-----------|--------|--------|-------------------|---------|
|                        |   |   |       |   |             |   |      |      |   |   |      |   |   |              |    |
| Bank Loans                  |   | $      | 2,631,364  |   |             | $      | 2,631,364 |      |   | $      | -         |   |   | $                 | -       |   |   | $ | - |   |
| Operation Lease Obligations |   |   | 9,825,542  |   |             |   | 946,908   |      |   |   | 1,614,595 |   |   |              | 889,198 |   |   |   | 6,374,841 |   |
|                        |   | $      | 12,456,906 |   |             | $      | 3,578,272 |      |   | $      | 1,614,595 |   |   | $                 | 889,198 |   |   | $ | 6,374,841 |   |

----

----

----

| Name            | Age | Position                                                    |
|-----------------|-----|-------------------------------------------------------------|
| Jianming Hao    | 36  | Chairman of the Board of Directors, Chief Executive Officer |
| Wenjun Tian     | 37  | President, Director                                         |
| Charlie Lin     | 40  | Chief Financial Officer                                     |
| Jianbin Zhou    | 42  | Chief Operating Officer                                     |
| Michael Han     | 40  | Corporate Secretary                                         |
| Al Carmona      | 52  | Independent Director and member of Audit Committee          |
| Longjiang Yuan  | 47  | Independent Director and member of Audit Committee          |
| Timothy Stevens | 59  | Independent Director and Chairman of Audit Committee        |

| Name         | Age | Position                                  |
|--------------|-----|-------------------------------------------|
| Junde Zhang  | 39  | Vice President for the Grains Division    |
| Yongqing Ren | 29  | Vice President for the Corn Division      |
| Li Ren       | 47  | Vice President for Branding and Marketing |
| Weizhong Cai | 48  | Chief Scientist                           |

----

----

----

----

----

|   | ● | The appointment, replacement, compensation, and oversight of work of the independent auditor, including resolution of disagreements between management and the independent auditor regarding financial reporting, for the purpose of preparing or issuing an audit report or performing other audit, review or attest services; and |
|--------|---------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |    |                                                                                                                                                                                                                                                                                                                                |
|   | ● | Reviewing and discussing with management and the independent auditor various topics and events that may have significant financial impact on our company or that are the subject of discussions between management and the independent auditors.                                                                                    |

----

| Name and Principal Position |   | FiscalYear |   | Salary($) |    |   | Bonus($) |   |    | Stock and OptionAwardsnumber |   |   | All OtherCompensation ($) |   |   | Total($) |    |
|--------------------------------------------|--------|------------|--------|-----------|---------|--------|----------|--------|---------|------------------------------|--------|--------|-------------------------------------|--------|--------|----------|---------|
|                                       |   |       |   |      |    |   |     |   |    |                         |   |   |                                |   |   |     |    |
| Jianming Hao                               |   | 2010       |   |      | 26,435  |   |     |   | --      |                         |   |   | 150,000                             |   |   |     | 63,444  |   |   |   | 89,879 |   |
| (Chief Executive Officer)                  |   | 2009       |   |      | 2,266   |   |     |   | --      |                         |   |   | --                                  |   |   |     | --      |   |   |   | 2,266 |   |
|                                       |   |       |   |      |    |   |     |   |    |                         |   |   |                                |   |   |     |    |   |   |   |   |   |
| Wenjun Tian                                |   | 2010       |   |      | 26,435  |   |     |   | --      |                         |   |   | 150,000                             |   |   |     | 63,444  |   |   |   | 89,879 |   |
| (President)                                |   | 2009       |   |      | 2,266   |   |     |   | --      |                         |   |   | --                                  |   |   |     | --      |   |   |   | 2,266 |   |
|                                       |   |       |   |      |    |   |     |   |    |                         |   |   |                                |   |   |     |    |   |   |   |   |   |
| David Lethem                               |   | 2010       |   |      | 64,334  |   |     |   | --      |                         |   |   | 25,000                              |   |   |     | --      |   |   |   | 64,334 |   |
| (Former Chief Financial Officer)           |   | 2009       |   |      | --      |   |     |   | --      |                         |   |   | --                                  |   |   |     | --      |   |   |   | -- |   |
|                                       |   |       |   |      |    |   |     |   |    |                         |   |   |                                |   |   |     |    |   |   |   |   |   |
| Charlie Lin                                |   | 2010       |   |      | --      |   |     |   | --      |                         |   |   | --                                  |   |   |     | --      |   |   |   | -- |   |
| (Chief Financial Officer)                  |   | 2009       |   |      | --      |   |     |   |    |                         |   |   | --                                  |   |   |     | --      |   |   |   | -- |   |
|                                       |   |       |   |      |    |   |     |   |    |                         |   |   |                                |   |   |     |    |   |   |   |   |   |
| Jianbin Zhou                               |   | 2010       |   |      | 43,807  |   |     |   | --      |                         |   |   | 40,000                              |   |   |     | 15,106  |   |   |   | 58,913 |   |
| (Chief Operating Officer}                  |   | 2009       |   |      | 4,532   |   |     |   | --      |                         |   |   | --                                  |   |   |     | --      |   |   |   | 4,532 |   |
|                                       |   |       |   |      |    |   |     |   |    |                         |   |   |                                |   |   |     |    |   |   |   |   |   |
| Michael Han                                |   | 2010       |   |      | 13,595  |   |     |   | --      |                         |   |   | --                                  |   |   |     | --      |   |   |   | 13,595 |   |
| Corporate Secretary                        |   | 2009       |   |      | --      |   |     |   | --      |                         |   |   | --                                  |   |   |     | --      |   |   |   | -- |   |
|                                       |   |       |   |      |    |   |     |   |    |                         |   |   |                                |   |   |     |    |   |   |   |   |   |
| Junde Zhang (1)                            |   | 2010       |   |      | 5,287   |   |     |   | --      |                         |   |   | 40,000                              |   |   |     | 37,009  |   |   |   | 42,296 |   |
| (Vice President of the Grains Division)    |   | 2009       |   |      | --      |   |     |   | --      |                         |   |   | --                                  |   |   |     | --      |   |   |   | -- |   |
|                                       |   |       |   |      |    |   |     |   |    |                         |   |   |                                |   |   |     |    |   |   |   |   |   |
| Yongqing Ren (1)                           |   | 2010       |   |      | 5,287   |   |     |   |    |                         |   |   | 40,000                              |   |   |     | 37,009  |   |   |   | 42,296 |   |
| (Vice President of the Corn Division)      |   | 2009       |   |      | --      |   |     |   | --      |                         |   |   | --                                  |   |   |     | --      |   |   |   | -- |   |
|                                       |   |       |   |      |    |   |     |   |    |                         |   |   |                                |   |   |     |    |   |   |   |   |   |
| Li Ren (1)                                 |   | 2010       |   |      | 30,967  |   |     |   |    |                         |   |   | 30,000                              |   |   |     | 15,106  |   |   |   | 46,073 |   |
| (Vice President of Branding and Marketing) |   | 2009       |   |      | --      |   |     |   | --      |                         |   |   | --                                  |   |   |     | --      |   |   |   | -- |   |
|                                       |   |       |   |      |    |   |     |   |    |                         |   |   |                                |   |   |     |    |   |   |   |   |   |
| Weizhong Cai                               |   | 2010       |   |      | 1,133   |   |     |   | --      |                         |   |   | --                                  |   |   |     | --      |   |   |   | 1,133 |   |
| (Chief Scientist)                          |   | 2009       |   |      |  - |   |     |   |  - |                         |   |   |  -                             |   |   |     |  - |   |   |   | -- |   |

| (1)    | Although they are not executive officers, based upon the compensation received, Mr. Junde Zhang, Mr. Yongqing Ren and Mr. Li Ren qualify as named executive officers for purposes of this table. |
|------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|         |   | Option Awards                                       |   | Stock Awards                                        |
|--------------|--------|-----------------------------------------------------|--------|-----------------------------------------------------|
|         |   | Number ofSecuritiesUnderlyingUnexercisedOptions (#) |   | Number ofSecuritiesUnderlyingUnexercisedOptions (#) |   | EquityIncentivePlanAwards:Number ofSecuritiesUnderlyingUnexercisedUnearnedOptions (#) |   | OptionExercisePrice ($) |   | OptionExpirationDate |   | Numberof Sharesor Unitsof StockThatHave NotVested (#) |   | MarketValue ofShares orUnits ofStockThatHave NotVested ($)(4) |   | EquityIncentive PlanAwards:Number ofUnearnedShares, Unitsor OtherRights ThatHave NotVested (#) |   | EquityIncentive PlanAwards:Market orPayout Valueof UnearnedShares, Unitsor OtherRights ThatHave NotVested ($) |
| Name         |   | Exercisable                                         |   | Unexercisable                                       |   | — |   | — |   | — |   | — |   | — |   | — |   | — |
| Jianming Hao |   | 50,000                                              |   | 100,000                                             |   | - |   | 4.40 |   | November 5, 2020 |   | - |   | -- |   | - |   | - |
| Wenjun Tian  |   | 50,000                                              |   | 100,000                                             |   | - |   | 4.40 |   | November 5, 2020 |   | - |   | - |   | - |   | - |
| David Lethem |   | 8,333 (1)                                      |   | 16,667 (1)                                          |   | - |   | 4.40 |   | November 5, 2020 |   | - |   | - |   | - | - | - |
| Charlie Lin  |   | -                                                   |   | -                                                   |   | - |   | - |   | - |   | - |   | - |   | - |   | - |
| Jianbin Zhou |   | 13,334                                              |   | 26,666                                              |   | - |   | 4.40 |   | November 5, 2020 |   | - |   | - |   | - |   | - |
| Michael Han  |   | -                                                   |   | -                                                   |   | - |   | - |   | November 5, 2020 |   | - |   | - |   | - |   | - |
| Junde Zhang  |   | 13,334                                              |   | 26,666                                              |   | - |   | 4.40 |   | November 5, 2020 |   | - |   | - |   | - |   | - |
| Yongqing Ren |   | 13,334                                              |   | 26,666                                              |   | - |   | 4.40 |   | November 5, 2020 |   | - |   | - |   | - |   | - |
| Li Ren       |   | 10,000                                              |   | 20,000                                              |   | - |   | 4.40 |   | November 5, 2020 |   | - |   | - |   | - |   | - |
| Weizhong Cai |   | -                                                   |   | -                                                   |   | - |   | - |   | - |   | - |   | - |   | - |   | - |

----

| Name                                                                                                                                                                                                                                                                                                                     |   | Fees Earned or Paid in Cash($) |   |   | Option Awards (1)($) |   |   | All Other Compensation ($) |   |   | Total($) |   |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------------------------------|--------|--------|----------------------|--------|--------|----------------------------|--------|--------|----------|--------|
| Timothy Stevens                                                                                                                                                                                                                                                                                                          |   | $                              | 12,375 |   |                 | $      | 35,997 |                       |   | $      | -        |   |   | $ | 48,372 |   |
| Al Carmona                                                                                                                                                                                                                                                                                                               |   |                           | 6,000  |   |                 |   | 26,998 |                       |   |   | -        |   |   |   | 32,998 |   |
| Longjiang Yuan                                                                                                                                                                                                                                                                                                           |   |                           | -      |   |                 |   | 8,999  |                       |   |   | -        |   |   |   | 8,999 |   |
|                                                                                                                                                                                                                                                                                                                     |   | $                              | 18,375 |   |                 | $      | 71,994 |                       |   | $      | -        |   |   | $ | 90,369 |   |
|                                                                                                                                                                                                                                                                                                                     |
| (1) Reflects the aggregate grant date fair value to option awards granted to the directors, determined in accordance with ASC Topic 718. For information regarding the grant date fair value of stock options, see Note 15 – Share-Based Compensation, to our accompanying consolidated financial statements. |

----

----

| Title of Class                                             | Name and Address ofBeneficial Owner (1)(2) | Amount and Nature ofBeneficial Ownership(number of shares) | Fully DilutedPercentage of OutstandingShares of Common Stock (3) |
|------------------------------------------------------------|--------------------------------------------|------------------------------------------------------------|------------------------------------------------------------------|
| Certain Beneficial Owners - Over 5% Ownership              |                                       |                                                       |
| Common Stock                                               | Expert Venture Limited (4)(5)         | 6,213,205                                                  | 45.65%                                                           |
| Common Stock                                               | Sure Glory Holdings Limited(6)             | 748,636                                                    | 5.50%                                                            |
| Common Stock                                               | Charming Action Management Limited(7)      | 736,364                                                    | 5.41%                                                            |
| Common Stock                                               | Hong Wang(8)(9)                            | 0                                                          | 0%                                                               |
|                                                       |                                       |                                                       |
| Directors and Executive Officers and Significant Employees |                                       |                                                       |
| Common Stock                                               | Jianming Hao(10)                           | 50,000                                                     | *                                                                |
| Common Stock                                               | Wenjun Tian(11)                            | 50,000                                                     | *                                                                |
| Common Stock                                               | Charlie Lin                                | 0                                                          | 0%                                                               |
| Common Stock                                               | Yongqing Ren(12)                           | 13,334                                                     | *                                                                |
| Common Stock                                               | Jianbin Zhou(13)                           | 13,334                                                     | *                                                                |
| Common Stock                                               | Li Ren(14)                                 | 10,000                                                     | *                                                                |
| Common Stock                                               | Junde Zhang(15)                            | 13,334                                                     | *                                                                |
| Common Stock                                               | Al Carmona(16)                             | 67,000                                                     | *                                                                |
| Common Stock                                               | Longjiang Yuan(17)                         | 1,667                                                      | *                                                                |
| Common Stock                                               | Timothy Stevens(18)                        | 6,667                                                      | *                                                                |
| Common Stock                                               | Weizhong Cai                               | 0                                                          | 0%                                                               |
| Common Stock                                               | Michael Han                                | 0                                                          | 0%                                                               |
| Officers and Directors as a Group (a total of 12 persons)  | 225,335                                    | 1.66%                                                      |

| (1)   | Pursuant to Rule 13d-3 under the Exchange Act, a person has beneficial ownership of any securities as to which such person, directly or indirectly, through any contract, arrangement, undertaking, relationship or otherwise has or shares voting power and/or investment power or as to which such person has the right to acquire such voting and/or investment power within 60 days. |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|            |                                                                                                                                                                                                                                                                                                                                                                                     |
| (2)   | Unless otherwise stated, each beneficial owner has sole power to vote and dispose of the shares.                                                                                                                                                                                                                                                                                         |
|            |                                                                                                                                                                                                                                                                                                                                                                                     |
| (3)   | Applicable percentage of ownership is based on 13,610,135 shares of common stock outstanding as of the date hereof together with securities exercisable or convertible into common stock within sixty (60) days as of the date hereof for each stockholder.                                                                                                                              |
|            |                                                                                                                                                                                                                                                                                                                                                                                     |
| (4)   | The registered address of Expert Venture Limited is P.O. Box 957, Offshore Incorporation Centre, Road Town, Tortola, British Virgin Islands.                                                                                                                                                                                                                                             |
|            |                                                                                                                                                                                                                                                                                                                                                                                     |
| (5)   | Mr. Yam Sheung Kwok is the sole and controlling person of Expert Venture Limited, owning all 1,000 shares of Expert Venture Limited (subject to the share transfer agreements discussed below).                                                                                                                                                                                     |
|            |                                                                                                                                                                                                                                                                                                                                                                                     |
| (6)   | The registered address of Sure Glory Holdings Limited is P.O. Box 957, Offshore incorporation Centre, Road Town, Tortola, British Virgin Islands.  Mr. Dai Ai Wei is the sole and controlling person of Sure Glory Holdings Limited, owning the sole share of Sure Glory Holdings Limited.                                                                                |

----

| (7)    | The registered address of Charming Action Management Limited is Portcullis TrustNet Chambers, P.O. Box 3444, Road Town, Tortola, British Virgin Islands.  Miss Jin Juan Dai is the sole and controlling person of Charming Action Management Limited, owning the sole share of Charming Action Management Limited.                                                                                                                                                                                                                                                                                                                                                                                    |
|------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|             |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
| (8)    | The registered address of Hong Wang is 7/F, B Tower, Jinshangguoji Building, Jinzhong, China.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
|             |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
| (9)    | Pursuant to a share transfer agreement, Mr. Hong Wang has the option, subject to certain performance targets (discussed in more detail below), to purchase from Mr. Yam Sheung Kwok, the current sole shareholder of Expert Venture Limited, up to 120 shares of Expert Venture Limited. Accordingly, upon exercise of such option, Mr. Wang will indirectly (through his ownership of Expert Venture Limited) own and control 748,585 shares, which equals 5.50% of the fully-diluted percentage of outstanding shares.                                                                                                                                                                         |
|             |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
| (10)   | Pursuant to a share transfer agreement, Mr. Jianming Hao, our Chairman and Chief Executive Officer, has the option, subject to certain performance targets, to purchase from Mr. Yam Sheung Kwok, the current sole shareholder of Expert Venture Limited, up to 101 shares of Expert Venture Limited. Accordingly, upon exercise of such option, Mr. Hao will indirectly (through his ownership of Expert Venture Limited own and control 630,059 shares which equals 4.63% of the fully-diluted percentage of outstanding shares. In addition, the Company has granted to Mr. Hao options to purchase 150,000 shares of our common stock under the Plan, 50,000 of which have vested.           |
|             |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
| (11)   | Pursuant to a share transfer agreement, Mr. Wenjun Tian, our Executive Director, will have an option, subject to certain performance targets (discussed in more detail below), to purchase from Mr. Yam Sheung Kwok, the current sole shareholder of Expert, up to 300 shares of Expert, which constitutes 30% of Expert. Accordingly, upon exercise of such option, Mr. Tian will indirectly (through his ownership of Expert) own and control 1,871,461 shares which equals 13.75% of the fully-diluted percentage of outstanding shares. In addition, the Company has granted to Mr. Tian options to purchase 150,000 shares of our common stock under the Plan, 50,000 of which have vested. |

| (12)         | Pursuant to a share transfer agreement, Mr. Yongqing Ren will have an option, subject to certain performance targets (discussed in more detail below), to purchase from Mr. Yam Sheung Kwok, the current sole shareholder of Expert, up to 200 shares of Expert. Accordingly, upon exercise of such option, Mr. Ren will indirectly (through his ownership of Expert) own and control 1,247,641 shares which equals 9.17% of the fully-diluted percentage of outstanding shares. In addition, the Company has granted to Mr. Ren options to purchase 40,000 shares of our common stock under the Plan, 13,334 of which have vested.    |
|------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
|  (13)             | The Company has granted to Mr. Zhou options to purchase 40,000 shares of common stock under the Company’s share option plan, 13,334 of which have vested.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
|                   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
|  (14)             | The Company has granted to Mr. Ren options to purchase 30,000 shares of common stock under the Company’s share option plan, 10,000 of which have vested.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
|                   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
|  (15)   | Pursuant to a share transfer agreement, Mr. Junde Zhang will have an option, subject to certain performance targets (discussed in more detail below), to purchase from Mr. Yam Sheung Kwok, the current sole shareholder of Expert, up to 200 shares of Expert. Accordingly, upon exercise of such option, Mr. Zhang will indirectly (through his ownership of Expert) own and control 1,247,641 shares which equals 9.17% of the fully-diluted percentage of outstanding shares. In addition, the Company has granted to Mr. Zhang options to purchase 40,000 shares of our common stock under the Plan, 13,334 of which have vested. |
|                   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
| (16)         | Al Carmona was an investor in the financing that closed immediately following the Share Exchange.  In the offering, Mr. Carmona purchased 45,000 units in the offering which consisted of 45,000 shares of Series A Convertible Preferred Shares and a warrant exercisable into 18,000 shares of common stock at an exercise price of $5.06. In addition, the Company has granted to Mr. Carmona options to purchase 15,000 shares of our common stock under the Plan, 5,000 of which have vested.                                                                                                                                     |
|                   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
| (17)                   | The Company has granted to Mr. Yuan options to purchase 5,000 shares of our common stock under the Plan, 1,667 of which have vested.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
|                   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
| (18)                   | The Company has granted to Mr. Stevens options to purchase 20,000 shares of our common stock under the Plan, 6,667 of which have vested.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |

----

|                                            |   | As of December 31, |      |
|-------------------------------------------------|--------|--------------------|-----------|
|                                            |   | 2010               |      |   | 2009 |   |
| Advances from -                                 |   |               |      |   |   |   |
| Dongsheng International Investment Co., Ltd.    |   | $                  | 3,484,848 |   |   | $ | - |   |
| Jinzhong Xinhuasheng Business Trading Co., Ltd. |   |               | 3,030,303 |   |   |   | - |   |
| Mr. Wenjun Tian                                 |   |               | 1,515,152 |   |   |   | - |   |
| Mr. Jianming Hao                                |   |               | -         |   |   |   | 84,120 |   |
| Mr. Junde Zhang                                 |   |               | -         |   |   |   | 61,530 |   |
| Total                                           |   | $                  | 8,030,303 |   |   | $ | 145,650 |   |

----

|               |   | 2010 |    |   | 2009   |   |
|--------------------|--------|------|---------|--------|--------|--------|
| Audit Fees         |   | $    | 170,000 |   |   | $      | 100,000 |   |
| Audit Related Fees |   | $    | 100,000 |   |   | $      | — |   |
| Tax Fees           |   | $    | — |   |   | $      | — |   |
| All Other Fees     |   | $    | — |   |   | $      | — |   |

----

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

| 2.1        | Share Exchange Agreement Dated April 27, 2010 (1)                                                                                                                                                       |
|------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|       |                                                                                                                                                                                                    |
| 3.1        | Articles of Incorporation of Deyu Agriculture Corp. (2)                                                                                                                                                 |
|       |                                                                                                                                                                                                    |
| 3.2        | Certificate of Amendment of Articles of Incorporation of Deyu Agriculture Corp. (3)                                                                                                                     |
|       |                                                                                                                                                                                                    |
| 3.3        | Bylaws of Deyu Agriculture Corp. (2)                                                                                                                                                                    |
|       |                                                                                                                                                                                                    |
| 4.1        | Certificate of Designation of Rights and Preferences of Series A Convertible Preferred Stock (1)                                                                                                        |
|       |                                                                                                                                                                                                    |
| 4.2        | Form of Series A Warrant (1)                                                                                                                                                                            |
|       |                                                                                                                                                                                                    |
| 10.1       | Securities Purchase Agreement Dated April 27, 2010 (1)                                                                                                                                                  |
|       |                                                                                                                                                                                                    |
| 10.2       | Registration Rights Agreement Dated April 27, 2010 (1)                                                                                                                                                  |
|       |                                                                                                                                                                                                    |
|  10.3 | Form of Lock-Up Agreement Dated April 27, 2010 (1)                                                                                                                                                      |
|       |                                                                                                                                                                                                    |
| 10.4       | Securities Escrow Agreement Dated April 27, 2010 (1)                                                                                                                                                    |
|       |                                                                                                                                                                                                    |
| 10.5       | Placement Agent Agreement between the Company and Maxim Group, LLC dated January 27, 2010(6)                                                                                                            |
|       |                                                                                                                                                                                                    |
| 10.6       | Share Transfer Agreement between Hong Wang and Yam Sheung Kwok dated April 26, 2010 (6)                                                                                                                 |
|       |                                                                                                                                                                                                    |
| 10.7       | Share Transfer Agreement between Jianming Hao and Yam Sheung Kwok dated April 26, 2010 (6)                                                                                                              |
|       |                                                                                                                                                                                                    |
| 10.8       | Share Transfer Agreement between Wenjun Tian and Yam Sheung Kwok dated April 26, 2010 (6)                                                                                                               |
|       |                                                                                                                                                                                                    |
| 10.9       | Share Transfer Agreement between Yongqing Ren and Yam Sheung Kwok dated April 26, 2010 (6)                                                                                                              |
|       |                                                                                                                                                                                                    |
| 10.10      | Share Transfer Agreement between Junde Zhang and Yam Sheung Kwok dated April 26, 2010 (6)                                                                                                               |
|       |                                                                                                                                                                                                    |
| 10.11      | Employment Agreement between David Lethem, as Chief Financial Officer, and the Company dated June 18, 2010 (4)                                                                                          |
|       |                                                                                                                                                                                                    |
| 10.12      | Certificate from China Organic Food Certification Center dated December 21, 2009 (6)                                                                                                                    |
|       |                                                                                                                                                                                                    |
| 10.13      | Corn Purchase Letter of Intent between Shanghai Yihai Trading Co., Ltd., Shanxi Office and Jinzhong Yuliang Agricultural Trading Co., Limited dated December 20, 2009 (6)                               |
|       |                                                                                                                                                                                                    |
| 10.14      | Warehouse Lease Agreement between Shanxi 661 Warehouse and Jinzhong Yongcheng Agricultural Trading Co., Limited dated December 21, 2006 (6)                                                             |
|       |                                                                                                                                                                                                    |
| 10.15      | Warehouse Lease Agreement between Shanxi Means of Production Company, Yuci Warehouse (formerly, the 671 Warehouse) and Jinzhong Yongcheng Agricultural Trading Co., Limited dated December 28, 2008 (6) |

----

| 10.16  | Railway Lease Agreement between Shanxi Cereal & Oil Group, Mingli Reservation Depot and Jinzhong Yongcheng Agriculture Trading Co., Limited dated December 21, 2006 (6)                                                                                                                                                                       |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                                                                                                                                                                                              |
| 10.17  | Railway Lease Agreement between Shanxi Yuci Cereal Reservation Depot and Jinzhong Yongcheng Agriculture Trading Co., Limited dated November 15, 2007 (6)                                                                                                                                                                                          |
|   |                                                                                                                                                                                                                                                                                                                                              |
| 10.18  | Railway Lease Agreement between Yuci Dongzhao Railway Freight Station and Jinzhong Yongcheng Agriculture Trading Co., Limited dated December 21, 2006 (6)                                                                                                                                                                                         |
|   |                                                                                                                                                                                                                                                                                                                                              |
| 10.19  | Agricultural Technology Cooperation Agreement between Jinzhong Deyu Agriculture Trading Co., Ltd. and Millet Research Institute, Shanxi Academy of Agricultural Science dated October 2007 (6)                                                                                                                                                    |
|   |                                                                                                                                                                                                                                                                                                                                              |
| 10.20  | Agricultural Technology Cooperation Agreement between Sorghum Institute, Shanxi Academy of Agricultural Sciences and Jinzhong Deyu Agriculture Trading Co., Ltd. dated August 24, 2008 (6)                                                                                                                                                        |
|   |                                                                                                                                                                                                                                                                                                                                              |
| 10.21  | Certificate of Forest Rights for the Yuci Forest Right Certificate (2005) No. 01518 dated August 11, 2006 (6)                                                                                                                                                                                                                                     |
|   |                                                                                                                                                                                                                                                                                                                                              |
| 10.22  | Farmland Transfer Agreement between Detian Yu Biotechnology (Beijing) Co. Ltd. and Shanxi Jinbei Plant Technology Co, Ltd. dated September 30, 2010 (6)                                                                                                                                                                                           |
|   |                                                                                                                                                                                                                                                                                                                                              |
| 10.23  | Land Use Rights Acquisition Contract Dated September 30, 2010 (5)                                                                                                                                                                                                                                                                                 |
|   |                                                                                                                                                                                                                                                                                                                                              |
| 10.24  | Deyu Agriculture Corp. 2010 Share Incentive Plan (7)                                                                                                                                                                                                                                                                                              |
|   |                                                                                                                                                                                                                                                                                                                                              |
| 10.25  | Exclusive Management and Consulting Service Agreement, dated November 16, 2010, by and between Detian Yu Biotechnology (Beijing) Co. Limited and Beijing Jundaqianyuan Investment Management Co., Ltd. (English translated version) (8)                                                                                                           |
|   |                                                                                                                                                                                                                                                                                                                                              |
| 10.26  | Exclusive Management and Consulting Service Agreement, dated November 16, 2010, by and between Detian Yu Biotechnology (Beijing) Co. Limited and Jinzhong Longyue Investment Consulting Co., Ltd. (English translated version) (8)                                                                                                                |
|   |                                                                                                                                                                                                                                                                                                                                              |
| 10.27  | Business Cooperation Agreement, dated November 16, 2010, by and between Detian Yu Biotechnology (Beijing) Co. Limited and Beijing Jundaqianyuan Investment Management Co., Ltd. (English Translated Version) (8)                                                                                                                                  |
|   |                                                                                                                                                                                                                                                                                                                                              |
| 10.28  | Business Operation Agreement, dated November 16, 2010, by and among Detian Yu Biotechnology (Beijing) Co. Limited, Beijing Jundaqianyuan Investment Management Co., Ltd. and each of the shareholders of Beijing Jundaqianyuan Investment Management Co., Ltd. (English translated version) (8)                                                   |
|   |                                                                                                                                                                                                                                                                                                                                              |
| 10.29  | Business Operation Agreement, dated November 16, 2010, by and among Detian Yu Biotechnology (Beijing) Co. Limited, Jinzhong Longyue Investment Consulting Co., Ltd. and both of the shareholders of Jinzhong Longyue Investment Consulting Co., Ltd. (English translated version) (8)                                                             |
|   |                                                                                                                                                                                                                                                                                                                                              |
| 10.30  | Share Pledge Agreement, dated November 16, 2010, by and among Detian Yu Biotechnology (Beijing) Co. Limited and the following shareholders of Beijing Jundaqianyuan Investment Management Co., Ltd.: Tian Wenjun, Hao Jianming, Yang Jianhui, Zhou Jianbin, Ren Li, Ren Yongqing, Zhang Junde and Wang Tao (English translated version) (8)  |
| 10.31 | Share Pledge Agreement, dated November 16, 2010, by and among Detian Yu Biotechnology (Beijing) Co. Limited and the following shareholders of Jinzhong Longyue Investment Consulting Co., Ltd.: Zhao Jing and Zhao Peilin (English translated version) (8)  |
|-------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 10.32  | Form of Power of Attorney (English translated version) (8)                                                                                                                                                                                                                                                                                                     |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                                                                                                                                                                                                                |
| 10.33  | Equity Acquisition Option Agreement, dated November 16, 2010,  by and among Detian Yu Biotechnology (Beijing) Co. Limited and the following shareholders of Beijing Jundaqianyuan Investment Management Co., Ltd.: Tian Wenjun, Hao Jianming, Yang Jianhui, Zhou Jianbin, Ren Li, Ren Yongqing, Zhang Junde and Wang Tao (English translated version) (8) |
|   |                                                                                                                                                                                                                                                                                                                                                                |
| 10.34  | Equity Acquisition Option Agreement, dated November 16, 2010,  by and among Detian Yu Biotechnology (Beijing) Co. Limited and the following shareholders of Jinzhong Longyue Investment Consulting Co., Ltd.: Zhao Jing and Zhao Peilin (English translated version) (8)                                                                                  |
|   |                                                                                                                                                                                                                                                                                                                                                                |
| 10.35  | Business Cooperation Agreement, dated November 16, 2010, by and between Detian Yu Biotechnology (Beijing) Co. Limited and Jinzhong Longyue Investment Consulting Co., Ltd. (English Translated Version) (8)                                                                                                                                                         |
|   |                                                                                                                                                                                                                                                                                                                                                                |
| 10.36  | Village Collective Farmland Transfer Agreement, dated December 20, 2010, by and between Detian Yu Biotechnology (Beijing) Co., Ltd. and Shanxi Jinbei Plant Technology Development Co., Ltd. (English Translated and Mandarin Versions) (9)                                                                                                               |
|   |                                                                                                                                                                                                                                                                                                                                                                |
| 10.37  | Contract of Agreement, effective as of January 10, 2011,  by and between Deyu Agriculture Corp. and Charlie Lin(10)                                                                                                                                                                                                                                       |
|   |                                                                                                                                                                                                                                                                                                                                                                |
| 14.1   | Code of Conduct (6)                                                                                                                                                                                                                                                                                                                                                 |
|   |                                                                                                                                                                                                                                                                                                                                                                |
| 16.1   | Letter from Auditor (11)                                                                                                                                                                                                                                                                                                                                            |
|   |                                                                                                                                                                                                                                                                                                                                                                |
| 21     | List of Subsidiaries*                                                                                                                                                                                                                                                                                                                                               |
|   |                                                                                                                                                                                                                                                                                                                                                                |
| 31.1   | Certifications of the Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002*                                                                                                                                                                                                                                                            |
|   |                                                                                                                                                                                                                                                                                                                                                                |
| 31.2   | Certifications of the Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002*                                                                                                                                                                                                                                                            |
|   |                                                                                                                                                                                                                                                                                                                                                                |
| 32.1   | Certification Pursuant To 18 U.S.C. Section 1350, As Adopted Pursuant To Section 906 of the Sarbanes-Oxley Act Of 2002*                                                                                                                                                                                                                                             |
|   |                                                                                                                                                                                                                                                                                                                                                                |
| 32.2   | Certification Pursuant To 18 U.S.C. Section 1350, As Adopted Pursuant To Section 906 of the Sarbanes-Oxley Act Of 2002*                                                                                                                                                                                                                                             |
|   |                                                                                                                                                                                                                                                                                                                                                                |
| 99.1   | Audit Committee Charter adopted August 19, 2010 (6)                                                                                                                                                                                                                                                                                                                 |

| (1)   | Incorporated by reference to our Form 8-K filed on May 3, 2010.                            |
|------------|--------------------------------------------------------------------------------------------|
| (2)        | Incorporated by reference to our Registration Statement on Form S-1 filed on July 8, 2009. |
| (3)        | Incorporated by reference to our Form 8-K filed on June 4, 2010.                           |
| (4)        | Incorporated by reference to our Form 8-K filed on June 18, 2010.                          |
| (5)        | Incorporated by reference to our Form 8-K filed on October 6, 2010.                        |
| (6)        | Incorporated by reference to our Form S-1/A filed on October 21, 2010.                     |
| (7)        | Incorporated by reference to our Form S-8 filed on November 5, 2010.                       |
| (8)        | Incorporated by reference to our Form 8-K filed on November 17, 2010.                      |
| (9)        | Incorporated by reference to our Form 8-K filed on December 21, 2010.                      |
| (10)       | Incorporated by reference to our Form 8-K filed on January 10, 2011.                       |
|  (11) | Incorporated by reference to our Form 8-K filed on May 3, 2010.                            |

----

|                 | DEYU AGRICULTURE CORP. |
|----------------------|------------------------|
|                 |                   |   |
| Date: March 31, 2011 |                   |   |
|                 |                   |   |
|                 | By:                    | /s/ Jianming Hao |
|                 |                   | Jianming Hao, Principal Executive Officer, Chief Executive Officer |
|                 |                   |   |
|                 |                   | /s/ Charlie Lin |
|                 |                   | Charlie Lin, Principal Financial and Accounting Officer and Chief Financial Officer |

| Signatures          |   | Title                                                                         |   | Date           |
|---------------------|--------|-------------------------------------------------------------------------------|--------|----------------|
|                |   |                                                                          |   |           |
| /s/ Jianming Hao    |   | Principal Executive Officer, Chief Executive Officerand Chairman of the Board |   | March 31, 2011 |
| Jianming Hao        |   |                                                                          |   |           |
|                |   |                                                                          |   |           |
| /s/ Wenjun Tian     |   | President and Director                                                        |   | March 31, 2011 |
| Wenjun Tian         |   |                                                                          |   |           |
|                |   |                                                                          |   |           |
| /s/ Charlie Lin     |   | Principal  Financial Accounting Officer and Chief Financial Officer |   | March 31, 2011 |
| Charlie Lin         |   |                                                                          |   |           |
|                |   |                                                                          |   |           |
| /s/ Jianbin Zhou    |   | Chief Operating Officer                                                       |   | March 31, 2011 |
| Jianbin Zhou        |   |                                                                          |   |           |
|                |   |                                                                          |   |           |
| /s/ Michael Han     |   | Corporate Secretary                                                           |   | March 31, 2011 |
| Michael Han         |   |                                                                          |   |           |
|                |   |                                                                          |   |           |
| /s/ Al Carmona      |   | Independent Director                                                          |   | March 31, 2011 |
| Al Carmona          |   |                                                                          |   |           |
|                |   |                                                                          |   |           |
| /s/ Longjiang Yuan  |   | Independent Director                                                          |   | March 31, 2011 |
| Longjiang Yuan      |   |                                                                          |   |           |
|                |   |                                                                          |   |           |
| /s/ Timothy Stevens |   | Independent Director                                                          |   | March 31, 2011 |
| Timothy Stevens     |   |                                                                          |   |           |

----

| Report of Independent Registered Public Accounting Firm |   |   | F-1    |   |
|---------------------------------------------------------|--------|--------|--------|--------|
|                                                    |   |   |   |   |
| Consolidated Financial Statements:                      |   |   |   |   |
|                                                    |   |   |   |   |
| Consolidated Balance Sheets                             |   |   | F-2    |   |
|                                                    |   |   |   |   |
| Consolidated Statements of Operations                   |   |   | F-3    |   |
|                                                    |   |   |   |   |
| Consolidated Statements of Stockholders’ Equity   |   |   | F-4    |   |
|                                                    |   |   |   |   |
| Consolidated Statements of Cash Flows                   |   |   | F-5    |   |
|                                                    |   |   |   |   |
| Notes to Consolidated Financial Statements              |   |   | F-6    |   |

----

|        | Audit • Tax • Consulting •  Financial AdvisoryRegistered with Public Company Accounting Oversight Board (PCAOB) |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------|
|   |

| KCCW Accountancy Corp.22632 Golden Springs Dr. #230, Diamond Bar, CA 91765, USATel: +1 909 348 7228 • Fax: +1 626 529 1580 • info@kccwcpa.com |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| Assets                                                                   |   | December 31,2010 |       |   | December 31,2009 |   |
|--------------------------------------------------------------------------|--------|------------------|------------|--------|------------------|--------|
|                                                                     |   |             |       |   |             |   |
| Current Assets                                                           |   |             |       |   |             |   |
| Cash and cash equivalents                                                |   | $                | 6,155,744  |   |             | $      | 2,562,501 |   |
| Restricted Cash                                                          |   |             | 125,560    |   |             |   | - |   |
| Accounts receivable, net                                                 |   |             | 11,166,452 |   |             |   | 4,200,749 |   |
| Inventory                                                                |   |             | 18,359,505 |   |             |   | 8,233,760 |   |
| Advance to supplier                                                      |   |             | 3,596,991  |   |             |   | - |   |
| Prepaid expenses                                                         |   |             | 2,219,332  |   |             |   | 1,104,072 |   |
| Other current assets                                                     |   |             | 849,593    |   |             |   | 28,998 |   |
| Total Current Assets                                                     |   |             | 42,473,177 |   |             |   | 16,130,080 |   |
|                                                                     |   |             |       |   |             |   |   |   |
| Property, plant, and equipment, net                                      |   |             | 4,626,004  |   |             |   | 2,939,475 |   |
| Construction-in-progress                                                 |   |             | 7,224,504  |   |             |   | 3,254,696 |   |
| Goodwill                                                                 |   |             | 1,052,139  |   |             |   | - |   |
| Other assets                                                             |   |             | 10,553,328 |   |             |   | 1,506,902 |   |
| Intangible assets, net                                                   |   |             | -          |   |             |   | - |   |
|                                                                     |   |             |       |   |             |   |   |   |
| Total Assets                                                             |   | $                | 65,929,152 |   |             | $      | 23,831,153 |   |
|                                                                     |   |             |       |   |             |   |   |   |
| Liabilities and Stockholders' Equity                                     |   |             |       |   |             |   |   |   |
|                                                                     |   |             |       |   |             |   |   |   |
| Current Liabilities                                                      |   |             |       |   |             |   |   |   |
| Short-term loan                                                          |   | $                | 2,631,364  |   |             | $      | 1,801,960 |   |
| Accounts payable                                                         |   |             | 540,956    |   |             |   | - |   |
| Advance from customers                                                   |   |             | 6,484,589  |   |             |   | - |   |
| Accrued expenses                                                         |   |             | 1,619,186  |   |             |   | 116,968 |   |
| Preferred stock dividends payable                                        |   |             | 238,620    |   |             |   | - |   |
| Due to related parties                                                   |   |             | 8,030,303  |   |             |   | 145,650 |   |
| Other current liabilities                                                |   |             | 2,943,681  |   |             |   | 68,339 |   |
| Total Current Liabilities                                                |   |             | 22,488,699 |   |             |   | 2,132,917 |   |
|                                                                     |   |             |       |   |             |   |   |   |
| Stockholders' Equity                                                     |   |             |       |   |             |   |   |   |
| Series A convertible preferred stock, $.001 par value, 10,000,000 shares |   |             |       |   |             |   |   |   |
| authorized,  2,106,088 and 0 shares outstanding, respectively  |   |             | 2,106      |   |             |   | - |   |
| Common stock, $.001 par value; 75,000,000 shares authorized,             |   |             |       |   |             |   |   |   |
| 10,394,774 and 4,930,000 shares issued and outstanding, respectively     |   |             | 10,350     |   |             |   | 4,930 |   |
| Additional paid-in capital                                               |   |             | 18,770,230 |   |             |   | 8,978,527 |   |
| Other comprehensive income                                               |   |             | 2,272,633  |   |             |   | 909,311 |   |
| Retained earnings                                                        |   |             | 22,385,134 |   |             |   | 11,805,468 |   |
| Total Stockholders' Equity                                               |   |             | 43,440,453 |   |             |   | 21,698,236 |   |
|                                                                     |   |             |       |   |             |   |   |   |
| Total Liabilities and Stockholders' Equity                               |   | $                | 65,929,152 |   |             | $      | 23,831,153 |   |

----

|                                                           |   | For The Years Ended |        |
|----------------------------------------------------------------|--------|---------------------|-------------|
|                                                           |   | December 31,        |        |
|                                                           |   | 2010                |        |   | 2009 |   |
|                                                           |   |                |        |   |   |   |
| Net revenue                                                    |   | $                   | 89,175,633  |   |   | $ | 40,732,447 |   |
|                                                           |   |                |        |   |   |   |   |   |
| Cost of goods sold                                             |   |                | (66,921,540 | ) |   |   | (30,136,581 | ) |
|                                                           |   |                |        |   |   |   |   |   |
| Gross Profit                                                   |   |                | 22,254,093  |   |   |   | 10,595,866 |   |
|                                                           |   |                |        |   |   |   |   |   |
| Selling expenses                                               |   |                | (7,047,808  | ) |   |   | (1,947,613 | ) |
| General and administrative expenses                            |   |                | (4,129,458  | ) |   |   | (719,910 | ) |
| Other operating expenses                                       |   |                | -           |   |   |   | (556,312 | ) |
| Research and development expenses                              |   |                | (73,860     | ) |   |   | (98,087 | ) |
| Total Operating Expense                                        |   |                | (11,251,126 | ) |   |   | (3,321,922 | ) |
|                                                           |   |                |        |   |   |   |   |   |
| Operating income                                               |   |                | 11,002,967  |   |   |   | 7,273,944 |   |
|                                                           |   |                |        |   |   |   |   |   |
| Interest income                                                |   |                | 17,505      |   |   |   | 10,081 |   |
| Interest expense                                               |   |                | (341,555    | ) |   |   | (102,893 | ) |
| Non-operating income                                           |   |                | (12,404     | ) |   |   | - |   |
| Total Other Expense                                            |   |                | (336,454    | ) |   |   | (92,812 | ) |
|                                                           |   |                |        |   |   |   |   |   |
| Income before income taxes                                     |   |                | 10,666,513  |   |   |   | 7,181,132 |   |
| Income tax benefit                                             |   |                | 1,163,461   |   |   |   | - |   |
| Net income                                                     |   |                | 11,829,974  |   |   |   | 7,181,132 |   |
| Preferred stock dividends                                      |   |                | (327,721    | ) |   |   | - |   |
| Net income available to common stockholders                    |   | $                   | 11,502,253  |   |   | $ | 7,181,132 |   |
|                                                           |   |                |        |   |   |   |   |   |
| Net income per common share - basic                            |   | $                   | 1.36        |   |   | $ | 1.46 |   |
|                                                           |   |                |        |   |   |   |   |   |
| Net income per common share - diluted                          |   | $                   | 1.15        |   |   | $ | 1.46 |   |
|                                                           |   |                |        |   |   |   |   |   |
| Weighted average number of common shares outstanding - basic   |   |                | 8,445,880   |   |   |   | 4,930,000 |   |
|                                                           |   |                |        |   |   |   |   |   |
| Weighted average number of common shares outstanding - diluted |   |                | 10,249,041  |   |   |   | 4,930,000 |   |

----

|                                                                           |   | Series A Convertible Preferred Stock |      |   | Common Stock |   |   | Additional |   |   | Other      |   |   |    |   |   |          |   |
|--------------------------------------------------------------------------------|--------|--------------------------------------|-----------|--------|--------------|--------|--------|------------|--------|--------|------------|--------|--------|---------|--------|--------|---------------|--------|
|                                                                           |   |                                 |      |   |         |   |   |       |   |   |       |   |   | Paid-in |   |   | Comprehensive |   |   | Retained |   |   |   |   |
|                                                                           |   | Shares                               |      |   | Amount       |   |   | Shares     |   |   | Amount     |   |   | Capital |   |   | Income        |   |   | Earnings |   |   | Total |   |
| Balance at December 31, 2008                                                   |   |                                 | -         |   |         | $      | -      |       |   |   | 4,930,000  |   |   | $       | 4,930  |   |          | $      | 7,114,997 |   |   | $ | 898,235 |   |   | $ | 4,624,336 |   |   | $ | 12,642,498 |   |
|                                                                           |   |                                 |      |   |         |   |   |       |   |   |       |   |   |    |   |   |          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Capital contributions                                                          |   |                                 | -         |   |         |   | -      |       |   |   | -          |   |   |    | -      |   |          |   | 2,647,482 |   |   |   | - |   |   |   | - |   |   |   | 2,647,482 |   |
|                                                                           |   |                                 |      |   |         |   |   |       |   |   |       |   |   |    |   |   |          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Effect of recapitalization                                                     |   |                                 | -         |   |         |   | -      |       |   |   | -          |   |   |    | -      |   |          |   | (783,952 | ) |   |   | - |   |   |   | - |   |   |   | (783,952 | ) |
|                                                                           |   |                                 |      |   |         |   |   |       |   |   |       |   |   |    |   |   |          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net changes in foreign currency translation adjustment                         |   |                                 | -         |   |         |   | -      |       |   |   | -          |   |   |    | -      |   |          |   | - |   |   |   | 11,076 |   |   |   | - |   |   |   | 11,076 |   |
|                                                                           |   |                                 |      |   |         |   |   |       |   |   |       |   |   |    |   |   |          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net earnings for the year ended December 31, 2009                              |   |                                 | -         |   |         |   | -      |       |   |   | -          |   |   |    | -      |   |          |   | - |   |   |   | - |   |   |   | 7,181,132 |   |   |   | 7,181,132 |   |
|                                                                           |   |                                 |      |   |         |   |   |       |   |   |       |   |   |    |   |   |          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Balance at December 31, 2009                                                   |   |                                 | -         |   |         |   | -      |       |   |   | 4,930,000  |   |   |    | 4,930  |   |          |   | 8,978,527 |   |   |   | 909,311 |   |   |   | 11,805,468 |   |   |   | 21,698,236 |   |
|                                                                           |   |                                 |      |   |         |   |   |       |   |   |       |   |   |    |   |   |          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Common stocks cancelled prior to reverse acquisition                           |   |                                 | -         |   |         |   | -      |       |   |   | (3,666,933 | )      |   |    | (3,667 | )      |          |   | 3,667 |   |   |   | - |   |   |   | - |   |   |   | - |   |
|                                                                           |   |                                 |      |   |         |   |   |       |   |   |       |   |   |    |   |   |          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Common stocks issued for reverse acquisition                                   |   |                                 | -         |   |         |   | -      |       |   |   | 8,736,932  |   |   |    | 8,737  |   |          |   | (8,737 | ) |   |   | - |   |   |   | - |   |   |   | - |   |
|                                                                           |   |                                 |      |   |         |   |   |       |   |   |       |   |   |    |   |   |          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Covertible preferred stocks issued for cash in private placement               |   |                                 | 2,455,863 |   |         |   | 2,456  |       |   |   | -          |   |   |    | -      |   |          |   | 8,226,221 |   |   |   | - |   |   |   | - |   |   |   | 8,228,677 |   |
|                                                                           |   |                                 |      |   |         |   |   |       |   |   |       |   |   |    |   |   |          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Warrants issued to investors with issuance of convertible preferred stocks     |   |                                 | -         |   |         |   | -      |       |   |   | -          |   |   |    | -      |   |          |   | 851,342 |   |   |   | - |   |   |   | - |   |   |   | 851,342 |   |
|                                                                           |   |                                 |      |   |         |   |   |       |   |   |       |   |   |    |   |   |          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Warrants issued to placement agent on issuance of convertible preferred stocks |   |                                 | -         |   |         |   | -      |       |   |   | -          |   |   |    | -      |   |          |   | 170,104 |   |   |   | - |   |   |   | - |   |   |   | 170,104 |   |
|                                                                           |   |                                 |      |   |         |   |   |       |   |   |       |   |   |    |   |   |          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Conversion of convertible preferred stocks to common stocks                    |   |                                 | (349,775  | )      |         |   | (350   | )          |   |   | 349,775    |   |   |    | 350    |   |          |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |
|                                                                           |   |                                 |      |   |         |   |   |       |   |   |       |   |   |    |   |   |          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Share-based compensation                                                       |   |                                 | -         |   |         |   | -      |       |   |   | -          |   |   |    | -      |   |          |   | 549,106 |   |   |   | - |   |   |   | - |   |   |   | 549,106 |   |
|                                                                           |   |                                 |      |   |         |   |   |       |   |   |       |   |   |    |   |   |          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net carrying amounts of VIEs at initial recognition                            |   |                                 |      |   |         |   |   |       |   |   |       |   |   |    |   |   |          |   |   |   |   |   |   |   |   |   | (922,587 | ) |   |   | (922,587 | ) |
|                                                                           |   |                                 |      |   |         |   |   |       |   |   |       |   |   |    |   |   |          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net changes in foreign currency translation adjustment                         |   |                                 | -         |   |         |   | -      |       |   |   | -          |   |   |    | -      |   |          |   | - |   |   |   | 1,363,322 |   |   |   | - |   |   |   | 1,363,322 |   |
|                                                                           |   |                                 |      |   |         |   |   |       |   |   |       |   |   |    |   |   |          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net earnings for the year ended December 31, 2010                              |   |                                 | -         |   |         |   | -      |       |   |   | -          |   |   |    | -      |   |          |   | - |   |   |   | - |   |   |   | 11,502,253 |   |   |   | 11,502,253 |   |
|                                                                           |   |                                 |      |   |         |   |   |       |   |   |       |   |   |    |   |   |          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Balance at December 31, 2010                                                   |   |                                 | 2,106,088 |   |         | $      | 2,106  |       |   |   | 10,349,774 |   |   | $       | 10,350 |   |          | $      | 18,770,230 |   |   | $ | 2,272,633 |   |   | $ | 22,385,134 |   |   | $ | 43,440,453 |   |

----

|                                                                              | For The Years Ended |   |
|-----------------------------------------------------------------------------------|---------------------|--------|
|                                                                              | December 31,        |   |
|                                                                              | 2010                |   |   | 2009 |   |
| CASH FLOWS FROM OPERATING ACTIVITIES                                              |                |   |   |   |   |   |
| Net income available to common stockholders                                       |                | $      | 11,502,253 |   |   | $ | 7,181,132 |   |
| Adjustments to reconcile net income to net cash provided by operating activities: |                |   |   |   |   |   |   |   |
| Depreciation & amortization                                                   |                |   | 495,598 |   |   |   | 329,265 |   |
| Deferred income tax benefit                                                       |                |   | (1,163,461 | ) |   |   | - |   |
| Preferred stock dividends accrued                                                 |                |   | 232,642 |   |   |   | - |   |
| Share-based compensation                                                          |                |   | 549,106 |   |   |   | - |   |
| Loss on disposal of fixed assets                                                  |                |   | 7,573 |   |   |   | - |   |
| Impairment of long-lived assets                                                   |                |   | - |   |   |   | 556,312 |   |
| Decrease (increase) in current assets:                                            |                |   |   |   |   |   |   |   |
| Accounts receivable                                                               |                |   | (6,574,785 | ) |   |   | (1,915,038 | ) |
| Inventories                                                                       |                |   | (9,180,767 | ) |   |   | (4,451,514 | ) |
| Advance to suppliers                                                              |                |   | (947,913 | ) |   |   | (206,213 | ) |
| Prepaid expense and other current assets                                          |                |   | (1,572,350 | ) |   |   | - |   |
| Other assets                                                                      |                |   | (32,221 | ) |   |   | - |   |
| Increase (decrease) in liabilities:                                               |                |   |   |   |   |   |   |   |
| Accounts payable                                                                  |                |   | (240,133 | ) |   |   | - |   |
| Advance from customers                                                            |                |   | 6,284,419 |   |   |   | - |   |
| Accrued expense and other liabilities                                             |                |   | 846,642 |   |   |   | 128,402 |   |
| Net cash provided by operating activities                                         |                |   | 206,603 |   |   |   | 1,622,346 |   |
|                                                                              |                |   |   |   |   |   |   |   |
| CASH FLOWS FROM INVESTING ACTIVITIES                                              |                |   |   |   |   |   |   |   |
| Prepayments for acquisition of farmland use rights                                |                |   | (6,889,032 | ) |   |   | - |   |
| Construction and remodeling of factory and warehouses                             |                |   | (3,586,099 | ) |   |   | (3,252,409 | ) |
| Purchase of machinery and equipment                                               |                |   | (2,146,248 | ) |   |   | (1,087,016 | ) |
| Purchase of ERP sysetm                                                            |                |   | (960,175 | ) |   |   | - |   |
| Cash acquired from consolidation of VIEs                                          |                |   | 345,286 |   |   |   | - |   |
| Proceeds from disposal of fixed assets                                            |                |   | 274,727 |   |   |   | - |   |
| Net proceeds from loans due from related parties                                  |                |   | - |   |   |   | 5,709,517 |   |
| Net cash (used in) provided by investing activities                               |                |   | (12,961,541 | ) |   |   | 1,370,092 |   |
|                                                                              |                |   |   |   |   |   |   |   |
| CASH FLOWS FROM FINANCING ACTIVITIES                                              |                |   |   |   |   |   |   |   |
| Net proceeds from short-term loans from bank                                      |                |   | 1,831,718 |   |   |   | 395,274 |   |
| Net proceeds from short-term loans from related parties                           |                |   | 7,378,919 |   |   |   | 84,061 |   |
| Net repayments of short-term loans from related parties                           |                |   | (1,113,632 | ) |   |   | (3,849,607 | ) |
| Net proceeds from short-term loans from others                                    |                |   | (1,079,388 | ) |   |   | 731,989 |   |
| Proceeds from private placement, net of restricted cash held in escrow            |                |   | 8,827,123 |   |   |   | - |   |
| Release of restricted cash related to private placement                           |                |   | 298,848 |   |   |   | - |   |
| Proceeds from capital contributions                                               |                |   | - |   |   |   | 2,647,482 |   |
| Net cash distribution for restructuring                                           |                |   | - |   |   |   | (772,946 | ) |
| Net cash provided by (used in) financing activities                               |                |   | 16,143,588 |   |   |   | (763,746 | ) |
|                                                                              |                |   |   |   |   |   |   |   |
| EFFECT OF EXCHANGE RATE CHANGE ON CASH AND CASH EQUIVALENTS                       |                |   | 204,594 |   |   |   | 1,400 |   |
|                                                                              |                |   |   |   |   |   |   |   |
| NET INCREASE IN CASH & CASH EQUIVALENTS                                       |                |   | 3,593,244 |   |   |   | 2,230,092 |   |
|                                                                              |                |   |   |   |   |   |   |   |
| CASH & CASH EQUIVALENTS, BEGINNING BALANCE                                    |                |   | 2,562,501 |   |   |   | 332,409 |   |
|                                                                              |                |   |   |   |   |   |   |   |
| CASH & CASH EQUIVALENTS, ENDING BALANCE                                       |                | $      | 6,155,745 |   |   | $ | 2,562,501 |   |
|                                                                              |                |   |   |   |   |   |   |   |
| SUPPLEMENTAL DISCLOSURES:                                                         |                |   |   |   |   |   |   |   |
| Income tax paid                                                                   |                | $      | - |   |   | $ | - |   |
| Interest paid                                                                     |                | $      | 323,829 |   |   | $ | 102,893 |   |

----

----

| ·   | Exclusive Management and Consulting Service Agreements, through which Detian Yu shall provide to each of Junda and Longyue management consulting services in relation to the business of Junda and Longyue in exchange for 35% of the net income after taxes of Junda and Longyue every fiscal year. |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Business Cooperation Agreements, through which Detian Yu shall provide business cooperation opportunities and services including clients, cooperation partners and market information in the fields of grain processing, sales and financing to each of Junda and Longyue in exchange for cooperation fees and commissions from each of Junda and Longyue equal to 65% of the net income after tax of each of Junda and Longyue in every fiscal year. |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Business Operations Agreements, through which Detian Yu has exclusive authority of all decision-making of ongoing operations, including establishing compensation levels and hiring and firing of key personnel.  In order to ensure normal operation of Junda and Longyue, Detian Yu agrees to act as the guarantor and provide guarantee on the performance of the obligations of Junda and Longyue under all contracts executed by Junda and Longyue. |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Share Pledge Agreements, through which the shareholders of Junda and Longyue have agreed to pledge all of their respective equity interests in Junda or Longyue (as the case may be) as security for the performance of all of the obligations or debts under the Exclusive Management and Consulting Service Agreements and Business Cooperation Agreements assumed by Junda and Longyue, and under a counter-guarantee to all the payments made by Detian Yu for the performance of the guarantees assumed by Detian Yu under the Business Operation Agreements. |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Power of Attorney, signed by each of the shareholders of Junda and Longyue, authorizes a designee appointed by Detian Yu to exercise all of their respective voting rights as a shareholder. |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Equity Acquisition Option Agreements, through which the shareholders of Junda and Longyue granted Detian Yu an irrevocable and unconditional right to purchase, or cause a designated party of Detian Yu to purchase, part or all of the equity interests in Junda and Longyue from such shareholders, when and to the extent that, applicable PRC laws permit.  The consideration for the equity acquisition option for Junda is RMB 80,000,000 and the consideration for the equity option for Longyue is RMB 120,000,000. |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| Name of Subsidiary                                                                  |   | Domicile and Date of Incorporation    |   | Registered Capital |   | Percentage of Ownership |   | Principal Activities                                                                                                                                                   |
|-------------------------------------------------------------------------------------|--------|---------------------------------------|--------|--------------------|--------|-------------------------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| City Zone Holdings Limited (“City Zone”)                                |   | British Virgin Islands, July 27, 2009 |   | $20,283,581        |   | 100%                    |   | Holding company of Most Smart                                                                                                                                          |
|                                                                                |   |                                  |   |               |   |                    |   |                                                                                                                                                                   |
| Most Smart International Limited (“Most Smart”)                         |   | Hong Kong, March 11, 2009             |   | $1                 |   | 100%                    |   | Holding company of Shenzhen Redsun                                                                                                                                     |
|                                                                                |   |                                  |   |               |   |                    |   |                                                                                                                                                                   |
| Redsun Technology (Shenzhen) Co., Ltd. (“Shenzhen Redsun”)              |   | The PRC, August 20, 2009              |   | $30,000            |   | 100%                    |   | Holding company of Shenzhen JiRuHai                                                                                                                                    |
|                                                                                |   |                                  |   |               |   |                    |   |                                                                                                                                                                   |
| Shenzhen JiRuHai Technology Co., Ltd. (“Shenzhen JiRuHai”)              |   | The PRC, August 20, 2009              |   | $14,638            |   | 100%                    |   | Holding company of Beijing Detian Yu                                                                                                                                   |
|                                                                                |   |                                  |   |               |   |                    |   |                                                                                                                                                                   |
| Detian Yu Biotechnology (Beijing) Co., Ltd. (“Detian Yu”)               |   | The PRC, November 30, 2006            |   | $7,637,723         |   | 100%                    |   | Wholesale distribution of simple-processed and deep-processed packaged food products and staple food.  Holding company of the following first four entities. |
|                                                                                |   |                                  |   |               |   |                    |   |                                                                                                                                                                   |
| Jinzhong Deyu Agriculture Trading Co., Ltd. (“Jinzhong Deyu”)           |   | The PRC, April 22, 2004               |   | $1,492,622         |   | 100%                    |   | Organic grains preliminary processing and wholesale distribution.                                                                                                      |
|                                                                                |   |                                  |   |               |   |                    |   |                                                                                                                                                                   |
| Jinzhong Yongcheng Agriculture Trading Co., Ltd. (“Jinzhong Yongcheng”) |   | The PRC, May 30, 2006                 |   | $288,334           |   | 100%                    |   | Organic corns preliminary processing and wholesale distribution.                                                                                                       |
|                                                                                |   |                                  |   |               |   |                    |   |                                                                                                                                                                   |
| Jinzhong Yuliang Agriculture Trading Co., Ltd. (“Jinzhong Yuliang”)     |   | The PRC, March 17, 2008               |   | $281,650           |   | 100%                    |   | Organic corns preliminary processing and wholesale distribution.                                                                                                       |

----

| Name of Subsidiary                                                                 |   | Domicile and Date of Incorporation |   | Registered Capital |   | Percentage of Ownership |   | Principal Activities                                                                                                                     |
|------------------------------------------------------------------------------------|--------|------------------------------------|--------|--------------------|--------|-------------------------|--------|------------------------------------------------------------------------------------------------------------------------------------------|
| Beijing Jundaqianyuan Investment Management Co., Ltd. (“Junda”)        |   | The PRC, June 13, 2010             |   | $14,637            |   | Variable interest       |   | Shareholding of Deyufarm                                                                                                                 |
|                                                                               |   |                               |   |               |   |                    |   |                                                                                                                                     |
| Jinzhong Longyue Investment Consultancy Services Co., Ltd. (“Longyue”) |   | The PRC, June 2, 2010              |   | $4,393             |   | Variable interest       |   | Shareholding of Deyufarm                                                                                                                 |
|                                                                               |   |                               |   |               |   |                    |   |                                                                                                                                     |
| Deyufarm Innovation Food (Beijing) Co., Ltd. (“Deyufarm”)              |   | The PRC, June 13, 2010             |   | $6,688,635         |   | 100%                    |   | Wholesale distribution of packaged food products and instant millet beverage.  Holding company of the following two companies. |
|                                                                               |   |                               |   |               |   |                    |   |                                                                                                                                     |
| Sichuan HaoLiangXin Instant Food Co., Ltd. (“HaoLiangXin”)             |   | The PRC, April 25, 2008            |   | $1,202,460         |   | 100%                    |   | Manufacturing and wholesale distribution of instant grain vermicelli and buckwheat tea products.                                         |
|                                                                               |   |                               |   |               |   |                    |   |                                                                                                                                     |
| Beijing Xinggu Deyufarm Food Co., Ltd. (“Xinggu Deyufarm”)             |   | The PRC, November 25, 2010         |   | $1,515,152         |   | 100%                    |   | Manufacturing of instant grain vermicelli products.                                                                                      |

----

----

|                     | Useful Life(in years) |
|--------------------------|-----------------------|
| Automobiles              | 5                     |
| Buildings                | 30                    |
| Office equipment         | 5-6                   |
| Machinery and equipment  | 10                    |
| Furniture & fixtures | 5-6                   |

----

| ·   | Level 1 – Inputs are quoted prices in active markets for identical assets or liabilities that the Company has the ability to access at the measurement date.  Valuation of these instruments does not require a high degree of judgment as the valuations are based on quoted prices in active markets that are readily and regularly available. |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Level 2 – Inputs other than quoted prices in active markets that are either directly or indirectly observable as of the measurement date, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Level 3 – Valuations based on inputs that are unobservable and not corroborated by market data.  The fair value for such assets and liabilities is generally determined using pricing models, discounted cash flow methodologies, or similar techniques that incorporate the assumptions a market participant would use in pricing the asset or liability. |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

----

----

----

| Junda & Longyue Combined                                                                                                                                |   | 2010   |       |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|------------|
| Combined Assets (1)                                                                                                                                         |   |   |       |
| Cash and cash equivalents                                                                                                                                   |   | $      | 489,886    |   |
| Inventories                                                                                                                                                 |   |   | 1,817,506  |   |
| Advance to suppliers                                                                                                                                        |   |   | 2,418,459  |   |
| Prepaid expense                                                                                                                                             |   |   | 895,081    |   |
| Fixed assets and construction-in-progress                                                                                                                   |   |   | 830,948    |   |
| Deferred tax assets                                                                                                                                         |   |   | 251,632    |   |
| All other assets                                                                                                                                            |   |   | 93,400     |   |
| Total                                                                                                                                                       |   | $      | 6,796,912  |   |
|                                                                                                                                                        |   |   |       |   |
| Combined Liabilities (1)                                                                                                                                    |   |   |       |   |
| Accounts payable                                                                                                                                            |   | $      | 343,944    |   |
| Accrued expenses                                                                                                                                            |   |   | 327,959    |   |
| Due to related parties                                                                                                                                      |   |   | 8,030,303  |   |
| Loan from unrelated parties                                                                                                                                 |   |   | 2,734,309  |   |
| All other liabilities                                                                                                                                       |   |   | 218,400    |   |
| Total                                                                                                                                                       |   | $      | 11,654,915 |   |
|                                                                                                                                                        |   |   |       |   |
| Net sales                                                                                                                                                   |   | $      | 4,000,749  |   |
| Net loss                                                                                                                                                    |   |   | (756,480   | ) |
|                                                                                                                                                        |   |   |       |   |
| (1) Total assets and liabilities of combined VIEs are reported net of intercompany balances that have been eliminated in the Company’s consolidation. |

----

| Purchase price                                                                                                                                                                                      |   | $      | 1,212,336 |   |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|-----------|--------|
|                                                                                                                                                                                                |   |   |      |   |
| Allocation of the purchase price:                                                                                                                                                                   |   |   |      |   |
| Cash acquired                                                                                                                                                                                       |   |   | 21,110    |   |
| Accounts receivable                                                                                                                                                                                 |   |   | 508       |   |
| Inventories                                                                                                                                                                                         |   |   | 264,641   |   |
| Advance to suppliers                                                                                                                                                                                |   |   | 304,018   |   |
| Other current assets                                                                                                                                                                                |   |   | 42,710    |   |
| Property, plant and equipment                                                                                                                                                                       |   |   | 177,871   |   |
| Other assets                                                                                                                                                                                        |   |   | 3,669     |   |
| Accounts payable                                                                                                                                                                                    |   |   | (24,911   | )      |
| Advance from customers                                                                                                                                                                              |   |   | (359,617  | )      |
| Other current liabilities                                                                                                                                                                           |   |   | (241,635  | )      |
| Fair value of net assets acquired                                                                                                                                                                   |   |   | 188,364   |   |
|                                                                                                                                                                                                |   |   |      |   |
| Goodwill (2)                                                                                                                                                                                        |   | $      | 1,023,972 |   |
|                                                                                                                                                                                                |   |   |      |   |
| (2) The variance of $28,167 as compared to the $1,052,139 recorded in the Company’s consolidated balance sheet as of December 31, 2010 was mainly the effect of foreign currency translation. |

|                                        |   | Pro Forma |        |
|---------------------------------------------|--------|-----------|-------------|
|                                        |   | 2010      |        |   | 2009 |   |
| Net sales                                   |   | $         | 89,480,587  |   |   | $ | 40,762,303 |   |
| Cost of goods sold                          |   |      | (67,332,706 | ) |   |   | (30,327,255 | ) |
| Gross profit                                |   |      | 22,147,881  |   |   |   | 10,435,048 |   |
| Operating expenses                          |   |      | (12,402,769 | ) |   |   | (3,606,613 | ) |
| Income from operations                      |   |      | 9,745,112   |   |   |   | 6,828,435 |   |
| Net interest expense                        |   |      | (328,482    | ) |   |   | (127,146 | ) |
| Net other (expense) income                  |   |      | (4,554      | ) |   |   | 1,565 |   |
| Income before income taxes                  |   |      | 9,412,076   |   |   |   | 6,702,854 |   |
| Income tax benefit                          |   |      | 1,161,495   |   |   |   | - |   |
| Preferred stock dividends                   |   |      | (327,721    | ) |   |   | - |   |
| Net income available to common stockholders |   |      | 10,245,850  |   |   |   | 6,702,854 |   |

----

|                                             |   | As of December 31, |       |
|--------------------------------------------------|--------|--------------------|------------|
|                                             |   | 2010               |       |   | 2009 |   |
| Accounts receivable                              |   | $                  | 11,166,452 |   |   | $ | 4,200,749 |   |
| Less:  Allowance for doubtful accounts |   |               | -          |   |   |   | - |   |
| Accounts receivable, net                         |   | $                  | 11,166,452 |   |   | $ | 4,200,749 |   |

|            |   | As of December 31, |       |
|-----------------|--------|--------------------|------------|
|            |   | 2010               |       |   | 2009 |   |
| Raw materials   |   | $                  | 934,681    |   |   | $ | 1,323,848 |   |
| Work in process |   |               | 421,858    |   |   |   | - |   |
| Finished goods  |   |               | 16,812,946 |   |   |   | 6,909,912 |   |
| Supplies        |   |               | 190,020    |   |   |   | - |   |
| Total           |   | $                  | 18,359,505 |   |   | $ | 8,233,760 |   |

|                               |   | As of December 31, |      |
|------------------------------------|--------|--------------------|-----------|
|                               |   | 2010               |      |   | 2009 |   |
| Deductible value-added taxes (VAT) |   | $                  | 1,308,220 |   |   | $ | 442,646 |   |
| Prepaid advertisement              |   |               | 643,011   |   |   |   | - |   |
| Prepaid rent                       |   |               | 180,314   |   |   |   | 60,773 |   |
| Prepayment for equipment           |   |               | 7,576     |   |   |   | 600,653 |   |
| Prepaid other expenses             |   |               | 80,211    |   |   |   | - |   |
| Total                              |   | $                  | 2,219,332 |   |   | $ | 1,104,072 |   |

----

|                                      |   | As of December 31, |       |
|-------------------------------------------|--------|--------------------|------------|
|                                      |   | 2010               |       |   | 2009 |   |
| Automobiles                               |   | $                  | 933,878    |   |   | $ | 495,282 |   |
| Buildings                                 |   |               | 1,659,116  |   |   |   | 1,529,035 |   |
| Office equipment                          |   |               | 447,602    |   |   |   | 163,177 |   |
| Machinery and equipment                   |   |               | 2,786,421  |   |   |   | 1,648,748 |   |
| Furniture and fixtures                    |   |               | 58,837     |   |   |   | - |   |
| Total cost                                |   |               | 5,885,854  |   |   |   | 3,836,242 |   |
| Less:  Accumulated depreciation |   |               | (1,259,850 | ) |   |   | (896,767 | ) |
| Property, plant, and equipment, net       |   | $                  | 4,626,004  |   |   | $ | 2,939,475 |   |

|                                                   |   | As of December 31, |      |
|--------------------------------------------------------|--------|--------------------|-----------|
|                                                   |   | 2010               |      |   | 2009 |   |
| Construction of Jinzhong processing and storage center |   | $                  | 6,732,189 |   |   | $ | 3,254,696 |   |
| Remodeling of Beijing Pinggu factory and warehouse     |   |               | 492,315   |   |   |   | - |   |
| Total cost                                             |   | $                  | 7,224,504 |   |   | $ | 3,254,696 |   |

----

|                                      |   | As of December 31, |    |
|-------------------------------------------|--------|--------------------|---------|
|                                      |   | 2010               |    |   | 2009 |   |
| Right to use land                         |   | $                  | 74,715  |   |   | $ | 74,715 |   |
| Less:  Accumulated depreciation |   |               | (74,715 | ) |   |   | (74,715 | ) |
| Intangible assets, net                    |   | $                  | -       |   |   | $ | - |   |

|                                           |   | As of December 31, |       |
|------------------------------------------------|--------|--------------------|------------|
|                                           |   | 2010               |       |   | 2009 |   |
| Prepaid for acquisition of farmland use rights |   | $                  | 7,066,061  |   |   | $ | - |   |
| Timber, timberland, and farmland use rights    |   |               | 1,558,479  |   |   |   | 1,506,902 |   |
| Installment payment for ERP system             |   |               | 984,848    |   |   |   | - |   |
| Net deferred tax assets – noncurrent     |   |               | 908,332    |   |   |   | - |   |
| Others                                         |   |               | 35,608     |   |   |   | - |   |
| Total cost                                     |   | $                  | 10,553,328 |   |   | $ | 1,506,902 |   |

----

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   | As of December 31, |      |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------------------|-----------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   | 2010               |      |   | 2009 |   |
| Bank loan payable to Jinzhong Economic Development District Rural Credit Union, bearing interest at a floating rate of prime rate plus 129.83%, of which prime rate was based on six-month to one-year loan interest rate released by The People's Bank of China.  The loan was due March 8, 2011.  The use of proceeds from the loan is for purchase of raw materials.  The loan was obtained by Jinzhong Yuliang and guaranteed by Jinzhong Deyu for a period of two years starting from January 13, 2010.  In January 2011, the Company entered into an agreement with the bank for an extension of the loan.  The new term is from February 1, 2011 to October 1, 2011.  The adjustable interest rate is a rate per annum equal to the Prime Rate plus 117.23 percentage points.  The prime rate is based on one- to three-year loan interest rate released by The People's Bank of China.  Jinzhong Deyu continues to provide guarantees on the loan for a period of two years starting from October 1, 2011. |   | $                  | 1,287,879 |   |   | $ | - |   |

----

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   | As of December 31, |      |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------------------|-----------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   | 2010               |      |   | 2009 |   |
| Bank loan payable to Shanxi Province Rural Credit Union, bearing interest at bearing interest at a floating rate of prime rate plus 107.00%, of which prime rate was based on six-month-to-one-year loan interest rate released by The People's Bank of China and due January 13, 2011.  The use of proceeds from the loan is restricted for purchase of corns.  The loan was obtained by Jinzhong Yongcheng and guaranteed by Jinzhong Deyu and Jinzhong Yuliang for a period of two years starting from January 13, 2011.  In January 2011, the Company entered into an agreement with bank with an extension for the bank loan.  The new term of bank loan is from January 14, 2011 to June 11, 2011.  The adjustable interest rate is a rate per annum equal to the Prime Rate plus 107 percentage points. The prime rate is based one-to-three-year loan interest rate released by The People's Bank of China.  Jinzhong Deyu and Jinzhong Yuliang remain providing guarantees on the loan for a period of two years starting from June 11, 2011. |   |               | 1,287,879 |   |   |   | - |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |               |      |   |   |   |   |   |
| Loan payable to Hangzhou TianCi Investment Management Co., Ltd., an unrelated party.  The loan was unsecured, bearing no interest and no due date was specified.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |               | 55,606    |   |   |   | 732,504 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |               |      |   |   |   |   |   |
| Bank loan payable to Shanxi Province Rural Credit Union, bearing interest at 9.756% per annum and due February 15, 2010.  The loan was obtained by Jinzhong Yongcheng and guaranteed by Jinzhong Yuliang, and the use of proceeds from the loan was restricted for purchase of corns.  The loan was paid off in February 2010.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |               | -         |   |   |   | 673,904 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |               |      |   |   |   |   |   |
| Bank loan payable to Agricultural Development Bank of China, bearing interest at 5.31% per annum and due March 26, 2010.  The loan was collateralized by buildings, machinery and equipment, and right to use land.  The use of proceeds from the loan was restricted for purchase of grains.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   |               | -         |   |   |   | 219,751 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |               |      |   |   |   |   |   |
| Bank loan payable to Agricultural Development Bank of China, bearing interest at 5.31% per annum and due June 22, 2010.  The loan was collateralized by buildings, machinery and equipment, and right to use land.  The use of proceeds from the loan was restricted for purchase of grains.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |               | -         |   |   |   | 175,801 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |               |      |   |   |   |   |   |
| Total                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   | $                  | 2,631,364 |   |   | $ | 1,801,960 |   |

----

|                        |   | As of December 31, |      |
|-----------------------------|--------|--------------------|-----------|
|                        |   | 2010               |      |   | 2009 |   |
| Accrued VAT and other taxes |   | $                  | 888,542   |   |   | $ | 71,690 |   |
| Accrued payroll             |   |               | 332,059   |   |   |   | 45,278 |   |
| Others                      |   |               | 398,585   |   |   |   | - |   |
| Total                       |   | $                  | 1,619,186 |   |   | $ | 116,968 |   |

----

|                                  |   | Yeas Ended December 31, |       |
|---------------------------------------|--------|-------------------------|------------|
|                                  |   | 2010                    |       |   | 2009 |   |
| Current income tax expense (benefit)  |   |                    |       |   |   |   |
| U.S.                                  |   | $                       | -          |   |   | $ | - |   |
| PRC                                   |   |                    | -          |   |   |   | - |   |
| Total current expense (benefit)       |   | $                       | -          |   |   | $ | - |   |
|                                  |   |                    |       |   |   |   |   |   |
| Deferred income tax expense (benefit) |   |                    |       |   |   |   |   |   |
| U.S.                                  |   | $                       | -          |   |   | $ | - |   |
| PRC                                   |   |                    | (1,163,461 | ) |   |   | - |   |
| Total deferred expense (benefit)      |   | $                       | (1,163,461 | ) |   | $ | - |   |

|                                         |   | 2010   |       |   | 2009    |   |
|----------------------------------------------|--------|--------|------------|--------|---------|--------|
|                                         |   | Amount |       |   | Percent |   |   | Amount |   |   | Percent |   |
| Expected U.S. income tax expense             |   | $      | 3,626,614  |   |    |   | 34.0 | % |   | $ | 2,441,585 |   |   |   | 34.0 | % |
| Increase (decrease) in taxes resulting from: |   |   |       |   |    |   |   |   |   |   |   |   |   |   |   |   |
| Tax-exempt income                            |   |   | (5,677,388 | )      |    |   | (53.2 | %) |   |   | (2,468,998 | ) |   |   | (34.4 | %) |
| Foreign tax differential                     |   |   | 421,170    |   |    |   | 3.9 | % |   |   | - |   |   |   | - |   |
| Change in U.S. federal valuation allowance   |   |   | 333,615    |   |    |   | 3.1 | % |   |   | - |   |   |   | - |   |
| Intercompany elimination                     |   |   | 114,173    |   |    |   | 1.1 | % |   |   | - |   |   |   | - |   |
| Other                                        |   |   | 18,355     |   |    |   | 0.2 | % |   |   | 27,413 |   |   |   | 0.4 | % |
| Total income tax benefit                     |   | $      | (1,163,461 | )      |    |   | 10.9 | % |   | $ | - |   |   |   | - |   |

|                                   |   | As of December 31, |      |
|----------------------------------------|--------|--------------------|-----------|
|                                   |   | 2010               |      |   | 2009 |   |
| Deferred tax assets                    |   |               |      |   |   |   |
| Net operating loss carryforwards (NOL) |   | $                  | 1,458,421 |   |   | $ | - |   |
| Share-based compensation               |   |               | 197,126   |   |   |   | - |   |
| Gross deferred tax assets              |   |               | 1,655,547 |   |   |   | - |   |
| Less: Valuation allowance              |   |               | (466,649  | ) |   |   | - |   |
| Total deferred tax assets, net         |   | $                  | 1,188,898 |   |   | $ | - |   |

----

| ·   | We issued 8,736,932 shares of our common stock to the City Zone Shareholders; |
|--------------------|-------------------------------------------------------------------------------|

| ·   | The ownership position of our shareholders who were holders of common stock immediately prior to the Exchange Agreement changed from 100% to 9.5% (fully diluted) of our outstanding shares; and |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | City Zone Shareholders were issued our common stock constituting approximately 65.71% of our fully diluted outstanding shares. |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------|

----

----

----

|   | (a) | entitle the holder to purchase 1 shares of Common Stock; |
|--------|-----|----------------------------------------------------------|

|   | (b) | are exercisable at any time after consummation of the transactions contemplated by the Securities Purchase Agreement and shall expire on the date that is five years following the original issuance date of the Series A Warrants; |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (c) | are exercisable, in whole or in part, at an exercise price of $5.06 per share of Common Stock; and |
|--------|-----|----------------------------------------------------------------------------------------------------|

|   | (d) | are exercisable only for cash (except that there will be a cashless exercise option if, after twelve months from the Issue Date, (i) the Per Share Market Value of one share of Common Stock is greater than the Warrant Price (at the date of calculation) and (ii) a registration statement under the Securities Act providing for the resale of the Common Stock issuable upon exercise of Warrant Shares is not in effect, in lieu of exercising this Warrant by payment of cash). |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                                   |   | Series APreferred |       |   | Paid-in Capital Warrants |   |      | Total  |   |
|----------------------------------------|--------|-------------------|------------|--------|--------------------------|--------|-----------|--------|--------|
| Fair values of financial instruments   |   | $                 | 10,248,092 |   |                     | $      | 1,039,978 |   |   | $ | 11,288,070 |   |
|                                   |   |              |       |   |                     |   |      |   |   |   |   |   |
| Gross proceeds                         |   | $                 | 9,810,227  |   |                     | $      | 995,523   |   |   | $ | 10,805,750 |   |
| Direct financing costs                 |   |              | (1,581,550 | )      |                     |   | (161,443  | )      |   |   | (1,742,993 | ) |
| Fair value of placement agent warrants |   |              | --         |   |                     |   | 187,366   |   |   |   | 187,366 |   |
|                                   |   | $                 | 8,228,677  |   |                     | $      | 1,021,446 |   |   | $ | 9,250,123 |   |

----

|                                                  |   | Fair Value      |   |   | Series A Preferred |      |   | Series A Preferred |   |
|-------------------------------------------------------|--------|-----------------|--------|--------|--------------------|-----------|--------|--------------------|--------|
|                                                  |   | Hierarchy Level |   |   | April 27, 2010     |      |   | May 10, 2010       |   |
| Indexed common shares                                 |   |            |   |   |               | 1,866,174 |   |               |   | 589,689 |   |
|                                                  |   |            |   |   |               |      |   |               |   |   |   |
| Components of fair value:                             |   |            |   |   |               |      |   |               |   |   |   |
| Common stock equivalent value                         |   |            |   |   | $                  | 6,631,403 |   |               | $      | 2,083,094 |   |
| Dividend feature                                      |   |            |   |   |               | 659,821   |   |               |   | 209,439 |   |
|                                                  |   |            |   |   | $                  | 7,791,224 |   |               | $      | 2,292,533 |   |
|                                                  |   |            |   |   |               |      |   |               |   |   |   |
| Significant assumptions:                              |   |            |   |   |               |      |   |               |   |   |   |
| Common stock price                                    |   |            | 3      |   |               |      | 3.55   |               |   |   | 3.53 |   |
| Horizon for dividend cash flow projection             |   |            | 3      |   |               |      | 2.0    |               |   |   | 2.0 |   |
| Weighted average cost of capital (“WACC”) |   |            | 3      |   |               |      | 15.91  | %                  |   |   | 15.55 | % |

| (1)    | Level 1 inputs are quoted prices in active markets for identical assets and liabilities, or derived there from.  There were no level 1 inputs. |
|------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2)    | Level 2 inputs are significant other observable inputs. There were no level 2 inputs. |
|------------------|---------------------------------------------------------------------------------------|

| (3)    | Level 3 inputs are unobservable inputs. Inputs for which any parts are level 3 inputs are classified as level 3 in their entirety. |
|------------------|------------------------------------------------------------------------------------------------------------------------------------|

|   | ● | Stock price- Given that management did not believe our trading market price was indicative of the fair value of our common stock at the measurement date, the common stock price value was derived implicitly from an iterative process based upon the assumption that the consideration of the Private Placement was the result of an arm’s length transaction. The Private Placement was composed of Series A Preferred Stock and Series A Warrants which were both indexed to our common stock; accordingly, we used an iterative process to determine the value of our common stock in order for the fair value of the Series A Preferred and Series A Warrants to equal the amount of consideration received in the Private Placement. |
|--------|---------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | ● | Dividend horizon- We estimated the horizon for dividend payment at 2 years. |
|--------|---------|-----------------------------------------------------------------------------|

|   | ● | WACC- The rates utilized to discount the cumulative dividend cash flows to their present values were based on a weighted average cost of capital of 18.94% and 18.60%, as of April 27, 2010 and May 10, 2010, respectively. This discount rate was determined after consideration of the rate of return on debt capital and equity that typical investors would require in an investment in companies similar in size and operating in similar markets as Deyu Agriculture Corporation. The cost of equity was determined using a build-up method which begins with a risk free rate and adds expected risk premiums designed to reflect the additional risk of the investment. Additional premiums or discounts related specifically to us and the industry are also added or subtracted to arrive at the final cost of equity rate. The cost of debt was determined based upon available financing terms. |
|--------|---------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | ● | Significant inputs and assumptions underlying the model calculations related to the warrant valuations are as follows: |
|--------|---------|------------------------------------------------------------------------------------------------------------------------|

----

|                     |   |                      |   |   | April 27, 2010    |    |   | May 10, 2010   |
|--------------------------|--------|---------------------------|--------|--------|-------------------|---------|--------|----------------|
|                     |   | Fair Value HierarchyLevel |   |   | Investor warrants |    |   | Agent warrants |   |   | Investor warrants |   |   | Agent Warrants |
|                     |   |                      |   |   |              |    |   |           |   |   |   |   |   |   |
| Indexed shares           |   |                      |   |   |              | 746,479 |   |           |   | 130,632 |   |   |   | 235,883 |   |   |   | 41,279 |
| Exercise price           |   |                      |   |   |              | 5.06    |   |           |   | 4.84 |   |   |   | 5.06 |   |   |   | 4.84 |
|                     |   |                      |   |   |              |    |   |           |   |   |   |   |   |   |   |   |   |   |
| Significant assumptions: |   |                      |   |   |              |    |   |           |   |   |   |   |   |   |   |   |   |   |
| Stock price              |   | 3                         |   |   |              | 3.55    |   |           |   | 3.55 |   |   |   | 3.53 |   |   |   | 3.53 |
| Remaining term           |   | 3                         |   |   | 5 years           |    |   | 5 years        |   |   | 5 years |   |   | 5 years |
| Risk free rate           |   | 2                         |   |   |              | 2.39%   |   |           |   | 2.39% |   |   |   | 2.24% |   |   |   | 2.24% |
| Expected volatility      |   | 2                         |   |   |              | 45.25%  |   |           |   | 45.25% |   |   |   | 45.47% |   |   |   | 45.47% |

| (1)    | There were no Level 1 inputs. |
|-----------------------|-------------------------------|
|                  |                          |
| (2)         | Level 2 inputs include:       |

|   | ● | Risk-free rate- This rate is based on publicly-available yields on zero-coupon Treasury securities with remaining terms to maturity consistent with the remaining contractual term of the warrants |
|--------|---------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | ● | Expected volatility- We did not have a historical trading history sufficient to develop an internal volatility rate for use in the model. As a result, we have used a peer approach wherein the historical trading volatilities of certain companies with similar characteristics as ours and who had a sufficient trading history were used as an estimate of our volatility. In developing this model, no one company was weighted more heavily. |
|--------|---------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (3)    | Level 3 inputs include: |
|------------------|-------------------------|

|   | ● | Stock price- Given that management did not believe our trading market price was indicative of the fair value of our common stock at the measurement date, the stock price was determined implicitly from an iterative process based upon the assumption that the consideration of the Private Placement was the result of an arm’s length transaction. |
|--------|---------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | ● | Remaining term- We do not have a history to develop the expected term for our warrants.  Accordingly, we have used the contractual remaining term in our calculations. |
|--------|---------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| Outstanding Warrants                      |
|-------------------------------------------|
| Exercise Price                            |   | Number of Warrants |   | Average Remaining Contractual Life |
| $      5.06 |   |  982,362 |   | 4.33 years |
| $      4.84 |   | 171,911 |   | 4.33 years |
| Total                                     |   | 1,154,273 |   |   |

|                                |   | Number of Warrants |      |
|-------------------------------------|--------|--------------------|-----------|
| Outstanding as of January 1, 2010   |   |               | -         |   |
| Granted                             |   |               | 1,154,273 |   |
| Forfeited                           |   |               | -         |   |
| Exercised                           |   |               | -         |   |
| Outstanding as of December 31, 2010 |   |               | 1,154,273 |   |

| (i)   | 33 1/3% of the option grants be vested one (1) month after the date of grant; |
|-----------------|-------------------------------------------------------------------------------|

| (ii)   | 33 1/3% of the option grants be vested twelve (12) months after the date of grant; and |
|------------------|----------------------------------------------------------------------------------------|

| (iii)   | 33 1/3% of the option grants be vested twenty-four (24) months after the date of grant |
|-------------------|----------------------------------------------------------------------------------------|

----

| Exercisable Period                |   | 12/8/2010 – 11/8/2020 |      |   | 11/8/2011 – 11/8/2020 |   |      | 11/8/2012 – 11/8/2020 |   |
|-----------------------------------|--------|-----------------------------|-----------|--------|-----------------------------|--------|-----------|-----------------------------|--------|
| Risk-free Rate (%)                |   |                        | 1.12      |   |                        |   | 1.27      |                        |   |   | 1.46 |   |
| Expected Lives (years)            |   |                        | 5.04      |   |                        |   | 5.50      |                        |   |   | 6.00 |   |
| Expected Volatility (%)           |   |                        | 46.10     |   |                        |   | 44.49     |                        |   |   | 43.04 |   |
| Expected forfeitures per year (%) |   |                        | 0.00-5.00 |   |                        |   | 0.00-5.00 |                        |   |   | 0.00-5.00 |   |
| Dividend Yield (%)                |   |                        | 0.00      |   |                        |   | 0.00      |                        |   |   | 0.00 |   |

| Exercisable Period                |   | 1/15/2011 –12/15/2020 |   |   | 12/15/2011 –12/15/2020 |   |   | 12/15/2012 –12/15/2020 |   |
|-----------------------------------|--------|-----------------------------|--------|--------|------------------------------|--------|--------|------------------------------|--------|
| Risk-free Rate (%)                |   |                        | 2.15   |   |                         |   | 2.32   |                         |   |   | 2.50 |   |
| Expected Lives (years)            |   |                        | 5.04   |   |                         |   | 5.50   |                         |   |   | 6.00 |   |
| Expected Volatility (%)           |   |                        | 46.15  |   |                         |   | 44.52  |                         |   |   | 43.09 |   |
| Expected forfeitures per year (%) |   |                        | 0.00   |   |                         |   | 0.00   |                         |   |   | 0.00 |   |
| Dividend Yield (%)                |   |                        | 0.00   |   |                         |   | 0.00   |                         |   |   | 0.00 |   |

| (1)   | There were no Level 1 inputs. |
|-----------------|-------------------------------|
|            |                          |
| (2)   | Level 2 inputs include:       |

|   | ● | Risk-free rate- This rate is based on continuous compounding of publicly-available yields on U.S. Treasury securities with remaining terms to maturity consistent with the expected term of the options at the dates of grant. |
|--------|---------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | ● | Expected volatility- We did not have a historical trading history sufficient to develop an internal volatility rate for use in the model.  As a result, we have used a peer approach wherein the historical trading volatilities of certain companies with similar characteristics as ours and who had a sufficient trading history were used as an estimate of our volatility.  In developing this model, no one company was weighted more heavily. |
|--------|---------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| (3)   | Level 3 inputs include: |
|-----------------|-------------------------|

|   | ● | Expected lives- The expected lives of options granted were derived from the output of the option valuation model and represented the period of time that options granted are expected to be outstanding. |
|--------|---------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | ● | Expected forfeitures per year- The expected forfeitures are estimated at the dates of grant and will be revised in subsequent periods pursuant to actual forfeitures, if significantly different from the previous estimates. |
|--------|---------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Options                                                                                  |   | Shares |    |   | Weighted-Average Exercise Price |   |   | Weighted-Average Remaining Contractual Term |   |
|------------------------------------------------------------------------------------------|--------|--------|---------|--------|---------------------------------|--------|--------|---------------------------------------------|--------|
| Outstanding as of January 1, 2010                                                        |   |   | -       |   |                            | $      | -      |                                        |   |   | - |   |
| Granted                                                                                  |   |   | 971,000 |   |                            |   | 4.40   |                                        |   |   | - |   |
| Exercised                                                                                |   |   | -       |   |                            |   | -      |                                        |   |   | - |   |
| Forfeited                                                                                |   |   | -       |   |                            |   | -      |                                        |   |   | - |   |
| Outstanding as of December 31, 2010                                                      |   |   | 971,000 |   |                            |   | 4.40   |                                        |   | 5.61 years |   |
| Exercisable as of December 31, 2010                                                      |   |   | 323,666 |   |                            |   | 4.40   |                                        |   | 4.93 years |   |
| Vested and expected to vest (3)                                                          |   |   | 929,159 |   |                            |   | 4.40   |                                        |   | 5.50 years |   |
|                                                                                     |   |
| (3) Includes vested shares and unnvested shares after a forfeiture rate is applied. |

| Unvested Shares                  |   | Shares |    |   | Weighted-Average Grant-Date Fair Value |   |
|----------------------------------|--------|--------|---------|--------|----------------------------------------|--------|
| Unvested as of January 1, 2010   |   |   | -       |   |                                   | $      | - |   |
| Granted                          |   |   | 647,334 |   |                                   |   | 1,162,373 |   |
| Vested                           |   |   | -       |   |                                   |   | - |   |
| Forfeited                        |   |   | -       |   |                                   |   | - |   |
| Unvested as of December 31, 2010 |   |   | 647,334 |   |                                   | $      | 1,162,373 |   |

----

|                                            |   | As of December 31, |      |
|-------------------------------------------------|--------|--------------------|-----------|
|                                            |   | 2010               |      |   | 2009 |   |
| Advances from -                                 |   |               |      |   |   |   |
| Dongsheng International Investment Co., Ltd.    |   | $                  | 3,484,848 |   |   | $ | - |   |
| Jinzhong Xinhuasheng Business Trading Co., Ltd. |   |               | 3,030,303 |   |   |   | - |   |
| Mr. Wenjun Tian                                 |   |               | 1,515,152 |   |   |   | - |   |
| Mr. Jianming Hao                                |   |               | -         |   |   |   | 84,120 |   |
| Mr. Junde Zhang                                 |   |               | -         |   |   |   | 61,530 |   |
| Total                                           |   | $                  | 8,030,303 |   |   | $ | 145,650 |   |

----

| Year Ended December 31, 2010     |   | Corn Division |       |   | Simple-Processed Grain Division |   |       | Deep-Processed Grain Division |   |   | Others     |   |   | Total  |       |
|----------------------------------|--------|---------------|------------|--------|---------------------------------|--------|------------|-------------------------------|--------|--------|------------|--------|--------|--------|------------|
| Revenues from external customers |   | $             | 69,516,954 |   |                            | $      | 19,063,353 |                          |   | $      | 595,327    |   |   | $      | -          |   |   | $ | 89,175,633 |   |
| Intersegment revenues            |   |          | -          |   |                            |   | 39,921     |                          |   |   | 14,314     |   |   |   | -          |   |   |   | 54,235 |   |
| Interest revenue                 |   |          | 4,823      |   |                            |   | 10,308     |                          |   |   | 2,370      |   |   |   | 5          |   |   |   | 17,505 |   |
| Interest expense                 |   |          | (317,142   | )      |                            |   | (6,687     | )                             |   |   | (17,726    | )      |   |   | -          |   |   |   | (341,555 | ) |
| Net interest (expense) income    |   |          | (312,320   | )      |                            |   | 3,621      |                          |   |   | (15,356    | )      |   |   | 5          |   |   |   | (324,050 | ) |
| Depreciation and amortization    |   |          | (164,598   | )      |                            |   | (309,426   | )                             |   |   | (6,219     | )      |   |   | (15,355    | ) |   |   | (495,598 | ) |
| Segment net profit (loss)        |   |          | 11,298,781 |   |                            |   | 3,326,290  |                          |   |   | (1,344,837 | )      |   |   | (1,777,981 | ) |   |   | 11,502,253 |   |

| Year Ended December 31, 2009     |   | Corn Division |       |   | Simple-Processed Grain Division |   |      | Deep-Processed Grain Division |   |   | Others |   |   | Total  |    |
|----------------------------------|--------|---------------|------------|--------|---------------------------------|--------|-----------|-------------------------------|--------|--------|--------|--------|--------|--------|---------|
| Revenues from external customers |   | $             | 32,212,160 |   |                            | $      | 8,520,287 |                          |   | $      | -      |   |   | $      | -       |   |   | $ | 40,732,447 |   |
| Intersegment revenues            |   |          | -          |   |                            |   | -         |                          |   |   | -      |   |   |   | -       |   |   |   | - |   |
| Interest revenue                 |   |          | 4,619      |   |                            |   | 5,462     |                          |   |   | -      |   |   |   | -       |   |   |   | 10,081 |   |
| Interest expense                 |   |          | (89,490    | )      |                            |   | (13,403   | )                             |   |   | -      |   |   |   | -       |   |   |   | (102,893 | ) |
| Net interest expense             |   |          | (84,871    | )      |                            |   | (7,941    | )                             |   |   | -      |   |   |   | -       |   |   |   | (92,812 | ) |
| Depreciation and amortization    |   |          | (161,715   | )      |                            |   | (167,550  | )                             |   |   | -      |   |   |   | -       |   |   |   | (329,265 | ) |
| Segment net profit (loss)        |   |          | 3,970,115  |   |                            |   | 3,251,978 |                          |   |   | -      |   |   |   | (40,961 | ) |   |   | 7,181,132 |   |

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|                                              |   | % of Gross Sales for the Years Ended December 31, |   |
|---------------------------------------------------|--------|---------------------------------------------------|--------|
|                                              |   | 2010                                              |   |   | 2009 |   |
| Corn Division:                                    |   |                                              |   |   |   |   |   |   |
| Shanghai Yihai Trading Co., Ltd., Shanxi Office   |   |                                              | 23.8   | % |   |   | 48.6 | % |
| Sichuan Guangyuanhexi Provincial Grain Reserve    |   |                                              | 4.3    | % |   |   | 3.3 | % |
| Chengdu Zhengda Co., Ltd.                         |   |                                              | 3.7    | % |   |   | 2.2 | % |
| Top Three Customers as % of Total Gross Sales:    |   |                                              | 31.8   | % |   |   | 54.1 | % |
|                                              |   |                                              |   |   |   |   |   |   |
| Simple-Processed Grain Division:                  |   |                                              |   |   |   |   |   |   |
| Tianjin Yimingda Grain Division                   |   |                                              | 5.2    | % |   |   | - | % |
| Beijing Guanfu Food Products Co., Ltd.            |   |                                              | 5.1    | % |   |   | - | % |
| Beijing Qiheyuan Food Technology Co., Ltd.        |   |                                              | 3.1    | % |   |   | - | % |
| Top Three Customers as % of Total Gross Sales     |   |                                              | 13.4   | % |   |   | - | % |
|                                              |   |                                              |   |   |   |   |   |   |
| Deep-Processed Grain Division:                    |   |                                              |   |   |   |   |   |   |
| Xinkeyuan                                         |   |                                              | 2.1    | % |   |   | - | % |
| Beijing Huanqiu Jindan E-Commerce Co., Ltd.       |   |                                              | 2.1    | % |   |   | - | % |
| Tiajin Hongfuyongsheng Business Trading Co., Ltd. |   |                                              | 1.1    | % |   |   | - | % |
| Top Three Customers as % of Total Gross Sales:    |   |                                              | 5.3    | % |   |   | - | % |

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|                    |   | OperatingLeases |      |
|-------------------------|--------|-----------------|-----------|
| Year ended December 31, |   |            |      |
| 2011                    |   | $               | 946,908   |   |
| 2012                    |   |            | 920,181   |   |
| 2013                    |   |            | 694,414   |   |
| 2014                    |   |            | 444,599   |   |
| 2015                    |   |            | 444,599   |   |
| Thereafter              |   |            | 6,374,841 |   |
|                    |   | $               | 9,825,542 |   |

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