|     |
|---------------|
|          |
| UNITED STATES |

----

----

|  ̈ | REGISTRATION STATEMENT PURSUANT TO SECTION 12(b) OR (g) OF THE SECURITIES EXCHANGE ACT OF 1934 |
|--------|------------------------------------------------------------------------------------------------|

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

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

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

| Title of Each Class |   | Name of Each Exchange On Which Registered |
|---------------------|--------|-------------------------------------------|
| None                |   | None                                      |

----

| PART I    |                                                                         |
|-----------|------------------------------------------------------------------------------|
| ITEM 1.   | IDENTITY OF DIRECTORS, SENIOR MANAGEMENT AND ADVISORS                        | 2 |
| ITEM 2.   | OFFER STATISTICS AND EXPECTED TIMETABLE                                      | 3 |
| ITEM 3.   | KEY INFORMATION                                                              | 3 |
| ITEM 4.   | INFORMATION ON THE COMPANY                                                   | 22 |
| ITEM 4a.  | UNRESOLVED STAFF COMMENTS                                                    | 52 |
| ITEM 5.   | OPERATING AND FINANCIAL REVIEW AND PROSPECTS                                 | 52 |
| ITEM 6.   | DIRECTORS, SENIOR MANAGEMENT, AND EMPLOYEES                                  | 79 |
| ITEM 7.   | MAJOR SHAREHOLDERS AND RELATED PARTY TRANSACTIONS                            | 81 |
| ITEM 8.   | FINANCIAL INFORMATION                                                        | 82 |
| ITEM 9.   | THE OFFER AND LISTING                                                        | 82 |
| ITEM 10.  | ADDITIONAL INFORMATION                                                       | 83 |
| ITEM 11.  | QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK                   | 88 |
| ITEM 12.  | DESCRIPTION OF SECURITIES OTHER THAN EQUITY SECURITIES                       | 89 |
|      |                                                                         |
| PART II   |                                                                         |
| ITEM 13.  | DEFAULTS, DIVIDEND ARREARAGES AND DELINQUENCIES                              | 89 |
| ITEM 14.  | MATERIAL MODIFICATIONS TO THE RIGHTS OF SECURITY HOLDERS AND USE OF PROCEEDS | 89 |
| ITEM 15.  | CONTROLS AND PROCEDURES                                                      | 90 |
| ITEM 16.  | RESERVED                                                                     | 90 |
| ITEM 16a. | AUDIT COMMITTEE FINANCIAL EXPERT                                             | 90 |
| ITEM 16b. | CODE OF ETHICS                                                               | 90 |
| ITEM 16c. | PRINCIPAL ACCOUNTING FEES AND SERVICES                                       | 90 |
| ITEM 16d. | EXEMPTIONS FROM THE LISTING STANDARDS FOR AUDIT COMMITTEES                   | 90 |
| ITEM 16e. | PURCHASES OF EQUITY SECURITIES BY THE ISSUER AND AFFILIATED PURCHASERS       | 90 |
| ITEM 16f. | CHANGE IN REGISTRANT’S CERTIFYING ACCOUNTANT                           | 90 |
| ITEM 16g. | CORPORATE GOVERNANCE                                                         | 91 |
|      |                                                                         |
| PART III  |                                                                         |
| ITEM 17.  | FINANCIAL STATEMENTS                                                         | 92 |
| ITEM 18.  | FINANCIAL STATEMENTS                                                         | 92 |
| ITEM 19.  | EXHIBITS                                                                     | 92 |

----

----

| ITEM 1. | IDENTITY OF DIRECTORS, SENIOR MANAGEMENT AND ADVISORS |
|---------|-------------------------------------------------------|

| Name       |   | Age |   | Position(s)  |
|------------|--------|-----|--------|-------------------|
| Xudong Liu |   | 31  |   | Chairman          |
| Ning Li    |   | 42  |   | Director          |
| Lizi Liu   |   | 46  |   | Director          |

| Name          |   | Age    |   | Position(s) |
|---------------|--------|--------|--------|-------------|
|          |   |   |   |        |
| Ning Li       |   | 42     |   | CEO         |
| Hongteng Yang |   | 55     |   | CFO         |

----

| ITEM 2. | OFFER STATISTICS AND EXPECTED TIMETABLE |
|---------|-----------------------------------------|

| ITEM 3. | KEY INFORMATION |
|---------|-----------------|

----

|                                                   |   | Consolidated Statements of Income (loss) and Comprehensive Income (loss)Years Ended April 30, |         |
|--------------------------------------------------------|--------|-----------------------------------------------------------------------------------------------|--------------|
|                                                   |   | 2010(Audited)                                                                                 |         |   | 2009(Audited) |   |   | 2008(Unaudited) |   |   | 2007(Unaudited) |   |   | 2006(Unaudited) |   |
|                                                   |   |                                                                                          |         |   |   |   |   |   |   |   |   |   |   |   |   |
| Revenue, net                                           |   | $                                                                                             | 146,835,283  |   |   | $ | 152,511,228 |   |   | $ | 108,001,988 |   |   | $ | 82,288,351 |   |   | $ | 59,750,922 |   |
| Cost of goods sold                                     |   |                                                                                          | (123,110,120 | ) |   |   | (130,600,207 | ) |   |   | (91,842,042 | ) |   |   | (70,256,431 | ) |   |   | (52,637,924 | ) |
| Gross profit                                           |   |                                                                                          | 23,725,163   |   |   |   | 21,911,021 |   |   |   | 16,159,946 |   |   |   | 12,031,920 |   |   |   | 7,112,998 |   |
|                                                   |   |                                                                                          |         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Selling and marketing expenses                         |   |                                                                                          | (3,952,504   | ) |   |   | (5,878,246 | ) |   |   | (5,776,583 | ) |   |   | (3,885,392 | ) |   |   | (2,038,229 | ) |
| General and administrative expenses                    |   |                                                                                          | (3,003,542   | ) |   |   | (2,387,684 | ) |   |   | (1,706,053 | ) |   |   | (1,341,527 | ) |   |   | (1,180,585 | ) |
| Research and development expenses                      |   |                                                                                          | (33,111      | ) |   |   | (11,713 | ) |   |   | - |   |   |   | - |   |   |   | - |   |
| Total Operating Expenses                               |   |                                                                                          | (6,989,157   | ) |   |   | (8,277,643 | ) |   |   | (7,482,636 | ) |   |   | (5,226,919 | ) |   |   | (3,218,814 | ) |
|                                                   |   |                                                                                          |         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Income from operations                                 |   |                                                                                          | 16,736,006   |   |   |   | 13,633,378 |   |   |   | 8,677,310 |   |   |   | 6,805,001 |   |   |   | 3,894,184 |   |
|                                                   |   |                                                                                          |         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest expense                                       |   |                                                                                          | (9,765,845   | ) |   |   | (9,216,142 | ) |   |   | (7,819,587 | ) |   |   | (5,470,828 | ) |   |   | (4,672,549 | ) |
| Interest income                                        |   |                                                                                          | 2,438,152    |   |   |   | 2,673,890 |   |   |   | 478,004 |   |   |   | 308,463 |   |   |   | 30,340 |   |
| Other income (expense), net                            |   |                                                                                          | 36,313       |   |   |   | (91,537 | ) |   |   | 2,071,238 |   |   |   | (26,268 | ) |   |   | 85,849 |   |
|                                                   |   |                                                                                          |         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Income (loss) before income taxes                      |   |                                                                                          | 9,444,626    |   |   |   | 6,999,589 |   |   |   | 3,406,965 |   |   |   | 1,616,368 |   |   |   | (662,176 | ) |
|                                                   |   |                                                                                          |         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Income taxes                                           |   |                                                                                          | (2,868,260   | ) |   |   | (2,026,906 | ) |   |   | (1,124,300 | ) |   |   | (862,654 | ) |   |   | - |   |
|                                                   |   |                                                                                          |         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net income (loss)                                      |   |                                                                                          | 6,576,366    |   |   |   | 4,972,683 |   |   |   | 2,282,665 |   |   |   | 753,714 |   |   |   | (662,176 | ) |
| Net income attributable to non-controlling interest    |   |                                                                                          | (10,824      | ) |   |   | (6,079 | ) |   |   | (21,900 | ) |   |   | 19,004 |   |   |   | 29,291 |   |
|                                                   |   |                                                                                          |         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net income (loss) attributable to controlling interest |   |                                                                                          | 6,565,542    |   |   |   | 4,966,604 |   |   |   | 2,260,765 |   |   |   | 772,718 |   |   |   | (632,885 | ) |
|                                                   |   |                                                                                          |         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Other comprehensive income (loss)                      |   |                                                                                          | 13,358       |   |   |   | (116,373 | ) |   |   | (1,242,438 | ) |   |   | (503,885 | ) |   |   | - |   |
|                                                   |   |                                                                                          |         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Comprehensive Income (loss)                            |   | $                                                                                             | 6,578,900    |   |   | $ | 4,850,231 |   |   | $ | 1,018,327 |   |   | $ | 268,833 |   |   | $ | (632,885 | ) |

----

| Balance Sheets Data (at end of fiscal year )     |   | April 30, |        |
|--------------------------------------------------|--------|-----------|-------------|
| (in U.S. Dollars)                                |   | 2010      |        |   | 2009 |   |   | 2008 |   |   | 2007 |   |   | 2006 |   |
|                                             |   | Audited   |        |   | Audited |   |   | Unaudited |   |   | Unaudited |   |   | Unaudited |   |
| Cash and cash equivalents                        |   | $         | 6,413,448   |   |   | $ | 1,980,229 |   |   | $ | 5,657,767 |   |   | $ | 4,890,833 |   |   | $ | 3,917,200 |   |
| Total current assets                             |   |      | 164,811,655 |   |   |   | 142,642,497 |   |   |   | 103,905,033 |   |   |   | 83,718,634 |   |   |   | 68,204,529 |   |
| Total assets                                     |   |      | 267,779,636 |   |   |   | 231,862,383 |   |   |   | 207,360,029 |   |   |   | 161,709,216 |   |   |   | 140,633,103 |   |
|                                             |   |      |        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total liabilities                                |   |      | 220,461,001 |   |   |   | 191,133,463 |   |   |   | 171,137,837 |   |   |   | 136,533,283 |   |   |   | 115,706,999 |   |
| Total shareholders’ equity                 |   |      | 47,318,635  |   |   |   | 40,728,920 |   |   |   | 36,222,192 |   |   |   | 25,175,933 |   |   |   | 24,926,104 |   |
| Total liabilities and shareholders’ equity |   |      | 267,779,636 |   |   |   | 231,862,383 |   |   |   | 207,360,029 |   |   |   | 161,709,216 |   |   |   | 140,633,103 |   |

----

|                                        |   | January 31, |        |
|---------------------------------------------|--------|-------------|-------------|
| Cash:                                       |   | 2011        |        |
| Cash and cash equivalents                   |   | $           | 2,801,465   |   |
| Restricted cash (1)                         |   |        | 50,114,660  |   |
|                                        |   |        |        |   |
| Debt:                                       |   |        |        |   |
| Notes payable (1)                           |   |        | 55,436,601  |   |
| Short-term bank loans (2)                   |   |        | 112,798,503 |   |
| Product and other financing arrangements(3) |   |        | 36,321,376  |   |
|                                        |   |        |        |   |
| Shareholders’ equity:                 |   |        |        |   |
| Common stock, $1 par value                  |   |        | 50,000      |   |
| Accumulated other comprehensive income      |   |        | 2,203,445   |   |
| Additional paid-in capital                  |   |        | 52,584,504  |   |
| Retained deficit                            |   |        | (303,993    | ) |
| Non-controlling interest                    |   |        | 114,688     |   |
| Total shareholders’ equity            |   | $           | 54,648,644  |   |

----

----

----

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|   | · | obtaining the necessary PRC Government approvals to repatriate funds that are raised overseas; |
|--------|--------|------------------------------------------------------------------------------------------------|

|   | · | our future financial condition, results of operations and cash flows; |
|--------|--------|-----------------------------------------------------------------------|

|   | · | general market conditions for capital raising activities by similar companies; and |
|--------|--------|------------------------------------------------------------------------------------|

|   | · | economic, political and other conditions in China and elsewhere. |
|--------|--------|------------------------------------------------------------------|

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|   | · | recruiting, training and retaining sufficient skilled sales and management personnel; |
|--------|--------|---------------------------------------------------------------------------------------|

|   | · | adhering to our high quality and process execution standards; |
|--------|--------|---------------------------------------------------------------|

|   | · | maintaining high levels of customer satisfaction; |
|--------|--------|---------------------------------------------------|

|   | · | creating and managing economies of scale; |
|--------|--------|-------------------------------------------|

|   | · | maintaining and managing costs to correspond with timeliness of revenue recognition; and |
|--------|--------|------------------------------------------------------------------------------------------|

|   | · | developing and improving our internal administrative infrastructure, including our financial, operational and communication systems, processes and controls. |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | vulnerability of our business to a general economic downturn in China; |
|--------|--------|------------------------------------------------------------------------|

|   | · | fluctuation and unpredictability of costs related to our raw materials; |
|--------|--------|-------------------------------------------------------------------------|

|   | · | changes in the laws of the PRC that affect our operations; |
|--------|--------|------------------------------------------------------------|

|   | · | competition from our competitors; |
|--------|--------|-----------------------------------|

|   | · | our ability to obtain all necessary government certifications and/or licenses to conduct our business; and |
|--------|--------|------------------------------------------------------------------------------------------------------------|

|   | · | development of a public trading market for our securities. |
|--------|--------|------------------------------------------------------------|

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|   | · | imposing economic penalties; |
|--------|--------|------------------------------|

|   | · | discontinuing or restricting the operations of Shanxi Shipaipu, Shanxi Ruixingtong, SXGL or Shanxi Zhonglian SXGL; |
|--------|--------|--------------------------------------------------------------------------------------------------------------------|

|   | · | imposing conditions or requirements in respect of the VIE Agreements with which SXGL or Shanxi Ruixingtong may not be able to comply; |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------|

|   | · | requiring our company to restructure the relevant ownership structure or operations; |
|--------|--------|--------------------------------------------------------------------------------------|

|   | · | taking other regulatory or enforcement actions that could adversely affect our company’s business; and |
|--------|--------|--------------------------------------------------------------------------------------------------------------|

----

|   | · | revoking the business licenses and/or the licenses or certificates of SXGL, Shanxi Ruixingtong,or SXGL or Shanxi ZhonglianSXGL, and voiding the VIE Agreements. |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | level of government involvement in the economy; |
|--------|--------|-------------------------------------------------|

|   | · | control of foreign exchange; |
|--------|--------|------------------------------|

|   | · | methods of allocating resources; |
|--------|--------|----------------------------------|

|   | · | balance of payments position; |
|--------|--------|-------------------------------|

|   | · | international trade restrictions; and |
|--------|--------|---------------------------------------|

----

|   | · | international conflict. |
|--------|--------|-------------------------|

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| ITEM 4. | INFORMATION ON THE COMPANY |
|---------|----------------------------|

----

|   | l | Xudong Liu, our Chairman, owns 100% of the equity of DAWNING HOLDINGS LIMITED, a British Virgin Island company which owned 63.6% of the equity of RISE KING prior to the business combination, and has owned 63.6 % of our shares since the business combination. |
|--------|---|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | l | Lizi Liu, the  owner of 11% of SXGL, one of our VIE entities,  owns 100% of the equity of WELLYI HOLDING LIMITED, a British Virgin Islands company which owned 7.5% of the shares of RISE KING prior to the business combination and has owned 7.5 % of our shares since the business combination. |
|--------|---|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | l | Ning Li, the General Manager of SXGL, owns 100% of the equity of HAOTAI HOLDING LIMITED, a British Virgin Islands company which owned 5.5% of the shares of RISE KING prior to the business combination and has owned 5.5 % of our shares since the business combination. |
|--------|---|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | l | Junze Zhao, the Vice General Manager of SXGL, owns 100% of the equity of RUIZE HOLDING LIMITED, a British Virgin Islands company which owned 4% of the shares of RISE KING prior to the business combination and has owned 4% of our equity since the business combination. |
|--------|---|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | l | Hongteng Yang, the Vice General Manager of SXGL, owns 100% of the equity of PO CHEUNG HOLDING LIMITED, a British Virgin Islands company, which owned 2.4% of the equity of RISE KING prior to the business combination and has owned 2.4% of our equity since the business combination. |
|--------|---|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | l | The holders of the remaining 17 % of our shares are individuals or entities that are residents of the PRC and are unaffiliated with us. |
|--------|---|-----------------------------------------------------------------------------------------------------------------------------------------|

----

|   | · | all of the outstanding equity of BRAVE KING ENTERPRISES LIMITED, or BRAVE KING, a limited liability company formed on March 19, 2010 under the laws of Hong Kong; and |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | all of the outstanding equity of MAJOR AIM ENTERPRISES LIMITED, or MAJOR AIM, a limited liability company formed on March 19, 2010 under the laws of Hong Kong. |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| Name                                            |   | Date OfFormation/Incorporation |   | Percentage ofOwnership byShanxiGuolian |   | Principal Activities                                                   |
|-------------------------------------------------|--------|--------------------------------|--------|----------------------------------------|--------|------------------------------------------------------------------------|
|                                            |   |                           |   |                                   |   |                                                                   |
| Shanxi Guolian Spiral Tubulation Co., Ltd.      |   | March 15, 2000.                |   | 97.7% ownedby Shanxi Guolian           |   | Design, development, manufacture, and commercialization of SSAW pipes. |
|                                            |   |                           |   |                                   |   |                                                                   |
| Xi’an Guolian Spiral Tubulation Co., Ltd. |   | February 22, 2002.             |   | 99% owned byShanxi Guolian             |   | Manufacture and sales of SSAW pipes.                                   |
|                                            |   |                           |   |                                   |   |                                                                   |
| Shanxi Guolian Pipe Technology Co., Ltd.        |   | June 14, 2007                  |   | 100% owned by Shanxi Guolian           |   | Technology research, development and test of pipes                     |

----

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----

----

----

----

----

----

----

----

----

----

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|   | · | Pricing.  Flexibility to control pricing of products and the ability to use economies of scale to secure competitive pricing advantages; |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Technology.  Ability to manufacture products efficiently, utilize low-cost raw materials, and to achieve better production quality; and |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Barriers to entry.  Technical knowledge, access to capital, local market knowledge and established relationships with suppliers and customers to support the development of commercially viable production facilities and products. |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| Supplier  |   | Percentage |   |
|-----------|--------|------------|--------|
|      |   |       |   |
| Company F |   |       | 11.90  | % |
| Company G |   |       | 9.80   | % |
| Company H |   |       | 5.0    | % |
| Company I |   |       | 7.9    | % |
| Company J |   |       | 3.5    | % |

| Supplier  |   | Percentage |   |
|-----------|--------|------------|--------|
|      |   |       |   |
| Company F |   |       | 30.20  | % |
| Company G |   |       | 14.09  | % |
| Company H |   |       |   |   |
| Company I |   |       |   |   |
| Company J |   |       | 12.1   | % |

----

----

|   | · | Ten production lines for SSAW pipes seven of which are located in our Yuci facility, one of which is located in our Taiyuan facility and two of which are located in our Xi’an facility, each composes of an uncoiling machine, a three-roller dismantling machine, a seven-roller flattening machine, an electric vertical roll, an end shearing and butt welding machine (with a milling welding machine), an edge milling machine, an automatic chip cleaner, a manual double vertical roll, an edge rust removal device, a cleaning device, a delivering machine, a forming machine and a centralizer. |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | One production line for ERW pipes, which is located in our Yuci facility which composes of uncoiling machine, dismantling machine, pinching rolling and flattening machine, electric vertical roll, transforming roll rlatform 1, transforming roll platform 2, hydro-dynamic vertical roll, shearing machine, cutting welding machine, pinch roll A, pinch roll B, loop device, seven-roller flattening machine, guiding roll, preliminary forming machine, cage roll forming machine, fine forming machine. |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

----

----

|   | · | Information notification on raw material and production process information; |
|--------|--------|------------------------------------------------------------------------------|

|   | · | Information notification on the estimation and execution of loading and dispatching; |
|--------|--------|--------------------------------------------------------------------------------------|

|   | · | Coordination Service for on-site cargo discharge, stack and organize onto a pallet and delivery process, On-site documentation acknowledgement and information transfer service; |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Service for collection, acknowledgement and transfer of documentation and notes. |
|--------|--------|----------------------------------------------------------------------------------|

----

| Name of Customer |   | 2009 Revenues(%) |   |   | 2010 Revenues(%) |   |
|------------------|--------|------------------|--------|--------|------------------|--------|
|             |   |             |   |   |             |   |
| Customer A       |   |             | 11.6   | %      |             |   | 8.2 |   |
|             |   |             |   |   |             |   |   |   |
| Customer B       |   |             | *      | %      |             |   | 8.1 | % |

|   | · | Superior product safety and quality; |
|--------|--------|--------------------------------------|

|   | · | Reduction of operating costs; and |
|--------|--------|-----------------------------------|

|   | · | Sustaining growth through the development of new products. |
|--------|--------|------------------------------------------------------------|

----

----

| Name                                                      |         | Application No./Patent No. |         | Applicant/PatentHolder                            |         | Status     |         | ExpirationDate  |
|-----------------------------------------------------------|--------------|--------------------------------------|--------------|---------------------------------------------------|--------------|------------|--------------|----------------------|
|                                                      |         |                                 |         |                                              |         |       |         |                 |
| Multi-layer Steel Tube External Package Packing Apparatus |    | ZL 2008 2 0079133.2                  |    | Yuci Guolian and China CAMC Engineering Co., Ltd. |    | Registered |    | 2/19/2018            |

| Name                                          |         | Application No./Patent No. |         | Applicant/PatentHolder                            |         | Status     |         | ExpirationDate  |
|-----------------------------------------------|--------------|--------------------------------------|--------------|---------------------------------------------------|--------------|------------|--------------|----------------------|
|                                          |         |                                 |         |                                              |         |       |         |                 |
| Multi-layer Steel Tube Package Packing Method |    | ZL 2008 1 0100809.6                  |    | Yuci Guolian and China CAMC Engineering Co., Ltd. |    | Registered |    | 2/21/2028            |

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| Name of Trademark                                                                                                                                                                                                                                                                                                              |   | Application No./Trademark No. |         | Applicant/TrademarkHolder                   |         | Status     |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-----------------------------------------|--------------|---------------------------------------------|--------------|------------|
|                                                                                                                                                                                                                                                                                                                                     |   |                                    |         |                                        |         |       |
| GL (The commodities on which the use of trademark as been approved:( the 6th class) Pipelines, Elbows of metal for pipes, Junctions of metal for  pipes, Casings of metal for oilwells and Branching pipes of metal.)                                                                                                |   | 6565067                                 |    | Shanxi Guolian Pipe Industry Group Co., Ltd |    | Registered |
|                                                                                                                                                                                                                                                                                                                                     |   |                                    |         |                                        |         |       |
| GL (Advertising; Special permission management commercial management; Import-export agencies; Procurement services for others; Personnel Management consultancy; Relocation services for businesses; Carry on administrative processing to the purchase order form; Write the receipt; Tax preparation; Seek the support) |   | 7226500                                 |         | Shanxi Guolian Pipe Industry Group Co., Ltd |    | Registered |

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|   | · | Convention establishing the World Intellectual Property Organization (WIPO Convention) (June 4, 1980); |
|--------|--------|--------------------------------------------------------------------------------------------------------|

|   | · | Paris Convention for the Protection of Industrial Property (March 19, 1985); |
|--------|--------|------------------------------------------------------------------------------|

|   | · | Patent Cooperation Treaty (January 1, 1994); and |
|--------|--------|--------------------------------------------------|

|   | · | The Agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPs) (November 11, 2001). |
|--------|--------|-----------------------------------------------------------------------------------------------------|

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| Functions                                               |   | April2010  |   | April 2009 |   | April2008  |
|---------------------------------------------------------|--------|------------|--------|-----------------|--------|------------|
|                                                    |   |       |   |            |   |       |
| Manufacturing                                           |   | 572 (60%)  |   | 569 (61%)       |   | 574 (62%)  |
| Technology                                              |   | 5 (1%)     |   | 7 (1%)          |   | 11 (1%)    |
| Research & Development                              |   | 43 (5%)    |   | 43(5%)          |   | 43 (5%)    |
| Quality Control                                         |   | 174(18%)   |   | 183 (20%)       |   | 177 (19%)  |
| General Administration, Purchasing, Sales and Marketing |   | 196 (21%)  |   | 177 (19%)       |   | 166 (18%)  |
| Total                                                   |   | 947 (100%) |   | 936 (100%)      |   | 928 (100%) |

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| ITEM 4A. | UNRESOLVED STAFF COMMENTS |
|----------|---------------------------|

| ITEM 5. | OPERATING AND FINANCIAL REVIEW AND PROSPECTS |
|---------|----------------------------------------------|

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| (a) | Economic and Political Risks |
|-----|------------------------------|

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| (b) | Fair Value of Financial Instruments |
|-----|-------------------------------------|

| (c) | Product Financing Arrangements |
|-----|--------------------------------|

| (d) | Impairment of Long-Term Assets |
|-----|--------------------------------|

| (e) | Goodwill |
|-----|----------|

----

| (f) | Inventories |
|-----|-------------|

| (g)  | Accounts receivable and allowance for doubtful accounts |
|-----------|---------------------------------------------------------|

| (h) | Revenue Recognition |
|-----|---------------------|

| (i) | Foreign Currency Translation |
|-----|------------------------------|

----

|                                   |   | April 30,2010 |   |   | April 30,2009 |   |
|----------------------------------------|--------|--------------------|--------|--------|--------------------|--------|
| Year end RMB : US$ exchange rate       |   | $                  | 6.8358 |   |               | $      | 6.8352 |   |
| Average yearly RMB : US$ exchange rate |   |               | 6.8355 |   |               |   | 6.9155 |   |

|                                                      |   | January 31,2011 |   |   | January 31,2010 |   |
|-----------------------------------------------------------|--------|----------------------|--------|--------|----------------------|--------|
| Period end RMB : US$ exchange rate                        |   | $                    | 6.5829 |   |                 | $      | 6.8169 |   |
| Average RMB : US$ exchange rate for nine months and ended |   |                 | 6.7094 |   |                 |   | 6.8261 |   |

| (j) | Comprehensive Income |
|-----|----------------------|

| (k) | Segment and Geographic Reporting |
|-----|----------------------------------|

| (l) | Non-Controlling Interest |
|-----|--------------------------|

----

----

|                                                |   | Years Ended April 30, |         |
|-----------------------------------------------------|--------|--------------------------------------|--------------|
|                                                |   | 2010                                 |         |   | 2009 |   |   | Comparison |   |
|                                                |   | Amount                               |         |   | % ofRevenues |   |   | Amount |   |   | % ofRevenues |   |   | Change inAmount |   |   | Change in % |   |
|                                                |   | $                                    |         |   |   |   |   | $ |   |   |   |   |   | $ |   |   |   |   |
| Revenues, net                                       |   |                                 | 146,835,283  |   |   |   | 100 | % |   |   | 152,511,228 |   |   |   | 100 | % |   |   | (5,675,945 | ) |   |   | (4 | )% |
|                                                |   |                                 |         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Cost of goods sold                                  |   |                                 | (123,110,120 | ) |   |   | (84 | )% |   |   | (130,600,207 | ) |   |   | (86 | )% |   |   | 7,490,087 |   |   |   | (6 | )% |
| Gross profit                                        |   |                                 | 23,725,163   |   |   |   | 16 | % |   |   | 21,911,021 |   |   |   | 14 | % |   |   | 1,814,142 |   |   |   | 8 | % |
|                                                |   |                                 |         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Selling and marketing                               |   |                                 | (3,952,504   | ) |   |   | (3 | )% |   |   | (5,878,246 | ) |   |   | (4 | )% |   |   | 1,925,742 |   |   |   | (33 | )% |
| General and administrative                          |   |                                 | (3,003542    | ) |   |   | (2 | )% |   |   | (2,387,684 | ) |   |   | (2 | )% |   |   | (615,858 | ) |   |   | 26 | % |
| Research and development                            |   |                                 | (33,111      | ) |   |   | (0.02 | )% |   |   | (11,713 | ) |   |   | (0.01 | )% |   |   | (21,398 | ) |   |   | 183 | % |
| Income from operations                              |   |                                 | 16,736,006   |   |   |   | 11 | % |   |   | 13,633,378 |   |   |   | 9 | % |   |   | 3,102,628 |   |   |   | 23 | % |
|                                                |   |                                 |         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest expense                                    |   |                                 | (9,765,845   | ) |   |   | (7 | )% |   |   | (9,216,142 | ) |   |   | (6 | )% |   |   | (549,703 | ) |   |   | 6 | % |
| Interest income                                     |   |                                 | 2,438,152    |   |   |   | 2 | % |   |   | 2,673,890 |   |   |   | 2 | % |   |   | (235,738 | ) |   |   | (9 | )% |
| Other income (expense), net                         |   |                                 | 36,313       |   |   |   | 0.02 | % |   |   | (91,537 | ) |   |   | (0.06 | )% |   |   | 127,850 |   |   |   | (140 | )% |
|                                                |   |                                 |         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Income before income taxes                          |   |                                 | 9,444,626    |   |   |   | 6 | % |   |   | 6,999,589 |   |   |   | 5 | % |   |   | 2,445,037 |   |   |   | 35 | % |
|                                                |   |                                 |         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Income taxes                                        |   |                                 | (2,868,260   | ) |   |   | (2 | )% |   |   | (2,026,906 | ) |   |   | (1 | )% |   |   | (841,354 | ) |   |   | 42 | % |
|                                                |   |                                 |         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net income                                          |   |                                 | 6,576,366    |   |   |   | 4 | % |   |   | 4,972,683 |   |   |   | 3 | % |   |   | 1,603,683 |   |   |   | 32 | % |
|                                                |   |                                 |         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net income attributable to non-controlling interest |   |                                 | (10,824      | ) |   |   | (0.01 | )% |   |   | (6,079 | ) |   |   | (0.004 | )% |   |   | (4,745 | ) |   |   | 78 | % |
|                                                |   |                                 |         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net income attributable to controlling interest     |   |                                 | 6,565,542    |   |   |   | 4 | % |   |   | 4,966,604 |   |   |   | 3 | % |   |   | 1,598,938 |   |   |   | 32 | % |
| Other comprehensive (loss) income                   |   |                                 |         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Foreign currency translation gain                   |   |                                 | (590         | ) |   |   | - |   |   |   | (104,823 | ) |   |   | (0.07 | )% |   |   | 104,233 |   |   |   | (99 | )% |
| Unrealized gain (loss) on marketable securities     |   |                                 | 13,948       |   |   |   | 0.01 | % |   |   | (11,550 | ) |   |   | (0.01 | )% |   |   | 25,498 |   |   |   | (221 | )% |
|                                                |   |                                 |         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Comprehensive income                                |   |                                 | 6,578,900    |   |   |   | 4 | % |   |   | 4,850,231 |   |   |   | 3 | % |   |   | 1,728,669 |   |   |   | 36 | % |

----

|               |   | Years Ended April 30, |        |
|--------------------|--------|--------------------------------------|-------------|
|               |   | 2010                                 |        |   | 2009 |   |   | Comparisons |   |
|               |   | Amount                               |        |   | % ofTotal |   |   | Amount |   |   | % of Total |   |   | Increase/(Decrease) |   |   | Increase/(Decrease) |   |
|     |   | $                                    |        |   |    |   |   | $ |   |   |    |   |   | $  |   |   | % |   |
| Revenues:          |   |                                 |        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| PRC markets:       |   |                                 |        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| SSAW pipe          |   |                                 | 114,321,038 |   |   |   | 77.9 | % |   |   | 83,743,464 |   |   |   | 54.9 | % |   |   | 30,577,574 |   |   |   | 37 | % |
| ERW pipe           |   |                                 | 2,008,230   |   |   |   | 1.4 | % |   |   | 24,453,307 |   |   |   | 16 | % |   |   | (22,445,077 | ) |   |   | (92 | )% |
| Other(1)           |   |                                 | 9,279,189   |   |   |   | 6.3 | % |   |   | 8,410,451 |   |   |   | 5.5 | % |   |   | 868,738 |   |   |   | 10 | % |
| Subtotal           |   |                                 | 125,608,457 |   |   |   | 85.6 | % |   |   | 116,607,222 |   |   |   | 76.4 | % |   |   | 9,001,235 |   |   |   | 8 | % |
| Export markets:    |   |                                 |        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| SSAW pipe          |   |                                 | 8,534,738   |   |   |   | 5.8 | % |   |   | 3,948,178 |   |   |   | 2.6 | % |   |   | 4,586,560 |   |   |   | 116 | % |
| ERW pipe           |   |                                 | 12,692,088  |   |   |   | 8.6 | % |   |   | 31,955,828 |   |   |   | 21 | % |   |   | (19,263,740 | ) |   |   | (60 | )% |
| Subtotal           |   |                                 | 21,226,826  |   |   |   | 14.4 | % |   |   | 35,904,006 |   |   |   | 23.6 | % |   |   | (14,677,180 | ) |   |   | (41 | )% |
|               |   |                                 |        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total              |   |                                 | 146,835,283 |   |   |   | 100 | % |   |   | 152,511,228 |   |   |   | 100 | % |   |   | (5,675,945 | ) |   |   | (4 | )% |

| (1) | Includes sales of gas equipment (0.3%) and scrap (3.5%), revenues generated by processing services we provided to customers (2.7%), other revenues (0.2%), less sales tax (0.4%). |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

----

|                        |   | Years Ended April 30, |      |
|-----------------------------|--------|--------------------------------------|-----------|
|                        |   | 2010                                 |      |   | 2009 |   |   | Comparisons |   |
|                   |   | Amount                               |      |   | % ofTotal |   |   | Amount |   |   | % ofTotal |   |   | Increase/(Decrease) |   |   | Increase/(Decrease) |   |
|                        |   | $                                    |      |   |    |   |   | $ |   |   |    |   |   | $ |   |   | % |   |
| Shipping and handling costs |   |                                 | 1,815,080 |   |   |   | 46 | % |   |   | 3,445,156 |   |   |   | 59 | % |   |   | (1,630,077 | ) |   |   | (47 | )% |
| Payroll                     |   |                                 | 519,251   |   |   |   | 13 | % |   |   | 558,172 |   |   |   | 9.5 | % |   |   | (38,921 | ) |   |   | (7 | )% |
| Travel                      |   |                                 | 295,361   |   |   |   | 8 | % |   |   | 556,677 |   |   |   | 9.5 | % |   |   | (261,316 | ) |   |   | (47 | )% |
| Bid costs                   |   |                                 | 289,470   |   |   |   | 7 | % |   |   | 265,001 |   |   |   | 5 | % |   |   | 24,469 |   |   |   | 9 | % |
| Other                       |   |                                 | 1,033,342 | (1) |   |   | 26 | % |   |   | 1,053,240 | (2) |   |   | 17 | % |   |   | (19,897 | ) |   |   | (2 | )% |
| Total                       |   |                                 | 3,952,504 |   |   |   | 100 | % |   |   | 5,878,246 |   |   |   | 100 | % |   |   | (1,925,742 | ) |   |   | (33 | )% |

| (1) | Includes business entertainment (6%), sales agent fees (1%), inspection and insurance (3%), office expenses (5%), utilities & vehicles (5%), depreciation expense (1%), and other expenses (5%). |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2) | Includes business entertainment (4%), sales agent fees (1%), inspection and insurance (1%), office expenses (4%), utilities & vehicles (4%), depreciation expense (1%), and other expenses (2%). |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                          |   | Years Ended April 30, |      |
|-------------------------------|--------|--------------------------------------|-----------|
|                          |   | 2010                                 |      |   | 2009 |   |   | Comparisons |   |
|                          |   | Amount                               |      |   | % ofTotal |   |   | Amount |   |   | % ofTotal |   |   | Increase/(Decrease) |   |   | Increase/(Decrease) |   |
|                |   | $                                    |      |   |   |   |   | $ |   |   |   |   |   | $ |   |   | % |   |
| Payroll                       |   |                                 | 822,462   |   |   |   | 27 | % |   |   | 650,109 |   |   |   | 27 | % |   |   | 172,353 |   |   |   | 27 | % |
| Depreciation and amortization |   |                                 | 340,244   |   |   |   | 11 | % |   |   | 263,147 |   |   |   | 11 | % |   |   | 77,097 |   |   |   | 29 | % |
| Financial consulting fees     |   |                                 | 307,653   |   |   |   | 10 | % |   |   | 254,791 |   |   |   | 8 | % |   |   | 52,862 |   |   |   | 21 | % |
| Office expenses               |   |                                 | 344,354   |   |   |   | 12 | % |   |   | 285,902 |   |   |   | 12 | % |   |   | 58,452 |   |   |   | 20 | % |
| Business entertainment        |   |                                 | 205,772   |   |   |   | 7 | % |   |   | 232,279 |   |   |   | 10 | % |   |   | (26,507 | ) |   |   | (11 | )% |
| Other                         |   |                                 | 983,057   | (1) |   |   | 33 | % |   |   | 701,456 | (2) |   |   | 32 | % |   |   | 281,601 |   |   |   | 40 | % |
| Total                         |   |                                 | 3,003,542 |   |   |   | 100 | % |   |   | 2,387,684 |   |   |   | 100 | % |   |   | 615,858 |   |   |   | 26 | % |

| (1) | Includes retirement benefits (3%), travel (3%), legal consulting fees (2%), utilities & vehicles (6%), land usage and property taxes (6%), endowment insurance (5%), insurance fees (2%), labor union fees (1%) and other expenses (5%). |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2) | Includes retirement benefits (3%), travel (3%), legal consulting fees (2%), utilities & vehicles (6%), land usage and property taxes (6%), endowment insurance (5%), insurance fees (2%), labor union fees (1%) and other expenses (4%). |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| · | Payroll expenses increased by approximately $0.2 million, or 27%, compared with 2009, as a result of the increased average salary for administrative employees; |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | Other expenses increased by approximately $0.3 million, or 40% in 2010 compared to 2009. This increase was mainly due to increases in utilities and vehicles, endowment insurance and insurance fees in 2010. |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

----

|                                                   |   | Nine Months Ended January 31, |         |
|--------------------------------------------------------|--------|---------------------------------------------------|--------------|
|                                                   |   | 2011                                              |         |   | 2010 |   |   | Comparisons |   |
|                                                   |   | Amount                                            |         |   | % ofRevenues |   |   | Amount |   |   | % ofRevenues |   |   | Change inAmount |   |   | Change in % |   |
|                                                   |   | $                                                 |         |   |   |   |   | $ |   |   |   |   |   | $ |   |   |   |   |
| Revenues, net                                          |   |                                              | 146,455,472  |   |   |   | 100 | % |   |   | 118,766,033 |   |   |   | 100 | % |   |   | 27,689,439 |   |   |   | 23 | % |
|                                                   |   |                                              |         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Cost of goods sold                                     |   |                                              | (125,462,453 | ) |   |   | (86 | )% |   |   | (99,605,081 | ) |   |   | (84 | )% |   |   | (25,857,372 | ) |   |   | 26 | % |
| Gross profit                                           |   |                                              | 20,993,019   |   |   |   | 14 | % |   |   | 19,160,952 |   |   |   | 16 | % |   |   | 1,832,067 |   |   |   | 10 | % |
|                                                   |   |                                              |         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Selling and marketing                                  |   |                                              | (3,447,506   | ) |   |   | (2 | )% |   |   | (3,017,835 | ) |   |   | (3 | )% |   |   | (429,671 | ) |   |   | 14 | % |
| General and administrative                             |   |                                              | (2,762,907   | ) |   |   | (2 | )% |   |   | (2,278,514 | ) |   |   | (2 | )% |   |   | (484,393 | ) |   |   | 21 | % |
| Research and development                               |   |                                              | -            |   |   |   |   |   |   |   | (24,001 | ) |   |   | (0.02 | )% |   |   | 24,001 |   |   |   | (100 | )% |
| Income from operations                                 |   |                                              | 14,782,606   |   |   |   | 10 | % |   |   | 13,840,602 |   |   |   | 12 | % |   |   | 942,004 |   |   |   | 7 | % |
|                                                   |   |                                              |         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest expense                                       |   |                                              | (9,844,493   | ) |   |   | (7 | )% |   |   | (6,368,063 | ) |   |   | (5 | )% |   |   | (3,476,430 | ) |   |   | 55 | % |
| Interest income                                        |   |                                              | 1,874,907    |   |   |   | 1 | % |   |   | 1,896,105 |   |   |   | 2 | % |   |   | (21,198 | ) |   |   | (1 | )% |
| Other income (expense), net                            |   |                                              | 1,503,919    |   |   |   | 1 | % |   |   | (19,146 | ) |   |   | (0.02 | )% |   |   | 1,523,065 |   |   |   | (7955 | )% |
|                                                   |   |                                              |         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Income before income taxes                             |   |                                              | 8,316,939    |   |   |   | 6 | % |   |   | 9,349,498 |   |   |   | 8 | % |   |   | (1,032,559 | ) |   |   | (11 | )% |
|                                                   |   |                                              |         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Income taxes                                           |   |                                              | (2,342,280   | ) |   |   | (2 | )% |   |   | (2,610,058 | ) |   |   | (2 | )% |   |   | 267,778 |   |   |   | (10 | )% |
|                                                   |   |                                              |         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net income                                             |   |                                              | 5,974,659    |   |   |   | 4 | % |   |   | 6,739,440 |   |   |   | 6 | % |   |   | (764,781 | ) |   |   | (11 | )% |
|                                                   |   |                                              |         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net (loss) income attributable to non-controlling      |   |                                              | (2,147       | ) |   |   | - |   |   |   | (13,291 | ) |   |   | (0.01 | )% |   |   | 11,144 |   |   |   | (84 | )% |
|                                                   |   |                                              |         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net income (loss) attributable to controlling interest |   |                                              | 5,972,512    |   |   |   | 4 | % |   |   | 6,726,149 |   |   |   | 6 | % |   |   | (753,637 | ) |   |   | (11 | )% |
| Other comprehensive (loss) income                      |   |                                              |         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Foreign currencytranslation gain (loss)                |   |                                              | 1,353,184    |   |   |   | 1 | % |   |   | 76,841 |   |   |   | 0.06 | % |   |   | 1,276,343 |   |   |   | 1661 | % |
| Unrealized gain on marketable securities               |   |                                              | 2,166        |   |   |   | - |   |   |   | 12,444 |   |   |   | 0.01 | % |   |   | (10,278 | ) |   |   | (83 | )% |
|                                                   |   |                                              |         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Comprehensive income                                   |   |                                              | 7,327,862    |   |   |   | 5 | % |   |   | 6,815,434 |   |   |   | 6 | % |   |   | 512,428 |   |   |   | 8 | % |

----

|           |   | Nine Months Ended January 31, |        |
|----------------|--------|---------------------------------------------------|-------------|
|           |   | 2011                                              |        |   | 2010 |   |   | Comparisons |   |
|           |   | Amount                                            |        |   | % ofTotal |   |   | Amount |   |   | % of Total |   |   | Increase/(Decrease) |   |   | Increase/(Decrease) |   |
|           |   | $                                                 |        |   |   |   |   | $ |   |   |   |   |   | $ |   |   | % |   |
| Revenues:      |   |                                              |        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| PRC markets:   |   |                                              |        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| SSAW pipe      |   |                                              | 113,561,115 |   |   |   | 77.5 | % |   |   | 91,739,277 |   |   |   | 77.2 | % |   |   | 21,821,838 |   |   |   | 24 | % |
| ERW pipe       |   |                                              | 12,415,761  |   |   |   | 8.5 | % |   |   | 1,576,914 |   |   |   | 1.3 | % |   |   | 10,838,847 |   |   |   | 687 | % |
| Other(1)       |   |                                              | 11,735,804  |   |   |   | 8 | % |   |   | 8,550,670 |   |   |   | 7.3 | % |   |   | 3,185,134 |   |   |   | 37 | % |
| Subtotal       |   |                                              | 137,712,680 |   |   |   | 94.0 | % |   |   | 101,866,861 |   |   |   | 85.8 | % |   |   | 35,845,819 |   |   |   | 35 | % |
| Export markets |   |                                              |        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| SSAW pipe      |   |                                              | 6,036,602   |   |   |   | 4.1 | % |   |   | 9,050,150 |   |   |   | 7.6 | % |   |   | (3,013,548 | ) |   |   | (33 | )% |
| ERW pipe       |   |                                              | 2,706,190   |   |   |   | 1.9 | % |   |   | 7,849,022 |   |   |   | 6.6 | % |   |   | (5,142,832 | ) |   |   | (66 | )% |
| Subtotal       |   |                                              | 8,742,792   |   |   |   | 6.0 | % |   |   | 16,899,172 |   |   |   | 14.2 | % |   |   | (8,156,380 | ) |   |   | (48 | )% |
|           |   |                                              |        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total          |   |                                              | 146,455,472 |   |   |   | 100 | % |   |   | 118,766,033 |   |   |   | 100 | % |   |   | 27,689,439 |   |   |   | 23 | % |

|   | · | As a result of the issuance of the national supporting policy and West-East Gas pipeline project(2) and the improvement of laws and regulations,  there was a great opportunity for the domestic market sales of SSAW pipe and ERW pipe. Therefore we put more effort into the domestic market. |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | The consistent good quality strengthened our reputation for our products, and we also maintained favorable relationships with old customers.  Therefore, more sales orders were obtained during the nine months ended January 31, 2011 compared with the same period last year. |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

----

|                        |   | Nine Months Ended January 31, |      |
|-----------------------------|--------|---------------------------------------------------|-----------|
|                        |   | 2011                                              |      |   | 2010 |   |   | Comparisons |   |
|                        |   | Amount                                            |      |   | % ofTotal |   |   | Amount |   |   | % ofTotal |   |   | Increase/(Decrease) |   |   | Increase/(Decrease) |   |
|                        |   | $                                                 |      |   |    |   |   | $ |   |   |    |   |   | $ |   |   | % |   |
| Shipping and handling costs |   |                                              | 1,691,336 |   |   |   | 49 | % |   |   | 1,450,508 |   |   |   | 48 | % |   |   | 240,828 |   |   |   | 17 | % |
| Payroll                     |   |                                              | 567,742   |   |   |   | 16 | % |   |   | 453,442 |   |   |   | 15 | % |   |   | 114,300 |   |   |   | 25 | % |
| Travel                      |   |                                              | 147,813   |   |   |   | 4 | % |   |   | 214,160 |   |   |   | 7 | % |   |   | (66,347 | ) |   |   | (31 | )% |
| Bid costs                   |   |                                              | 234,508   |   |   |   | 7 | % |   |   | 246,334 |   |   |   | 8 | % |   |   | (11,826 | ) |   |   | (5 | )% |
| Sales agent fees            |   |                                              | 107,506   |   |   |   | 3 | % |   |   | 76,616 |   |   |   | 3 | % |   |   | 30,890 |   |   |   | 40 | % |
| Business entertainment      |   |                                              | 275,857   |   |   |   | 8 | % |   |   | 207,781 |   |   |   | 7 | % |   |   | 68,076 |   |   |   | 33 | % |
| Inspection and insurance    |   |                                              | 176,585   |   |   |   | 5 | % |   |   | 166,419 |   |   |   | 6 | % |   |   | 10,166 |   |   |   | 6 | % |
| Office expenses             |   |                                              | 170,810   |   |   |   | 5 | % |   |   | 147,637 |   |   |   | 5 | % |   |   | 23,173 |   |   |   | 16 | % |
| Other                       |   |                                              | 75,349    |   |   |   | 3 | % |   |   | 54,938 |   |   |   | 1 | % |   |   | 20,411 |   |   |   | 37 | % |
| Total                       |   |                                              | 3,447,506 |   |   |   | 100 | % |   |   | 3,017,835 |   |   |   | 100 | % |   |   | 429,671 |   |   |   | 14 | % |

----

|                          |   | Nine Months Ended January 31, |      |
|-------------------------------|--------|---------------------------------------------------|-----------|
|                          |   | 2011                                              |      |   | 2010 |   |   | Comparisons |   |
|                          |   | Amount                                            |      |   | % ofTotal |   |   | Amount |   |   | % ofTotal |   |   | Increase/(Decrease) |   |   | Increase/(Decrease) |   |
|                          |   | $                                                 |      |   |    |   |   | $ |   |   |    |   |   | $ |   |   | % |   |
| Payroll                       |   |                                              | 729,982   |   |   |   | 26 | % |   |   | 589,200 |   |   |   | 26 | % |   |   | 140,782 |   |   |   | 24 | % |
| Retirement benefits           |   |                                              | 259,722   |   |   |   | 9 | % |   |   | 123,949 |   |   |   | 5 | % |   |   | 135,773 |   |   |   | 110 | % |
| Travel                        |   |                                              | 101,668   |   |   |   | 4 | % |   |   | 137,983 |   |   |   | 6 | % |   |   | (36,315 | ) |   |   | (26 | )% |
| Depreciation and amortization |   |                                              | 421,127   |   |   |   | 15 | % |   |   | 239,247 |   |   |   | 11 | % |   |   | 181,880 |   |   |   | 76 | % |
| Financial consulting fees     |   |                                              | 237,018   |   |   |   | 9 | % |   |   | 277,043 |   |   |   | 12 | % |   |   | (40,025 | ) |   |   | (14 | )% |
| Legal consulting fees         |   |                                              | 6,364     |   |   |   | - |   |   |   | 22,156 |   |   |   | 1 | % |   |   | (15,792 | ) |   |   | (71 | )% |
| Office expenses               |   |                                              | 309,958   |   |   |   | 11 | % |   |   | 246,827 |   |   |   | 11 | % |   |   | 63,131 |   |   |   | 26 | % |
| Business entertainment        |   |                                              | 253,983   |   |   |   | 9 | % |   |   | 306,618 |   |   |   | 13 | % |   |   | (52,635 | ) |   |   | (17 | )% |
| Utilities & vehicles      |   |                                              | 151,663   |   |   |   | 6 | % |   |   | 87,356 |   |   |   | 4 | % |   |   | 64,307 |   |   |   | 74 | % |
| Land usage and property taxes |   |                                              | 144,267   |   |   |   | 5 | % |   |   | 144,078 |   |   |   | 6 | % |   |   | 189 |   |   |   | - |   |
| Miscellaneous                 |   |                                              | 147,155   |   |   |   | 6 | % |   |   | 104,057 |   |   |   | 5 | % |   |   | 43,098 |   |   |   | 41 | % |
| Total                         |   |                                              | 2,762,907 |   |   |   | 100 | % |   |   | 2,278,514 |   |   |   | 100 | % |   |   | 484,393 |   |   |   | 21 | % |

| (i) | Payroll expenses increased by $140,782, or 24% compared with the nine months ended January 2010, as a result of the increased average salary for administrative employees to retain more employees to support our operations, |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (ii) | Retirement benefit expenses increased by $135,773, or 110% compared with the nine months ended January 31, 2010, as a result of the increased basic salary and its base ratio for employees, |
|------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (iii) | Depreciation and amortization increased by $181,880, or 76% compared with the nine months ended January 31, 2010, due primarily to the increase in office equipment and motor vehicles and |
|-------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (iv) | Miscellaneous expenses increased by $43,098, or 41% in the nine months ended January 31, 2011 compared to same period of 2010. This increase was mainly due to increases in welfare fees and insurance fees in the nine months ended January 31, 2011. |
|------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

----

|                      |   | January 31, 2011 |         |   | April 30, 2010 |   |
|---------------------------|--------|----------------------------|--------------|--------|--------------------------|--------|
| Cash and cash equivalents |   | $                          | 2,801,465    |   |                     | $      | 6,413,448 |   |
| Current assets            |   |                       | 202,247,312  |   |                     |   | 164,811,655 |   |
| Current liabilities       |   |                       | (251,989,258 | )      |                     |   | (220,461,001 | ) |
| Working capital           |   |                       | (49,741,946  | )      |                     |   | (55,649,346 | ) |
| Shareholder’ equity |   | $                          | 54,533,956   |   |                     | $      | 47,206,094 |   |

|                                     |   | January 31,2011 |        |   | April 30,2010 |   |
|------------------------------------------|--------|----------------------|-------------|--------|--------------------|--------|
| Short-term bank borrowings               |   | $                    | 112,798,503 |   |               | $      | 104,156,201 |   |
| Due to a related party                   |   |                 | 3,310,289   |   |               |   | 1,426,048 |   |
| Notes payable                            |   |                 | 55,436,601  |   |               |   | 43,080,547 |   |
| Product and other financing arrangements |   |                 | 36,321,376  |   |               |   | 43,871,968 |   |
| Total short-term debt                    |   | $                    | 207,866,769 |   |               |   | 192,534,764 |   |

----

|                                                 |   | Year Ended April 30, |        |
|------------------------------------------------------|--------|-------------------------------------|-------------|
|                                                 |   | 2010                                |        |   | 2009 |   |
|                                                 |   | $                                   |        |   | $ |   |
| Net cash (used in) provided by operating activities  |   |                                | (27,381,738 | ) |   |   | 18,337,581 |   |
| Net cash used in investing activities                |   |                                | (7,999,264  | ) |   |   | (70,277,295 | ) |
| Net cash provided by financing activities            |   |                                | 39,822,114  |   |   |   | 46,959,262 |   |
| Net increase (decrease) in cash and cash equivalents |   |                                | 4,441,112   |   |   |   | (4,980,452 | ) |
| Effect of exchange rate changes on cash              |   |                                | (7,893      | ) |   |   | 1,302,914 |   |
| Cash and cash equivalents at beginning of year       |   |                                | 1,980,229   |   |   |   | 5,657,767 |   |
| Cash and cash equivalents at end of year             |   |                                | 6,413,448   |   |   |   | 1,980,229 |   |

----

|                                                 |   | Nine Months Ended January 31, |        |
|------------------------------------------------------|--------|---------------------------------------------------|-------------|
|                                                 |   | 2011                                              |        |   | 2010 |   |
|                                                 |   | $                                                 |        |   | $ |   |
| Net cash (used in) operating activities              |   |                                              | (2,680,375  | ) |   |   | (14,639,830 | ) |
| Net cash used in investing activities                |   |                                              | (10,901,140 | ) |   |   | (19,039,538 | ) |
| Net cash provided by financing activities            |   |                                              | 4,954,846   |   |   |   | 36,582,335 |   |
| Net (decrease) increase in cash and cash equivalents |   |                                              | (8,626,669  | ) |   |   | 2,902,967 |   |
| Effect of exchange rate changes on cash              |   |                                              | 5,014,686   |   |   |   | 309,048 |   |
| Cash and cash equivalents at beginning of period     |   |                                              | 6,413,448   |   |   |   | 1,980,229 |   |
| Cash and cash equivalents at end of period           |   |                                              | 2,801,465   |   |   |   | 5,192,244 |   |

----

| (1) | As of April 30, 2010, the Company entered into two guarantee contracts to serve as guarantor for bank loans borrowed by an unrelated party, Shanxi Rong Xiang Trading Co., Ltd. (“SXRX”). If SXRX defaults on the repayment of its bank loans when they fall due, the Company is required to repay the outstanding balance. As of April 30, 2010, the guarantee provided for the bank loans borrowed by SXRX was $4,388,660, which consists of the following: |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                            |   | April 30, 2010 |      |
|---------------------------------|--------|--------------------------|-----------|
| Due November 14, 2010 (expired) |   | $                        | 2,194,330 |   |
| Due October 27, 2010 (expired)  |   |                     | 2,194,330 |   |
| Total                           |   | $                        | 4,388,660 |   |

| (2) | As of April 30, 2010, the Company entered into a guarantee contract to serve as guarantor for bank loans borrowed by an unrelated party, Taiyuan North Metallurgy Co., Ltd with a guarantee amount of $2,925,773, due May 26, 2010 (expired). |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (3) | As of April 30, 2010, the Company entered into four guarantee contracts to serve as guarantor for bank loans borrowed by an unrelated party, Shanxi Tongyuan Industrial Group Co., Ltd. (“SXTY”). SXTY also provided a cross guarantee for bank loans of $5,851,546 borrowed by the Company. As of April 30, 2010, the guarantee provided for the bank loans borrowed by SXTY was $7,753,299, which consists of the following: |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|                           |   | April 30, 2010 |      |
|--------------------------------|--------|--------------------------|-----------|
| Due January 14, 2011 (expired) |   | $                        | 2,633,196 |   |
| Due August 5, 2010 (expired)   |   |                     | 3,657,216 |   |
| Due April 24, 2011 (expired)   |   |                     | 1,462,887 |   |
| Total                          |   | $                        | 7,753,299 |   |

| (4) | As of April 30, 2010, the Company entered into one guarantee contract to serve as guarantor for bank loans borrowed by an unrelated party, Shanxi Wanbang Industry and Trade Co., Ltd. (“SXWB”) with a guarantee amount of $4,388,660, due June 4, 2010 (expired). SXWB also provided a cross guarantee for the short-term loan of $2,925,773 borrowed by the Company. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (5) | As of April 30, 2010, the Company entered into two guarantee contracts to serve as guarantor for bank loans borrowed by an unrelated party, Shanxi Taishi Metallurgy Industry Group Co., Ltd. (“SXTS”). SXTS also provided a cross guarantee for bank loans of $2,925,773 borrowed by the Company. As of April 30, 2010, the guarantee provided for the bank loans borrowed by SXTS was $7,314,433, which consists of the following: |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                            |   | April 30, 2010 |      |
|---------------------------------|--------|--------------------------|-----------|
| Due May 18, 2011 (expired)      |   | $                        | 4,388,660 |   |
| Due February 24, 2011 (expired) |   |                     | 2,925,773 |   |
| Total                           |   | $                        | 7,314,433 |   |

| (6) | As of April 30, 2010, the Company entered into two guarantee contracts to serve as guarantor for bank loans borrowed by an unrelated party, Taiyuan North Metallurgy Co., Ltd (“TYNM”). As of April 30, 2010, the guarantee provided for bank loans borrowed by TYNM was $2,121,186, which consists of the following: |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                           |   | April 30, 2010 |      |
|--------------------------------|--------|--------------------------|-----------|
| Due April 30, 2011 (expired)   |   | $                        | 1,097,165 |   |
| Due November 4, 2010 (expired) |   |                     | 1,024,021 |   |
| Total                          |   | $                        | 2,121,186 |   |

| (7) | As of April 30, 2010, the Company entered into two guarantee contracts to serve as guarantor for bank loans borrowed by an unrelated party, Shanxi Guanghua Pipe produce Co., Ltd. (“SXGH”). SXGH also provided a cross guarantee for bank loan of $4,388,660 borrowed by the Company. As of April 30, 2010, the guarantee provided for the bank loans borrowed by SXGH was $29,257,732, which consists of the following: |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                           |   | April 30, 2010 |       |
|--------------------------------|--------|--------------------------|------------|
| Due October 10, 2010 (expired) |   | $                        | 7,314,433  |   |
| Due April 13, 2010 (expired)   |   |                     | 7,314,433  |   |
| Due October 10, 2016 (expired) |   |                     | 14,628,866 |   |
| Total                          |   | $                        | 29,257,732 |   |

| (8) | As of April 30, 2010, the Company entered into two guarantee contracts to serve as guarantor for bank loans borrowed by an unrelated party, Shanxi XinDayu Material Co., Ltd. (“SXXD”). SXXD also provided a cross guarantee for bank loans of $4,388,660 borrowed by the Company. As of April 30, 2010, the guarantee provided for the bank loans borrowed by SXXD was $3,218,351, which consists of the following: |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                            |   | April 30, 2010 |      |
|---------------------------------|--------|--------------------------|-----------|
| Due December 16, 2010 (expired) |   | $                        | 1,462,887 |   |
| Due March 25, 2011 (expired)    |   |                     | 1,755,464 |   |
| Total                           |   | $                        | 3,218,351 |   |

----

| (9) | As of April 30, 2010, the Company entered into a guarantee contract to serve as guarantor for bank loans borrowed by an unrelated party, Shanxi Changxin Steel Co., Ltd. from the Huaxia Bank with a guarantee amount of $1,755,464, due September 13, 2010 (expired). |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (10) | As of April 30, 2010, the Company entered into a guarantee contract to serve as guarantor for the bank loans borrowed by the Shanxi Xinhuayuan Trading Co., Ltd. from the Jinshang  Bank with a guarantee amount of $1,755,464, due June 25, 2010 (expired). |
|------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| (1) | As of January 31, 2011, the Company entered into two guarantee contracts to serve as guarantor for bank loans borrowed by an unrelated party, Shanxi Rong Xiang Trading Co., Ltd. (“SXRX”). If SXRX defaults on the repayment of its bank loans when they fall due, the Company is required to repay the outstanding balance. As of January 31, 2011, the guarantee provided for the bank loans borrowed by SXRX was $ 3,949,627, which consists of the following: |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                  |   | January 31, 2011 |      |
|-----------------------|--------|----------------------------|-----------|
| Due November 15, 2011 |   | $                          | 1,670,996 |   |
| Due October 25, 2011  |   |                       | 2,278,631 |   |
| Total                 |   | $                          | 3,949,627 |   |

| (2) | As of January 31, 2011, the Company entered into three guarantee contract to serve as guarantor for bank loans borrowed by an unrelated party, Taiyuan North Metallurgy Co., Ltd with a guarantee amount of $4,481,307, which consists of the following: |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                         |   | January 31, 2011 |      |
|------------------------------|--------|----------------------------|-----------|
| Due July 12, 2011 (expired)  |   | $                          | 2,278,631 |   |
| Due April 30, 2011 (expired) |   |                       | 1,139,315 |   |
| Due May 19, 2011 (expired)   |   |                       | 1,063,361 |   |
| Total                        |   | $                          | 4,481,307 |   |

| (3) | As of January 31, 2011, the Company entered into four guarantee contracts to serve as guarantor for bank loans borrowed by an unrelated party, Shanxi Tongyuan Industrial Group Co., Ltd. (“SXTY”). SXTY also provided a cross guarantee for bank loans of $9,114,524 borrowed by the Company. As of January 31, 2011, the guarantee provided for the bank loans borrowed by SXTY was $8,354,980, which consists of the following: |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                            |   | January 31, 2011 |      |
|---------------------------------|--------|----------------------------|-----------|
| Due February 24, 2011 (expired) |   | $                          | 3,797,718 |   |
| Due April 24, 2011 (expired)    |   |                       | 1,519,087 |   |
| Due May 19, 2011 (expired)      |   |                       | 3,038,175 |   |
| Total                           |   | $                          | 8,354,980 |   |

| (4) | As of January 31, 2011, the Company entered into one guarantee contract to serve as guarantor for bank loans borrowed by an unrelated party, Shanxi Wanbang Industry and Trade Co., Ltd. (“SXWB”) with a guarantee amount of $4,557,262, due November 29, 2011. SXWB also provided a cross guarantee for the short-term loan of $10,633,611 borrowed by the Company. |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (5) | As of January 31, 2011, the Company entered into two guarantee contracts to serve as guarantor for bank loans borrowed by an unrelated party, Shanxi Taishi Metallurgy Industry Group Co., Ltd. (“SXTS”). SXTS also provided a cross guarantee for bank loans of $9,114,524 borrowed by the Company. As of January 31, 2011, the guarantee provided for the bank loans borrowed by SXTS was $7,595,437, which consists of the following: |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                            |   | January 31, 2011 |      |
|---------------------------------|--------|----------------------------|-----------|
| Due February 24, 2011 (expired) |   | $                          | 3,038,175 |   |
| Due May 19, 2011 (expired)      |   |                       | 4,557,262 |   |
| Total                           |   | $                          | 7,595,437 |   |

----

| (6) | As of January 31, 2011, the Company entered into two guarantee contracts to serve as guarantor for bank loans borrowed by an unrelated party, Shanxi Guanghua Pipe produce Co., Ltd. (“SXGH”). SXGH also provided a cross guarantee for bank loan of $15,950,417 borrowed by the Company. As of January 31, 2011, the guarantee provided for the bank loans borrowed by SXGH was $30,381,747, which consists of the following: |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                        |   | January 31, 2011 |       |
|-----------------------------|--------|----------------------------|------------|
| Due April 13, 2011(expired) |   | $                          | 7,595,437  |   |
| Due October 29, 2011        |   |                       | 7,595,437  |   |
| Due October 12, 2016        |   |                       | 15,190,873 |   |
| Total                       |   | $                          | 30,381,747 |   |

| (7) | As of January 31, 2011, the Company entered into two guarantee contracts to serve as guarantor for bank loans borrowed by an unrelated party, Shanxi XinDayu Material Co., Ltd. (“SXXD”). SXXD also provided a cross guarantee for bank loans of $4,557,262 borrowed by the Company. As of January 31, 2011, the guarantee provided for the bank loans borrowed by SXXD was $6,312,726, which consists of the following: |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                         |   | January 31, 2011 |      |
|------------------------------|--------|----------------------------|-----------|
| Due June 10, 2011 (expired)  |   | $                          | 4,557,262 |   |
| Due March 25, 2011 (expired) |   |                       | 1,755,464 |   |
| Total                        |   | $                          | 6,312,726 |   |

| (8) | As of January 31, 2011, the Company entered into a guarantee contract to serve as guarantor for bank loans borrowed by an unrelated party, Shanxi Changxin Steel Co., Ltd. from the Huaxia Bank with a guarantee amount of $1,670,996, due September 27, 2011. |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (9) | As of January 31, 2011, the Company entered into two guarantee contract to serve as guarantor for bank loans borrowed by an unrelated party, Dalian Binggong Trading Co., Ltd. with a guarantee amount of $12,152,699, which consists of the following: |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                        |   | January 31, 2011 |       |
|-----------------------------|--------|----------------------------|------------|
| Due September 3, 2011       |   | $                          | 4,557,262  |   |
| Due July 18, 2011 (expired) |   |                       | 7,595,437  |   |
| Total                       |   | $                          | 12,152,699 |   |

| (10) | As of January 31, 2011, the Company entered into a guarantee contract to serve as guarantor for bank loans borrowed by an unrelated party, Shanxi Xin Bang Trading Co., Ltd. (“SXXB”) from the China Minsheng Bank with a guarantee amount of $6,076,349, due September 26, 2011. SXXB also provided a cross guarantee for bank loans of $6,076,349 borrowed by the Company. |
|------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (11) | As of January 31, 2011, the Company entered into a guarantee contract to serve as guarantor for bank loans borrowed by an unrelated party, Shanxi Jintaoyuan Coal Co., Ltd. from the China Minsheng Bank with a guarantee amount of $30,381,747, due January 31, 2012. |
|------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|                           |   | Payments Due by Period |        |
|--------------------------------|--------|---------------------------------------|-------------|
|                           |   | Total                                 |        |   | Less than 1 year |   |   | Over 1 year |   |
| Contractual Obligations:       |   |                                  |        |   |   |   |   |   |   |
| Short-term bank borrowings     |   | $                                     | 112,798,503 |   |   | $ | 112,798,503 |   |   | $ | - |   |
| Notes payable                  |   |                                  | 55,436,601  |   |   |   | 55,436,601 |   |   |   | - |   |
| Product finance arrangements   |   |                                  | 36,321,376  |   |   |   | 36,321,376 |   |   |   | - |   |
| Total Contractual Obligations: |   | $                                     | 204,556,480 |   |   | $ | 204,556,480 |   |   | $ | - |   |

| ITEM 6. | DIRECTORS, SENIOR MANAGEMENT, AND EMPLOYEES |
|---------|---------------------------------------------|

| Name          |   | Position                             |   | Age |
|---------------|--------|--------------------------------------|--------|-----|
| Xudong Liu    |   | Chairman                             |   | 31  |
| Ning Li       |   | Chief Executive Officer and Director |   | 42  |
| Hongteng Yang |   | Chief Financial Officer              |   | 55  |
| Lizi Liu      |   | Director                             |   | 46  |

----

----

|   | · | each of our directors and executive officers; and |
|--------|--------|---------------------------------------------------|

|   | · | each person known to us to beneficially own more than 5% of our outstanding ordinary shares. |
|--------|--------|----------------------------------------------------------------------------------------------|

|                                               | SharesBeneficially Owned |   |
|----------------------------------------------------|--------------------------|--------|
|                                               | Number                   |   |   | % |   |
| Directors, Executive Officers and 5% Shareholders: |                     |   |   |   |   |
| Xudong Liu                                         |                     |   | 7,632,000 |   |   |   | 63.6 | % |
| Ning Li                                            |                     |   | 660,000 |   |   |   | 5.5 | % |
| Lizi Liu                                           |                     |   | 900,000 |   |   |   | 7.5 | % |
| Hongteng Yang                                      |                     |   | 288,000 |   |   |   | 2.4 | % |
| Total                                              |                     |   | 9,480,000 |   |   |   | 79.0 | % |

| ITEM 7. | MAJOR SHAREHOLDERS AND RELATED PARTY TRANSACTIONS |
|---------|---------------------------------------------------|

----

| ITEM 8. | FINANCIAL INFORMATION |
|---------|-----------------------|

| ITEM 9. | THE OFFER AND LISTING |
|---------|-----------------------|

----

| ITEM 10. | ADDITIONAL INFORMATION |
|----------|------------------------|

----

----

----

|   | · | Foreign Currency Administration Rules of 1996, as amended; and |
|--------|--------|----------------------------------------------------------------|

|   | · | Administrative Rules of the Settlement, Sale and Payment of Foreign Exchange of 1996. |
|--------|--------|---------------------------------------------------------------------------------------|

----

----

| ITEM 11. | QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK |
|----------|------------------------------------------------------------|

----

| ITEM 12. | DESCRIPTION OF SECURITIES OTHER THAN EQUITY SECURITIES |
|----------|--------------------------------------------------------|

| ITEM 13. | DEFAULTS, DIVIDEND ARREARAGES AND DELINQUENCIES |
|----------|-------------------------------------------------|

| ITEM 14. | MATERIAL MODIFICATIONS TO THE RIGHTS OF SECURITY HOLDERS AND USE OF PROCEEDS |
|----------|------------------------------------------------------------------------------|

----

| ITEM 15. | CONTROLS AND PROCEDURES |
|----------|-------------------------|

| ITEM 16. | RESERVED |
|----------|----------|

| ITEM 16A. | AUDIT COMMITTEE FINANCIAL EXPERT |
|-----------|----------------------------------|

| ITEM 16B. | CODE OF ETHICS |
|-----------|----------------|

| ITEM 16C. | PRINCIPAL ACCOUNTIING FEES AND SERVICES |
|-----------|-----------------------------------------|

| ITEM 16D. | EXEMPTIONS FROM THE LISTING STANDARDS FOR AUDIT COMMITTEES |
|-----------|------------------------------------------------------------|

| ITEM 16E. | PURCHASES OF EQUITY SECURITIES BY THE ISSUER AND AFFILIATED PURCHASERS |
|-----------|------------------------------------------------------------------------|

| ITEM 16F. | CHANGE IN REGISTRANT’S CERTIFYING ACCOUNTANT |
|-----------|----------------------------------------------------|

----

| ITEM 16G. | CORPORATE GOVERNANCE |
|-----------|----------------------|

----

| ITEM 17. | FINANCIAL STATEMENTS |
|----------|----------------------|

| ITEM 18. | FINANCIAL STATEMENTS |
|----------|----------------------|

| ITEM 19. | EXHIBITS |
|----------|----------|

| ExhibitNumber |    | Description of Documents                                                                                                                                                                                                               |
|---------------|--------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 1.1           |         | Amended and Restated Memorandum of Association                                                                                                                                                                                         |
| 1.2           |         | Amended and Restated Articles of Association                                                                                                                                                                                           |
| 4.1           |         | Share Exchange Agreement by and among Rich Mountain Enterprises Limited, the shareholder of Rich Mountain Enterprises Limited, Rise King Management Limited, and the shareholders of Rise King Management Limited, dated July 30, 2011 |
| 4.2           |         | Form of Employment Contract by and between Shanxi Guolian Pipe Industry Group Co., Ltd. and employees and executive officers                                                                                                           |
| 4.3           |         | Form of Non-Disclosure Agreement by and between Shanxi Guolian Pipe Industry Group Co., Ltd. and employees and executive officers                                                                                                      |
| 4.4           |         | Form of Purchase Contract between Shanxi Taigang Stainless Steel Co., Ltd. and Shanxi Guolian Pipe Industry Group Co., Ltd.                                                                                                            |
| 4.5           |         | Purchase and Sale Agreement on Hot Rolled Steel Strip, dated January 1, 2008, between Shanxi Yuci Guolian Steel Pipe Co., Ltd. and Delong Steel Co., Ltd.                                                          |
| 4.6           |         | Warehousing, Purchase and Sale Agreement on Medium-Width Steel Strips, dated March 31, 2009, between Shanxi Guolian Spiral Tabulation Co., Ltd. and Lingyuan Iron & Steel Co., Ltd.                                                |
| 4.7           |         | Purchase and Sale Contract, dated August 5, 2008, between Shanxi Guolian Pipe Industry Group Co., Ltd. and Dalian Binggong Trade Co., Ltd.                                                                                             |
| 4.8           |         | Exclusive Business Cooperation Agreement between Shanxi Ruixingtong Business Consulting Co., Ltd. and Shanxi Zhonglian Gas Development Co., Ltd. dated April 3, 2011                                                                   |
| 4.9           |         | Exclusive Option Agreement by and among Shanxi Ruixingtong Business Consulting Co., Ltd., Juan Kong and Shanxi Zhonglian Gas Development Co., Ltd. dated April 3, 2011                                                                 |
| 4.10          |         | Share Pledge Agreement by and among Shanxi Ruixingtong Business Consulting Co., Ltd., Juan Kong and Shanxi Zhonglian Gas Development Co., Ltd. dated April 3, 2011                                                                     |
| 4.11          |         | Power of Attorney Authorized by Juan Kong to Shanxi Ruixingtong Business Consulting Co., Ltd. dated April 3, 2011                                                                                                                      |
| 4.12          |         | Exclusive Business Cooperation Agreement between Shanxi Shipaipu Business Consulting Co., Ltd. and Shanxi Guolian Pipe Industry Group Co., Ltd. dated April 3, 2011                                                                    |
| 4.13          |         | Exclusive Option Agreement by and among Shanxi Shipaipu Business Consulting Co., Xudong Liu, Lizi Liu and Shanxi Guolian Pipe Industry Group Co., Ltd., dated April 3, 2011                                                  |
| 4.14          |         | Share Pledge Agreement by and among Shanxi Shipaipu Business Consulting Co., Xudong Liu, Lizi Liu and Shanxi Guolian Pipe Industry Group Co., Ltd., dated April 3, 2011                                                      |
| 4.15          |         | Power of Attorney Authorized by Xudong Liu to Shanxi Shipaipu Business Consulting Co., Ltd., dated April 3, 2011                                                                                                                       |
| 4.16          |         | Power of Attorney Authorized by Liu Lizi to Shanxi Shipaipu Business Consulting Co., Ltd., dated April 3, 2011                                                                                                                         |
| 8.1           |         | Subsidiaries of the Registrant                                                                                                                                                                                                         |
| 15.1          |         | Consent of Weinberg & Company, P.A.                                                                                                                                                                                                |

----

| Sino Oil & Gas Pipe Holdings Limited(formerly Rich Mountain Enterprises Ltd.) |
|-----------------------------------------------------------------------------------|
|                                                                              |   |
| By:                                                                               | /s/ Xudong Liu |
|                                                                              | Name: Xudong Liu |
|                                                                              | Title:   Chairman |

----

----

| PAGES  |   | 1-2    |   | CONDENSED CONSOLIDATED BALANCE SHEETS AS OF JANUARY 31, 2011 AND APRIL 30, 2010 (UNAUDITED)                                          |
|--------|--------|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------|
|   |   |   |   |                                                                                                                                 |
| PAGE   |   | 3      |   | CONDENSED CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME FOR THE NINE MONTHS ENDED JANUARY 31, 2011 AND 2010 (UNAUDITED) |
|   |   |   |   |                                                                                                                                 |
| PAGES  |   | 4-5    |   | CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS FOR THE NINE MONTHS ENDED JANUARY 31, 2011 AND 2010 (UNAUDITED)                      |
|   |   |   |   |                                                                                                                                 |
| PAGES  |   | 6-40   |   | NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS FOR THE NINE MONTHS ENDED JANUARY 31, 2011 (UNAUDITED)                          |

----

| ASSETS                                                                                                                                    |   |
|-------------------------------------------------------------------------------------------------------------------------------------------|--------|
|                                                                                                                                      |   | January 31, |   |   | April 30, |   |
|                                                                                                                                      |   | 2011 |   |   | 2010 |   |
| CURRENT ASSETS                                                                                                                            |   |   |   |   |   |   |
| Cash and cash equivalents                                                                                                                 |   | $ | 2,801,465 |   |   | $ | 6,413,448 |   |
| Restricted cash                                                                                                                           |   |   | 50,114,660 |   |   |   | 49,078,779 |   |
| Accounts receivable, net of allowance for doubtful accounts of $224,172 and $215,878 at January 31, 2011 and April 30, 2010, respectively |   |   | 42,087,560 |   |   |   | 35,211,738 |   |
| Marketable securities                                                                                                                     |   |   | 198,307 |   |   |   | 178,467 |   |
| Inventories                                                                                                                               |   |   | 46,158,891 |   |   |   | 29,742,389 |   |
| Notes receivable                                                                                                                          |   |   | 15,916,907 |   |   |   | 9,921,858 |   |
| Prepayments for goods                                                                                                                     |   |   | 23,157,116 |   |   |   | 16,246,032 |   |
| Prepaid expenses and other receivables                                                                                                    |   |   | 3,007,557 |   |   |   | 1,766,315 |   |
| Due from employees                                                                                                                        |   |   | 648,366 |   |   |   | 409,322 |   |
| Due from related parties                                                                                                                  |   |   | 16,545,980 |   |   |   | 13,023,340 |   |
| Interest receivable from related parties, current portion                                                                                 |   |   | 1,610,503 |   |   |   | 886,240 |   |
| Deferred tax assets                                                                                                                       |   |   | - |   |   |   | 1,933,727 |   |
| Total Current Assets                                                                                                                      |   |   | 202,247,312 |   |   |   | 164,811,655 |   |
|                                                                                                                                      |   |   |   |   |   |   |   |   |
| LONG-TERM ASSETS                                                                                                                          |   |   |   |   |   |   |   |   |
| Plant and equipment, net                                                                                                                  |   |   | 55,450,860 |   |   |   | 56,488,868 |   |
| Land use rights, net                                                                                                                      |   |   | 2,884,350 |   |   |   | 2,826,947 |   |
| Long-term investment                                                                                                                      |   |   | 3,797,718 |   |   |   | 3,657,216 |   |
| Deposit for land use right                                                                                                                |   |   | 1,116,529 |   |   |   | 1,075,222 |   |
| Notes receivable from related parties                                                                                                     |   |   | 29,801,014 |   |   |   | 28,698,483 |   |
| Interest receivable from related parties                                                                                                  |   |   | 2,600,242 |   |   |   | 1,772,481 |   |
| Deferred tax assets                                                                                                                       |   |   | 1,350,280 |   |   |   | 1,059,167 |   |
| Goodwill                                                                                                                                  |   |   | 7,389,597 |   |   |   | 7,389,597 |   |
| Total Long-Term Assets                                                                                                                    |   |   | 104,390,590 |   |   |   | 102,967,981 |   |
|                                                                                                                                      |   |   |   |   |   |   |   |   |
| TOTAL ASSETS                                                                                                                              |   | $ | 306,637,902 |   |   | $ | 267,779,636 |   |

----

| LIABILITIES AND SHAREHOLDERS’ EQUITY                                   |   |
|------------------------------------------------------------------------------|--------|
|                                                                         |   |   |   |   |   |   |
|                                                                         |   | January 31, |   |   | April 30, |   |
|                                                                         |   | 2011 |   |   | 2010 |   |
| CURRENT LIABILITIES                                                          |   |   |   |   |   |   |
| Short-term bank borrowings                                                   |   | $ | 112,798,503 |   |   | $ | 104,156,201 |   |
| Accounts payable                                                             |   |   | 17,166,365 |   |   |   | 9,249,968 |   |
| Customer deposits                                                            |   |   | 20,478,373 |   |   |   | 13,714,140 |   |
| Due to related parties                                                       |   |   | 3,310,289 |   |   |   | 1,426,048 |   |
| Notes payable                                                                |   |   | 55,436,601 |   |   |   | 43,080,547 |   |
| Product and other financing arrangements                                     |   |   | 36,321,376 |   |   |   | 43,871,968 |   |
| Deferred tax liabilities                                                     |   |   | 579,732 |   |   |   | - |   |
| Income tax payable                                                           |   |   | 1,268,454 |   |   |   | 1,264,157 |   |
| Other payables and accrued expenses                                          |   |   | 4,629,565 |   |   |   | 3,697,972 |   |
| Total Current Liabilities                                                    |   |   | 251,989,258 |   |   |   | 220,461,001 |   |
|                                                                         |   |   |   |   |   |   |   |   |
| TOTAL LIABILITIES                                                            |   |   | 251,989,258 |   |   |   | 220,461,001 |   |
|                                                                         |   |   |   |   |   |   |   |   |
| COMMITMENTS AND CONTINGENCIES                                                |   |   |   |   |   |   |   |   |
|                                                                         |   |   |   |   |   |   |   |   |
| SHAREHOLDERS’ EQUITY                                                   |   |   |   |   |   |   |   |   |
| Common stock, $1 par value; 50,000 shares authorized, issued and outstanding |   |   | 50,000 |   |   |   | 50,000 |   |
| Additional paid-in capital                                                   |   |   | 52,584,504 |   |   |   | 52,584,504 |   |
| Retained deficit                                                             |   |   | (303,993 | ) |   |   | (6,276,505 | ) |
| Accumulated other comprehensive income                                       |   |   | 2,203,445 |   |   |   | 848,095 |   |
| TOTAL SHAREHOLDERS’ EQUITY                                             |   |   | 54,533,956 |   |   |   | 47,206,094 |   |
|                                                                         |   |   |   |   |   |   |   |   |
| NON-CONTROLLING INTEREST                                                     |   |   | 114,688 |   |   |   | 112,541 |   |
|                                                                         |   |   |   |   |   |   |   |   |
| TOTAL EQUITY                                                                 |   |   | 54,648,644 |   |   |   | 47,318,635 |   |
|                                                                         |   |   |   |   |   |   |   |   |
| TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY                             |   | $ | 306,637,902 |   |   | $ | 267,779,636 |   |

----

|                                                |   | Nine Months EndedJanuary 31, |         |
|-----------------------------------------------------|--------|------------------------------|--------------|
|                                                |   | 2011                         |         |   | 2010 |   |
| REVENUES                                            |   | $                            | 146,455,472  |   |   | $ | 118,766,033 |   |
| COST OF GOODS SOLD                                  |   |                         | (125,462,453 | ) |   |   | (99,605,081 | ) |
| GROSS PROFIT                                        |   |                         | 20,993,019   |   |   |   | 19,160,952 |   |
|                                                |   |                         |         |   |   |   |   |   |
| Selling and marketing                               |   |                         | (3,447,506   | ) |   |   | (3,017,835 | ) |
| General and administrative                          |   |                         | (2,762,907   | ) |   |   | (2,278,514 | ) |
| Research and development                            |   |                         | -            |   |   |   | (24,001 | ) |
| INCOME FROM OPERATIONS                              |   |                         | 14,782,606   |   |   |   | 13,840,602 |   |
|                                                |   |                         |         |   |   |   |   |   |
| Interest expense                                    |   |                         | (9,844,493   | ) |   |   | (6,368,063 | ) |
| Interest income                                     |   |                         | 1,874,907    |   |   |   | 1,896,105 |   |
| Other income (expense), net                         |   |                         | 1,503,919    |   |   |   | (19,146 | ) |
|                                                |   |                         |         |   |   |   |   |   |
| INCOME BEFORE INCOME TAXES                          |   |                         | 8,316,939    |   |   |   | 9,349,498 |   |
|                                                |   |                         |         |   |   |   |   |   |
| INCOME TAXES                                        |   |                         | (2,342,280   | ) |   |   | (2,610,058 | ) |
|                                                |   |                         |         |   |   |   |   |   |
| NET INCOME                                          |   |                         | 5,974,659    |   |   |   | 6,739,440 |   |
|                                                |   |                         |         |   |   |   |   |   |
| NET INCOME ATTRIBUTABLE TO NON-CONTROLLING INTEREST |   |                         | (2,147       | ) |   |   | (13,291 | ) |
|                                                |   |                         |         |   |   |   |   |   |
| NET INCOME ATTRIBUTABLE TO CONTROLLING INTEREST     |   |                         | 5,972,512    |   |   |   | 6,726,149 |   |
|                                                |   |                         |         |   |   |   |   |   |
| OTHER COMPREHENSIVE (LOSS) INCOME                   |   |                         |         |   |   |   |   |   |
| Foreign currency translation loss                   |   |                         | 1,353,184    |   |   |   | 76,841 |   |
| Unrealized gain (loss) on marketable securities     |   |                         | 2,166        |   |   |   | 12,444 |   |
| OTHER COMPREHENSIVE INCOME (LOSS)                   |   |                         | 1,355,350    |   |   |   | 89,285 |   |
|                                                |   |                         |         |   |   |   |   |   |
| COMPREHENSIVE INCOME                                |   | $                            | 7,327,862    |   |   | $ | 6,815,434 |   |
|                                                |   |                         |         |   |   |   |   |   |
| WEIGHTED AVERAGE SHARES                             |   |                         |         |   |   |   |   |   |
| Basic and diluted                                   |   |                         | 50,000       |   |   |   | 50,000 |   |
| NET INCOME PER SHARE                                |   |                         |         |   |   |   |   |   |
| Basic and diluted                                   |   | $                            | 119.45       |   |   | $ | 134.52 |   |

----

|                                                                          |   | Nine Months Ended January 31, |         |
|-------------------------------------------------------------------------------|--------|-------------------------------|--------------|
|                                                                          |   | 2011                          |         |   | 2010 |   |
| CASH FLOWS FROM OPERATING ACTIVITIES:                                         |   |                          |         |   |   |   |
| Net income                                                                    |   | $                             | 5,972,512    |   |   | $ | 6,726,149 |   |
| Adjustments to reconcile net income to net cash used in operating activities: |   |                          |         |   |   |   |   |   |
| Non-controlling interest                                                      |   |                          | 2,147        |   |   |   | 13,292 |   |
| Depreciation and amortization                                                 |   |                          | 5,198,086    |   |   |   | 4,446,983 |   |
| Deferred income taxes                                                         |   |                          | 2,222,345    |   |   |   | 2,500,449 |   |
| Changes in operating assets and liabilities:                                  |   |                          |         |   |   |   |   |   |
| (Increase) Decrease In:                                                       |   |                          |         |   |   |   |   |   |
| Accounts receivable                                                           |   |                          | (6,884,115   | ) |   |   | (11,245,336 | ) |
| Inventories                                                                   |   |                          | (16,416,501  | ) |   |   | (2,070,073 | ) |
| Prepaid expenses and other receivables                                        |   |                          | (1,205,425   | ) |   |   | (990,096 | ) |
| Prepayments for goods                                                         |   |                          | (6,946,901   | ) |   |   | (8,483,165 | ) |
| Due from employees                                                            |   |                          | (239,044     | ) |   |   | (457,040 | ) |
|                                                                          |   |                          |         |   |   |   |   |   |
| Increase (Decrease) In:                                                       |   |                          |         |   |   |   |   |   |
| Accounts payable                                                              |   |                          | 7,916,397    |   |   |   | 9,129,452 |   |
| Other payables and accrued expenses                                           |   |                          | 931,594      |   |   |   | 647,467 |   |
| Income tax payable                                                            |   |                          | 4,298        |   |   |   | (89,442 | ) |
| Customer deposits                                                             |   |                          | 6,764,232    |   |   |   | (14,768,470 | ) |
| Net cash used in operating activities                                         |   |                          | (2,680,375   | ) |   |   | (14,639,830 | ) |
|                                                                          |   |                          |         |   |   |   |   |   |
| CASH FLOWS FROM INVESTING ACTIVITIES:                                         |   |                          |         |   |   |   |   |   |
| Purchases of plant and equipment                                              |   |                          | (2,317,208   | ) |   |   | (2,345,552 | ) |
| Purchases of construction in progress                                         |   |                          | -            |   |   |   | (2,179,412 | ) |
| Purchases of marketable securities                                            |   |                          | (14,905      | ) |   |   | (102,547 | ) |
| (Increase) decrease in notes receivable                                       |   |                          | (5,508,071   | ) |   |   | 6,066,009 |   |
| Accrued interest from related parties                                         |   |                          | (1,422,556   | ) |   |   | (1,061,540 | ) |
| Due from related parties                                                      |   |                          | (1,638,400   | ) |   |   | (17,655,773 | ) |
| Payment for long-term investment                                              |   |                          | -            |   |   |   | (1,760,723 | ) |
| Net cash used in investing activities                                         |   |                          | (10,901,140  | ) |   |   | (19,039,538 | ) |
|                                                                          |   |                          |         |   |   |   |   |   |
| CASH FLOWS FROM FINANCING ACTIVITIES:                                         |   |                          |         |   |   |   |   |   |
| Restricted cash                                                               |   |                          | (1,035,881   | ) |   |   | 23,279,452 |   |
| Proceeds from short-term loans                                                |   |                          | 165,183,142  |   |   |   | 142,761,033 |   |
| Repayments of short-term loans                                                |   |                          | (160,629,750 | ) |   |   | (109,380,731 | ) |
| Proceeds from product and other financing arrangements                   |   |                          | 96,134,499   |   |   |   | 42,191,311 |   |
| Repayments for product and other financing arrangements                       |   |                          | (105,196,482 | ) |   |   | (28,566,770 | ) |
| Increase (decrease) in notes payable                                          |   |                          | 10,499,318   |   |   |   | (33,701,960 | ) |
| Net cash provided by financing activities                                     |   |                          | 4,954,846    |   |   |   | 36,582,335 |   |
|                                                                          |   |                          |         |   |   |   |   |   |
| NET (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS                          |   |                          | (8,626,669   | ) |   |   | 2,902,967 |   |
|  Effect of exchange rate changes on cash                                 |   |                          | 5,014,686    |   |   |   | 309,048 |   |
|  Cash and cash equivalents at beginning of period                        |   |                          | 6,413,448    |   |   |   | 1,980,229 |   |
| CASH AND CASH EQUIVALENTS AT END OF PERIOD                                    |   | $                             | 2,801,465    |   |   | $ | 5,192,244 |   |

----

|                                 |   | Nine Months Ended January 31, |      |
|--------------------------------------|--------|-------------------------------|-----------|
|                                 |   | 2011                          |      |   | 2010 |   |
|                                 |   |                          |      |   |   |   |
| SUPPLEMENTARY CASH FLOW INFORMATION: |   |                          |      |   |   |   |
| Income taxes paid                    |   | $                             | 90,822    |   |   | $ | 179,396 |   |
| Interest paid                        |   | $                             | 8,142,991 |   |   | $ | 5,982,763 |   |
|                                 |   |
| SUPPLEMENTAL NON-CASH DISCLOSURES:   |   |

----

----

----

| Name                                                              |   | Place And DateOfEstablishment/Incorporation |   | Percentage ofOwnership    |   | Principal Activities                                                                                                                             |
|-------------------------------------------------------------------|--------|---------------------------------------------|--------|---------------------------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------|
| Shanxi Guolian Pipe Industry Group Co., Ltd. (“SXGL”) |   | Shanxi, PRCMay 12, 2003.                    |   | VIE of Shanxi Shipaipu    |   | Design, development, manufacturing, and commercialization of spiral submerged-arc welding (SSAW) pipe and electric resistance welding (ERW) pipe |
|                                                              |   |                                        |   |                      |   |                                                                                                                                             |
| Shanxi Guolian Spiral Tubulation Co., Ltd. (“ SXSP”)  |   | Shanxi, PRCMarch 15, 2000.                  |   | 97.7%owned by SXGL        |   | Design, development, manufacture, and commercialization of spiral submerged-arc welding pipe (SSAW).                                             |
|                                                              |   |                                        |   |                      |   |                                                                                                                                             |
| Xi'an Guolian Spiral Tubulation Co., Ltd. (“ XASP”)   |   | Xian, PRCFebruary 22, 2002.                 |   | 99%owned bySXGL           |   | Manufacture and sales of spiral submerged-arc welding pipe (SSAW).                                                                               |
|                                                              |   |                                        |   |                      |   |                                                                                                                                             |
| Shanxi Guolian Pipe Technology Co., Ltd.(“SXPT “)     |   | Shanxi, PRCJune 14, 2007                    |   | 100%owned by SXGL         |   | Technology research, development and test of pipes                                                                                               |
|                                                              |   |                                        |   |                      |   |                                                                                                                                             |
| Shanxi Zhonglian Gas Development Co., Ltd (“SXZL”)    |   | Shanxi, PRCNovember 12, 2004.               |   | VIE of Shanxi Ruixingtong |   | Manufacture and sales of gas equipment.                                                                                                          |

----

|   | (a) | BRAVE KING ( a wholly-owned subsidiary of RISE KING) |
|--------|-----|------------------------------------------------------|

|   | (b) | Shanxi Shipaipu ( a wholly-owned subsidiary of BRAVE KING) |
|--------|-----|------------------------------------------------------------|

|   | (c) | SOUND WAY ( a wholly-owned subsidiary of RISE KING) |
|--------|-----|-----------------------------------------------------|

|   | (d) | MAJOR AIM (a wholly-owned subsidiary of  SOUND WAY) |
|--------|-----|---------------------------------------------------------------|

|   | (e) | Shanxi Ruixingtong (a wholly-owned subsidiary of MAJOR AIM) |
|--------|-----|-------------------------------------------------------------|

|   | (f) | SXGL (a VIE of Shanxi Shipaipu); |
|--------|-----|----------------------------------|

|   | (g) | SXSP (97.7% subsidiary of SXGL); |
|--------|-----|----------------------------------|

|   | (h) | XASP (99% subsidiary of SXGL); |
|--------|-----|--------------------------------|

|   | (i) | SXPT (100% subsidiary of SXGL); |
|--------|-----|---------------------------------|

|   | (j) | SXZL (a VIE of Shanxi Ruixingtong) |
|--------|-----|------------------------------------|

----

| (a) | Economic and Political Risks |
|-----|------------------------------|

| (b) | Fair Value of Financial Instruments |
|-----|-------------------------------------|

|                  |   |                               |      |   |                             |   |      | Fair Value Measurements at Reporting DateUsing             |   |
|-----------------------|--------|------------------------------------|-----------|--------|----------------------------------|--------|-----------|------------------------------------------------------------|--------|
|                  |   | CarryingValue as ofJanuary 31,2011 |      |   | CarryingValue as ofApril 30,2010 |   |      | Quoted Prices inActive Marketsfor IdenticalAssets(Level 1) |   |   | SignificantOtherObservableInputs(Level 2) |   |   | SignificantUnobservableInputs(Level 3) |   |
| Bank acceptance notes |   | $                                  | 6,273,049 |   |                             |   | 3,300,272 |                                                       |   | $ | 6,273,049 |   |   |   | - |   |   |   | - |   |
| Marketable securities |   |                               | 198,307   |   |                             |   | 178,467   |                                                       |   |   | 198,307 |   |   |   | - |   |   |   | - |   |

----

| (c) | Fair Value of Financial Instruments (Continued) |
|-----|-------------------------------------------------|

| (d) | Earnings Per Share |
|-----|--------------------|

| (e) | Cash and Cash Equivalents |
|-----|---------------------------|

| (f) | Marketable Securities |
|-----|-----------------------|

| (g) | Inventories |
|-----|-------------|

----

| (h) | Prepayments |
|-----|-------------|

| (i) | Product Financing Arrangements |
|-----|--------------------------------|

| (j) | Long-Term Investments |
|-----|-----------------------|

| (k) | Plant and Equipment |
|-----|---------------------|

| Buildings        | 30 years    |
|------------------|-------------|
| Machinery        | 10~12 years |
| Motor vehicles   | 5 years     |
| Office equipment | 5 years     |

----

| (l) | Construction in Progress |
|-----|--------------------------|

| (m) | Land Use Rights |
|-----|-----------------|

| (n) | Impairment of Long-Term Assets |
|-----|--------------------------------|

| (o) | Goodwill |
|-----|----------|

----

| (p) | Goodwill (Continued) |
|-----|----------------------|

| (q) | Revenue Recognition |
|-----|---------------------|

| (r) | Retirement Benefits |
|-----|---------------------|

| (s) | Income Taxes |
|-----|--------------|

----

| (t) | Shipping and Handling |
|-----|-----------------------|

| (u) | Foreign Currency Translation |
|-----|------------------------------|

|                                                  |   | January31, 2011 |   |   | April30, 2010 |   |   | January31, 2010 |   |
|-------------------------------------------------------|--------|-----------------|--------|--------|---------------|--------|--------|-----------------|--------|
| Period end RMB : US$ exchange rate                    |   | $               | 6.5829 |   |          | $      | 6.8358 |            |   | $ | - |   |
| Average RMB : US$ exchange rate for nine months ended |   |            | 6.7094 |   |          |   | -      |            |   |   | 6.8261 |   |

| (v) | Comprehensive Income |
|-----|----------------------|

| (w) | Segment and Geographic Reporting |
|-----|----------------------------------|

----

| (x) | Non-Controlling Interest |
|-----|--------------------------|

|                                     |   | January 31,2011 |        |   | April 30,2010 |   |
|------------------------------------------|--------|-----------------|-------------|--------|---------------|--------|
| Short-term bank borrowings               |   | $               | 112,798,503 |   |          | $      | 104,156,201 |   |
| Due to a related party                   |   |            | 3,310,289   |   |          |   | 1,426,048 |   |
| Notes payable                            |   |            | 55,436,601  |   |          |   | 43,080,547 |   |
| Product and other financing arrangements |   |            | 36,321,376  |   |          |   | 43,871,968 |   |
| Total short-term debt                    |   | $               | 207,866,769 |   |          |   | 192,534,764 |   |

| (a) | Customers |
|-----|-----------|

|      |   | SalesNine Months Ended |   |   | Accounts Receivable |   |
|-----------|--------|------------------------|--------|--------|---------------------|--------|
| Customers |   | January 31,2011        |   |   | January 31,2010     |   |   | January 31,2011 |   |   | April 30,2010 |   |
| Company A |   |                   | 10.2   | %      |                |   | 7.5 | % |   |   | 3.5 | % |   |   | 11.2 | % |
| Company B |   |                   | 8.2    | %      |                |   | - |   |   |   | 4.7 | % |   |   | 18.7 | % |
| Company C |   |                   | 8.2    | %      |                |   | 7.4 | % |   |   | 4.9 | % |   |   | 7.8 | % |
| Company D |   |                   | 5.1    | %      |                |   | 4.5 | % |   |   | 3.4 | % |   |   | 2.0 | % |

----

| (b)  | Suppliers |
|-----------|-----------|

|      |   | PurchasesNine Months Ended |   |   | Accounts Payable |   |
|-----------|--------|----------------------------|--------|--------|------------------|--------|
| Suppliers |   | January 31,2011            |   |   | January 31,2010  |   |   | January 31,2011 |   |   | April 30,2010 |   |
| Company F |   |                       | 15.5   | %      |             |   | 12.0 | % |   |   | - |   |   |   | 28.1 | % |
| Company G |   |                       | 10.6   | %      |             |   | 10.3 | % |   |   | - |   |   |   | 26.8 | % |
| Company H |   |                       | 10.3   | %      |             |   | - |   |   |   | 28.8 | % |   |   | 0.2 | % |
| Company I |   |                       | 7.7    | %      |             |   | - |   |   |   | - |   |   |   | 3.7 | % |
| Company J |   |                       | 6.8    | %      |             |   | 7.5 | % |   |   | - |   |   |   | 3.7 | % |

|                                                   |   |   |   |   | January 31,2011 |       |   | April 30,2010 |   |
|--------------------------------------------------------|--------|--------|--------|--------|-----------------|------------|--------|---------------|--------|
|                                                   |   |   |   |   |            |       |   |          |   |
| Notes payable-bank acceptance notes                    |   | 18(b)  |   |   | $               | 34,096,462 |   |          | $      | 33,574,710 |   |
| Domestic letters of credit financing                   |   | 17(b)  |   |   |            | 12,691,720 |   |          |   | 13,504,251 |   |
| Savings deposits as guarantee for due to a shareholder |   | 10(d)  |   |   |            | 759,544    |   |          |   | 1,462,887 |   |
| Bidding for project                                    |   |   |   |   |            | 2,545,239  |   |          |   | 521,096 |   |
| Interest income                                        |   |   |   |   |            | 21,695     |   |          |   | 15,835 |   |
| Total                                                  |   |   |   |   | $               | 50,114,660 |   |          | $      | 49,078,779 |   |

|              |   | January 31,2011 |       |   | April 30,2010 |   |
|-------------------|--------|-----------------|------------|--------|---------------|--------|
| Raw materials     |   | $               | 18,099,866 |   |          | $      | 9,022,627 |   |
| Work-in-progress  |   |            | 280,381    |   |          |   | 263,119 |   |
| Finished goods    |   |            | 27,778,644 |   |          |   | 20,456,643 |   |
| Total inventories |   | $               | 46,158,891 |   |          | $      | 29,742,389 |   |

----

|                                                                      |   | January 31,2011 |       |   | April 30,2010 |   |
|---------------------------------------------------------------------------|--------|-----------------|------------|--------|---------------|--------|
|                                                                      |   |            |       |   |          |   |
| Notes receivable from unrelated companies:                                |   |            |       |   |          |   |
| Due October 7, 2011, interest free                                        |   | $               | 151,909    |   |          | $      | - |   |
| Due December 20, 2011, interest free                                      |   |            | 303,817    |   |          |   | - |   |
| Due June 21, 2011, interest free(settled on its due date)                 |   |            | 151,909    |   |          |   | - |   |
| Due July 11, 2011, interest free(settled on its due date)                 |   |            | 455,726    |   |          |   | - |   |
| Due February 9, 2011, interest free (settled on its due date)             |   |            | 555,073    |   |          |   | - |   |
| Due February 12, 2011, interest free (settled on its due date)            |   |            | 7,113,972  |   |          |   | - |   |
| Due April 29, 2011, interest at 5.31% per annum (Renewed on its due date) |   |            | 911,452    |   |          |   | 877,732 |   |
| Due October 7, 2010, interest free (settled on its due date)              |   |            | -          |   |          |   | 146,289 |   |
| Due December 21, 2010, interest free (settled on its due date)            |   |            | -          |   |          |   | 146,289 |   |
| Due December 31, 2010, interest free (settled on its due date)            |   |            | -          |   |          |   | 731,443 |   |
| Due May 10, 2010, interest free (settled on its due date)                 |   |            | -          |   |          |   | 1,607,201 |   |
| Due May 15, 2010 interest free (settled on its due date)                  |   |            | -          |   |          |   | 3,112,632 |   |
| Sub total of notes receivable from unrelated companies                    |   |            | 9,643,858  |   |          |   | 6,621,586 |   |
|                                                                      |   |            |       |   |          |   |   |   |
| Bank acceptance notes:                                                    |   |            |       |   |          |   |   |   |
| Due February 5, 2011 (settled on its due date)                            |   |            | 7,595      |   |          |   | - |   |
| Due February 7, 2011 (settled on its due date)                            |   |            | 30,382     |   |          |   | - |   |
| Due April 13, 2011 (settled on its due date)                              |   |            | 15,191     |   |          |   | - |   |
| Due April 14, 2011 (settled on its due date)                              |   |            | 15,191     |   |          |   | - |   |
| Due May 15, 2011 (settled on its due date)                                |   |            | 75,954     |   |          |   | - |   |
| Due June 2, 2011 (settled on its due date)                                |   |            | 10,634     |   |          |   | - |   |
| Due June 2, 2011 (settled on its due date)                                |   |            | 26,561     |   |          |   | - |   |
| Due July 13, 2011(settled on its due date)                                |   |            | 15,191     |   |          |   | - |   |
| Due July 23, 2011(settled on its due date)                                |   |            | 1,519,087  |   |          |   | - |   |
| Due July 27, 2011(settled on its due date)                                |   |            | 4,557,263  |   |          |   | - |   |
| Due May 30, 2010 (settled on its due date)                                |   |            | -          |   |          |   | 14,629 |   |
| Due June 25, 2010 (settled on its due date)                               |   |            | -          |   |          |   | 7,314 |   |
| Due July 28, 2010 (settled on its due date)                               |   |            | -          |   |          |   | 2,194,330 |   |
| Due August 3, 2010 (settled on its due date)                              |   |            | -          |   |          |   | 29,258 |   |
| Due August 8, 2010 (settled on its due date)                              |   |            | -          |   |          |   | 76,070 |   |
| Due August 9, 2010 (settled on its due date)                              |   |            | -          |   |          |   | 7,314 |   |
| Due August 10, 2010 (settled on its due date)                             |   |            | -          |   |          |   | 43,887 |   |
| Due September 8, 2010 (settled on its due date)                           |   |            | -          |   |          |   | 49,738 |   |
| Due October 21, 2010 (settled on its due date)                            |   |            | -          |   |          |   | 877,732 |   |
| Sub total bank acceptance notes                                           |   |            | 6,273,049  |   |          |   | 3,300,272 |   |
|                                                                      |   |            |       |   |          |   |   |   |
| Total                                                                     |   | $               | 15,916,907 |   |          | $      | 9,921,858 |   |

----

| (I) | Due From Related Parties |
|-----|--------------------------|

|                                          |   |   |   | January 31,2011 |       |   | April 30,2010 |   |
|-----------------------------------------------|--------|--------|--------|-----------------|------------|--------|---------------|--------|
|                                          |   |   |   |            |       |   |          |   |
| Taiyuan Guangfa Material Trading Co., Ltd     |   | (a)    |   | $               | 2,827,886  |   |          | $      | 7,745,403 |   |
| Shanxi Jieyuan Material Trading Co., Ltd      |   | (b)    |   |            | 13,718,094 |   |          |   | 5,158,764 |   |
| Taiyuan Tianlong Machine Manufacture Co., Ltd |   | (c)    |   |            | -          |   |          |   | 25,796 |   |
| Bai Jie                                       |   | (e)    |   |            | -          |   |          |   | 93,377 |   |
| Total                                         |   |   |   | $               | 16,545,980 |   |          | $      | 13,023,340 |   |

| (II) | Due To Related Parties |
|------|------------------------|

|                                          |   |   |   | January 31,2011 |      |   | April 30,2010 |   |
|-----------------------------------------------|--------|--------|--------|-----------------|-----------|--------|---------------|--------|
|                                          |   |   |   |            |      |   |          |   |
| Xudong Liu                                    |   | (d)    |   | $               | 1,481,111 |   |          | $      | 1,426,048 |   |
| Taiyuan Tianlong Machine Manufacture Co., Ltd |   | (c)    |   |            | 1,829,178 |   |          |   |   |   |
| Total                                         |   |   |   | $               | 3,310,289 |   |          | $      | 1,426,048 |   |

| (III) | Due From Employees |
|-------|--------------------|

|                     |   |   |   | January 31, 2011 |    |   | April 30, 2010 |   |
|--------------------------|--------|--------|--------|------------------|---------|--------|---------------------|--------|
|                     |   |   |   |             |    |   |                |   |
| Current                  |   |   |   | $                | 648,366 |   |                | $      | 409,322 |   |
| Total due from employees |   | (f)    |   | $                | 648,366 |   |                | $      | 409,322 |   |

----

|                            |   | January 31,2011 |        |   | April 30,2010 |   |
|---------------------------------|--------|-----------------|-------------|--------|---------------|--------|
| At cost:                        |   |            |        |   |          |   |
| Buildings                       |   | $               | 5,251,384   |   |          | $      | 4,795,023 |   |
| Machinery and equipment         |   |            | 70,865,616  |   |          |   | 66,940,817 |   |
| Office equipment                |   |            | 375,539     |   |          |   | 319,727 |   |
| Motor vehicles                  |   |            | 2,179,461   |   |          |   | 1,824,593 |   |
|                            |   |            | 78,672,000  |   |          |   | 73,880,160 |   |
| Less : Accumulated depreciation |   |            |        |   |          |   |   |   |
| Buildings                       |   |            | (407,144    | )      |          |   | (268,817 | ) |
| Machinery and equipment         |   |            | (21,211,111 | )      |          |   | (15,786,739 | ) |
| Office equipment                |   |            | (248,217    | )      |          |   | (196,451 | ) |
| Motor vehicles                  |   |            | (1,354,668  | )      |          |   | (1,139,285 | ) |
|                            |   |            | (23,221,140 | )      |          |   | (17,391,292 | ) |
| Plant and equipment, net        |   | $               | 55,450,860  |   |          | $      | 56,488,868 |   |

|                           |   | January 31,2011 |      |   | April 30,2010 |   |
|--------------------------------|--------|-----------------|-----------|--------|---------------|--------|
| Cost of land use rights        |   | $               | 3,345,164 |   |          | $      | 3,221,405 |   |
| Less: Accumulated amortization |   |            | (460,814  | )      |          |   | (394,458 | ) |
| Land use rights, net           |   | $               | 2,884,350 |   |          | $      | 2,826,947 |   |

----

| 2011 (Three months) |   | $      | 16,436    |   |
|---------------------|--------|--------|-----------|--------|
| 2012                |   |   | 65,746    |   |
| 2013                |   |   | 65,746    |   |
| 2014                |   |   | 65,746    |   |
| 2015                |   |   | 65,746    |   |
| Thereafter          |   |   | 2,604,930 |   |
| Total               |   | $      | 2,884,350 |   |

|                                        |   | OwnershipInterest |    |   | January31, 2011 |    |      | OwnershipInterest |   |    | April 30,2010 |   |
|---------------------------------------------|--------|-------------------|---------|--------|-----------------|---------|-----------|-------------------|--------|---------|---------------|--------|
| At cost:                                    |   |              |    |   |            |    |      |              |   |    |          |   |
| Shanxi Zhong Lian Steel Guarantee Co., Ltd. |   |              | 8       | %      |            | $       | 3,645,810 |              |   |    | 8             | %      |   | $ | 3,510,927 |   |
| Jinzhong Credit Union Bank                  |   | <20            | %  |   |            | 151,908 |      |              | <20 | %  |          |   | 146,289 |   |
| Total                                       |   |              |    |   |            | $       | 3,797,718 |              |   |    |          |   |   | $ | 3,657,216 |   |

----

|                                                                                            |   |   |   |   | January 31,2011 |   |       | April 30,2010 |   |
|-------------------------------------------------------------------------------------------------|--------|--------|--------|--------|-----------------|--------|------------|---------------|--------|
|                                                                                            |   |   |   |   |            |   |       |          |   |
| Taiyuan Tianlong Machine Manufacture Co., Ltd, due April 30, 2013, interest at 6.91% per annum. |   |   | a)     |   |            | $      | 7,710,226  |          |   | $ | 7,424,976 |   |
|                                                                                            |   |   |   |   |            |   |       |          |   |   |   |   |
| Taiyuan Guangfa Material Trading Co., Ltd, due April 30, 2013, interest at 6.91% per annum.     |   |   | b)     |   |            |   | 1,239,037  |          |   |   | 1,193,197 |   |
|                                                                                            |   |   |   |   |            |   |       |          |   |   |   |   |
| Taiyuan Guangfa Material Trading Co., Ltd, due April 30, 2013, interest at 6.48% per annum.     |   |   | b)     |   |            |   | 4,678,455  |          |   |   | 4,505,369 |   |
|                                                                                            |   |   |   |   |            |   |       |          |   |   |   |   |
| Shanxi Jieyuan Material Trading Co., Ltd, due April 30, 2013, interest at 6.91% per annum       |   |   | c)     |   |            |   | 12,090,569 |          |   |   | 11,643,262 |   |
|                                                                                            |   |   |   |   |            |   |       |          |   |   |   |   |
| Shanxi Jieyuan Material Trading Co., Ltd, due April 30, 2013, interest at 6.48% per annum.      |   |   | c)     |   |            |   | 4,082,727  |          |   |   | 3,931,679 |   |
| Long-term portion                                                                               |   |   |   |   |            |   | 29,801,014 |          |   |   | 28,698,483 |   |

----

|                                           |   | January 31,2011 |       |   | April 30,2010 |   |
|------------------------------------------------|--------|-----------------|------------|--------|---------------|--------|
|                                           |   |            |       |   |          |   |   |   |
| Taiyuan Tianlong Machine Manufacture Co., Ltd. |   |            | 1,398,943  |   |          |   | 1,026,429 |   |
|                                           |   |            |       |   |          |   |   |   |
| Shanxi Jieyuan Material Trading Co., Ltd.      |   |            | 2,350,802  |   |          |   | 1,469,164 |   |
|                                           |   |            |       |   |          |   |   |   |
| Taiyuan Guangfa Material Trading Co., Ltd.     |   |            | 461,000    |   |          |   | 163,128 |   |
| Total                                          |   | $               | 4,210,745  |   |          |   | 2,658,721 |   |
|                                           |   |            |       |   |          |   |   |   |
| Less: Current portion                          |   |            | (1,610,503 | )      |          |   | (886,240 | ) |
| Long-term portion                              |   | $               | 2,600,242  |   |          | $      | 1,772,481 |   |

|                                |   |   |   | January 31,2011 |        |   | April 30,2010 |   |
|-------------------------------------|--------|--------|--------|-----------------|-------------|--------|---------------|--------|
| Short-term bank loans               |   | (a)    |   | $               | 82,167,434  |   |          | $      | 76,084,730 |   |
| Domestic letter of credit financing |   | (b)    |   |            | 30,631,069  |   |          |   | 28,071,471 |   |
|                                |   |   |   | $               | 112,798,503 |   |          | $      | 104,156,201 |   |

|   | (a) | Short-Term Bank Loans |
|--------|-----|-----------------------|

|   | The short-term bank loans consist of the following: |
|--------|-----------------------------------------------------|

|                                                                                                                                                          |   | January 31,2011 |      |   | April 30,2010 |   |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-----------------|-----------|--------|---------------|--------|
| Loans from Agriculture Bank of China:                                                                                                                         |   |            |      |   |          |   |
|                                                                                                                                                          |   |            |      |   |          |   |
| Monthly interest only payments at 6.372% per annum, due June 20, 2011, guaranteed by Shanxi Guanghua Pipeline Casting Co., Ltd. (Settled on its due date)     |   | $               | 3,493,901 |   |          | $      | - |   |
|                                                                                                                                                          |   |            |      |   |          |   |   |   |
| Monthly interest only payments at 6.372% per annum, due June 24, 2011, guaranteed by Shanxi Guanghua Pipeline Casting Co., Ltd. (Settled on its due date)     |   |            | 4,101,536 |   |          |   | - |   |
|                                                                                                                                                          |   |            |      |   |          |   |   |   |
| Monthly interest only payments at 6.372% per annum, due May 10, 2010, guaranteed by Shanxi 525 Storage and Transportation Co., Ltd. (Settled on its due date) |   |            | -         |   |          |   | 3,949,794 |   |

----

|   | (a) | Short-Term Bank Loans (continued) |
|--------|-----|-----------------------------------|

|                                                                                                                                                                                                                                                                     |   | January 31,2011 |             |   | April 30,2010 |   |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-----------------|------------------|--------|---------------|--------|
|                                                                                                                                                                                                                                                                     |   |            |             |   |          |   |   |   |
| Monthly interest only payments at 6.372% per annum, due June 25, 2010, guaranteed by Shanxi 525 Storage and Transportation Co., Ltd. (Settled on its due date)                                                                                                           |   | $               | -                |   |          | $      | 3,364,639 |   |
|                                                                                                                                                                                                                                                                     |   |            |             |   |          |   |   |   |
| Loans from Bank of China:                                                                                                                                                                                                                                                |   |            |             |   |          |   |   |   |
|                                                                                                                                                                                                                                                                     |   |            |             |   |          |   |   |   |
| Monthly interest only payments at 5.841% per annum, due June 25, 2011, guaranted by Shanxi Guanghua pipe Co. SXGL, Liu Lizi, and a shareholder, Xudong Liu.  (Settled on its due date)                                                                         |   |            | 2,278,631        |   |          |   | - |   |
|                                                                                                                                                                                                                                                                     |   |            |             |   |          |   |   |   |
| Loans from Bank of Communications:                                                                                                                                                                                                                                       |   |            |             |   |          |   |   |   |
|                                                                                                                                                                                                                                                                     |   |            |             |   |          |   |   |   |
| Monthly interest only payments at 6.903% per annum, due March 28, 2011, guaranteed by Taiyuan Rongfeng Energy Co., Ltd., Shanxi Zhongbao Technology & Trade Co., Ltd. and Shanxi Guanghua Cast Pipe Co., Ltd. (Settled on its due date)                              |   |            | 4,557,262        |   |          |   | - |   |
|                                                                                                                                                                                                                                                                     |   |            |             |   |          |   |   |   |
| Loans from Bank of Communications:                                                                                                                                                                                                                                       |   |            |             |   |          |   |   |   |
|                                                                                                                                                                                                                                                                     |   |            |             |   |          |   |   |   |
| Monthly interest only payments at 6.903% per annum, due August 12, 2010, guaranteed by Shanxi Guanghua Cast Pipe Co., Ltd., Shanxi Zhongbao Technology & Trade Co., Ltd., Taiyuan Rongfeng Energy Co., Ltd. and a shareholder, Xudong Liu. (Settled on its due date) |   |            | -                |   |          |   | 4,388,660 |   |
|                                                                                                                                                                                                                                                                     |   |            |             |   |          |   |   |   |
| Loans from Everbright Bank:                                                                                                                                                                                                                                              |   |            |             |   |          |   |   |   |
| Monthly interest only payments at 5.100% per annum, due May 25, 2011. Inventory of $14,624,477 were pledged as collateral. Also see Note 9. (Settled on its due date)                                                                                                    |   |            | 3,038,175        |   |          |   | - |   |
|                                                                                                                                                                                                                                                                     |   |            |             |   |          |   |   |   |
| Monthly interest only payments at 5.350% per annum, due July 14, 2011 guaranteed by Shanxi Wanbang Industry and Trade Co., Ltd., also see Note 24. (Settled on its due date)                                                                                             |   |            |   4,557,262 |   |          |   | - |   |
|                                                                                                                                                                                                                                                                     |   |            |             |   |          |   |   |   |
| Monthly interest only payments at 5.560% per annum, due April 22, 2011 guaranteed by Shanxi Wanbang Industry and Trade Co., Ltd., also see Note 24. (Settled on its due date)                                                                                            |   |            | 1,519,087        |   |          |   | - |   |

----

|   | (a) | Short-Term Bank Loans (continued) |
|--------|-----|-----------------------------------|

|                                                                                                                                                                                                                    |   | January 31,2011 |      |   | April 30,2010 |   |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-----------------|-----------|--------|---------------|--------|
|                                                                                                                                                                                                                    |   |            |      |   |          |   |   |   |
| Monthly interest only payments at 5.310% per annum, due April 25, 2010 guaranteed by Shanxi Wanbang Industry and Trade Co., Ltd., and collateralized by inventory owned by the Company. (Settled on its due date)       |   | $               | -         |   |          | $      | 2,925,773 |   |
|                                                                                                                                                                                                                    |   |            |      |   |          |   |   |   |
| Monthly interest only payments at 4.860% per annum, due May 7, 2010. Accounts receivable from Xinjiang Yinuo Co., Ltd. was pledged as collateral, which was collected before April 30, 2010. (Settled on its due date). |   |            | -         |   |          |   | 1,462,887 |   |
|                                                                                                                                                                                                                    |   |            |      |   |          |   |   |   |
| Monthly interest only payments at 4.860% per annum, due July 28, 2010. Accounts receivable of $897,447 of Xi’an Rongdi Pipe Group Co., Ltd. was pledged as collateral. (Settled on its due date).                 |   |            | -         |   |          |   | 4,388,660 |   |
|                                                                                                                                                                                                                    |   |            |      |   |          |   |   |   |
| Loans from China Construction Bank:                                                                                                                                                                                     |   |            |      |   |          |   |   |   |
|                                                                                                                                                                                                                    |   |            |      |   |          |   |   |   |
| Monthly interest only payments at 7.228% per annum, due November 22, 2011, secured by machinery and equipment owned by the company. Also see Note 12.                                                                   |   |            | 303,817   |   |          |   | - |   |
|                                                                                                                                                                                                                    |   |            |      |   |          |   |   |   |
| Monthly interest only payments at 7.228% per annum, due November 22, 2011, secured by machinery and equipment owned by the company. Also see Note 12.                                                                   |   |            | 455,726   |   |          |   | - |   |
|                                                                                                                                                                                                                    |   |            |      |   |          |   |   |   |
| Monthly interest only payments at 5.810% per annum, due January 29, 2012, secured by machinery and equipment owned by the Company. Also see Note 12.                                                                    |   |            | 5,468,714 |   |          |   | - |   |
|                                                                                                                                                                                                                    |   |            |      |   |          |   |   |   |
| Monthly interest only payments at 7.553% per annum, due January 29, 2012, secured by machinery and equipment owned by the company. Also see Note 12.                                                                    |   |            | 2,734,357 |   |          |   | - |   |
|                                                                                                                                                                                                                    |   |            |      |   |          |   |   |   |
| Monthly interest only payments at 5.310% per annum, due May 28, 2010, secured by machinery and equipment owned by the Company. (Settled on its due date)                                                                |   |            | -         |   |          |   | 731,443 |   |

----

|   | (a) | Short-Term Bank Loans (continued) |
|--------|-----|-----------------------------------|

|                                                                                                                                                              |   | January 31,2011 |      |   | April 30,2010 |   |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-----------------|-----------|--------|---------------|--------|
|                                                                                                                                                              |   |            |      |   |          |   |   |   |
| Monthly interest only payments at 5.310% per annum, due November 10, 2010, secured by machinery and equipment owned by the Company. (Settled on its due date)     |   | $               | -         |   |          | $      | 731,442 |   |
|                                                                                                                                                              |   |            |      |   |          |   |   |   |
| Monthly interest only payments at 5.310% per annum, due January 24, 2011, secured by machinery and equipment owned by the Company. (Settled on its due date)      |   |            | -         |   |          |   | 5,705,257 |   |
|                                                                                                                                                              |   |            |      |   |          |   |   |   |
| Monthly interest only payments at 5.310% per annum, due January 25, 2011, secured by machinery and equipment owned by the Company. (Settled on its due date)      |   |            | -         |   |          |   | 731,442 |   |
|                                                                                                                                                              |   |            |      |   |          |   |   |   |
| Monthly interest only payments at 5.310% per annum, due January 26, 2011, secured by machinery and equipment owned by the Company. (Settled on its due date)      |   |            | -         |   |          |   | 2,194,329 |   |
|                                                                                                                                                              |   |            |      |   |          |   |   |   |
| Loans from China Bohai Bank:                                                                                                                                      |   |            |      |   |          |   |   |   |
|                                                                                                                                                              |   |            |      |   |          |   |   |   |
| Monthly interest only payments at 6.116% per annum, due November 17, 2011, guaranteed by Jingzhong Wanbang Trading Company, also see Note 24.                |   |            | 2,278,631 |   |          |   | - |   |
|                                                                                                                                                              |   |            |      |   |          |   |   |   |
| Monthly interest only payments at 5.610% per annum, due May 18, 2011, guaranteed byJingzhong Wanbang Trading Company, also see Note 24. (Settled on its due date) |   |            | 2,278,631 |   |          |   | - |   |
|                                                                                                                                                              |   |            |      |   |          |   |   |   |
| Monthly interest only payments at 5.841% per annum, due October 22, 2010, guaranteed by a shareholder, Xudong Liu. (Settled on its due date)                      |   |            |      |   |          |   | 2,194,330 |   |
|                                                                                                                                                              |   |            |      |   |          |   |   |   |
| Loans from China Merchants Bank:                                                                                                                                  |   |            |      |   |          |   |   |   |
|                                                                                                                                                              |   |            |      |   |          |   |   |   |
| Monthly interest only payments at 7.553% per annum, due January 11, 2012, guaranteed by Jingzhong Xindayu Stainless Steel Co., Ltd. also see Note 24.             |   |            | 3,038,175 |   |          |   | - |   |
|                                                                                                                                                              |   |            |      |   |          |   |   |   |
| Monthly interest only payments at 6.903% per annum, due March 3, 2011, guaranteed by Shanxi Zhonglian Steel Guarantee Co., Ltd. (Settled on its due date)         |   |            | 1,519,087 |   |          |   | 1,462,887 |   |

----

|   | (a) | Short-Term Bank Loans (continued) |
|--------|-----|-----------------------------------|

|                                                                                                                                                                                                                                                                                              |   | January 31,2011 |      |   | April 30,2010 |   |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-----------------|-----------|--------|---------------|--------|
|                                                                                                                                                                                                                                                                                              |   |            |      |   |          |   |   |   |
| Monthly interest only payments at 6.903% per annum, due July 21, 2010, guaranteed by Shanxi XinDayu Material Co., Ltd., and a shareholder, Xudong Liu. (Settled on its due date)                                                                                                                  |   | $               | -         |   |          | $      | 2,925,773 |   |
|                                                                                                                                                                                                                                                                                              |   |            |      |   |          |   |   |   |
| Loans from CITIC Bank:                                                                                                                                                                                                                                                                            |   |            |      |   |          |   |   |   |
|                                                                                                                                                                                                                                                                                              |   |            |      |   |          |   |   |   |
| Monthly interest only payments at 6.903% per annum, due April 7, 2011, guaranteed by Shanxi Xin Da Yu Material Co., Ltd., also see Note 24. (Settled on its due date)                                                                                                                             |   |            | 1,519,087 |   |          |   | 1,462,887 |   |
|                                                                                                                                                                                                                                                                                              |   |            |      |   |          |   |   |   |
| Monthly interest only payments at 6.903% per annum, due May 20, 2011, guaranteed by Shanxi Taishi Metallurgical Industrial Co., Ltd., also see Note 24. (Settled on its due date)                                                                                                                 |   |            | 4,557,262 |   |          |   | - |   |
|                                                                                                                                                                                                                                                                                              |   |            |      |   |          |   |   |   |
| Monthly interest only payments at 6.903% per annum, due May 28, 2010, guaranteed by Shanxi Tongyuan Industrial Co., Ltd. (Settled on its due date)                                                                                                                                                |   |            | -         |   |          |   | 4,388,660 |   |
|                                                                                                                                                                                                                                                                                              |   |            |      |   |          |   |   |   |
| Loans from Industrial and Commercial Bank of China:                                                                                                                                                                                                                                               |   |            |      |   |          |   |   |   |
|                                                                                                                                                                                                                                                                                              |   |            |      |   |          |   |   |   |
| Monthly interest only payments at 7.2280% per annum, due December 20, 2011, guaranteed by Shanxi Guanghua Cast Pipe Co., Ltd., also see Note 24.                                                                                                                                                  |   |            | 1,519,087 |   |          |   | - |   |
|                                                                                                                                                                                                                                                                                              |   |            |      |   |          |   |   |   |
| Monthly interest only payments at 6.903% per annum, due January 12, 2011, guaranteed by Shanxi Taishi Metallurgical Industrial Co., Ltd. (Settled on its due date)                                                                                                                                |   |            | -         |   |          |   | 1,462,887 |   |
|                                                                                                                                                                                                                                                                                              |   |            |      |   |          |   |   |   |
| Loans from Huaxia Bank:                                                                                                                                                                                                                                                                           |   |            |      |   |          |   |   |   |
|                                                                                                                                                                                                                                                                                              |   |            |      |   |          |   |   |   |
| Monthly interest only payments at 5.865% per annum, due May 25, 2011, guaranteed by Taiyuan Rongfeng Co.,Ltd, Shanxi Zhongbao Technology & Trade Co., Ltd., Taiyuan Rongfeng Energy Co., Ltd, Shanxi Guolian Pipe Industry Co., Ltd, and a shareholder, Xudong Liu. (Settled on its due date) |   |            | 4,557,262 |   |          |   | - |   |

----

|   | (a) | Short-Term Bank Loans (continued) |
|--------|-----|-----------------------------------|

|                                                                                                                                                                                          |   | January 31,2011 |      |   | April 30,2010 |   |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-----------------|-----------|--------|---------------|--------|
| Loans from Huaxia Bank:                                                                                                                                                                       |   |            |      |   |          |   |
|                                                                                                                                                                                          |   |            |      |   |          |   |
| Monthly interest only payments at 5.832% per annum, due June 24, 2010, guaranteed by Shanxi Tongyuan Industrial Co., Ltd., and a shareholder, Xudong Liu. (Settled on its due date)           |   | $               | -         |   |          | $      | 1,462,887 |   |
|                                                                                                                                                                                          |   |            |      |   |          |   |   |   |
| Monthly interest only payments at 6.107% per annum, due December 25, 2010, guaranteed by Zhongbao Trading Co., Ltd., and Taiyuan Rongfeng Co., Ltd. (Settled on its due date)                 |   |            | -         |   |          |   | 4,388,660 |   |
|                                                                                                                                                                                          |   |            |      |   |          |   |   |   |
| Loans from Jinshang Bank:                                                                                                                                                                     |   |            |      |   |          |   |   |   |
|                                                                                                                                                                                          |   |            |      |   |          |   |   |   |
| Monthly interest only payments at 6.903% per annum, due June 10, 2011, guaranteed by Shanxi Zhonglian Steel Guarantee Co., Ltd. (Settled on its due date)                                     |   |            | 2,065,959 |   |          |   | - |   |
|                                                                                                                                                                                          |   |            |      |   |          |   |   |   |
| Monthly interest only payments at 6.903% per annum, due September 14, 2011, guaranteed by Shanxi Zhonglian Steel Guarantee Co. Ltd.                                                           |   |            | 972,216   |   |          |   | - |   |
|                                                                                                                                                                                          |   |            |      |   |          |   |   |   |
| Monthly interest only payments at 5.310% per annum, due November 19, 2010, guaranteed by Shanxi Zhonglian Steel Guarantee Co., Ltd., and a shareholder, Xudong Liu. (Settled on its due date) |   |            | -         |   |          |   | 1,462,887 |   |
|                                                                                                                                                                                          |   |            |      |   |          |   |   |   |
| Loans from China Minsheng Bank:                                                                                                                                                               |   |            |      |   |          |   |   |   |
|                                                                                                                                                                                          |   |            |      |   |          |   |   |   |
| Monthly interest only payments at 5.576% per annum, due September 8, 2011, guaranteed by Shanxi Xingbang Trading Company, also see Note 24.                                                   |   |            | 3,038,175 |   |          |   | - |   |
|                                                                                                                                                                                          |   |            |      |   |          |   |   |   |
| Monthly interest only payments at 5.576% per annum, due September 12, 2011, guaranteed by Shanxi Xingbang Trading Company, also see Note 24.                                                  |   |            | 3,038,175 |   |          |   | - |   |
|                                                                                                                                                                                          |   |            |      |   |          |   |   |   |
| Monthly interest only payments at 5.103% per annum, due July 11, 2010, guaranteed by XASP. (Settled on its due date)                                                                          |   |            | -         |   |          |   | 5,295,649 |   |
|                                                                                                                                                                                          |   |            |      |   |          |   |   |   |
| Monthly interest only payments at 5.346% per annum, due October 6, 2010. Inventory of $16,750,051 were pledged as collateral. (Settled on its due date)                                       |   |            | -         |   |          |   | 2,925,773 |   |

----

|   | (a) | Short-Term Bank Loans (continued) |
|--------|-----|-----------------------------------|

|                                                                                                                                                                               |   | January 31,2011 |      |   | April 30,2010 |   |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-----------------|-----------|--------|---------------|--------|
| Loans from National Development Bank:                                                                                                                                              |   |            |      |   |          |   |
|                                                                                                                                                                               |   |            |      |   |          |   |
| Monthly interest only payments at 5.767% per annum, due July 18, 2011, guaranteed by Taiyuan Shanxi SME Credit Guarantee Co., Ltd. (Settled on its due date)                       |   | $               | 2,582,448 |   |          | $      | - |   |
|                                                                                                                                                                               |   |            |      |   |          |   |   |   |
| Loans from Jinzhong Credit Union:                                                                                                                                                  |   |            |      |   |          |   |   |   |
|                                                                                                                                                                               |   |            |      |   |          |   |   |   |
| Monthly interest only payments at 9.756% per annum, due December 27, 2011, guaranteed by Shanxi Jinliheng Trading Co., Ltd.                                                        |   |            | 1,503,896 |   |          |   | - |   |
|                                                                                                                                                                               |   |            |      |   |          |   |   |   |
| Monthly interest only payments at 10.368% per annum, due December 27, 2010, guaranteed by Shanxi 525 Storage Transportation Co., Ltd. (Settled on its due date)                    |   |            | -         |   |          |   | 1,448,258 |   |
|                                                                                                                                                                               |   |            |      |   |          |   |   |   |
| Loans from Shanghai Pudong Development Bank:                                                                                                                                       |   |            |      |   |          |   |   |   |
|                                                                                                                                                                               |   |            |      |   |          |   |   |   |
| Monthly interest only payments at 6.372% per annum, due March 31, 2011, guaranteed by Shanxi Taishi Metallurgical Industrial Co., Ltd. also see Note 24. (Settled on its due date) |   |            | 1,519,087 |   |          |   | 1,462,887 |   |
|                                                                                                                                                                               |   |            |      |   |          |   |   |   |
| Monthly interest only payments at 6.372% per annum, due June 10, 2011, guaranteed by Shanxi Taishi Metallurgical Industrial Co., Ltd. also see Note 24. (Settled on its due date)  |   |            | 1,519,087 |   |          |   | - |   |
|                                                                                                                                                                               |   |            |      |   |          |   |   |   |
| Monthly interest only payments at 5.31% per annum, due June 12, 2011, guaranteed by Shanxi SME Credit Guarantee Co., Ltd. (Settled on its due date)                                |   |            | 1,519,087 |   |          |   | - |   |
|                                                                                                                                                                               |   |            |      |   |          |   |   |   |
| Monthly interest only payments at 6.153% per annum, due July 19, 2011, guaranteed by ShanXi Tongyuan Industry Group Company, also see Note 24. (Settled on its due date)           |   |            | 4,557,262 |   |          |   | - |   |
|                                                                                                                                                                               |   |            |      |   |          |   |   |   |
| Monthly interest only payments at 5.865% per annum, due April 26, 2011, guaranteed by Shanxi Taishi Metallurgical Industrial Co., Ltd. also see Note 24. (Settled on its due date) |   |            | 1,519,087 |   |          |   | - |   |

----

|   | (h) | Short-Term Bank Loans (continued) |
|--------|-----|-----------------------------------|

|                                                                                                                                                                                            |   | January 31,2011 |       |   | April 30,2010 |   |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-----------------|------------|--------|---------------|--------|
|                                                                                                                                                                                            |   |            |       |   |          |   |   |   |
| Monthly interest only payments at 5.610% per annum, due May 3, 2011, guaranteed by Shanxi Tongyuan Co. Guarantee, also see Note 24. (Settled on its due date)                                   |   | $               | 2,278,632  |   |          | $      | - |   |
|                                                                                                                                                                                            |   |            |       |   |          |   |   |   |
| Monthly interest only payments at 5.885% per annum, due June 18, 2011, guaranteed by Shanxi Tongyuan Co. Guarantee, also see Note 24. (Settled on its due date)                                 |   |            | 2,278,633  |   |          |   | - |   |
|                                                                                                                                                                                            |   |            |       |   |          |   |   |   |
| Monthly interest only payments at 5.885% per annum, due June 2, 2010, guaranteed by Shanxi SME Credit Guarantee Co., Ltd. (Settled on its due date)                                             |   |            | -          |   |          |   | 1,462,887 |   |
|                                                                                                                                                                                            |   |            |       |   |          |   |   |   |
| Monthly interest only payments at 6.372% per annum, due June 18, 2010, guaranteed by Shanxi Taishi Metallurgical Industrial Co., Ltd. (Settled on its due date)                                 |   |            | -          |   |          |   | 1,462,887 |   |
|                                                                                                                                                                                            |   |            |       |   |          |   |   |   |
| Monthly interest only payments at 4.860% per annum, due May 10, 2010. Accounts receivable of $1,389,727 of Taiyuan Reli Co., Ltd. was pledged as collateral. (Settled on its due date),         |   |            | -          |   |          |   | 2,194,329 |   |
|                                                                                                                                                                                            |   |            |       |   |          |   |   |   |
| Monthly interest only payments at 4.860% per annum, due July 31, 2010. Accounts receivable of $1,389,727 of Taiyuan Reli Co., Ltd. was pledged as collateral. (Settled on its due date)         |   |            | -          |   |          |   | 2,194,329 |   |
|                                                                                                                                                                                            |   |            |       |   |          |   |   |   |
| Monthly interest only payments at 5.589% per annum, due September 21, 2010. Accounts receivable of $6,570,475 of Datong Thermal Co., Ltd. was pledged as collateral. (Settled on its due date). |   |            | -          |   |          |   | 4,388,660 |   |
|                                                                                                                                                                                            |   |            |       |   |          |   |   |   |
| Monthly interest only payments at 5.589% per annum, due October 28, 2010. Accounts receivable of $6,570,475 of Datong Thermal Co., Ltd. was pledged as collateral. (Settled on its due date).   |   |            | -          |   |          |   | 1,462,887 |   |
|                                                                                                                                                                                            |   |            |       |   |          |   |   |   |
| Total                                                                                                                                                                                           |   | $               | 82,167,434 |   |          | $      | 76,084,730 |   |

----

|   | (i) | Domestic Letters of Credit Financing |
|--------|-----|--------------------------------------|

|                                            |   | January 31,2011 |       |   | April 30,2010 |   |
|-------------------------------------------------|--------|-----------------|------------|--------|---------------|--------|
| Due March 16, 2011 (settled on its due date)    |   | $               | 6,076,349  |   |          | $      |   |   |
| Due April 2, 2011 (settled on its due date)     |   |            | 1,971,840  |   |          |   |   |   |
| Due May 1, 2011 (settled on its due date)       |   |            | 1,368,500  |   |          |   |   |   |
| Due May 17, 2011 (settled on its due date)      |   |            | 3,365,097  |   |          |   |   |   |
| Due May 15, 2011 (settled on its due date)      |   |            | 6,076,349  |   |          |   |   |   |
| Due February 15, 2011 (settled on its due date) |   |            | 3,038,175  |   |          |   |   |   |
| Due June 14, 2011 (settled on its due date)     |   |            | 4,976,531  |   |          |   |   |   |
| Due July 5, 2011 (settled on its due date)      |   |            | 3,758,228  |   |          |   |   |   |
| Due May 6, 2010 (settled on its due date)       |   |            |       |   |          |   | 889,229 |   |
| Due May 18, 2010 (settled on its due date)      |   |            |       |   |          |   | 427,678 |   |
| Due May 28, 2010 (settled on its due date)      |   |            |       |   |          |   | 3,251,927 |   |
| Due June 10, 2010 (settled on its due date)     |   |            |       |   |          |   | 405,296 |   |
| Due July 1, 2010 (settled on its due date)      |   |            |       |   |          |   | 3,936,477 |   |
| Due July 13, 2010 (settled on its due date)     |   |            |       |   |          |   | 3,072,037 |   |
| Due August 6, 2010 (settled on its due date)    |   |            |       |   |          |   | 2,361,904 |   |
| Due August 11, 2010 (settled on its due date)   |   |            |       |   |          |   | 1,807,323 |   |
| Due October 26, 2010 (settled on its due date)  |   |            |       |   |          |   | 1,898,827 |   |
| Due June 4, 2010 (settled on its due date)      |   |            |       |   |          |   | 5,851,546 |   |
| Due July 16, 2010 (settled on its due date)     |   |            |       |   |          |   | 4,169,227 |   |
|                                            |   | $               | 30,631,069 |   |          | $      | 28,071,471 |   |

----

|                               |   |   |   | January 31,2011 |       |   | April 30,2010 |   |
|------------------------------------|--------|--------|--------|-----------------|------------|--------|---------------|--------|
| Notes payable to unrelated parties |   | (a)    |   | $               | 1,288,186  |   |          | $      | 1,459,961 |   |
| Bank acceptance notes              |   | (b)    |   |            | 54,148,415 |   |          |   | 41,620,586 |   |
| Total                              |   |   |   | $               | 55,436,601 |   |          | $      | 43,080,547 |   |

|   | (a) | Notes Payable to Unrelated Parties |
|--------|-----|------------------------------------|

|                                                                    |   | January 31,2011 |      |   | April 30,2010 |   |
|-------------------------------------------------------------------------|--------|-----------------|-----------|--------|---------------|--------|
|                                                                    |   |            |      |   |          |   |
| Due December 30, 2011, interest free, unsecured                         |   | $               | 455,726   |   |          | $      | 304,280 |   |
| Due April 30, 2011, interest at 24% per annum (settled on its due date) |   |            | 315,970   |   |          |   | 1,024,021 |   |
| Due May 11, 2011, interest free, unsecured (settled on its due date)    |   |            | 379,772   |   |          |   | 131,660 |   |
| Due April 30, 2011, interest free, unsecured (settled on its due date)  |   |            | 136,718   |   |          |   |   |   |
| Subtotal                                                                |   | $               | 1,288,186 |   |          | $      | 1,459,961 |   |

----

|   | (b) | Bank Acceptance Notes |
|--------|-----|-----------------------|

|                                                     |   | January 31,2011 |       |   | April 30,2010 |   |
|----------------------------------------------------------|--------|-----------------|------------|--------|---------------|--------|
| Bank acceptance notes (aggregated by month of maturity): |   |            |       |   |          |   |
| Due February, 2011 (settled on its due date)             |   | $               | 13,755,336 |   |          | $      |   |   |
| Due March, 2011 (settled on its due date)                |   |            | 2,719,166  |   |          |   |   |   |
| Due April, 2011 (settled on its due date)                |   |            | 7,139,710  |   |          |   |   |   |
| Due May, 2011 (settled on its due date)                  |   |            | 12,912,242 |   |          |   |   |   |
| Due June, 2011(settled on its due date)                  |   |            | 15,190,874 |   |          |   |   |   |
| Due July, 2011 (settled on its due date)                 |   |            | 2,431,087  |   |          |   |   |   |
| Due May, 2010 (settled on its due date)                  |   |            |       |   |          |   | 5,266,392 |   |
| Due June, 2010 (settled on its due date)                 |   |            |       |   |          |   | 15,453,934 |   |
| Due July, 2010 (settled on its due date)                 |   |            |       |   |          |   | 7,899,587 |   |
| Due August, 2010 (settled on its due date)               |   |            |       |   |          |   | 4,886,041 |   |
| Due September, 2010 (settled on its due date)            |   |            |       |   |          |   | 5,627,725 |   |
| Due October, 2010 (settled on its due date)              |   |            |       |   |          |   | 2,486,907 |   |
| Total                                                    |   | $               | 54,148,415 |   |          | $      | 41,620,586 |   |

----

|                                                                        |   |   | January 31,2011 |       |   | April 30,2010 |   |
|-----------------------------------------------------------------------------|--------|--------|-----------------|------------|--------|---------------|--------|
| Due November 11, 2011, interest at 1% per 75 days                           | (a)    |   | $               | 1,519,087  |   |          | $      | - |   |
| Due November 24, 2011, interest at 1% per 75 days                           | (a)    |   |            | 1,822,905  |   |          |   | - |   |
| Due December 26, 2011, interest at 1% per 75 days                           | (a)    |   |            | 1,519,087  |   |          |   | - |   |
| Due February 8, 2011, interest at 1% per 75 days (settled on its due date)  | (a)    |   |            | 4,557,262  |   |          |   | - |   |
| Due February 13, 2011, interest at 1% per 75 days (settled on its due date) | (a)    |   |            | 4,557,262  |   |          |   | - |   |
| Due March 12, 2011, interest at 1% per 75 days (settled on its due date)    | (a)    |   |            | 4,557,262  |   |          |   | - |   |
| Due April 14, 2011, interest at 1% per 75 days (settled on its due date)    | (a)    |   |            | 4,557,262  |   |          |   | - |   |
| Due March 31, 2011, interest at 1.5% per 90 days (settled on its due date)  | (b)    |   |            | 759,543    |   |          |   | 21,050,938 |   |
| Due April 31, 2011, interest at 1.5% per 90 days (settled on its due date)  | (b)    |   |            | 22,786     |   |          |   | - |   |
| Due June 30, 2011, interest at 1.5% per 90 days (settled on its due date)   | (b)    |   |            | 759,543    |   |          |   | - |   |
| Due September 30, 2011, interest at 1.5% per 90 days                        | (b)    |   |            | 5,316,806  |   |          |   | - |   |
| Due December, 2011, interest at 1.5% per 90 days                            | (b)    |   |            | 6,372,571  |   |          |   | - |   |
| Due May 8, 2010, interest at 1% per 75 days (settled on its due date)       | (a)    |   |            | -          |   |          |   | 3,510,926 |   |
| Due May 16, 2010, interest at 1% per 75 days (settled on its due date)      | (a)    |   |            | -          |   |          |   | 5,266,392 |   |
| Due June 17, 2010, interest at 1% per 75 days (settled on its due date)     | (a)    |   |            | -          |   |          |   | 3,510,928 |   |
| Due July 14, 2010, interest at 1% per 75 days (settled on its due date)     | (a)    |   |            | -          |   |          |   | 3,510,928 |   |
| Due July 5, 2010, interest at 1% per 75 days (settled on its due date)      | (a)    |   |            | -          |   |          |   | 3,510,928 |   |
| Due July 11, 2010, interest at 1% per 75 days (settled on its due date)     | (a)    |   |            | -          |   |          |   | 3,510,928 |   |
|                                                                        |   |   |            |       |   |          |   |   |   |
| Total                                                                       |   |   | $               | 36,321,376 |   |          | $      | 43,871,968 |   |

| (a) | The liabilities are due to an unrelated party. The balances represent funds received to support the Company’s business operations. The inventory described in the product financing arrangements was not shipped to party (a) and the title did not pass to party (a). However, party (a) has the right to request the shipment if the Company does not perform its repurchase obligation. The notes were all settled on their due date. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| (b) | The liabilities are due to an unrelated party. The balances represent funds received to support the Company’s business operations. The inventory described in the product financing arrangements was not shipped to party (b) and the title did not pass to party (b). However, party (b) has the right to request the shipment if the Company does not perform its repurchase obligation. Such transaction was also secured by a land use right, also see Note 13, and the additional paid in capital of SXGL, also see Note 22. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (a) | Corporation Income Tax (“CIT”) |
|--------|-----|--------------------------------------------|

|               |   | January 31,2011 |      |   | January 31,2010 |   |
|--------------------|--------|-----------------|-----------|--------|-----------------|--------|
| Current:           |   |            |      |   |            |   |
| Provision for CIT  |   | $               | 119,935   |   |            | $      | 109,609 |   |
|               |   |            |      |   |            |   |   |   |
| Deferred:          |   |            |      |   |            |   |   |   |
| Provision for CIT  |   |            | 2,222,345 |   |            |   | 2,500,449 |   |
|               |   |            |      |   |            |   |   |   |
| Income tax expense |   | $               | 2,342,280 |   |            | $      | 2,610,058 |   |

----

|   | (a) | Corporation Income Tax (“CIT”) (Continued) |
|--------|-----|--------------------------------------------------------|

|                                    |   | January 31,2011 |      |   | January 31,2010 |   |
|-----------------------------------------|--------|-----------------|-----------|--------|-----------------|--------|
|                                    |   |            |      |   |            |   |
| Computed “expected” expense |   | $               | 2,079,235 |   |            | $      | 2,337,375 |   |
| Permanent differences                   |   |            | 263,045   |   |            |   | 272,683 |   |
|                                    |   |            |      |   |            |   |   |   |
| Income tax expense                      |   | $               | 2,342,280 |   |            | $      | 2,610,058 |   |

|                                            |   | January 31,2011 |       |   | April 30,2010 |   |
|-------------------------------------------------|--------|-----------------|------------|--------|---------------|--------|
| Deferred tax assets (liabilities):              |   |            |       |   |          |   |
| Current portion:                                |   |            |       |   |          |   |
| Loss carry forward                              |   | $               | 301,028    |   |          | $      | 127,712 |   |
| Sales                                           |   |            | 1,618,469  |   |          |   | 1,458,724 |   |
| Expenses cut-off                                |   |            | 1,658,856  |   |          |   | 1,622,373 |   |
| Overaccrued cost of sales                       |   |            | (4,110,636 | )      |          |   | (1,163,385 | ) |
| Other                                           |   |            | (47,449    | )      |          |   | (111,697 | ) |
| Subtotal                                        |   |            | (579,732   | )      |          |   | 1,933,727 |   |
|                                            |   |            |       |   |          |   |   |   |
| Non-current portion:                            |   |            |       |   |          |   |   |   |
| Depreciation                                    |   |            | 2,402,966  |   |          |   | 1,723,847 |   |
| Interest income from long-term notes receivable |   |            | (1,052,686 | )      |          |   | (664,680 | ) |
|                                            |   |            |       |   |          |   |   |   |
| Subtotal                                        |   |            | 1,350,280  |   |          |   | 1,059,167 |   |
|                                            |   |            |       |   |          |   |   |   |
| Net deferred tax assets                         |   | $               | 770,548    |   |          | $      | 2,992,894 |   |

----

| Registered Capital: |   | January 31, 2011 |   |   | April 30, 2010 |   |
|---------------------|--------|------------------|--------|--------|----------------|--------|
|                |   |             |   |   |           |   |   |   |   |   |   |   |
| Xudong Liu          |   | $                | 45,000 |   |           |   | 90 | % |   | $ | 45,000 |   |   |   | 90 | % |
| Li Ning             |   |             | 5,000  |   |           |   | 10 | % |   |   | 5,000 |   |   |   | 10 | % |
| Total               |   | $                | 50,000 |   |           |   | 100 | % |   | $ | 50,000 |   |   |   | 100 | % |

----

|                   |   | January 31, 2011 |        |   | January 31, 2010 |   |
|------------------------|--------|------------------|-------------|--------|------------------|--------|
| Area                   |   | Amounts          |        |   | Percentage       |   |   | Amounts |   |   | Percentage |   |
| China                  |   | $                | 137,712,680 |   |             |   | 94 | % |   | $ | 101,866,861 |   |   |   | 85.8 | % |
| Africa                 |   |             | 5,146,152   |   |             |   | 3.5 | % |   |   | 13,339,271 |   |   |   | 11.1 | % |
| South America          |   |             | 3,482,160   |   |             |   | 2.4 | % |   |   | 3,201,907 |   |   |   | 2.7 | % |
| North America          |   |             | -           |   |             |   |   |   |   |   | 281,487 |   |   |   | 0.3 | % |
| Asia (excluding China) |   |             | 114,480     |   |             |   | 0.1 | % |   |   | 76,507 |   |   |   | 0.1 | % |
| Europe                 |   |             | -           |   |             |   | - |   |   |   | - |   |   |   |   |   |
| Total                  |   | $                | 146,455,472 |   |             |   | 100 | % |   | $ | 118,766,033 |   |   |   | 100 | % |

|   | (1) | As of January 31, 2011, the Company entered into two guarantee contracts to serve as guarantor for bank loans borrowed by an unrelated party, Shanxi Rong Xiang Trading Co., Ltd. (“SXRX”). If SXRX defaults on the repayment of its bank loans when they fall due, the Company is required to repay the outstanding balance. As of January 31, 2011, the guarantee provided for the bank loans borrowed by SXRX was $ 3,949,627, which consists of the following: |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                  |   | January 31, 2011 |      |
|-----------------------|--------|------------------|-----------|
| Due November 15, 2011 |   | $                | 1,670,996 |   |
| Due October 25, 2011  |   |             | 2,278,631 |   |
| Total                 |   | $                | 3,949,627 |   |

|   | (2) | As of January 31, 2011, the Company entered into three guarantee contract to serve as guarantor for bank loans borrowed by an unrelated party, Taiyuan North Metallurgy Co., Ltd with a guarantee amount of $4,481,307, which consists of the following: |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                         |   | January 31, 2011 |      |
|------------------------------|--------|------------------|-----------|
| Due July 12, 2011 (expired)  |   | $                | 2,278,631 |   |
| Due April 30, 2011 (expired) |   |             | 1,139,315 |   |
| Due May 19, 2011 (expired)   |   |             | 1,063,361 |   |
| Total                        |   | $                | 4,481,307 |   |

----

|   | (3) | As of January 31, 2011, the Company entered into three guarantee contracts to serve as guarantor for bank loans borrowed by an unrelated party, Shanxi Tongyuan Industrial Group Co., Ltd. (“SXTY”). SXTY also provided a cross guarantee for bank loans of $9,114,524 borrowed by the Company. Also see Note 17(a). As of January 31, 2011, the guarantee provided for the bank loans borrowed by SXTY was $8,354,980, which consists of the following: |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                            |   | January 31, 2011 |      |
|---------------------------------|--------|------------------|-----------|
| Due February 24, 2011 (expired) |   |             | 3,797,718 |   |
| Due April 24, 2011 (expired)    |   |             | 1,519,087 |   |
| Due May 19, 2011 (expired)      |   |             | 3,038,175 |   |
| Total                           |   | $                | 8,354,980 |   |

|   | (4) | As of January 31, 2011, the Company entered into one guarantee contract to serve as guarantor for bank loans borrowed by an unrelated party, Shanxi Wanbang Industry and Trade Co., Ltd. (“SXWB”) with a guarantee amount of $4,557,262, due November 29, 2011. SXWB also provided a cross guarantee for the short-term loan of $10,633,611 borrowed by the Company. See Note 17(a). |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (5) | As of January 31, 2011, the Company entered into two guarantee contracts to serve as guarantor for bank loans borrowed by an unrelated party, Shanxi Taishi Metallurgy Industry Group Co., Ltd. (“SXTS”). SXTS also provided a cross guarantee for bank loans of $9,114,524 borrowed by the Company. Also see Note 17(a). As of January 31, 2011, the guarantee provided for the bank loans borrowed by SXTS was $7,595,437, which consists of the following: |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                            |   | January 31, 2011 |      |
|---------------------------------|--------|------------------|-----------|
| Due February 24, 2011 (expired) |   |             | 3,038,175 |   |
| Due May 19, 2011 (expired)      |   |             | 4,557,262 |   |
| Total                           |   | $                | 7,595,437 |   |

|   | (6) | As of January 31, 2011, the Company entered into two guarantee contracts to serve as guarantor for bank loans borrowed by an unrelated party, Shanxi Guanghua Pipe produce Co., Ltd. (“SXGH”). SXGH also provided a cross guarantee for bank loan of $15,950,417 borrowed by the Company. See Note 17(a). As of January 31, 2011, the guarantee provided for the bank loans borrowed by SXGH was $30,381,747, which consists of the following: |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                        |   | January 31, 2011 |       |
|-----------------------------|--------|------------------|------------|
| Due April 13, 2011(expired) |   | $                | 7,595,437  |   |
| Due October 29, 2011        |   |             | 7,595,437  |   |
| Due October 12, 2016        |   |             | 15,190,873 |   |
| Total                       |   | $                | 30,381,747 |   |

----

|   | (7) | As of January 31, 2011, the Company entered into two guarantee contracts to serve as guarantor for bank loans borrowed by an unrelated party, Shanxi XinDayu Material Co., Ltd. (“SXXD”). SXXD also provided a cross guarantee for bank loans of $4,557,262 borrowed by the Company. Also see Note 17(a). As of January 31, 2011, the guarantee provided for the bank loans borrowed by SXXD was $6,312,726, which consists of the following: |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                         |   | January 31, 2011 |      |
|------------------------------|--------|------------------|-----------|
| Due June 10, 2011 (expired)  |   | $                | 4,557,262 |   |
| Due March 25, 2011 (expired) |   |             | 1,755,464 |   |
| Total                        |   | $                | 6,312,726 |   |

|   | (8) | As of January 31, 2011, the Company entered into a guarantee contract to serve as guarantor for bank loans borrowed by an unrelated party, Shanxi Changxin Steel Co., Ltd. from the Huaxia Bank with a guarantee amount of $1,670,996, due September 27, 2011. |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (9) | As of January 31, 2011, the Company entered into two guarantee contract to serve as guarantor for bank loans borrowed by an unrelated party, Dalian Binggong Trading Co., Ltd. with a guarantee amount of $12,152,699, which consists of the following: |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                        |   | January 31, 2011 |       |
|-----------------------------|--------|------------------|------------|
| Due September 3, 2011       |   | $                | 4,557,262  |   |
| Due July 18, 2011 (expired) |   |             | 7,595,437  |   |
| Total                       |   | $                | 12,152,699 |   |

|   | (10) | As of January 31, 2011, the Company entered into a guarantee contract to serve as guarantor for bank loans borrowed by an unrelated party, Shanxi Xin Bang Trading Co., Ltd. (“SXXB”) from the China Minsheng Bank with a guarantee amount of $6,076,349, due September 26, 2011. SXXB also provided a cross guarantee for bank loans of $6,076,349 borrowed by the Company. Also see Note 17(a). |
|--------|------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (11) | As of January 31, 2011, the Company entered into a guarantee contract to serve as guarantor for bank loans borrowed by an unrelated party, Shanxi Jintaoyuan Coal Co., Ltd. from the China Minsheng Bank with a guarantee amount of $30,381,747, due January 31, 2012. |
|--------|------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

----

----

| PAGE   |   | 1      |   | REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM                                                      |
|--------|--------|--------|--------|--------------------------------------------------------------------------------------------------------------|
|   |   |   |   |                                                                                                         |
| PAGES  |   | 2-3    |   | CONSOLIDATED BALANCE SHEETS AS OF APRIL 30, 2010 AND 2009                                                    |
|   |   |   |   |                                                                                                         |
| PAGE   |   | 4      |   | CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME FOR THE YEARS ENDED APRIL 30, 2010 AND 2009       |
|   |   |   |   |                                                                                                         |
| PAGE   |   | 5      |   | CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS’ EQUITY FOR THE YEARS ENDED APRIL 30, 2010 AND 2009 |
|   |   |   |   |                                                                                                         |
| PAGES  |   | 6-7    |   | CONSOLIDATED STATEMENTS OF CASH FLOWS FOR THE YEARS ENDED APRIL 30, 2010 AND 2009                            |
|   |   |   |   |                                                                                                         |
| PAGES  |   | 8-45   |   | NOTES TO CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEARS ENDED APRIL 30, 2010 AND 2009                       |

----

----

| ASSETS                                                                                                                        |   |
|-------------------------------------------------------------------------------------------------------------------------------|--------|
|                                                                                                                          |   | April 30, |   |   | April 30, |   |
|                                                                                                                          |   | 2010 |   |   | 2009 |   |
| CURRENT ASSETS                                                                                                                |   |   |   |   |   |   |
| Cash and cash equivalents                                                                                                     |   | $ | 6,413,448 |   |   | $ | 1,980,229 |   |
| Restricted cash                                                                                                               |   |   | 49,078,779 |   |   |   | 58,155,687 |   |
| Accounts receivable, net of allowance for doubtful accounts of $215,878 and $215,897 at April 30, 2010 and 2009, respectively |   |   | 35,211,738 |   |   |   | 15,626,973 |   |
| Marketable securities                                                                                                         |   |   | 178,467 |   |   |   | 76,753 |   |
| Inventories                                                                                                                   |   |   | 29,742,389 |   |   |   | 16,249,747 |   |
| Notes receivable                                                                                                              |   |   | 9,921,858 |   |   |   | 22,143,107 |   |
| Prepayments for goods                                                                                                         |   |   | 16,246,032 |   |   |   | 9,899,792 |   |
| Prepaid expenses and other receivables                                                                                        |   |   | 1,766,315 |   |   |   | 961,835 |   |
| Due from employees                                                                                                            |   |   | 409,322 |   |   |   | 302,142 |   |
| Due from related parties                                                                                                      |   |   | 13,023,340 |   |   |   | 12,594,975 |   |
| Notes receivable from related parties, current portion                                                                        |   |   | - |   |   |   | 108,409 |   |
| Interest receivable from related parties, current portion                                                                     |   |   | 886,240 |   |   |   | 7,025 |   |
| Notes receivable from related parties                                                                                         |   |   | - |   |   |   | 92,170 |   |
| Deferred tax assets                                                                                                           |   |   | 1,933,727 |   |   |   | 4,443,653 |   |
| Total Current Assets                                                                                                          |   |   | 164,811,655 |   |   |   | 142,642,497 |   |
|                                                                                                                          |   |   |   |   |   |   |   |   |
| LONG-TERM ASSETS                                                                                                              |   |   |   |   |   |   |   |   |
| Plant and equipment, net                                                                                                      |   |   | 56,488,868 |   |   |   | 51,562,157 |   |
| Construction in progress                                                                                                      |   |   | - |   |   |   | 4,995,529 |   |
| Land use rights, net                                                                                                          |   |   | 2,826,947 |   |   |   | 2,892,944 |   |
| Long-term investment                                                                                                          |   |   | 3,657,216 |   |   |   | 146,301 |   |
| Deposit for land use right                                                                                                    |   |   | 1,075,222 |   |   |   | - |   |
| Notes receivable from related parties, long-term portion                                                                      |   |   | 28,698,483 |   |   |   | 20,263,214 |   |
| Interest receivable from related parties, long-term portion                                                                   |   |   | 1,772,481 |   |   |   | 1,258,360 |   |
| Deferred tax assets                                                                                                           |   |   | 1,059,167 |   |   |   | 711,784 |   |
| Goodwill                                                                                                                      |   |   | 7,389,597 |   |   |   | 7,389,597 |   |
| Total Long-Term Assets                                                                                                        |   |   | 102,967,981 |   |   |   | 89,219,886 |   |
|                                                                                                                          |   |   |   |   |   |   |   |   |
| TOTAL ASSETS                                                                                                                  |   | $ | 267,779,636 |   |   | $ | 231,862,383 |   |

----

| LIABILITIES AND SHAREHOLDERS’ EQUITY                                    |   |
|-------------------------------------------------------------------------------|--------|
|                                                                          |   |   |   |   |   |   |
|                                                                          |   | April 30, |   |   | April 30, |   |
|                                                                          |   | 2010 |   |   | 2009 |   |
| CURRENT LIABILITIES                                                           |   |   |   |   |   |   |
| Short-term bank borrowings                                                    |   | $ | 104,156,201 |   |   | $ | 64,659,504 |   |
| Accounts payable                                                              |   |   | 9,249,968 |   |   |   | 3,745,171 |   |
| Customer deposits                                                             |   |   | 13,714,140 |   |   |   | 23,437,420 |   |
| Due to a related party                                                        |   |   | 1,426,048 |   |   |   | 983,613 |   |
| Notes payable                                                                 |   |   | 43,080,547 |   |   |   | 56,671,825 |   |
| Product and other financing arrangements                                      |   |   | 43,871,968 |   |   |   | 39,047,607 |   |
| Income tax payable                                                            |   |   | 1,264,157 |   |   |   | 737,319 |   |
| Other payables and accrued expenses                                           |   |   | 3,697,972 |   |   |   | 1,851,004 |   |
| Total Current Liabilities                                                     |   |   | 220,461,001 |   |   |   | 191,133,463 |   |
|                                                                          |   |   |   |   |   |   |   |   |
| TOTAL LIABILITIES                                                             |   |   | 220,461,001 |   |   |   | 191,133,463 |   |
|                                                                          |   |   |   |   |   |   |   |   |
| COMMITMENTS AND CONTINGENCIES                                                 |   |   |   |   |   |   |   |   |
|                                                                          |   |   |   |   |   |   |   |   |
| SHAREHOLDERS’ EQUITY                                                    |   |   |   |   |   |   |   |   |
| Common stock, $1 par value; 50,000 shares authorized, issued and outstanding; |   |   | 50,000 |   |   |   | 50,000 |   |
| Additional paid-in capital                                                    |   |   | 52,584,504 |   |   |   | 52,584,504 |   |
| Retained deficit                                                              |   |   | (6,276,505 | ) |   |   | (12,842,047 | ) |
| Accumulated other comprehensive income                                        |   |   | 848,095 |   |   |   | 834,737 |   |
| TOTAL SHAREHOLDERS’ EQUITY                                              |   |   | 47,206,094 |   |   |   | 40,627,194 |   |
|                                                                          |   |   |   |   |   |   |   |   |
| NON-CONTROLLING INTEREST                                                      |   |   | 112,541 |   |   |   | 101,726 |   |
|                                                                          |   |   |   |   |   |   |   |   |
| TOTAL EQUITY                                                                  |   |   | 47,318,635 |   |   |   | 40,728,920 |   |
|                                                                          |   |   |   |   |   |   |   |   |
| TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY                              |   | $ | 267,779,636 |   |   | $ | 231,862,383 |   |

----

|                                                |   | 2010   |         |   | 2009   |   |
|-----------------------------------------------------|--------|--------|--------------|--------|--------|--------|
| REVENUES                                            |   | $      | 146,835,283  |   |   | $      | 152,511,228 |   |
| COST OF GOODS SOLD                                  |   |   | (123,110,120 | )      |   |   | (130,600,207 | ) |
| GROSS PROFIT                                        |   |   | 23,725,163   |   |   |   | 21,911,021 |   |
|                                                |   |   |         |   |   |   |   |   |
| Selling and marketing                               |   |   | (3,952,504   | )      |   |   | (5,878,246 | ) |
| General and administrative                          |   |   | (3,003,542   | )      |   |   | (2,387,684 | ) |
| Research and development                            |   |   | (33,111      | )      |   |   | (11,713 | ) |
| INCOME FROM OPERATIONS                              |   |   | 16,736,006   |   |   |   | 13,633,378 |   |
|                                                |   |   |         |   |   |   |   |   |
| Interest expense                                    |   |   | (9,765,845   | )      |   |   | (9,216,142 | ) |
| Interest income                                     |   |   | 2,438,152    |   |   |   | 2,673,890 |   |
| Other income (expense), net                         |   |   | 36,313       |   |   |   | (91,537 | ) |
|                                                |   |   |         |   |   |   |   |   |
| INCOME BEFORE INCOME TAXES                          |   |   | 9,444,626    |   |   |   | 6,999,589 |   |
|                                                |   |   |         |   |   |   |   |   |
| INCOME TAXES                                        |   |   | (2,868,260   | )      |   |   | (2,026,906 | ) |
|                                                |   |   |         |   |   |   |   |   |
| NET INCOME                                          |   |   | 6,576,366    |   |   |   | 4,972,683 |   |
|                                                |   |   |         |   |   |   |   |   |
| NET INCOME ATTRIBUTABLE TO NON-CONTROLLING INTEREST |   |   | (10,824      | )      |   |   | (6,079 | ) |
|                                                |   |   |         |   |   |   |   |   |
| NET INCOME ATTRIBUTABLE TO CONTROLLING INTEREST     |   |   | 6,565,542    |   |   |   | 4,966,604 |   |
|                                                |   |   |         |   |   |   |   |   |
| OTHER COMPREHENSIVE (LOSS) INCOME                   |   |   |         |   |   |   |   |   |
| Foreign currency translation loss                   |   |   | (590         | )      |   |   | (104,823 | ) |
| Unrealized gain (loss) on marketable securities     |   |   | 13,948       |   |   |   | (11,550 | ) |
| OTHER COMPREHENSIVE INCOME (LOSS)                   |   |   | 13,358       |   |   |   | (116,373 | ) |
|                                                |   |   |         |   |   |   |   |   |
| COMPREHENSIVE INCOME                                |   | $      | 6,578,900    |   |   | $      | 4,850,231 |   |
|                                                |   |   |         |   |   |   |   |   |
| WEIGHTED AVERAGE SHARES                             |   |   |         |   |   |   |   |   |
| Basic and diluted                                   |   |   | 50,000       |   |   |   | 50,000 |   |
| NET INCOME PER SHARE                                |   |   |         |   |   |   |   |   |
| Basic and diluted                                   |   | $      | 131.31       |   |   | $      | 99.33 |   |

----

|                                     |   | Registered Capital |   |   | AdditionalPaid-in Capital |   |       | Retained Deficit |   |   | Accumulated Other Comprehensive Income |   |   | Non- Controlling Interest |     |   | Total  |   |
|------------------------------------------|--------|--------------------|--------|--------|---------------------------|--------|------------|------------------|--------|--------|----------------------------------------|--------|--------|---------------------------|----------|--------|--------|--------|
|                                     |   |               |   |   |                      |   |       |             |   |   |                                   |   |   |                      |     |   |   |   |
| BALANCE AT APRIL 30, 2008                |   | $                  | 50,000 |   |                      | $      | 14,021,553 |             |   | $      | (17,808,651                            | )      |   | $                         | 951,110  |   |   | $      | 93,382 |   |   | $ | (2,692,606 | ) |
|                                     |   |               |   |   |                      |   |       |             |   |   |                                   |   |   |                      |     |   |   |   |   |   |   |   |   |   |
| Foreign currency translation gain (loss) |   |               | -      |   |                      |   | -          |             |   |   | -                                      |   |   |                      | (104,823 | )      |   |   | 2,265 |   |   |   | (102,558 | ) |
|                                     |   |               |   |   |                      |   |       |             |   |   |                                   |   |   |                      |     |   |   |   |   |   |   |   |   |   |
| Unrealized loss on marketable securities |   |               | -      |   |                      |   | -          |             |   |   | -                                      |   |   |                      | (11,550  | )      |   |   | - |   |   |   | (11,550 | ) |
|                                     |   |               |   |   |                      |   |       |             |   |   |                                   |   |   |                      |     |   |   |   |   |   |   |   |   |   |
| Capital contribution                     |   |               | -      |   |                      |   | 38,562,951 |             |   |   | -                                      |   |   |                      | -        |   |   |   | - |   |   |   | 38,562,951 |   |
|                                     |   |               |   |   |                      |   |       |             |   |   |                                   |   |   |                      |     |   |   |   |   |   |   |   |   |   |
| Net income                               |   |               | -      |   |                      |   | -          |             |   |   | 4,966,604                              |   |   |                      | -        |   |   |   | 6,079 |   |   |   | 4,972,683 |   |
|                                     |   |               |   |   |                      |   |       |             |   |   |                                   |   |   |                      |     |   |   |   |   |   |   |   |   |   |
| BALANCE AT APRIL 30, 2009                |   |               | 50,000 |   |                      |   | 52,584,504 |             |   |   | (12,842,047                            | )      |   |                      | 834,737  |   |   |   | 101,726 |   |   |   | 40,728,920 |   |
|                                     |   |               |   |   |                      |   |       |             |   |   |                                   |   |   |                      |     |   |   |   |   |   |   |   |   |   |
| Foreign currency translation loss        |   |               | -      |   |                      |   | -          |             |   |   | -                                      |   |   |                      | (590     | )      |   |   | (9 | ) |   |   | (599 | ) |
|                                     |   |               |   |   |                      |   |       |             |   |   |                                   |   |   |                      |     |   |   |   |   |   |   |   |   |   |
| Unrealized gain on marketable securities |   |               |   |   |                      |   |       |             |   |   |                                   |   |   |                      | 13,948   |   |   |   | - |   |   |   | 13,948 |   |
|                                     |   |               |   |   |                      |   |       |             |   |   |                                   |   |   |                      |     |   |   |   |   |   |   |   |   |   |
| Net income                               |   |               | -      |   |                      |   | -          |             |   |   | 6,565,542                              |   |   |                      | -        |   |   |   | 10,824 |   |   |   | 6,576,366 |   |
|                                     |   |               |   |   |                      |   |       |             |   |   |                                   |   |   |                      |     |   |   |   |   |   |   |   |   |   |
| BALANCE AT APRIL 30, 2010                |   | $                  | 50,000 |   |                      | $      | 52,584,504 |             |   | $      | (6,276,505                             | )      |   | $                         | 848,095  |   |   | $      | 112,541 |   |   | $ | 47,318,635 |   |

----

|                                                                                        |   | 2010   |         |   | 2009   |   |
|---------------------------------------------------------------------------------------------|--------|--------|--------------|--------|--------|--------|
|                                                                                        |   |   |         |   |   |   |
| CASH FLOWS FROM OPERATING ACTIVITIES:                                                       |   |   |         |   |   |   |
| Net income                                                                                  |   | $      | 6,565,542    |   |   | $      | 4,966,604 |   |
| Adjustments to reconcile net income to net cash (used in) provided by operating activities: |   |   |         |   |   |   |   |   |
| Non-controlling interest                                                                    |   |   | 10,824       |   |   |   | 6,079 |   |
| Depreciation and amortization                                                               |   |   | 6,059,318    |   |   |   | 4,692,407 |   |
| Deferred income taxes                                                                       |   |   | 2,162,543    |   |   |   | 1,048,682 |   |
| Changes in operating assets and liabilities, net of effects of acquisition:                 |   |   |         |   |   |   |   |   |
| (Increase) Decrease In:                                                                     |   |   |         |   |   |   |   |   |
| Accounts receivable                                                                         |   |   | (19,584,747  | )      |   |   | 5,086,132 |   |
| Inventories                                                                                 |   |   | (13,492,642  | )      |   |   | 1,651,827 |   |
| Prepaid expenses and other receivables                                                      |   |   | (879,093     | )      |   |   | 572,991 |   |
| Prepayments for goods                                                                       |   |   | (6,271,627   | )      |   |   | 4,043,982 |   |
| Due from employees                                                                          |   |   | (107,180     | )      |   |   | 685,338 |   |
|                                                                                        |   |   |         |   |   |   |   |   |
| Increase (Decrease) In:                                                                     |   |   |         |   |   |   |   |   |
| Accounts payable                                                                            |   |   | 5,504,797    |   |   |   | 903,561 |   |
| Other payables and accrued expenses                                                         |   |   | 1,846,970    |   |   |   | 1,072,218 |   |
| Taxes payable                                                                               |   |   | 526,838      |   |   |   | 737,319 |   |
| Customer deposits                                                                           |   |   | (9,723,281   | )      |   |   | (7,129,559 | ) |
| Net cash (used in) provided by operating activities                                         |   |   | (27,381,738  | )      |   |   | 18,337,581 |   |
|                                                                                        |   |   |         |   |   |   |   |   |
| CASH FLOWS FROM INVESTING ACTIVITIES:                                                       |   |   |         |   |   |   |   |   |
| Purchases of plant and equipment                                                            |   |   | (4,713,221   | )      |   |   | (1,737,126 | ) |
| Purchases of construction in progress                                                       |   |   | (1,215,685   | )      |   |   | (5,118,570 | ) |
| Payment for deposit of land use rights                                                      |   |   | (1,075,222   | )      |   |   | - |   |
| Purchases of marketable securities                                                          |   |   | (175,554     | )      |   |   | - |   |
| Decrease (increase) in notes receivable                                                     |   |   | 12,219,842   |   |   |   | (3,556,126 | ) |
| (Increase) decrease in notes receivable from related parties                                |   |   | (8,229,824   | )      |   |   | 5,608,493 |   |
| Accrued interest from related parties                                                       |   |   | (1,400,532   | )      |   |   | (1,743,883 | ) |
| Due from related parties                                                                    |   |   | 101,847      |   |   |   | (20,033,494 | ) |
| Purchase of subsidiary, net of cash acquired                                                |   |   | -            |   |   |   | (43,696,589 | ) |
| Payment for long-term investment                                                            |   |   | (3,510,915   | )      |   |   | - |   |
| Net cash used in investing activities                                                       |   |   | (7,999,264   | )      |   |   | (70,277,295 | ) |
|                                                                                        |   |   |         |   |   |   |   |   |
| CASH FLOWS FROM FINANCING ACTIVITIES:                                                       |   |   |         |   |   |   |   |   |
| Restricted cash                                                                             |   |   | 9,076,908    |   |   |   | (21,729,776 | ) |
| Capital contribution                                                                        |   |   | -            |   |   |   | 38,562,951 |   |
| Proceeds from short-term loans                                                              |   |   | 196,021,252  |   |   |   | 112,724,383 |   |
| Repayments of short-term loans                                                              |   |   | (156,517,145 | )      |   |   | (98,510,063 | ) |
| Proceeds from product and other financing arrangements                                      |   |   | 110,745,373  |   |   |   | 112,009,255 |   |
| Repayments for product and other financing arrangements                                     |   |   | (105,917,373 | )      |   |   | (110,982,835 | ) |
| (Decrease) increase of notes payable                                                        |   |   | (13,586,901  | )      |   |   | 14,885,347 |   |
| Net cash provided by financing activities                                                   |   |   | 39,822,114   |   |   |   | 46,959,262 |   |

----

|                                                                                                                                                              |   | 2010   |      |   | 2009   |   |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|-----------|--------|--------|--------|
|                                                                                                                                                              |   |   |      |   |   |   |   |   |
| NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS                                                                                                              |   |   | 4,441,112 |   |   |   | (4,980,452 | ) |
|  Effect of exchange rate changes on cash                                                                                                                     |   |   | (7,893    | )      |   |   | 1,302,914 |   |
|  Cash and cash equivalents at beginning of year                                                                                                              |   |   | 1,980,229 |   |   |   | 5,657,767 |   |
| CASH AND CASH EQUIVALENTS AT END OF YEAR                                                                                                                          |   | $      | 6,413,448 |   |   | $      | 1,980,229 |   |
|                                                                                                                                                              |   |   |      |   |   |   |   |   |
| SUPPLEMENTARY CASH FLOW INFORMATION                                                                                                                               |   |   |      |   |   |   |   |   |
| Income taxes paid                                                                                                                                                 |   | $      | 118,821   |   |   | $      | 179,142 |   |
| Interest paid                                                                                                                                                     |   | $      | 6,493,118 |   |   | $      | 7,832,690 |   |
|                                                                                                                                                              |   |
| SUPPLEMENTAL NON-CASH DISCLOSURES:                                                                                                                                |   |
|                                                                                                                                                              |   |
| 1. During the years ended April 30, 2010 and 2009, $6,210,995 and $1,306,300 were transferred from construction in progress to plant and equipment, respectively. |   |
|                                                                                                                                                              |   |
| 2. During the year ended April 30, 2010, $87,773 of marketable securities were transferred to the Company in satisfaction of a due from related party balance.    |   |

----

----

----

| Name                                                              |   | Place And DateOfEstablishment/ Incorporation |   | Percentage ofOwnership    |   | Principal Activities                                                                                                                             |
|-------------------------------------------------------------------|--------|----------------------------------------------|--------|---------------------------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------|
| Shanxi Guolian Pipe Industry Group Co., Ltd. (“SXGL”) |   | Shanxi, PRCMay 12, 2003.                     |   | VIE of Shanxi Shipaipu    |   | Design, development, manufacturing, and commercialization of spiral submerged-arc welding (SSAW) pipe and electric resistance welding (ERW) pipe |
|                                                              |   |                                         |   |                      |   |                                                                                                                                             |
| Shanxi Guolian Spiral Tubulation Co., Ltd. (“ SXSP”)  |   | Shanxi, PRCMarch 15, 2000.                   |   | 97.7%owned by SXGL        |   | Design, development, manufacture, and commercialization of spiral submerged-arc welding pipe (SSAW).                                             |
|                                                              |   |                                         |   |                      |   |                                                                                                                                             |
| Xi'an Guolian Spiral Tubulation Co., Ltd. (“ XASP”)   |   | Xian, PRCFebruary 22, 2002.                  |   | 99%owned bySXGL           |   | Manufacture and sales of spiral submerged-arc welding pipe (SSAW).                                                                               |
|                                                              |   |                                         |   |                      |   |                                                                                                                                             |
| Shanxi Guolian Pipe Technology Co., Ltd.(“SXPT “)     |   | Shanxi, PRCJune 14, 2007                     |   | 100%owned by SXGL         |   | Technology research, development and test of pipes                                                                                               |
|                                                              |   |                                         |   |                      |   |                                                                                                                                             |
| Shanxi Zhonglian Gas Development Co., Ltd (“SXZL”)    |   | Shanxi, PRCNovember 12, 2004.                |   | VIE of Shanxi Ruixingtong |   | Manufacture and sales of gas equipment.                                                                                                          |

----

|   | l | BRAVE KING ( a wholly-owned subsidiary of RISE KING) |
|--------|---|------------------------------------------------------|

|   | l | Shanxi Shipaipu ( a wholly-owned subsidiary of BRAVE KING) |
|--------|---|------------------------------------------------------------|

|   | l | SOUND WAY ( a wholly-owned subsidiary of RISE KING) |
|--------|---|-----------------------------------------------------|

|   | l | MAJOR AIM (a wholly-owned subsidiary of  SOUND WAY) |
|--------|---|---------------------------------------------------------------|

|   | l | Shanxi Ruixingtong (a wholly-owned subsidiary of MAJOR AIM) |
|--------|---|-------------------------------------------------------------|

|   | l | SXGL (a VIE of Shanxi Shipaipu); |
|--------|---|----------------------------------|

|   | l | SXSP (97.7% subsidiary of SXGL); |
|--------|---|----------------------------------|

|   | l | XASP (99% subsidiary of SXGL); |
|--------|---|--------------------------------|

|   | l | SXPT (100% subsidiary of SXGL); |
|--------|---|---------------------------------|

|   | l | SXZL (a VIE of Shanxi Ruixingtong) |
|--------|---|------------------------------------|

| (a) | Economic and Political Risks |
|-----|------------------------------|

----

| (b) | Fair Value of Financial Instruments |
|-----|-------------------------------------|

|                  |   |                                            |      |   |                                            |   |      | Fair Value Measurements at Reporting Date Using       |   |
|-----------------------|--------|-------------------------------------------------|-----------|--------|-------------------------------------------------|--------|-----------|-------------------------------------------------------------------------------------|--------|
|             |   | CarryingValue as ofApril 30,2010 |      |   | CarryingValue as ofApril 30,2009 |   |      | Quoted Prices inActive Marketsfor IdenticalAssets(Level 1) |   |   | SignificantOtherObservableInputs(Level 2) |   |   | SignificantUnobservableInputs(Level 3) |   |
| Bank acceptance notes |   | $                                               | 3,300,272 |   |                                            |   | 1,000,474 |                                                                                |   | $ | 3,300,272 |   |   |   | - |   |   |   | - |   |
| Marketable securities |   |                                            | 178,467   |   |                                            |   | 76,753    |                                                                                |   |   | 178,467 |   |   |   | - |   |   |   | - |   |

| (c) | Earnings Per Share |
|-----|--------------------|

----

| (d) | Cash and Cash Equivalents |
|-----|---------------------------|

| (e) | Marketable Securities |
|-----|-----------------------|

| (f) | Inventories |
|-----|-------------|

| (g) | Prepayments |
|-----|-------------|

| (h) | Product Financing Arrangements |
|-----|--------------------------------|

----

| (i) | Long-Term Investments |
|-----|-----------------------|

| (j) | Plant and Equipment |
|-----|---------------------|

| Buildings        | 30 years    |
|------------------|-------------|
| Machinery        | 10~12 years |
| Motor vehicles   | 5 years     |
| Office equipment | 5 years     |

| (k) | Construction in Progress |
|-----|--------------------------|

| (l) | Land Use Rights |
|-----|-----------------|

| (m) | Impairment of Long-Term Assets |
|-----|--------------------------------|

----

| (n) | Goodwill |
|-----|----------|

| (o) | Revenue Recognition |
|-----|---------------------|

| -Persuasive evidence of an arrangement exists,                 |
|----------------------------------------------------------------|
| -Delivery has occurred or services have been rendered,         |
| -The seller's price to the buyer is fixed or determinable, and |
| -Collectability is reasonably assured.                         |

----

| (p) | Retirement Benefits |
|-----|---------------------|

| (q) | Income Taxes |
|-----|--------------|

| (r) | Shipping and Handling |
|-----|-----------------------|

| (s) | Foreign Currency Translation |
|-----|------------------------------|

|                                   |   | April 30, 2010 |   |   | April 30, 2009 |   |
|----------------------------------------|--------|----------------|--------|--------|----------------|--------|
| Year end RMB : US$ exchange rate       |   | $              | 6.8358 |   |           | $      | 6.8352 |   |
| Average yearly RMB : US$ exchange rate |   |           | 6.8355 |   |           |   | 6.9155 |   |

----

| (t) | Comprehensive Income |
|-----|----------------------|

| (u) | Segment and Geographic Reporting |
|-----|----------------------------------|

| (v) | Non-Controlling Interest |
|-----|--------------------------|

| (w) | Recent Accounting Pronouncements |
|-----|----------------------------------|

----

----

|                                     |   | April 30,2010 |        |   | April 30,2009 |   |
|------------------------------------------|--------|---------------|-------------|--------|---------------|--------|
| Short-term bank borrowings               |   | $             | 104,156,201 |   |          | $      | 64,659,504 |   |
| Due to a related party                   |   |          | 1,426,048   |   |          |   | 983,613 |   |
| Notes payable                            |   |          | 43,080,547  |   |          |   | 56,671,825 |   |
| Product and other financing arrangements |   |          | 43,871,968  |   |          |   | 39,047,607 |   |
| Total short-term debt                    |   | $             | 192,534,764 |   |          |   | 161,362,549 |   |

|      |   | SalesYears Ended April 30, |   |   | Accounts ReceivableApril 30, |   |
|-----------|--------|----------------------------|--------|--------|------------------------------|--------|
| Customers |   | 2010                       |   |   | 2009                         |   |   | 2010 |   |   | 2009 |   |
| Company A |   |                       | 8.2    | %      |                         |   | 11.6 | % |   |   | 11.2 | % |   |   | 18.8 | % |
| Company B |   |                       | 8.1    | %      |                         |   | 3.6 | % |   |   | 18.7 | % |   |   | 8.6 | % |
| Company C |   |                       | 4.8    | %      |                         |   | 0.7 | % |   |   | 7.8 | % |   |   | - |   |
| Company D |   |                       | 4.4    | %      |                         |   | 2.0 | % |   |   | 2.0 | % |   |   | - |   |
| Company E |   |                       | 3.4    | %      |                         |   | - |   |   |   | 6.1 | % |   |   | - |   |

|      |   | PurchasesYears Ended April 30, |   |   | Accounts PayableApril 30, |   |
|-----------|--------|--------------------------------|--------|--------|---------------------------|--------|
| Suppliers |   | 2010                           |   |   | 2009                      |   |   | 2010 |   |   | 2009 |   |
| Company F |   |                           | 11.9   | %      |                      |   | 30.2 | % |   |   | - |   |   |   | - |   |
| Company G |   |                           | 9.8    | %      |                      |   | 14.1 | % |   |   | - |   |   |   | - |   |
| Company H |   |                           | 5.0    | %      |                      |   | - |   |   |   | - |   |   |   | - |   |
| Company I |   |                           | 7.9    | %      |                      |   | 12.1 | % |   |   | - |   |   |   | 12.0 | % |
| Company J |   |                           | 3.5    | %      |                      |   | - |   |   |   | - |   |   |   | - |   |

----

|                                                    |   |   |   |   | April 30,2010 |   |       | April 30,2009 |   |
|---------------------------------------------------------|--------|--------|--------|--------|---------------|--------|------------|---------------|--------|
|                                                    |   |   |   |   |          |   |       |          |   |
| Notes payable-bank acceptance notes                     |   |   | 17     | (b)    |          | $      | 33,574,710 |          |   | $ | 50,775,875 |   |
| Domestic letters of credit financing                    |   |   | 16     | (b)    |          |   | 13,504,251 |          |   |   | 5,948,997 |   |
| Savings deposits as guarantees for due to a shareholder |   |   | 10     | (e)    |          |   | 1,462,887  |          |   |   | 731,507 |   |
| Bidding for project                                     |   |   |   |   |          |   | 521,096    |          |   |   | 698,443 |   |
| Interest income                                         |   |   |   |   |          |   | 15,835     |          |   |   | 865 |   |
| Total                                                   |   |   |   |   |          | $      | 49,078,779 |          |   | $ | 58,155,687 |   |

|              |   | April 30,2010 |       |   | April 30,2009 |   |
|-------------------|--------|---------------|------------|--------|---------------|--------|
| Raw materials     |   | $             | 9,022,627  |   |          | $      | 6,448,741 |   |
| Work-in-progress  |   |          | 263,119    |   |          |   | 150,558 |   |
| Finished goods    |   |          | 20,456,643 |   |          |   | 9,650,448 |   |
| Total inventories |   | $             | 29,742,389 |   |          | $      | 16,249,747 |   |

----

|                                                           |   | April 30,2010 |      |   | April 30,2009 |   |
|----------------------------------------------------------------|--------|---------------|-----------|--------|---------------|--------|
|                                                           |   |          |      |   |          |   |
| Notes receivable from unrelated companies:                     |   |          |      |   |          |   |
| Due April 29, 2011, interest at 5.31% per annum                |   | $             | 877,732   |   |          | $      | - |   |
| Due October 7, 2010, interest free (settled on its due date)   |   |          | 146,289   |   |          |   | - |   |
| Due December 21, 2010, interest free (settled on its due date) |   |          | 146,289   |   |          |   |   |   |
| Due December 31, 2010, interest free (settled on its due date) |   |          | 731,443   |   |          |   |   |   |
| Due May 10, 2010, interest free (settled on its due date)      |   |          | 1,607,201 |   |          |   |   |   |
| Due May 15, 2010 interest free (settled on its due date)       |   |          | 3,112,632 |   |          |   |   |   |
| Due December 31, 2009, interest free (settled on its due date) |   |          | -         |   |          |   | 746,138 |   |
| Due January 31, 2010, interest free(settled on its due date)   |   |          | -         |   |          |   | 73,151 |   |
| Due December 21, 2009, interest free (settled on its due date) |   |          | -         |   |          |   | 73,151 |   |
| Due October 6, 2009, interest free (settled on its due date)   |   |          | -         |   |          |   | 146,301 |   |
| Due May 6, 2009, interest free (settled on its due date)       |   |          | -         |   |          |   | 117,440 |   |
| Due May 8, 2009, interest free (settled on its due date)       |   |          | -         |   |          |   | 18,806,677 |   |
| Due May 15, 2009, interest free (settled on its due date)      |   |          | -         |   |          |   | 1,179,775 |   |
| Sub total of notes receivable from unrelated companies         |   |          | 6,621,586 |   |          |   | 21,142,633 |   |
|                                                           |   |          |      |   |          |   |   |   |
| Bank acceptance notes:                                         |   |          |      |   |          |   |   |   |
| Due May 30, 2010                                               |   |          | 14,629    |   |          |   | - |   |
| Due June 25, 2010                                              |   |          | 7,314     |   |          |   | - |   |
| Due July 28, 2010                                              |   |          | 2,194,330 |   |          |   | - |   |
| Due August 3, 2010                                             |   |          | 29,258    |   |          |   | - |   |
| Due August 8, 2010                                             |   |          | 76,070    |   |          |   | - |   |
| Due August 9, 2010                                             |   |          | 7,314     |   |          |   | - |   |
| Due August 10, 2010                                            |   |          | 43,887    |   |          |   | - |   |
| Due September 8, 2010                                          |   |          | 49,738    |   |          |   | - |   |
| Due October 21, 2010                                           |   |          | 877,732   |   |          |   | - |   |
| Due October 20, 2009                                           |   |          | -         |   |          |   | 731,507 |   |
| Due June 8, 2009                                               |   |          | -         |   |          |   | 38,038 |   |
| Due June 17, 2009                                              |   |          | -         |   |          |   | 146,301 |   |
| Due May 21, 2009                                               |   |          | -         |   |          |   | 84,628 |   |
| Sub total bank acceptance notes                                |   |          | 3,300,272 |   |          |   | 1,000,474 |   |
|                                                           |   |          |      |   |          |   |   |   |
| Total                                                          |   | $             | 9,921,858 |   |          | $      | 22,143,107 |   |

|   | All the bank acceptance notes are interest free and were settled on the due date. |
|--------|-----------------------------------------------------------------------------------|

----

| (I) | Due From Related Parties |
|-----|--------------------------|

|                                          |   |   | April 30,2010 |       |   | April 30,2009 |   |
|-----------------------------------------------|--------|--------|---------------|------------|--------|---------------|--------|
|                                          |   |   |          |       |   |          |   |
| Taiyuan Guangfa Material Trading Co., Ltd     | (a)    |   | $             | 7,745,403  |   |          | $      | 7,507,184 |   |
| Shanxi Jieyuan Material Trading Co., Ltd      | (b)    |   |          | 5,158,764  |   |          |   | 5,076,043 |   |
| Taiyuan Tianlong Machine Manufacture Co., Ltd | (c)    |   |          | 25,796     |   |          |   | 11,748 |   |
| Bai Jie                                       | (d)    |   |          | 93,377     |   |          |   | - |   |
| Total                                         |   |   | $             | 13,023,340 |   |          | $      | 12,594,975 |   |

| (II) | Due To a Related Party |
|------|------------------------|

|       |   |   | April 30,2010 |      |   | April 30,2009 |   |
|------------|--------|--------|---------------|-----------|--------|---------------|--------|
|       |   |   |          |      |   |          |   |
| Liu Xudong | (e)    |   | $             | 1,426,048 |   |          | $      | 983,613 |   |
| Total      |   |   | $             | 1,426,048 |   |          | $      | 983,613 |   |

| (III) | Notes receivable from related parties |
|-------|---------------------------------------|

|                                                                                                                  |   | April 30,2010 |   |   | April 30,2009 |   |
|-----------------------------------------------------------------------------------------------------------------------|--------|---------------|--------|--------|---------------|--------|
|                                                                                                                  |   |          |   |   |          |   |
| Taiyuan Guangfa Material Trading Co., Ltd, due April 30, 2010, interest at 6.37% per annum. (Settled on its due date) |   | $             | -      |   |          | $      | 92,170 |   |
| Total                                                                                                                 |   | $             | -      |   |          | $      | 92,170 |   |

| (IV) | Due From Employees |
|------|--------------------|

|                     |   |   | April 30,2010 |    |   | April 30,2009 |   |
|--------------------------|--------|--------|---------------|---------|--------|---------------|--------|
|                     |   |   |          |    |   |          |   |
| Current                  |   |   | $             | 409,322 |   |          | $      | 302,142 |   |
| Total due from employees | (f)    |   | $             | 409,322 |   |          | $      | 302,142 |   |

|   | (a) Taiyuan Guangfa Material Trading Co., Ltd (“Guangfa”) is under the control of Tian Lanfang, a member of SXGL’s principal owner's immediate family. The balances represent advances to Guangfa for materials purchases. The balances are interest free, unsecured and were subsequently settled. |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) Shanxi Jieyuan Material Trading Co., Ltd (“Jieyuan”) is under the control of Tian Lanfang and Bai Jie, two members of SXGL’s principal owner's immediate family. The balances represent advances to Jieyuan for materials purchases. The balances are interest free, unsecured and were subsequently settled. |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

----

|   | Plant and equipment consist of the following: |
|--------|-----------------------------------------------|

|                            |   | April 30,2010 |        |   | April 30,2009 |   |
|---------------------------------|--------|---------------|-------------|--------|---------------|--------|
| At cost:                        |   |          |        |   |          |   |
| Buildings                       |   | $             | 4,795,023   |   |          | $      | 3,194,532 |   |
| Machinery and equipment         |   |          | 66,940,817  |   |          |   | 57,962,295 |   |
| Office equipment                |   |          | 319,727     |   |          |   | 286,151 |   |
| Motor vehicles                  |   |          | 1,824,593   |   |          |   | 1,518,123 |   |
|                            |   |          | 73,880,160  |   |          |   | 62,961,101 |   |
| Less : Accumulated depreciation |   |          |        |   |          |   |   |   |
| Buildings                       |   |          | (268,817    | )      |          |   | (152,961 | ) |
| Machinery and equipment         |   |          | (15,786,739 | )      |          |   | (10,173,357 | ) |
| Office equipment                |   |          | (196,451    | )      |          |   | (142,945 | ) |
| Motor vehicles                  |   |          | (1,139,285  | )      |          |   | (929,681 | ) |
|                            |   |          | (17,391,292 | )      |          |   | (11,398,944 | ) |
| Plant and equipment, net        |   | $             | 56,488,868  |   |          | $      | 51,562,157 |   |

|   | Depreciation expense for the years ended April 30, 2010 and 2009 was $5,993,573 and $4,627,422, respectively. |
|--------|---------------------------------------------------------------------------------------------------------------|

|   | As of April 30, 2010, the application for ownership certificates of four buildings with an aggregate net book value of $1,896,323 is in progress. The Company’s legal counsel has confirmed the ownership of the four buildings by the Company. |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|                           |   | April 30,2010 |      |   | April 30,2009 |   |
|--------------------------------|--------|---------------|-----------|--------|---------------|--------|
| Cost of land use rights        |   | $             | 3,221,405 |   |          | $      | 3,221,687 |   |
| Less: Accumulated amortization |   |          | (394,458  | )      |          |   | (328,743 | ) |
| Land use rights, net           |   | $             | 2,826,947 |   |          | $      | 2,892,944 |   |

|   | Amortization expense for the years ended April 30, 2010 and 2009 was $65,745 and $64,985, respectively. |
|--------|---------------------------------------------------------------------------------------------------------|

|   | Amortization expense for the next five years and thereafter is as follows: |
|--------|----------------------------------------------------------------------------|

| 2011       |   | $      | 65,746    |   |
|------------|--------|--------|-----------|--------|
| 2012       |   |   | 65,746    |   |
| 2013       |   |   | 65,746    |   |
| 2014       |   |   | 65,746    |   |
| 2015       |   |   | 65,746    |   |
| Thereafter |   |   | 2,498,217 |   |
| Total      |   | $      | 2,826,947 |   |

|   | As of April 30, 2010, a land use right with a net book value of $2,130,026 was pledged to Minmetals Steel Beijing Co., Ltd. for product financing arrangements in the amount of $21,050,938. Also see Note 18. |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Long term investments consist of the following: |
|--------|-------------------------------------------------|

|                                        |   | OwnershipInterest |    |   | April 30,2010 |    |      | OwnershipInterest |    |   | April 30,2009 |   |
|---------------------------------------------|--------|-------------------|---------|--------|---------------|---------|-----------|-------------------|---------|--------|---------------|--------|
| At cost:                                    |   |              |    |   |          |    |      |              |    |   |          |   |
| Shanxi Zhong Lian Steel Guarantee Co., Ltd. |   |              | 8       | %      |          | $       | 3,510,927 |              |    |   | -             |   |   | $ | - |   |
| Jinzhong Credit Union Bank                  |   | <20            | %  |   |          | 146,289 |      |              | <20% |   |          |   | 146,301 |   |
| Total                                       |   |              |    |   |          | $       | 3,657,216 |              |    |   |          |   |   | $ | 146,301 |   |

|   | As of April 30, 2010 and 2009, the Company does not have more than 20% interest in any of the investments and does not exercise significant influence over them. |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | The Company accounts for these investments under the cost method. Investment income is recognized by the Company when the invested companies declare a dividend and the Company believes it is collectible. No investment income was recognized for the years ended April 31, 2010 and 2009. |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | The long-term notes receivable from related parties consist of the following: |
|--------|-------------------------------------------------------------------------------|

|                                                                                                                      |   |   |   |   | April 30,2010 |   |       | April 30,2009 |   |
|---------------------------------------------------------------------------------------------------------------------------|--------|--------|--------|--------|---------------|--------|------------|---------------|--------|
|                                                                                                                      |   |   |   |   |          |   |       |          |   |   |   |   |
| Taiyuan Tianlong Machine Manufacture Co., Ltd, due April 30, 2013, interest at 6.91% per annum.                           |   |   | a      | )      |          | $      | 7,424,976  |          |   | $ | 7,425,628 |   |
|                                                                                                                      |   |   |   |   |          |   |       |          |   |   |   |   |
| Taiyuan Tianlong Machine Manufacture Co., Ltd, due April 30, 2010, interest at 6.37% per annum. (Settled on its due date) |   |   | a      | )      |          |   | -          |          |   |   | 108,409 |   |
|                                                                                                                      |   |   |   |   |          |   |       |          |   |   |   |   |
| Taiyuan Guangfa Material Trading Co., Ltd, due April 30, 2013, interest at 6.91% per annum.                               |   |   | b      | )      |          |   | 1,193,197  |          |   |   | 1,193,302 |   |
|                                                                                                                      |   |   |   |   |          |   |       |          |   |   |   |   |
| Taiyuan Guangfa Material Trading Co., Ltd, due April 30, 2013, interest at 6.48% per annum.                               |   |   | b      | )      |          |   | 4,505,369  |          |   |   | - |   |
|                                                                                                                      |   |   |   |   |          |   |       |          |   |   |   |   |
| Shanxi Jieyuan Material Trading Co., Ltd, due April 30, 2013, interest at 6.91% per annum                                 |   |   | c      | )      |          |   | 11,643,262 |          |   |   | 11,644,284 |   |
|                                                                                                                      |   |   |   |   |          |   |       |          |   |   |   |   |
| Shanxi Jieyuan Material Trading Co., Ltd, due April 30, 2013, interest at 6.48% per annum.                                |   |   | c      | )      |          |   | 3,931,679  |          |   |   | - |   |
| Total                                                                                                                     |   |   |   |   |          |   | 28,698,483 |          |   |   | 20,371,623 |   |
|                                                                                                                      |   |   |   |   |          |   |       |          |   |   |   |   |
| Less: Current portion                                                                                                     |   |   |   |   |          |   | -          |          |   |   | (108,409 | ) |
| Long-term portion                                                                                                         |   |   |   |   |          |   | 28,698,483 |          |   |   | 20,263,214 |   |

|   | b) Guangfa is under the control of Tian Lanfang, a member of SXGL’s principal owner's immediate family. The notes are unsecured. |
|--------|----------------------------------------------------------------------------------------------------------------------------------------|

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

----

|   | c) Jieyuan is under the control of Tian Lanfang and Bai Jie, two members of SXGL’s principal owner's immediate family. The notes are unsecured. |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Interest income for long-term notes receivable from related parties for the years ended April 30, 2010 and 2009 was $1,400,532 and $1,743,883, respectively. |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Interest receivable from related parties consist of the following: |
|--------|--------------------------------------------------------------------|

|                                                                                         |   | April 30,2010 |      |   | April 30,2009 |   |
|----------------------------------------------------------------------------------------------|--------|---------------|-----------|--------|---------------|--------|
|                                                                                         |   |          |      |   |          |   |   |   |
| Taiyuan Tianlong Machine Manufacture Co., Ltd.                                               |   |          | 1,026,429 |   |          |   | 507,385 |   |
|                                                                                         |   |          |      |   |          |   |   |   |
| Taiyuan Tianlong Machine Manufacture Co., Ltd, due April 30, 2010. (Settled on its due date) |   |          | -         |   |          |   | 7,025 |   |
|                                                                                         |   |          |      |   |          |   |   |   |
| Shanxi Jieyuan Material Trading Co., Ltd.                                                    |   |          | 1,469,164 |   |          |   | 664,441 |   |
|                                                                                         |   |          |      |   |          |   |   |   |
| Taiyuan Guangfa Material Trading Co., Ltd.                                                   |   |          | 163,128   |   |          |   | 86,534 |   |
| Total                                                                                        |   | $             | 2,658,721 |   |          |   | 1,265,385 |   |
|                                                                                         |   |          |      |   |          |   |   |   |
| Less: Current portion                                                                        |   |          | (886,240  | )      |          |   | (7,025 | ) |
| Long-term portion                                                                            |   | $             | 1,772,481 |   |          | $      | 1,258,360 |   |

|   | Interest shall be paid quarterly starting April 30, 2011 according to the repayment schedule. |
|--------|-----------------------------------------------------------------------------------------------|

----

|   | The short-term bank borrowings consist of the following: |
|--------|----------------------------------------------------------|

|                                |   |   | April 30,2010 |        |   | April 30,2009 |   |
|-------------------------------------|--------|--------|---------------|-------------|--------|---------------|--------|
| Short-term bank loans               | (a)    |   | $             | 76,084,730  |   |          | $      | 52,887,260 |   |
| Domestic letter of credit financing | (b)    |   |          | 28,071,471  |   |          |   | 11,772,244 |   |
|                                |   |   | $             | 104,156,201 |   |          | $      | 64,659,504 |   |

|   | (a) | Short-Term Bank Loans |
|--------|-----|-----------------------|

|   | The short-term bank loans consist of the following: |
|--------|-----------------------------------------------------|

|                                                                                                                                                                                                                                           |   | April 30,2010 |      |   | April 30,2009 |   |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|---------------|-----------|--------|---------------|--------|
| Loans from Agriculture Bank of China:                                                                                                                                                                                                          |   |          |      |   |          |   |
|                                                                                                                                                                                                                                           |   |          |      |   |          |   |
| Monthly interest only payments at 6.372% per annum, due May 10, 2010, guaranteed by Shanxi 525 Storage and Transportation Co., Ltd.                                                                                                            |   | $             | 3,949,794 |   |          | $      | - |   |
|                                                                                                                                                                                                                                           |   |          |      |   |          |   |   |   |
| Monthly interest only payments at 6.372% per annum, due June 25, 2010, guaranteed by Shanxi 525 Storage and Transportation Co., Ltd.                                                                                                           |   |          | 3,364,639 |   |          |   | - |   |
|                                                                                                                                                                                                                                           |   |          |      |   |          |   |   |   |
| Monthly interest only payments at 9.711% per annum, due June 26, 2009, guaranteed by Shanxi 525 Storage and Transportation Co., Ltd.                                                                                                           |   |          | -         |   |          |   | 3,364,934 |   |
|                                                                                                                                                                                                                                           |   |          |      |   |          |   |   |   |
| Loans from Bank of Communications:                                                                                                                                                                                                             |   |          |      |   |          |   |   |   |
|                                                                                                                                                                                                                                           |   |          |      |   |          |   |   |   |
| Monthly interest only payments at 6.903% per annum, due August 12, 2010, guaranteed by Shanxi Guanghua Cast Pipe Co., Ltd., Shanxi Zhongbao Technology & Trade Co., Ltd., Taiyuan Rongfeng Energy Co., Ltd. and a shareholder, Liu Xudong. |   |          | 4,388,660 |   |          |   | - |   |
|                                                                                                                                                                                                                                           |   |          |      |   |          |   |   |   |
| Monthly interest only payments at 7.254% per annum, due December 4, 2009, guaranteed by Taiyuan Rongfeng Co., Ltd. and Shanxi Zhongbao Co., Ltd.                                                                                               |   |          | -         |   |          |   | 2,926,030 |   |
|                                                                                                                                                                                                                                           |   |          |      |   |          |   |   |   |
| Loans from Everbright Bank:                                                                                                                                                                                                                    |   |          |      |   |          |   |   |   |
|                                                                                                                                                                                                                                           |   |          |      |   |          |   |   |   |
| Monthly interest only payments at 5.310% per annum, due April 25, 2010 guaranteed by Shanxi Wanbang Industry and Trade Co., Ltd., also see Note 21 and collateralized by inventory owned by the Company. Also see Note 8.                      |   |          | 2,925,773 |   |          |   | - |   |

----

|   | (a) | Short-Term Bank Loans (continued) |
|--------|-----|-----------------------------------|

|                                                                                                                                                                                         |   | April 30,2010 |      |   | April 30,2009 |   |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|---------------|-----------|--------|---------------|--------|
| Everbright Bank Taiyuan Branch:                                                                                                                                                              |   |          |      |   |          |   |
|                                                                                                                                                                                         |   |          |      |   |          |   |
| Monthly interest only payments at 4.860% per annum, due May 7, 2010. Accounts receivable from Xinjiang Yinuo Co., Ltd. was pledged as collateral, which was collected before April 30, 2010. |   | $             | 1,462,887 |   |          | $      | - |   |
|                                                                                                                                                                                         |   |          |      |   |          |   |   |   |
| Monthly interest only payments at 4.860% per annum, due July 28, 2010. Accounts receivable of $897,447 of Xi’an Rongdi Pipe Group Co., Ltd. was pledged as collateral.                 |   |          | 4,388,660 |   |          |   | - |   |
|                                                                                                                                                                                         |   |          |      |   |          |   |   |   |
| Monthly interest only payments at 6.570% per annum, due May 6, 2009. Accounts receivable from Xinjiang Yinuo Co., Ltd. was pledged as collateral, which was collected before April 30, 2009. |   |          | -         |   |          |   | 2,048,221 |   |
|                                                                                                                                                                                         |   |          |      |   |          |   |   |   |
| Monthly interest only payments at 4.860% per annum, due August 21, 2009. Accounts receivable of $77,737 of Xi’an Rongdi Pipe Group Co., Ltd. was pledged as collateral.                |   |          | -         |   |          |   | 4,389,045 |   |

----

|   | (a) | Short-Term Bank Loans (continued) |
|--------|-----|-----------------------------------|

|                                                                                                                                                  |   | April 30,2010 |      |   | April 30,2009 |   |
|-------------------------------------------------------------------------------------------------------------------------------------------------------|--------|---------------|-----------|--------|---------------|--------|
| Loans from China Construction Bank:                                                                                                                   |   |          |      |   |          |   |
|                                                                                                                                                  |   |          |      |   |          |   |
| Monthly interest only payments at 5.310% per annum, due May 28, 2010, secured by machinery and equipment owned by the Company. Also see Note 11.      |   | $             | 731,443   |   |          | $      | - |   |
|                                                                                                                                                  |   |          |      |   |          |   |   |   |
| Monthly interest only payments at 5.310% per annum, due November 10, 2010, secured by machinery and equipment owned by the Company. Also see Note 11. |   |          | 731,442   |   |          | $      | - |   |
|                                                                                                                                                  |   |          |      |   |          |   |   |   |
| Monthly interest only payments at 5.310% per annum, due January 24, 2011, secured by machinery and equipment owned by the Company. Also see Note 11.  |   |          | 5,705,257 |   |          |   | - |   |
|                                                                                                                                                  |   |          |      |   |          |   |   |   |
| Monthly interest only payments at 5.310% per annum, due January 25, 2011, secured by machinery and equipment owned by the Company. Also see Note 11.  |   |          | 731,442   |   |          |   | - |   |
|                                                                                                                                                  |   |          |      |   |          |   |   |   |
| Monthly interest only payments at 5.310% per annum, due January 26, 2011, secured by machinery and equipment owned by the Company. Also see Note 11.  |   |          | 2,194,329 |   |          |   |   |   |
|                                                                                                                                                  |   |          |      |   |          |   |   |   |
| Monthly interest only payments at 7.470% per annum, due May 29, 2009, secured by machinery and equipment owned by the Company. Also see Note 11.      |   |          | -         |   |          |   | 731,507 |   |
|                                                                                                                                                  |   |          |      |   |          |   |   |   |
| Monthly interest only payments at 6.660% per annum, due November 5, 2009, secured by machinery and equipment owned by the Company. Also see Note 11.  |   |          | -         |   |          |   | 731,507 |   |
|                                                                                                                                                  |   |          |      |   |          |   |   |   |
| Monthly interest only payments at 5.310% per annum, due January 19, 2009, secured by machinery and equipment owned by the Company. Also see Note 11.  |   |          | -         |   |          |   | 731,507 |   |
|                                                                                                                                                  |   |          |      |   |          |   |   |   |
| Monthly interest only payments at 5.310% per annum, due January 23, 2009, secured by machinery and equipment owned by the Company. Also see Note 11.  |   |          | -         |   |          |   | 2,194,522 |   |

----

|   | (a) | Short-Term Bank Loans (continued) |
|--------|-----|-----------------------------------|

|                                                                                                                                                                    |   | April 30,2010 |      |   | April 30,2009 |   |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|---------------|-----------|--------|---------------|--------|
| Loans from China Bohai Bank:                                                                                                                                            |   |          |      |   |          |   |
|                                                                                                                                                                    |   |          |      |   |          |   |
| Monthly interest only payments at 5.841% per annum, due October 22, 2010, guaranteed by a shareholder, Liu Xudong.                                                      |   | $             | 2,194,330 |   |          | $      | - |   |
|                                                                                                                                                                    |   |          |      |   |          |   |   |   |
| Monthly interest only payments at 5.346% per annum, due October 19, 2009, guaranteed by Shanxi Wanbang Trade and Industry Co., Ltd.                                     |   |          | -         |   |          |   | 2,194,522 |   |
|                                                                                                                                                                    |   |          |      |   |          |   |   |   |
| Loans from China Merchants Bank:                                                                                                                                        |   |          |      |   |          |   |   |   |
|                                                                                                                                                                    |   |          |      |   |          |   |   |   |
| Monthly interest only payments at 6.903% per annum, due July 21, 2010, guaranteed by Shanxi XinDayu Material Co., Ltd., also see Note 21 and a shareholder, Liu Xudong. |   |          | 2,925,773 |   |          |   | - |   |
|                                                                                                                                                                    |   |          |      |   |          |   |   |   |
| Monthly interest only payments at 6.903% per annum, due March 3, 2011, guaranteed by Shanxi Zhonglian Steel Guarantee Co., Ltd.                                         |   |          | 1,462,887 |   |          |   | - |   |
|                                                                                                                                                                    |   |          |      |   |          |   |   |   |
| Loans from CITIC Bank:                                                                                                                                                  |   |          |      |   |          |   |   |   |
|                                                                                                                                                                    |   |          |      |   |          |   |   |   |
| Monthly interest only payments at 6.903% per annum, due May 28, 2010, guaranteed by Shanxi Tongyuan Industrial Co., Ltd., also see Note 21.                             |   |          | 4,388,660 |   |          |   | - |   |
|                                                                                                                                                                    |   |          |      |   |          |   |   |   |
| Monthly interest only payments at 6.903% per annum, due April 7, 2011, guaranteed by Shanxi XinDayu Material Co., Ltd., also see Note 21.                               |   |          | 1,462,887 |   |          |   | - |   |
|                                                                                                                                                                    |   |          |      |   |          |   |   |   |
| Monthly interest only payments at 9.711% per annum, due May 28, 2009 guaranteed by Shanxi Tongyuan Industrial Co., Ltd.                                                 |   |          | -         |   |          |   | 2,926,031 |   |
|                                                                                                                                                                    |   |          |      |   |          |   |   |   |
| Monthly interest only payments at 6.903% per annum, due August 5, 2009, guaranteed by Shanxi Tongyuan Industrial Co., Ltd.                                              |   |          | -         |   |          |   | 1,463,016 |   |
|                                                                                                                                                                    |   |          |      |   |          |   |   |   |
| Monthly interest only payments at 6.903% per annum, due March 20, 2010, guaranteed by Shanxi XinDayu Material Co., Ltd.                                                 |   |          | -         |   |          |   | 1,463,016 |   |

----

|   | (a) | Short-Term Bank Loans (continued) |
|--------|-----|-----------------------------------|

|                                                                                                                                                                       |   | April 30,2010 |      |   | April 30,2009 |   |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|---------------|-----------|--------|---------------|--------|
| Loans from Industrial and Commercial Bank of China:                                                                                                                        |   |          |      |   |          |   |
|                                                                                                                                                                       |   |          |      |   |          |   |
| Monthly interest only payments at 6.903% per annum, due January 12, 2011, guaranteed by Shanxi Taishi Metallurgical Industrial Co., Ltd., also see Note 21.                |   | $             | 1,462,887 |   |          | $      | - |   |
|                                                                                                                                                                       |   |          |      |   |          |   |   |   |
| Monthly interest only payments at 9.711% per annum, due September 2, 2009, guaranteed by Shanxi Taishi Metallurgical Industrial Co., Ltd.                                  |   |          | -         |   |          |   | 1,463,015 |   |
|                                                                                                                                                                       |   |          |      |   |          |   |   |   |
| Loans from Huaxia Bank:                                                                                                                                                    |   |          |      |   |          |   |   |   |
|                                                                                                                                                                       |   |          |      |   |          |   |   |   |
| Monthly interest only payments at 5.832% per annum, due June 24, 2010, guaranteed by Shanxi Tongyuan Industrial Co., Ltd., also see Note 21 and a shareholder, Liu Xudong. |   |          | 1,462,887 |   |          |   | - |   |
|                                                                                                                                                                       |   |          |      |   |          |   |   |   |
| Monthly interest only payments at 6.107% per annum, due December 25, 2010, guaranteed by Zhongbao Trading Co., Ltd., and Taiyuan Rongfeng Co., Ltd.                        |   |          | 4,388,660 |   |          |   | - |   |
|                                                                                                                                                                       |   |          |      |   |          |   |   |   |
| Monthly interest only payments at 5.832% per annum, due July 1, 2009, guaranteed by Shanxi Tongyuan Industrial Co., Ltd., and a shareholder, Liu Xudong.                   |   |          | -         |   |          |   | 1,463,015 |   |
|                                                                                                                                                                       |   |          |      |   |          |   |   |   |
| Monthly interest only payments at 6.372% per annum, due January 2, 2010, guaranteed by Zhongbao Trading Co., Ltd., and Taiyuan Rongfeng Co., Ltd.                          |   |          | -         |   |          |   | 4,389,045 |   |
|                                                                                                                                                                       |   |          |      |   |          |   |   |   |
| Loans from Jinshang Bank:                                                                                                                                                  |   |          |      |   |          |   |   |   |
|                                                                                                                                                                       |   |          |      |   |          |   |   |   |
| Monthly interest only payments at 5.310% per annum, due November 19, 2010, guaranteed by Shanxi zhonglian guarantee Co., Ltd., and a shareholder, Liu Xudong.              |   |          | 1,462,887 |   |          |   | - |   |
|                                                                                                                                                                       |   |          |      |   |          |   |   |   |
| Monthly interest only payments at 6.903% per annum, due April 12, 2010, guaranteed by Taiyuan SME Guarantee Co., Ltd.                                                      |   |          | -         |   |          |   | 2,487,125 |   |

----

|   | (a) | Short-Term Bank Loans (continued) |
|--------|-----|-----------------------------------|

|                                                                                                                                                                      |   | April 30,2010 |      |   | April 30,2009 |   |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|---------------|-----------|--------|---------------|--------|
| Loans from China Minsheng Bank:                                                                                                                                           |   |          |      |   |          |   |
|                                                                                                                                                                      |   |          |      |   |          |   |
| Monthly interest only payments at 5.103% per annum, due July 11, 2010, guaranteed by XASP.                                                                                |   | $             | 5,295,649 |   |          | $      | - |   |
|                                                                                                                                                                      |   |          |      |   |          |   |   |   |
| Monthly interest only payments at 5.346% per annum, due October 6, 2010, pledged by inventory of the Company. Also see Note 8.                                            |   |          | 2,925,773 |   |          |   | - |   |
|                                                                                                                                                                      |   |          |      |   |          |   |   |   |
| Monthly interest only payments at 6.318% per annum, due July 4, 2009, pledged by inventory of the Company. Also see Note 8.                                               |   |          | -         |   |          |   | 72,419 |   |
|                                                                                                                                                                      |   |          |      |   |          |   |   |   |
| Monthly interest only payments at 5.310% per annum, due April 14, 2010, pledged by inventory of the Company, also see Note 8 and guaranteed by a shareholder, Liu Xudong. |   |          | -         |   |          |   | 2,926,030 |   |
|                                                                                                                                                                      |   |          |      |   |          |   |   |   |
| Loans from Jinzhong Credit Union:                                                                                                                                         |   |          |      |   |          |   |   |   |
|                                                                                                                                                                      |   |          |      |   |          |   |   |   |
| Monthly interest only payments at 10.368% per annum, due December 27, 2010, guaranteed by Shanxi 525 Storage Transportation Co., Ltd.                                     |   |          | 1,448,258 |   |          |   | - |   |
|                                                                                                                                                                      |   |          |      |   |          |   |   |   |
| Monthly interest only payments at 7.560% per annum, due January 7, 2010, guaranteed by Shanxi 525 Storage an Transportation Co., Ltd.                                     |   |          | -         |   |          |   | 1,755,618 |   |
|                                                                                                                                                                      |   |          |      |   |          |   |   |   |
| Loans from Shanghai Pudong Development Bank:                                                                                                                              |   |          |      |   |          |   |   |   |
|                                                                                                                                                                      |   |          |      |   |          |   |   |   |
| Monthly interest only payments at 6.372% per annum, due June 2, 2010, guaranteed by Shanxi SME Credit Guarantee Co., Ltd.                                                 |   |          | 1,462,887 |   |          |   | - |   |
|                                                                                                                                                                      |   |          |      |   |          |   |   |   |
| Monthly interest only payments at 6.372% per annum, due June 18, 2010, guaranteed by Shanxi Taishi Metallurgical Industrial Co., Ltd.                                     |   |          | 1,462,887 |   |          |   | - |   |

----

|   | (a) | Short-Term Bank Loans (continued) |
|--------|-----|-----------------------------------|

|                                                                                                                                                                                         |   | April 30,2010 |      |   | April 30,2009 |   |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|---------------|-----------|--------|---------------|--------|
| Loans from Shanghai Pudong Development Bank:                                                                                                                                                 |   |          |      |   |          |   |
|                                                                                                                                                                                         |   |          |      |   |          |   |
| Monthly interest only payments at 6.372% per annum, due March 31, 2011, guaranteed by Shanxi Taishi Metallurgical Industrial Co., Ltd.                                                       |   | $             | 1,462,887 |   |          | $      | - |   |
|                                                                                                                                                                                         |   |          |      |   |          |   |   |   |
| Monthly interest only payments at 7.470% per annum, due May 21, 2009, guaranteed by Shanxi SME Credit Guarantee Co., Ltd.                                                                    |   |          | -         |   |          |   | 2,926,030 |   |
|                                                                                                                                                                                         |   |          |      |   |          |   |   |   |
| Monthly interest only payments at 8.964% per annum, due June 30, 2009, guaranteed by Taiyuan Tianlong Machinery Manufacturing Co., Ltd. & Shanxi Jinzhong Industry & Trade Co., Ltd. |   |          | -         |   |          |   | 1,463,015 |   |
|                                                                                                                                                                                         |   |          |      |   |          |   |   |   |
| Monthly interest only payments at 4.860% per annum, due May 10, 2010, accounts receivable of $1,389,727 of Taiyuan Reli Co., Ltd. was pledged as collateral.                                 |   |          | 2,194,329 |   |          |   | - |   |
|                                                                                                                                                                                         |   |          |      |   |          |   |   |   |
| Monthly interest only payments at 4.860% per annum, due July 31, 2010, accounts receivable of $1,389,727 of Taiyuan Reli Co., Ltd. was pledged as collateral.                                |   |          | 2,194,329 |   |          |   | - |   |
|                                                                                                                                                                                         |   |          |      |   |          |   |   |   |
| Monthly interest only payments at 5.589% per annum, due September 21, 2010, accounts receivable of $6,570,475 of Datong Thermal Co., Ltd. was pledged as collateral.                         |   |          | 4,388,660 |   |          |   | - |   |
|                                                                                                                                                                                         |   |          |      |   |          |   |   |   |
| Monthly interest only payments at 5.589% per annum, due October 28, 2010, accounts receivable of $6,570,475 of Datong Thermal Co., Ltd. was pledged as collateral.                           |   |          | 1,462,887 |   |          |   | - |   |
|                                                                                                                                                                                         |   |          |      |   |          |   |   |   |
| Monthly interest only payments at 6.633% per annum, due May 17, 2009, accounts receivable of $1,563,484 of Taiyuan Reli Co., Ltd. was pledged as collateral.                                 |   |          | -         |   |          |   | 2,194,523 |   |

----

|   | (a) | Short-Term Bank Loans (continued) |
|--------|-----|-----------------------------------|

|                                                                                                                                                                          |   | April 30,  |   |   | April 30,  |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|------------|--------|--------|------------|
|                                                                                                                                                                          |   | 2010       |   |   | 2009       |
| Loans from Shanghai Pudong Development Bank:                                                                                                                                  |   |       |   |   |       |
|                                                                                                                                                                          |   |       |   |   |       |
| Monthly interest only payments at 5.346% per annum, due September 10, 2009, accounts receivable of $1,563,484 of Taiyuan Reli Co., Ltd. was pledged as collateral.            |   | -          |   |   | 2,194,523  |
|                                                                                                                                                                          |   |       |   |   |       |
| Monthly interest only payments at 5.346% per annum, due October 2, 2009, accounts receivable of $77,737 of Xi’an Rongdi Pipe Group Co., Ltd. was pledged as collateral. |   | -          |   |   | 4,389,044  |
| Total                                                                                                                                                                         | $      | 76,084,730 |   | $      | 52,887,260 |

----

|   | (b) | Domestic Letters of Credit Financing |
|--------|-----|--------------------------------------|

|                 |   | April 30,2010 |       |   | April 30,2009 |   |
|----------------------|--------|---------------|------------|--------|---------------|--------|
| Due May 6, 2010      |   | $             | 889,229    |   |          | $      | - |   |
| Due May 18, 2010     |   |          | 427,678    |   |          |   | - |   |
| Due May 28, 2010     |   |          | 3,251,927  |   |          |   | - |   |
| Due June 10, 2010    |   |          | 405,296    |   |          |   | - |   |
| Due July 1, 2010     |   |          | 3,936,477  |   |          |   | - |   |
| Due July 13, 2010    |   |          | 3,072,037  |   |          |   | - |   |
| Due August 6, 2010   |   |          | 2,361,904  |   |          |   | - |   |
| Due August 11, 2010  |   |          | 1,807,323  |   |          |   | - |   |
| Due October 26, 2010 |   |          | 1,898,827  |   |          |   | - |   |
| Due June 4, 2010     |   |          | 5,851,546  |   |          |   | - |   |
| Due July 16, 2010    |   |          | 4,169,227  |   |          |   | - |   |
| Due May 7, 2009      |   |          |       |   |          |   | 1,258,192 |   |
| Due June 17, 2009    |   |          |       |   |          |   | 1,755,625 |   |
| Due June 25, 2009    |   |          |       |   |          |   | 1,755,699 |   |
| Due July 7, 2009     |   |          |       |   |          |   | 3,950,147 |   |
| Due July 15, 2009    |   |          |       |   |          |   | 3,052,581 |   |
|                 |   | $             | 28,071,471 |   |          | $      | 11,772,244 |   |

|                               |   |   | April 30,2010 |       |   | April 30,2009 |   |
|------------------------------------|--------|--------|---------------|------------|--------|---------------|--------|
| Notes payable to unrelated parties | (a)    |   | $             | 1,459,961  |   |          | $      | 2,969,920 |   |
| Bank acceptance notes              | (b)    |   |          | 41,620,586 |   |          |   | 53,701,905 |   |
| Total                              |   |   | $             | 43,080,547 |   |          | $      | 56,671,825 |   |

----

|   | (a) | Notes Payable to Unrelated Parties |
|--------|-----|------------------------------------|

|                                           |   | April 30,2010 |      |   | April 30,2009 |   |
|------------------------------------------------|--------|---------------|-----------|--------|---------------|--------|
|                                           |   |          |      |   |          |   |
| Due June 4, 2010, interest at 19.2% per annum  |   | $             | 304,280   |   |          | $      | - |   |
| Due August 13, 2010, interest at 24% per annum |   |          | 1,024,021 |   |          |   | - |   |
| Due August 13, 2010, interest free, unsecured  |   |          | 131,660   |   |          |   | - |   |
| Due May 12, 2009, interest free, unsecured     |   |          | -         |   |          |   | 585,206 |   |
| Due June 3, 2009, interest at 19.2% per annum  |   |          | -         |   |          |   | 204,822 |   |
| Due August 13, 2010, interest at 24% per annum |   |          | -         |   |          |   | 877,809 |   |
| Due August 13, 2010, interest free, unsecured  |   |          | -         |   |          |   | 131,672 |   |
| Due August 13, 2010, interest free, unsecured  |   |          | -         |   |          |   | 1,170,411 |   |
| Subtotal                                       |   | $             | 1,459,961 |   |          | $      | 2,969,920 |   |

|   | (b) | Bank Acceptance Notes |
|--------|-----|-----------------------|

|                                                     |   | April 30,2010 |       |   | April 30,2009 |   |
|----------------------------------------------------------|--------|---------------|------------|--------|---------------|--------|
| Bank acceptance notes (aggregated by month of maturity): |   |          |       |   |          |   |
| Due May, 2010                                            |   |          | 5,266,392  |   |          |   | - |   |
| Due June, 2010                                           |   |          | 15,453,934 |   |          |   | - |   |
| Due July, 2010                                           |   |          | 7,899,587  |   |          |   | - |   |
| Due August, 2010                                         |   |          | 4,886,041  |   |          |   | - |   |
| Due September, 2010                                      |   |          | 5,627,725  |   |          |   | - |   |
| Due October, 2010                                        |   |          | 2,486,907  |   |          |   | - |   |
| Due May, 2009                                            |   |          | -          |   |          |   | 4,096,442 |   |
| Due June, 2009                                           |   |          | -          |   |          |   | 11,704,120 |   |
| Due July, 2009                                           |   |          | -          |   |          |   | 14,911,447 |   |
| Due August, 2009                                         |   |          | -          |   |          |   | 9,509,597 |   |
| Due September, 2009                                      |   |          | -          |   |          |   | 8,648,546 |   |
| Due October, 2009                                        |   |          | -          |   |          |   | 4,831,753 |   |
| Total                                                    |   | $             | 41,620,586 |   |          | $      | 53,701,905 |   |

----

|   | (b) | Bank Acceptance Notes (continued) |
|--------|-----|-----------------------------------|

|                                             |   |   | April 30,2010 |       |   | April 30,2009 |   |
|--------------------------------------------------|--------|--------|---------------|------------|--------|---------------|--------|
|                                             |   |   |          |       |   |          |   |   |   |
| Due May 8, 2010, interest at 1% per 75 days      | (a)    |   | $             | 3,510,926  |   |          | $      |   |   |
|                                             |   |   |          |       |   |          |   |   |   |
| Due May 16, 2010, interest at 1% per 75 days     | (a)    |   |          | 5,266,392  |   |          |   |   |   |
|                                             |   |   |          |       |   |          |   |   |   |
| Due June 17, 2010, interest at 1% per 75 days    | (a)    |   |          | 3,510,928  |   |          |   |   |   |
|                                             |   |   |          |       |   |          |   |   |   |
| Due July 14, 2010, interest at 1% per 75 days    | (a)    |   |          | 3,510,928  |   |          |   |   |   |
|                                             |   |   |          |       |   |          |   |   |   |
| Due July 5, 2010, interest at 1% per 75 days     | (a)    |   |          | 3,510,928  |   |          |   |   |   |
|                                             |   |   |          |       |   |          |   |   |   |
| Due July 11, 2010, interest at 1% per 75 days    | (a)    |   |          | 3,510,928  |   |          |   |   |   |
|                                             |   |   |          |       |   |          |   |   |   |
| Due March 31, 2011, interest at 1.5% per 90 days | (b)    |   |          | 21,050,938 |   |          |   | 22,223,198 |   |
|                                             |   |   |          |       |   |          |   |   |   |
| Due June 16, 2009, interest at 1% per 75 days    | (a)    |   |          | -          |   |          |   | 5,266,854 |   |
|                                             |   |   |          |       |   |          |   |   |   |
| Due June 28, 2009, interest at 1% per 75 days    | (a)    |   |          |       |   |          |   | 3,277,154 |   |
|                                             |   |   |          |       |   |          |   |   |   |
| Due June 30, 2009, interest at 1% per 75 days    | (a)    |   |          |       |   |          |   | 5,266,854 |   |
|                                             |   |   |          |       |   |          |   |   |   |
| Due July 5, 2009, interest at 1% per 75 days     | (a)    |   |          |       |   |          |   | 3,013,547 |   |
|                                             |   |   |          |       |   |          |   |   |   |
| Total                                            |   |   |          | 43,871,968 |   |          |   | 39,047,607 |   |

----

| (a)  | The liabilities are due to an unrelated party. The balances represent funds received to support the Company’s business operations. The inventory described in the product financing arrangements was not shipped to party (a) and the title did not pass to party (a). However, party (a) has the right to request the shipment if the Company does not perform its repurchase obligation. The notes were all settled on their due date. |
|-----------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b)  | The liabilities are due to an unrelated party. The balances represent funds received to support the Company’s business operations. The inventory described in the product financing arrangements was not shipped to party (b) and the title did not pass to party (b). However, party (b) has the right to request the shipment if the Company does not perform its repurchase obligation. Such transaction was also secured by a land use right, also see Note 12, and the additional paid in capital of SXGL, also see Note 21. |
|-----------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Interest expense for liabilities from product financing arrangements for the years ended April 30, 2010 and 2009 was $1,120,594 and $1,652,615, respectively. |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|               |   | April 30,2010 |      |   | April 30,2009 |   |
|--------------------|--------|---------------|-----------|--------|---------------|--------|
| Current:           |   |          |      |   |          |   |
| Provision for CIT  |   | $             | 705,717   |   |          | $      | 978,224 |   |
|               |   |          |      |   |          |   |   |   |
| Deferred:          |   |          |      |   |          |   |   |   |
| Provision for CIT  |   |          | 2,162,543 |   |          |   | 1,048,682 |   |
|               |   |          |      |   |          |   |   |   |
| Income tax expense |   | $             | 2,868,260 |   |          | $      | 2,026,906 |   |

|                                    |   | April 30,2010 |      |   | April 30,2009 |   |
|-----------------------------------------|--------|---------------|-----------|--------|---------------|--------|
|                                    |   |          |      |   |          |   |
| Computed “expected” expense |   | $             | 2,361,157 |   |          | $      | 1,749,897 |   |
| Permanent differences                   |   |          | 507,103   |   |          |   | 277,009 |   |
|                                    |   |          |      |   |          |   |   |   |
| Income tax expense                      |   | $             | 2,868,260 |   |          | $      | 2,026,906 |   |

----

|                                            |   | April 30,2010 |       |   | April 30,2009 |   |
|-------------------------------------------------|--------|---------------|------------|--------|---------------|--------|
| Deferred tax assets (liabilities):              |   |          |       |   |          |   |
| Current portion:                                |   |          |       |   |          |   |
| Loss carry forward                              |   | $             | 127,712    |   |          | $      | 187,516 |   |
| Sales                                           |   |          | 1,458,724  |   |          |   | 1,336,023 |   |
| Expenses cut-off                                |   |          | 1,622,373  |   |          |   | 1,609,138 |   |
| (Over) under accrued cost of sales              |   |          | (1,163,385 | )      |          |   | 1,313,620 |   |
| Other                                           |   |          | (111,697   | )      |          |   | (2,644 | ) |
| Subtotal                                        |   |          | 1,933,727  |   |          |   | 4,443,653 |   |
|                                            |   |          |       |   |          |   |   |   |
| Non-current portion:                            |   |          |       |   |          |   |   |   |
| Depreciation                                    |   |          | 1,723,847  |   |          |   | 1,026,374 |   |
| Interest income from long-term notes receivable |   |          | (664,680   | )      |          |   | (314,590 | ) |
|                                            |   |          |       |   |          |   |   |   |
| Subtotal                                        |   |          | 1,059,167  |   |          |   | 711,784 |   |
|                                            |   |          |       |   |          |   |   |   |
| Net deferred tax assets                         |   | $             | 2,992,894  |   |          | $      | 5,155,437 |   |

----

| Registered Capital: |   | April 30, 2010 |   |   | April 30, 2009 |   |
|---------------------|--------|----------------|--------|--------|----------------|--------|
|                |   |           |   |   |           |   |   |   |   |   |   |   |
| Liu Xudong          |   | $              | 45,000 |   |           |   | 90 | % |   | $ | 45,000 |   |   |   | 90 | % |
| Li Ning             |   |           | 5,000  |   |           |   | 10 | % |   |   | 5,000 |   |   |   | 10 | % |
| Total               |   | $              | 50,000 |   |           |   | 100 | % |   | $ | 50,000 |   |   |   | 100 | % |

----

|                                                                                        |   |   |       |
|---------------------------------------------------------------------------------------------|--------|--------|------------|
|            Plant and equipment       |   | $      | 33,798,545 |   |
|            Deferred tax assets       |   |   | 613,102    |   |
|            Cash and cash equivalents |   |   | 103,411    |   |
| Accounts receivable                                                                         |   |   | 205,824    |   |
|            Notes receivable          |   |   | 38,038     |   |
|            Other assets              |   |   | 1,819,540  |   |
|      Total assets purchased                                        |   | $      | 36,578,460 |   |
|                                                                                        |   |   |       |   |
|            Accounts payable          |   |   | (154,073   | ) |
|            Other liabilities         |   |   | (13,984    | ) |
|      Total liabilities assumed                                     |   | $      | (168,057   | ) |
|                                                                                        |   |   |       |   |
| Total net assets                                                                            |   | $      | 36,410,403 |   |
|                                                                                        |   |   |       |   |
| Share percentage                                                                            |   |   | 100        | % |
|                                                                                        |   |   |       |   |
| Net assets acquired                                                                         |   | $      | 36,410,403 |   |
|                                                                                        |   |   |       |   |
| Total consideration paid                                                                    |   | $      | 43,800,000 |   |
|                                                                                        |   |   |       |   |
| Goodwill                                                                                    |   | $      | 7,389,597  |   |

|                   |   | April 30, 2010 |        |   | April 30, 2009 |   |
|------------------------|--------|----------------|-------------|--------|----------------|--------|
| Area                   |   | Amounts        |        |   | Percentage     |   |   | Amounts |   |   | Percentage |   |
| China                  |   | $              | 125,608,457 |   |           |   | 85.6 | % |   | $ | 116,607,222 |   |   |   | 76.4 | % |
| Africa                 |   |           | 16,414,308  |   |           |   | 11.2 | % |   |   | - |   |   |   | - |   |
| South America          |   |           | 4,328,557   |   |           |   | 2.8 | % |   |   | 5,499,483 |   |   |   | 4 | % |
| North America          |   |           | 380,533     |   |           |   | 0.3 | % |   |   | 6,884,626 |   |   |   | 4.6 | % |
| Asia (excluding China) |   |           | 103,428     |   |           |   | 0.1 | % |   |   | 19,840,547 |   |   |   | 13 | % |
| Europe                 |   |           | -           |   |           |   | - |   |   |   | 3,679,350 |   |   |   | 2 | % |
| Total                  |   | $              | 146,835,283 |   |           |   | 100 | % |   | $ | 152,511,228 |   |   |   | 100 | % |

----

|   | (1) | As of April 30, 2010, the Company entered into two guarantee contracts to serve as guarantor for bank loans borrowed by an unrelated party, Shanxi Rong Xiang Trading Co., Ltd. (“SXRX”). If SXRX defaults on the repayment of its bank loans when they fall due, the Company is required to repay the outstanding balance. As of April 30, 2010, the guarantee provided for the bank loans borrowed by SXRX was $4,388,660, which consists of the following: |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                  |   | April 30, 2010 |      |
|-----------------------|--------|----------------|-----------|
| Due November 14, 2010 |   | $              | 2,194,330 |   |
| Due October 27, 2010  |   |           | 2,194,330 |   |
| Total                 |   | $              | 4,388,660 |   |

|   | (2) | As of April 30, 2010, the Company entered into a guarantee contract to serve as guarantor for bank loans borrowed by an unrelated party, Taiyuan North Metallurgy Co., Ltd with a guarantee amount of $2,925,773, due May 26, 2010. |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (3) | As of April 30, 2010, the Company entered into four guarantee contracts to serve as guarantor for bank loans borrowed by an unrelated party, Shanxi Tongyuan Industrial Group Co., Ltd. (“SXTY”). SXTY also provided a cross guarantee for bank loans of $5,851,546 borrowed by the Company. Also see Note 16(a). As of April 30, 2010, the guarantee provided for the bank loans borrowed by SXTY was $7,753,299, which consists of the following: |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                 |   | April 30, 2010 |      |
|----------------------|--------|----------------|-----------|
| Due January 14, 2011 |   | $              | 2,633,196 |   |
| Due August 5, 2010   |   |           | 3,657,216 |   |
| Due April 24, 2011   |   |           | 1,462,887 |   |
| Total                |   | $              | 7,753,299 |   |

|   | (4) | As of April 30, 2010, the Company entered into one guarantee contract to serve as guarantor for bank loans borrowed by an unrelated party, Shanxi Wanbang Industry and Trade Co., Ltd. (“SXWB”) with a guarantee amount of $4,388,660, due June 4, 2010. SXWB also provided a cross guarantee for the short-term loan of $2,925,773 borrowed by the Company. See Note 16(a). |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (5) | As of April 30, 2010, the Company entered into two guarantee contracts to serve as guarantor for bank loans borrowed by an unrelated party, Shanxi Taishi Metallurgy Industry Group Co., Ltd. (“SXTS”). SXTS also provided a cross guarantee for bank loans of $2,925,773 borrowed by the Company. Also see Note 16(a). As of April 30, 2010, the guarantee provided for the bank loans borrowed by SXTS was $7,314,433, which consists of the following: |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                  |   | April 30, 2010 |      |
|-----------------------|--------|----------------|-----------|
| Due May 18, 2011      |   | $              | 4,388,660 |   |
| Due February 24, 2011 |   |           | 2,925,773 |   |
| Total                 |   | $              | 7,314,433 |   |

----

|   | (6) | As of April 30, 2010, the Company entered into two guarantee contracts to serve as guarantor for bank loans borrowed by an unrelated party, Taiyuan North Metallurgy Co., Ltd (“TYNM”). As of April 30, 2010, the guarantee provided for bank loans borrowed by TYNM was $2,121,186, which consists of the following: |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                 |   | April 30, 2010 |      |
|----------------------|--------|----------------|-----------|
| Due April 29, 2011   |   | $              | 1,097,165 |   |
| Due November 4, 2010 |   |           | 1,024,021 |   |
| Total                |   | $              | 2,121,186 |   |

|   | (7) | As of April 30, 2010, the Company entered into two guarantee contracts to serve as guarantor for bank loans borrowed by an unrelated party, Shanxi Guanghua Pipe produce Co., Ltd. (“SXGH”). SXGH also provided a cross guarantee for bank loan of $4,388,660 borrowed by the Company. See Note 16(a). As of April 30, 2010, the guarantee provided for the bank loans borrowed by SXGH was $29,257,732, which consists of the following: |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                 |   | April 30, 2010 |       |
|----------------------|--------|----------------|------------|
| Due October 10, 2010 |   | $              | 7,314,433  |   |
| Due April 13, 2010   |   |           | 7,314,433  |   |
| Due October 10, 2016 |   |           | 14,628,866 |   |
| Total                |   | $              | 29,257,732 |   |

|   | (8) | As of April 30, 2010, the Company entered into two guarantee contracts to serve as guarantor for bank loans borrowed by an unrelated party, Shanxi XinDayu Material Co., Ltd. (“SXXD”). SXXD also provided a cross guarantee for bank loans of $4,388,660 borrowed by the Company. Also see Note 16(a). As of April 30, 2010, the guarantee provided for the bank loans borrowed by SXXD was $3,218,351, which consists of the following: |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                  |   | April 30, 2010 |      |
|-----------------------|--------|----------------|-----------|
| Due December 16, 2010 |   | $              | 1,462,887 |   |
| Due March 25, 2011    |   |           | 1,755,464 |   |
| Total                 |   | $              | 3,218,351 |   |

|   | (9) | As of April 30, 2010, the Company entered into a guarantee contract to serve as guarantor for bank loans borrowed by an unrelated party, Shanxi Changxin Steel Co., Ltd. from the Huaxia Bank with a guarantee amount of $1,755,464, due September 13, 2010. |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (10) | As of April 30, 2010, the Company entered into a guarantee contract to serve as guarantor for the bank loans borrowed by the Shanxi Xinhuayuan Trading Co., Ltd. from the Jinshang  Bank with a guarantee amount of $1,755,464, due June 25, 2010 |
|--------|------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

----

----

| PAGE | 1  | Basis of Presentation |
|------|---------|-----------------------|

| PAGE | 2  | Unaudited Condensed Combined Pro Forma Balance Sheet as of January 31, 2011 |
|------|---------|-----------------------------------------------------------------------------|

| PAGE | 3  | Unaudited Condensed Combined Pro Forma Statement of Income and Comprehensive Income for the Nine Months Ended January 31, 2011 |
|------|---------|--------------------------------------------------------------------------------------------------------------------------------|

| PAGE | 4  | Unaudited Condensed Combined Pro Forma Statement of Income and Comprehensive Income for the Year Ended April 30, 2010 |
|------|---------|-----------------------------------------------------------------------------------------------------------------------|

| PAGE | 5 | Notes to Unaudited Condensed Combined Pro Forma Financial Statements |
|------|---|----------------------------------------------------------------------|

----

----

|                                                                                             |   | RKLMHISTORICAL |        |   | SOGPHISTORICAL |   |    | PRO FORMAADJUSTMENTS |   |   | PRO FORMACOMBINED |   |
|--------------------------------------------------------------------------------------------------|--------|----------------|-------------|--------|----------------|--------|---------|----------------------|--------|--------|-------------------|--------|
| CURRENT ASSETS                                                                                   |   |           |        |   |           |   |    |                 |   |   |              |   |
| Cash and cash equivalents                                                                        |   | $              | 2,801,465   |   |           | $      | -       |                 |   | $      | -                 |   |   | $ | 2,801,465 |   |
| Restricted cash                                                                                  |   |           | 50,114,660  |   |           |   | -       |                 |   |   |              |   |   |   | 50,114,660 |   |
| Accounts receivable, net                                                                         |   |           | 42,087,560  |   |           |   | -       |                 |   |   | -                 |   |   |   | 42,087,560 |   |
| Marketable securities                                                                            |   |           | 198,307     |   |           |   | -       |                 |   |   |              |   |   |   | 198,307 |   |
| Notes receivable                                                                                 |   |           | 15,916,907  |   |           |   | -       |                 |   |   | -                 |   |   |   | 15,916,907 |   |
| Inventories                                                                                      |   |           | 46,158,891  |   |           |   | -       |                 |   |   | -                 |   |   |   | 46,158,891 |   |
| Prepayments for goods                                                                            |   |           | 23,157,116  |   |           |   | -       |                 |   |   | -                 |   |   |   | 23,157,116 |   |
| Prepaid expenses and other receivables                                                           |   |           | 3,007,557   |   |           |   | -       |                 |   |   | -                 |   |   |   | 3,007,557 |   |
| Due from related parties                                                                         |   |           | 16,545,980  |   |           |   | -       |                 |   |   | -                 |   |   |   | 16,545,980 |   |
| Due from employees                                                                               |   |           | 648,366     |   |           |   | -       |                 |   |   | -                 |   |   |   | 648,366 |   |
| Interest receivable from related parties, current portion                                        |   |           | 1,610,503   |   |           |   | -       |                 |   |   |              |   |   |   | 1,610,503 |   |
| Deferred taxes                                                                                   |   |           | -           |   |           |   | -       |                 |   |   | -                 |   |   |   | - |   |
|  Total current assets                                                                       |   |           | 202,247,312 |   |           |   | -       |                 |   |   | -                 |   |   |   | 202,247,312 |   |
|                                                                                             |   |           |        |   |           |   |    |                 |   |   |              |   |   |   |   |   |
| Plant and equipment, net                                                                         |   |           | 55,450,860  |   |           |   | -       |                 |   |   | -                 |   |   |   | 55,450,860 |   |
| Land use rights, net                                                                             |   |           | 2,884,350   |   |           |   | -       |                 |   |   | -                 |   |   |   | 2,884,350 |   |
| Long-term investment                                                                             |   |           | 3,797,718   |   |           |   | -       |                 |   |   | -                 |   |   |   | 3,797,718 |   |
| Deposit for land use rights                                                                      |   |           | 1,116,529   |   |           |   | -       |                 |   |   | -                 |   |   |   | 1,116,529 |   |
| Notes receivable from related parties                                                            |   |           | 29,801,014  |   |           |   |    |                 |   |   | -                 |   |   |   | 29,801,014 |   |
| Interest receivable from related parties                                                         |   |           | 2,600,242   |   |           |   | -       |                 |   |   | -                 |   |   |   | 2,600,242 |   |
| Goodwill                                                                                         |   |           | 7,389,597   |   |           |   | -       |                 |   |   | -                 |   |   |   | 7,389,597 |   |
| Deferred taxes                                                                                   |   |           | 1,350,280   |   |           |   | -       |                 |   |   | -                 |   |   |   | 1,350,280 |   |
|  Total long-term assets                                                                     |   |           | 104,390,590 |   |           |   | -       |                 |   |   | -                 |   |   |   | 104,390,590 |   |
|                                                                                             |   |           |        |   |           |   |    |                 |   |   |              |   |   |   |   |   |
| TOTAL ASSETS                                                                                     |   | $              | 306,637,902 |   |           | $      | -       |                 |   | $      | -                 |   |   | $ | 306,637,902 |   |
|                                                                                             |   |           |        |   |           |   |    |                 |   |   |              |   |   |   |   |   |
| CURRENT LIABILITIES                                                                              |   |           |        |   |           |   |    |                 |   |   |              |   |   |   |   |   |
| Short-term bank borrowings                                                                       |   | $              | 112,798,503 |   |           | $      | -       |                 |   | $      | -                 |   |   | $ | 112,798,503 |   |
| Accounts payable                                                                                 |   |           | 17,166,365  |   |           |   | -       |                 |   |   | -                 |   |   |   | 17,166,365 |   |
| Customer deposits                                                                                |   |           | 20,478,373  |   |           |   | -       |                 |   |   | -                 |   |   |   | 20,478,373 |   |
| Due to related parties                                                                           |   |           | 3,310,289   |   |           |   |    |                 |   |   |              |   |   |   | 3,310,289 |   |
| Notes payable                                                                                    |   |           | 55,436,601  |   |           |   | -       |                 |   |   | -                 |   |   |   | 55,436,601 |   |
| Product and other financing arrangements                                                         |   |           | 36,321,376  |   |           |   | -       |                 |   |   | -                 |   |   |   | 36,321,376 |   |
| Deferred tax liabilities                                                                         |   |           | 579,732     |   |           |   | -       |                 |   |   | -                 |   |   |   | 579,732 |   |
| Income tax payable                                                                               |   |           | 1,268,454   |   |           |   | -       |                 |   |   | -                 |   |   |   | 1,268,454 |   |
| Other payables and accrued expenses                                                              |   |           | 4,629,565   |   |           |   | -       |                 |   |   | -                 |   |   |   | 4,633,565 |   |
| Total current liabilities                                                                        |   |           | 251,989,258 |   |           |   | -       |                 |   |   | -                 |   |   |   | 251,989,258 |   |
|                                                                                             |   |           |        |   |           |   |    |                 |   |   |              |   |   |   |   |   |
| TOTAL LIABILITIES                                                                                |   |           | 251,989,258 |   |           |   | -       |                 |   |   | -                 |   |   |   | 251,989,258 |   |
|                                                                                             |   |           |        |   |           |   |    |                 |   |   |              |   |   |   |   |   |
| SHAREHOLDERS’ EQUITY                                                                       |   |           |        |   |           |   |    |                 |   |   |              |   |   |   |   |   |
| Common stock, $0.01 par value; 100,000,000 shares authorized, 12,000,000 issued and outstanding; |   |           | 50,000      |   |           |   | 120,000 |                 |   |   | (50,000           | )      |   |   | 120,000 |   |
| Additional paid-in capital                                                                       |   |           | 52,584,504  |   |           |   | (70,000 | )                    |   |   | 50,000            |   |   |   | 52,564,504 |   |
| Retained (deficit)                                                                               |   |           | (303,993    | )      |           |   | (50,000 | )                    |   |   | -                 |   |   |   | (353,993 | ) |
| Accumulated other comprehensive income                                                           |   |           | 2,203,445   |   |           |   | -       |                 |   |   | -                 |   |   |   | 2,203,445 |   |
|                                                                                             |   |           |        |   |           |   |    |                 |   |   |              |   |   |   |   |   |
| Total Shareholders’ Equity                                                                 |   |           | 54,533,956  |   |           |   | -       |                 |   |   | -                 |   |   |   | 54,533,956 |   |
|                                                                                             |   |           |        |   |           |   |    |                 |   |   |              |   |   |   |   |   |
| Non-controlling interest                                                                         |   |           | 114,688     |   |           |   | -       |                 |   |   | -                 |   |   |   | 114,688 |   |
|                                                                                             |   |           |        |   |           |   |    |                 |   |   |              |   |   |   |   |   |
| TOTAL EQUITY                                                                                     |   |           | 54,648,644  |   |           |   | -       |                 |   |   | -                 |   |   |   | 54,648,644 |   |
|                                                                                             |   |           |        |   |           |   |    |                 |   |   |              |   |   |   |   |   |
| TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY                                                 |   | $              | 306,637,902 |   |           | $      | -       |                 |   | $      | -                 |   |   | $ | 306,637,902 |   |

----

|                                                   |   | RKLMHISTORICAL |         |   | SOGP HISTORICAL |   |       | PRO FORMAADJUSTMENTS |   |   | PRO FORMACOMBINED |   |
|--------------------------------------------------------|--------|----------------|--------------|--------|----------------------|--------|------------|----------------------|--------|--------|-------------------|--------|
|                                                   |   |           |         |   |                 |   |       |                 |   |   |              |   |
| REVENUES, NET                                          |   | $              | 146,455,472  |   |                 | $      | -          |                 |   | $      | -                 |   |   | $ | 146,455,472 |   |
|                                                   |   |           |         |   |                 |   |       |                 |   |   |              |   |   |   |   |   |
| COST OF GOODS SOLD                                     |   |           | (125,462,453 | )      |                 |   | -          |                 |   |   | -                 |   |   |   | (125,462,453 | ) |
|                                                   |   |           |         |   |                 |   |       |                 |   |   |              |   |   |   |   |   |
| GROSS PROFIT                                           |   |           | 20,993,019   |   |                 |   | -          |                 |   |   | -                 |   |   |   | 20,993,019 |   |
|                                                   |   |           |         |   |                 |   |       |                 |   |   |              |   |   |   |   |   |
| Selling and marketing                                  |   |           | (3,447,506   | )      |                 |   | -          |                 |   |   | -                 |   |   |   | (3,447,506 | ) |
|                                                   |   |           |         |   |                 |   |       |                 |   |   |              |   |   |   |   |   |
| General and administrative                             |   |           | (2,762,907   | )      |                 |   | -          |                 |   |   | -                 |   |   |   | (2,762,907 | ) |
|                                                   |   |           |         |   |                 |   |       |                 |   |   |              |   |   |   |   |   |
| INCOME FROM OPERATIONS                                 |   |           | 14,782,606   |   |                 |   | -          |                 |   |   | -                 |   |   |   | 14,782,606 |   |
|                                                   |   |           |         |   |                 |   |       |                 |   |   |              |   |   |   |   |   |
| Interest expense                                       |   |           | (9,844,493   | )      |                 |   | -          |                 |   |   | -                 |   |   |   | (9,844,493 | ) |
|                                                   |   |           |         |   |                 |   |       |                 |   |   |              |   |   |   |   |   |
| Interest Income                                        |   |           | 1,874,907    |   |                 |   | -          |                 |   |   |              |   |   |   | 1,874,907 |   |
|                                                   |   |           |         |   |                 |   |       |                 |   |   |              |   |   |   |   |   |
| Other income, net                                      |   |           | 1,503,919    |   |                 |   | -          |                 |   |   |              |   |   |   | 1,503,919 |   |
|                                                   |   |           |         |   |                 |   |       |                 |   |   |              |   |   |   |   |   |
| INCOME BEFORE TAXES                                    |   |           | 8,316,939    |   |                 |   | -          |                 |   |   | -                 |   |   |   | 8,316,939 |   |
|                                                   |   |           |         |   |                 |   |       |                 |   |   |              |   |   |   |   |   |
| Income Taxes                                           |   |           | (2,342,280   | )      |                 |   | -          |                 |   |   | -                 |   |   |   | (2,342,280 | ) |
|                                                   |   |           |         |   |                 |   |       |                 |   |   |              |   |   |   |   |   |
| NET INCOME                                             |   | $              | 5,974,659    |   |                 | $      | -          |                 |   | $      | -                 |   |   |   | 5,974,659 |   |
|                                                   |   |           |         |   |                 |   |       |                 |   |   |              |   |   |   |   |   |
| NET LOSS ATTRIBUTABLE TO NON-CONTROLLING INTEREST      |   |           | (2,147       | )      |                 |   | -          |                 |   |   |              |   |   |   | (2,147 | ) |
|                                                   |   |           |         |   |                 |   |       |                 |   |   |              |   |   |   |   |   |
| NET INCOME ATTRIBUTABLE TO CONTROLLING INTEREST        |   |           | 5,972,512    |   |                 |   | -          |                 |   |   |              |   |   |   | 5,972,512 |   |
|                                                   |   |           |         |   |                 |   |       |                 |   |   |              |   |   |   |   |   |
| OTHER COMPREHENSIVE INCOME                             |   |           |         |   |                 |   |       |                 |   |   | -                 |   |   |   |   |   |
| Unrealized gain on marketable securities               |   |           | 2,166        |   |                 |   | -          |                 |   |   |              |   |   |   | 2,166 |   |
| Foreign currency translation gain                      |   |           | 1,353,184    |   |                 |   | -          |                 |   |   | -                 |   |   |   | 1,353,184 |   |
| OTHER COMPREHENSIVE INCOME                             |   |           | 1,355,350    |   |                 |   | -          |                 |   |   | -                 |   |   |   | 1,355,350 |   |
|                                                   |   |           |         |   |                 |   |       |                 |   |   |              |   |   |   |   |   |
| COMPREHENSIVE INCOME                                   |   | $              | 7,327,862    |   |                 |   | -          |                 |   |   | -                 |   |   | $ | 7,327,862 |   |
|                                                   |   |           |         |   |                 |   |       |                 |   |   |              |   |   |   |   |   |
| WEIGHTED AVERAGE SHARES OUTSTANDING, BASIC AND DILUTED |   |           | 50,000       |   |                 |   | 12,000,000 |                 |   |   | -                 |   |   |   | 12,000,000 |   |
|                                                   |   |           |         |   |                 |   |       |                 |   |   |              |   |   |   |   |   |
| Net income per common share, basic and diluted         |   | $              | 119.45       |   |                 |   | -          |                 |   |   | -                 |   |   | $ | 0.50 |   |

----

|                                                   |   | RKLMHISTORICAL |         |   | SOGP HISTORICAL |   |       | PRO FORMAADJUSTMENTS |   |   | PRO FORMACOMBINED |   |
|--------------------------------------------------------|--------|----------------|--------------|--------|----------------------|--------|------------|----------------------|--------|--------|-------------------|--------|
|                                                   |   |           |         |   |                 |   |       |                 |   |   |              |   |
| REVENUES, NET                                          |   | $              | 146,835,283  |   |                 | $      | -          |                 |   | $      | -                 |   |   | $ | 146,835,283 |   |
|                                                   |   |           |         |   |                 |   |       |                 |   |   |              |   |   |   |   |   |
| COST OF GOODS SOLD                                     |   |           | (123,110,120 | )      |                 |   | -          |                 |   |   | -                 |   |   |   | (123,110,120 | ) |
|                                                   |   |           |         |   |                 |   |       |                 |   |   |              |   |   |   |   |   |
| GROSS PROFIT                                           |   |           | 23,725,163   |   |                 |   | -          |                 |   |   | -                 |   |   |   | 23,725,163 |   |
|                                                   |   |           |         |   |                 |   |       |                 |   |   |              |   |   |   |   |   |
| Selling and marketing                                  |   |           | (3,952,504   | )      |                 |   | -          |                 |   |   | -                 |   |   |   | (3,952,504 | ) |
|                                                   |   |           |         |   |                 |   |       |                 |   |   |              |   |   |   |   |   |
| General and administrative                             |   |           | (3,003,542   | )      |                 |   | (50,000    | )                    |   |   |              |   |   |   | (3,053,642 | ) |
|                                                   |   |           |         |   |                 |   |       |                 |   |   |              |   |   |   |   |   |
| Research and development                               |   |           | (33,111      | )      |                 |   | -          |                 |   |   | -                 |   |   |   | (33,111 | ) |
|                                                   |   |           |         |   |                 |   |       |                 |   |   |              |   |   |   |   |   |
| INCOME (LOSS) FROM OPERATIONS                          |   |           | 16,736,006   |   |                 |   | (50,000    | )                    |   |   | -                 |   |   |   | 16,686,006 |   |
|                                                   |   |           |         |   |                 |   |       |                 |   |   |              |   |   |   |   |   |
| Interest expense                                       |   |           | (9,765,845   | )      |                 |   | -          |                 |   |   | -                 |   |   |   | (9,765,845 | ) |
|                                                   |   |           |         |   |                 |   |       |                 |   |   |              |   |   |   |   |   |
| Interest Income                                        |   |           | 2,438,152    |   |                 |   | -          |                 |   |   |              |   |   |   | 2,438,152 |   |
|                                                   |   |           |         |   |                 |   |       |                 |   |   |              |   |   |   |   |   |
| Other income, net                                      |   |           | 36,313       |   |                 |   | -          |                 |   |   |              |   |   |   | 36,313 |   |
|                                                   |   |           |         |   |                 |   |       |                 |   |   |              |   |   |   |   |   |
| INCOME (LOSS) BEFORE TAXES                             |   |           | 9,444,626    |   |                 |   | (50,000    | )                    |   |   | -                 |   |   |   | 9,394,626 |   |
|                                                   |   |           |         |   |                 |   |       |                 |   |   |              |   |   |   |   |   |
| Income Taxes                                           |   |           | (2,868,260   | )      |                 |   | -          |                 |   |   | -                 |   |   |   | (2,868,260 | ) |
|                                                   |   |           |         |   |                 |   |       |                 |   |   |              |   |   |   |   |   |
| NET INCOME (LOSS)                                      |   | $              | 6,576,366    |   |                 | $      | (50,000    | )                    |   | $      | -                 |   |   |   | 6,526,366 |   |
|                                                   |   |           |         |   |                 |   |       |                 |   |   |              |   |   |   |   |   |
| NET LOSS ATTRIBUTABLE TO NON-CONTROLLING INTEREST      |   |           | (10,824      | )      |                 |   | -          |                 |   |   | -                 |   |   |   | (10,824 | ) |
|                                                   |   |           |         |   |                 |   |       |                 |   |   |              |   |   |   |   |   |
| NET INCOME (LOSS) ATTRIBUTABLE TO CONTROLLING INTEREST |   |           | 6,565,542    |   |                 |   | (50,000    | )                    |   |   |              |   |   |   | 6,515,542 |   |
|                                                   |   |           |         |   |                 |   |       |                 |   |   |              |   |   |   |   |   |
| OTHER COMPREHENSIVE INCOME                             |   |           |         |   |                 |   |       |                 |   |   |              |   |   |   |   |   |
| Unrealized gain on marketable securities               |   |           | 13,948       |   |                 |   | -          |                 |   |   | -                 |   |   |   | 13,948 |   |
| Foreign currency translation (loss)                    |   |           | (590         | )      |                 |   | -          |                 |   |   | -                 |   |   |   | (590 | ) |
| OTHER COMPREHENSIVE INCOME                             |   |           | 13,358       |   |                 |   | -          |                 |   |   | -                 |   |   |   | 13,358 |   |
|                                                   |   |           |         |   |                 |   |       |                 |   |   |              |   |   |   |   |   |
| COMPREHENSIVE INCOME (LOSS)                            |   | $              | 6,578,900    |   |                 |   | (50,000    | )                    |   |   | -                 |   |   | $ | 6,528,900 |   |
|                                                   |   |           |         |   |                 |   |       |                 |   |   |              |   |   |   |   |   |
| WEIGHTED AVERAGE SHARES OUTSTANDING, BASIC AND DILUTED |   |           | 50,000       |   |                 |   | 12,000,000 |                 |   |   | -                 |   |   |   | 12,000,000 |   |
|                                                   |   |           |         |   |                 |   |       |                 |   |   |              |   |   |   |   |   |
| Net income (loss) per common share, basic and diluted  |   | $              | 131.52       |   |                 |   | (0.004     | )                    |   |   | -                 |   |   | $ | 0.54 |   |

----

|   | 1 | Adjustment to eliminate the common stock of RISE KING as if the share exchange occurred on May 1, 2010 and May 1, 2009. |
|--------|---|-------------------------------------------------------------------------------------------------------------------------|

----