----

----

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

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

| For the transition period from ________________ to _____________________ |
|--------------------------------------------------------------------------|

| Nevada                                                        |   | 99-0366034                          |
|---------------------------------------------------------------|--------|-------------------------------------|
| (State or other jurisdiction ofincorporation or organization) |   | (I.R.S. EmployerIdentification No.) |

| 7/F West Tower, Star International Mansion,No.6-20 Jinsui Rd., |
|----------------------------------------------------------------|
| Tianhe District, Guangzhou,Guangdong Province, P.R.C. 510623   |

|  (011) 86 20 38296988                                 |
|------------------------------------------------------------|
| (Registrant’s telephone number, including area code) |

| N/A                                                                               |
|-----------------------------------------------------------------------------------|
| (Former name, former address and former fiscal year, ifchanged since last report) |

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

----

| Title                          | Page No.                                                                                    |
|--------------------------------|---------------------------------------------------------------------------------------------|
|                           |                                                                                        |
| PART I - FINANCIAL INFORMATION |                                                                                        |
|                           |                                                                                        |
| Item 1.                        | Financial Statements                                                                        |  F-1 - F-13 |
|                           |                                                                                        |   |
| Item 2.                        | Management’s Discussion and Analysis of Financial Condition and Results of Operations |   1 |
|                           |                                                                                        |   |
| Item 3.                        | Quantitative and Qualitative Disclosures About Market Risk                                  |   13 |
|                           |                                                                                        |   |
| Item 4.                        | Controls and Procedures                                                                     |   13 |
|                           |                                                                                        |   |
| PART II - OTHER INFORMATION    |                                                                                        |
|                           |                                                                                        |   |
| Item 1.                        | Legal Proceedings                                                                           |   14 |
|                           |                                                                                        |   |
| Item 1A.                       | Risk Factors                                                                                |   14 |
|                           |                                                                                        |   |
| Item 2.                        | Unregistered Sales of Equity Securities and Use of Proceeds                                 |   14 |
|                           |                                                                                        |   |
| Item 3.                        | Defaults on Senior Securities                                                               |   15 |
|                           |                                                                                        |   |
| Item 4.                        | Mine Safety Disclosure                                                                      |   15 |
|                           |                                                                                        |   |
| Item 5.                        | Other Information                                                                           |   15 |
|                           |                                                                                        |   |
| Item 6.                        | Exhibits                                                                                    |   15 |

----

|                                                                                                                                                                 |   |   | Pages            |   |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|------------------|--------|
|                                                                                                                                                                 |   |   |             |
| Condensed Consolidated Balance Sheets as of June 30, 2012 (Unaudited) and December 31, 2011                                                                     |   |   | F-2              |   |
|                                                                                                                                                                 |   |   |             |   |
| Condensed  Statements of Operations and Comprehensive Loss for the three and six months ended June 30, 2012 (Consolidated) and 2011 (Combined) (Unaudited) |   |   | F-3              |   |
|                                                                                                                                                                 |   |   |             |   |
| Condensed Statements of Cash Flows for the six months ended June 30, 2012 (Consolidated) and 2011 (Combined) (Unaudited)                                             |   |   | F-4              |   |
|                                                                                                                                                                 |   |   |             |   |
| Notes to Condensed Consolidated Financial Statements (Unaudited)                                                                                                     |   |   | F-5 – F-13 |   |

----

|                                                 |   | As of       |      |   | As of   |    |
|------------------------------------------------------|--------|------------------|-----------|--------|--------------|---------|
|                                                 |   | June 30,         |      |   | December 31, |    |
|                                                 |   | 2012   |      |   | 2011    |    |
|                                                 |   |  Unaudited  |      |   |         |    |
| ASSETS                                               |   |
| CURRENT ASSETS                                       |   |             |      |   |         |    |
| Cash and cash equivalents                            |   | $                | 704,292   |   |         | $       | 199,188 |   |
| Accounts receivable, net                             |   |             | 131,551   |   |         |    | 1,497,482 |   |
| Prepaid expenses and other current assets            |   |             | 1,497,968 |   |         |    | 80,358 |   |
| Deferred tax assets                                  |   |             | 197,267   |   |         |    | 69,708 |   |
| Due from related companies                           |   |             | -         |   |         |    | 3,561 |   |
|  Total Current Assets                           |   |             | 2,531,078 |   |         |    | 1,850,297 |   |
|                                                 |   |             |      |   |         |    |   |   |
|                                                 |   |             |      |   |         |    |   |   |
| PROPERTY AND EQUIPMENT, NET                          |   |             | 210,368   |   |         |    | 260,110 |   |
|                                                 |   |             |      |   |         |    |   |   |
| WEBSITE DEVELOPMENT COST, NET                        |   |             | 406,652   |   |         |    | 344,355 |   |
| TOTAL ASSETS                                         |   | $                | 3,148,098 |   |         | $       | 2,454,762 |   |
|                                                 |   |             |      |   |         |    |   |   |
| LIABILITIES AND STOCKHOLDERS’ EQUITY           |   |
|                                                 |   |             |      |   |         |    |   |   |
| CURRENT LIABILITIES                                  |   |             |      |   |         |    |   |   |
| Accounts payable                                     |   | $                | 6,392     |   |         | $  | 19,670 |   |
| Deferred revenue                                     |   |             | 182,288   |   |         |    | 279,117 |   |
| Other payables and accrued expenses                  |   |             | 891,597   |   |         |    | 897,074 |   |
| Income tax payable                                   |   |             | 46,886    |   |         |    | 66,282 |   |
| Deferred tax liabilities                             |   |             | 4,319     |   |         |    | - |   |
| Due to a related company                             |   |             | 5,352     |   |         |    | 10,161 |   |
| Due to a director                                    |   |             | 1,574,060 |   |         |    | - |   |
|  Total Current Liabilities                      |   |             | 2,710,894 |   |         |    | 1,272,304 |   |
|                                                 |   |             |      |   |         |    |   |   |
| COMMITMENTS AND CONTINGENCIES                        |   |             |      |   |         |    |   |   |
|                                                 |   |             |      |   |         |    |   |   |
| STOCKHOLDERS’ EQUITY                           |   |             |      |   |         |    |   |   |
| Preferred stock ($0.001 par value, 60,000,000 shares |   |             |      |   |         |    |   |   |
| authorized, none issued as of June 30, 2012          |   |             |      |   |         |    |   |   |
| and December 31, 2011)                               |   |             | -         |   |         |    | - |   |
| Common stock ($0.001 par value, 300,000,000 shares   |   |             |      |   |         |    |   |   |
| authorized, 81,244,000 shares issued and outstanding |   |             |      |   |         |    |   |   |
| as of June 30, 2012 and December 31, 2011)           |   |             | 81,244    |   |         |    | 81,244 |   |
| Additional paid-in capital                           |   |             | 959,330   |   |         |    | 959,330 |   |
| (Accumulated deficits) Retained earnings             |   |             |      |   |         |    |   |   |
| Accumulated deficits                                 |   |             | (737,649  | )      |         |    | (2,418 | ) |
| Appropriated retained earnings                       |   |             | 72,493    |   |         |    | 72,493 |   |
|  Accumulated other comprehensive gain           |   |             | 61,786    |   |         |    | 71,809 |   |
|  Total Stockholders’ Equity               |   |             | 437,204   |   |         |    | 1,182,458 |   |
|                                                 |   |             |      |   |         |    |   |   |
| TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY     |   | $                | 3,148,098 |   |         | $       | 2,454,762 |   |

----

| CHINA XINGBANG INDUSTRY GROUP INC. AND SUBSIDIARIES       |
|-----------------------------------------------------------|
| CONDENSED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS |
| (UNAUDITED)                                               |

|                                                   |   | Three months ended June 30, |       |   | Six months ended June 30, |   |
|--------------------------------------------------------|--------|--------------------------------------------|------------|--------|--------------------------------|--------|
|                                                   |   | 2012                                       |       |   | 2011                           |   |   | 2012 |   |   | 2011 |   |
|                                                   |   | Consolidated                               |       |   | Combined                       |   |   | Consolidated |   |   | Combined |   |
| REVENUE                                                |   |                                       |       |   |                           |   |   |   |   |   |   |   |
| Advertising                                            |   | $                                          | 231,108    |   |                           | $      | 204,105 |   |   | $ | 348,125 |   |   | $ | 562,647 |   |
| Consulting service                                     |   |                                       | 201,145    |   |                           |   | 393,817 |   |   |   | 250,734 |   |   |   | 1,068,870 |   |
| E-commerce                                             |   |                                       | -          |   |                           |   | - |   |   |   | - |   |   |   | - |   |
|    Total revenue                        |   |                                       | 432,253    |   |                           |   | 597,922 |   |   |   | 598,859 |   |   |   | 1,631,517 |   |
|                                                   |   |                                       |       |   |                           |   |   |   |   |   |   |   |   |   |   |   |
| COST OF REVENUE                                        |   |                                       |       |   |                           |   |   |   |   |   |   |   |   |   |   |   |
| Advertising                                            |   |                                       | 36,125     |   |                           |   | 225,632 |   |   |   | 161,508 |   |   |   | 383,942 |   |
| Consulting service                                     |   |                                       | 16,614     |   |                           |   | 80,755 |   |   |   | 35,156 |   |   |   | 141,351 |   |
| E-commerce                                             |   |                                       | 145,495    |   |                           |   | - |   |   |   | 220,974 |   |   |   | - |   |
|    Total cost of revenue                |   |                                       | 198,234    |   |                           |   | 306,387 |   |   |   | 417,638 |   |   |   | 525,293 |   |
|                                                   |   |                                       |       |   |                           |   |   |   |   |   |   |   |   |   |   |   |
| GROSS PROFIT                                           |   |                                       | 234,019    |   |                           |   | 291,535 |   |   |   | 181,221 |   |   |   | 1,106,224 |   |
|                                                   |   |                                       |       |   |                           |   |   |   |   |   |   |   |   |   |   |   |
| OPERATING EXPENSES                                     |   |                                       |       |   |                           |   |   |   |   |   |   |   |   |   |   |   |
| Selling expenses                                       |   |                                       | 459,202    |   |                           |   | 371,102 |   |   |   | 617,923 |   |   |   | 1,060,918 |   |
| General and administrative expenses                    |   |                                       | 202,706    |   |                           |   | 425,177 |   |   |   | 364,371 |   |   |   | 535,654 |   |
| Impairment of website development cost                 |   |                                       | -          |   |                           |   | - |   |   |   | 10,460 |   |   |   | - |   |
| Depreciation and amortization                          |   |                                       | 24,869     |   |                           |   | 33,602 |   |   |   | 51,162 |   |   |   | 65,612 |   |
| Loss (gain) on disposal of property and equipment |   |                                       | 4          |   |                           |   | 349 |   |   |   | (2,296 | ) |   |   | 1,446 |   |
|    Total Operating Expenses, net        |   |                                       | 686,781    |   |                           |   | 830,230 |   |   |   | 1,041,620 |   |   |   | 1,663,630 |   |
|                                                   |   |                                       |       |   |                           |   |   |   |   |   |   |   |   |   |   |   |
| NET LOSS FROM OPERATIONS                               |   |                                       | (452,762   | )      |                           |   | (538,695 | ) |   |   | (860,399 | ) |   |   | (557,406 | ) |
|                                                   |   |                                       |       |   |                           |   |   |   |   |   |   |   |   |   |   |   |
| OTHER INCOME (EXPENSES), NET                           |   |                                       |       |   |                           |   |   |   |   |   |   |   |   |   |   |   |
| Interest income                                        |   |                                       | 1,758      |   |                           |   | 823 |   |   |   | 2,136 |   |   |   | 1,526 |   |
| Interest expenses                                      |   |                                       | -          |   |                           |   | (1,461 | ) |   |   | - |   |   |   | (6,253 | ) |
| Other income                                           |   |                                       | 132        |   |                           |   | 125 |   |   |   | 169 |   |   |   | 1,682 |   |
| Other expenses                                         |   |                                       | (758       | )      |                           |   | (4,492 | ) |   |   | (1,666 | ) |   |   | (5,109 | ) |
|    Total Other Income (Expenses), net   |   |                                       | 1,132      |   |                           |   | (5,005 | ) |   |   | 639 |   |   |   | (8,154 | ) |
|                                                   |   |                                       |       |   |                           |   |   |   |   |   |   |   |   |   |   |   |
| NET LOSS BEFORE TAXES                                  |   |                                       | (451,630   | )      |                           |   | (543,700 | ) |   |   | (859,760 | ) |   |   | (565,560 | ) |
|                                                   |   |                                       |       |   |                           |   |   |   |   |   |   |   |   |   |   |   |
| Income tax benefit                                     |   |                                       | 71,015     |   |                           |   | 32,954 |   |   |   | 124,529 |   |   |   | 36,233 |   |
|                                                   |   |                                       |       |   |                           |   |   |   |   |   |   |   |   |   |   |   |
| NET LOSS                                               |   |                                       | (380,615   | )      |                           |   | (510,746 | ) |   |   | (735,231 | ) |   |   | (529,327 | ) |
|                                                   |   |                                       |       |   |                           |   |   |   |   |   |   |   |   |   |   |   |
| OTHER COMPREHENSIVE (LOSS) INCOME                      |   |                                       |       |   |                           |   |   |   |   |   |   |   |   |   |   |   |
| Foreign currency translation (loss) gain               |   |                                       | (8,379     | )      |                           |   | 10,491 |   |   |   | (10,023 | ) |   |   | 15,841 |   |
|                                                   |   |                                       |       |   |                           |   |   |   |   |   |   |   |   |   |   |   |
| TOTAL COMPREHENSIVE LOSS                               |   | $                                          | (388,994   | )      |                           | $      | (500,255 | ) |   | $ | (745,254 | ) |   | $ | (513,486 | ) |
|                                                   |   |                                       |       |   |                           |   |   |   |   |   |   |   |   |   |   |   |
| Net loss per share                                     |   |                                       |       |   |                           |   |   |   |   |   |   |   |   |   |   |   |
| - basic and diluted                                    |   | $                                          | (0.00      | )      |                           | $      | (0.01 | ) |   | $ | (0.01 | ) |   | $ | (0.01 | ) |
|                                                   |   |                                       |       |   |                           |   |   |   |   |   |   |   |   |   |   |   |
| Weighted average number of shares                      |   |                                       |       |   |                           |   |   |   |   |   |   |   |   |   |   |   |
| outstanding during the period                          |   |                                       |       |   |                           |   |   |   |   |   |   |   |   |   |   |   |
| - basic and diluted                                    |   |                                       | 81,244,000 |   |                           |   | 79,999,538 |   |   |   | 81,244,000 |   |   |   | 79,999,271 |   |

----

|                                                |   | Six months ended June 30, |       |
|-----------------------------------------------------|--------|---------------------------|------------|
|                                                |   | 2012                      |       |   | 2011 |   |
|                                                |   | Consolidated              |       |   | Combined |   |
| CASH FLOWS FROM OPERATING ACTIVITIES                |   |                      |       |   |   |   |
| Net loss                                            |   | $                         | (735,231   | ) |   | $ | (529,327 | ) |
| Adjusted to reconcile net loss to net cash used in  |   |                      |       |   |   |   |   |   |
| operating activities:                               |   |                      |       |   |   |   |   |   |
| Depreciation and amortization                  |   |                      | 113,700    |   |   |   | 65,612 |   |
| Impairment of website development cost              |   |                      | 10,460     |   |   |   | - |   |
| (Gain) loss on disposal of property and equipment   |   |                      | (2,296     | ) |   |   | 1,446 |   |
| Changes in operating assets and liabilities         |   |                      |       |   |   |   |   |   |
| (Increase) decrease in:                             |   |                      |       |   |   |   |   |   |
| Accounts receivable                                 |   |                      | 1,399,061  |   |   |   | 42,006 |   |
| Prepaid expenses and other current assets           |   |                      | (1,423,546 | ) |   |   | (158,943 | ) |
| Deferred tax assets                                 |   |                      | (127,006   | ) |   |   | (36,233 | ) |
| Increase (decrease) in:                             |   |                      |       |   |   |   |   |   |
| Accounts payable                                    |   |                      | (13,689    | ) |   |   | 15,089 |   |
| Deferred revenue                                    |   |                      | (102,188   | ) |   |   | 49,464 |   |
| Other payables and accrued expenses                 |   |                      | (21,118    | ) |   |   | 38,790 |   |
| Income tax payable                                  |   |                      | (20,650    | ) |   |   | (60,305 | ) |
| Deferred tax liabilities                            |   |                      | 4,341      |   |   |   | - |   |
| Net cash used in operating activities               |   |                      | (918,162   | ) |   |   | (572,401 | ) |
|                                                |   |                      |       |   |   |   |   |   |
| CASH FLOWS FROM INVESTING ACTIVITIES                |   |                      |       |   |   |   |   |   |
| Purchase of property and equipment                  |   |                      | (4,893     | ) |   |   | (77,403 | ) |
| Payments for website development cost               |   |                      | (142,927   | ) |   |   | - |   |
| Proceeds from disposals of property and equipment   |   |                      | 3,641      |   |   |   | 234 |   |
| Repayment from related companies                    |   |                      | 3,641      |   |   |   | 1,027,757 |   |
| Net cash (used in) provided by investing activities |   |                      | (140,538   | ) |   |   | 950,588 |   |
|                                                |   |                      |       |   |   |   |   |   |
| CASH FLOWS FROM FINANCING ACTIVITIES                |   |                      |       |   |   |   |   |   |
| Bank loans repaid                                   |   |                      | -          |   |   |   | (305,913 | ) |
| Proceeds from issuance of shares                    |   |                      | -          |   |   |   | 1 |   |
| Capital contribution by stockholders                |   |                      | -          |   |   |   | 50,813 |   |
| Amount due to a related company                     |   |                      | (5,011     | ) |   |   | - |   |
| Amount due to a director                            |   |                      | 1,582,204  |   |   |   | - |   |
| Net cash provided by (used in) financing activities |   |                      | 1,577,193  |   |   |   | (255,099 | ) |
|                                                |   |                      |       |   |   |   |   |   |
| EFFECT OF EXCHANGE RATES ON CASH                    |   |                      | (13,389    | ) |   |   | 20,172 |   |
|                                                |   |                      |       |   |   |   |   |   |
| NET INCREASE IN CASH AND CASH EQUIVALENTS           |   |                      | 505,104    |   |   |   | 143,260 |   |
|                                                |   |                      |       |   |   |   |   |   |
| CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD    |   |                      | 199,188    |   |   |   | 737,939 |   |
|                                                |   |                      |       |   |   |   |   |   |
| CASH AND CASH EQUIVALENTS AT END OF PERIOD          |   | $                         | 704,292    |   |   | $ | 881,199 |   |
|                                                |   |                      |       |   |   |   |   |   |
| SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION    |   |                      |       |   |   |   |   |   |
|                                                |   |                      |       |   |   |   |   |   |
| Cash paid for interest expenses                     |   | $                         | -          |   |   | $ | 6,253 |   |
| Cash paid for income tax                            |   | $                         | -          |   |   | $ | 60,305 |   |

----

| NOTE 1 | BASIS OF PRESENTATION |
|--------|-----------------------|

| NOTE 2 | ORGANIZATION |
|--------|--------------|

----

| NOTE 3 | VARIABLE INTEREST ENTITY |
|--------|--------------------------|

| NOTE 4 | GROUP RESTRUCTURING |
|--------|---------------------|

| (A) | Variable interest entity On May 13, 2011, the Company, through its PRC subsidiary Guangzhou Xingbang, entered into a series of contractual arrangements consisting of five agreements with Guangdong Xingbang and all the stockholders of Guangdong Xingbang.  These five agreements and their consequences are described below. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (i) | a consulting service agreement, pursuant to which Guangdong Xingbang grants Guangzhou Xingbang the right to manage and operate Guangdong Xingbang. In return, Guangdong Xingbang agreed to pay 100% of its net income, in each quarter, as consulting fee to Guangzhou Xingbang. The Consulting Services Agreement is effective until it is terminated by either party in the event the other party becomes bankrupt or insolvent, Guangzhou Xingbang ceases operations, or if circumstances arise which materially and adversely affect the performance or the objectives of such agreement. Guangzhou Xingbang may also terminate such agreement if Guangdong Xingbang fails to remediate a material breach, or in its sole discretion with or without cause. |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (ii) | a voting rights proxy agreement, pursuant to which the stockholders of Guangdong Xingbang irrevocably grant Guangzhou Xingbang with all of their voting rights as stockholder of Guangdong Xingbang. The Voting Right Proxy Agreement is effective until terminated by mutual agreement or by the WFOE with a 30-day prior written notice. |
|--------|------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (iii) | an option agreement, pursuant to which: |
|--------|-------|-----------------------------------------|

|   |   | (a) | Guangzhou Xingbang or its designee has an exclusive option to purchase all or part of the equity interests in Guangdong Xingbang, and;                                                                                                                                                                  |
|--------|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |   | (b) | Guangdong Xingbang may not enter into any transaction that could materially affect its assets, liabilities, equity or operations without the prior written consent of Guangzhou Xingbang. The Operating Agreement is effective for the maximum period of time permitted by Chinese law (currently 20 years). |

----

|   | (iv) | an equity pledge agreement, pursuant to which each of the stockholders of Guangdong Xingbang has pledged his or her equity interest in Guangdong Xingbang to Guangzhou Xingbang to secure their obligations under the relevant contractual control agreements, including but not limited to, the obligations of Guangdong Xingbang and its subsidiaries under the exclusive services agreement, the call option agreement, the voting rights proxy agreement described above, and each of them has agreed not to transfer, sell, pledge, dispose of or create any encumbrance on their equity interest in Guangdong Xingbang without the prior written consent of Guangzhou Xingbang. The equity pledge agreement is effective for the maximum period of time permitted by Chinese law (currently 20 years). In the event Guangdong Xingbang fails to cure a material breach, Guangzhou Xingbang may, among other remedies available, terminate such agreement, and; |
|--------|------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (v) | an operating agreement, pursuant to which each of the stockholders of Guangdong Xingbang has agreed to appoint the members recommended by Guangzhou Xingbang as the Directors of Guangdong Xingbang, and shall appoint members of Guangzhou Xingbang’s senior management as Guangdong Xingbang’s  Chief Executive Officer, President, Chief Financial Officer, and other senior officers. The Operating Agreement is effective for the maximum period of time permitted by Chinese law (currently 20 years), unless terminated by Guangzhou Xingbang with a 30-day prior written notice. In addition, the WFOE has the right to terminate the Operating Agreement in the event any of the agreements between Guangzhou Xingbang and Guangdong Xingbang are terminated or expire. |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|                                       |   | As ofJune 30, |      |   | As ofDecember 31, |   |
|--------------------------------------------|--------|---------------|-----------|--------|-------------------|--------|
|                                       |   | 2012          |      |   | 2011              |   |
|                                       |   |          |      |   |              |   |
| Cash and cash equivalents                  |   | $             | 646,460   |   |              | $      | 141,860 |   |
| Accounts receivable, net                   |   |          | 131,551   |   |              |   | 1,497,482 |   |
| Prepaid expenses and other current assets  |   |          | 1,497,760 |   |              |   | 79,938 |   |
| Deferred tax assets                        |   |          | 197,267   |   |              |   | 69,708 |   |
| Due from related companies                 |   |          | -         |   |              |   | 3,561 |   |
| Due from group companies                   |   |          | 641,710   |   |              |   | 476,199 |   |
| Property and equipment, net                |   |          | 210,368   |   |              |   | 260,110 |   |
| Website development cost, net              |   |          | 406,652   |   |              |   | 344,355 |   |
|                                       |   |          |      |   |              |   |   |   |
| Total assets                               |   | $             | 3,731,768 |   |              | $      | 2,873,213 |   |
|                                       |   |          |      |   |              |   |   |   |
| Accounts payable                           |   | $             | 6,392     |   |              | $      | 19,670 |   |
| Deferred revenue                           |   |          | 182,288   |   |              |   | 279,117 |   |
| Other payables and accrued expenses        |   |          | 571,888   |   |              |   | 559,421 |   |
| Income tax payable                         |   |          | 46,886    |   |              |   | 66,282 |   |
| Deferred tax liabilities                   |   |          | 4,319     |   |              |   | - |   |
| Due to a group company                     |   |          | 391,626   |   |              |   | 395,303 |   |
| Due to a related company                   |   |          | 5,352     |   |              |   | 10,161 |   |
| Due to a director                          |   |          | 787,030   |   |              |   | - |   |
| Equity of variable interest entities  |   |          | 1,735,987 |   |              |   | 1,543,259 |   |
|                                       |   |          |      |   |              |   |   |   |
| Total liabilities and equity               |   | $             | 3,731,768 |   |              | $      | 2,873,213 |   |

----

| (B) | Share exchange |
|-----|----------------|

| 1. | The balance sheets consisting of the net assets of the acquirer and acquiree at historical cost; and         |
|----|--------------------------------------------------------------------------------------------------------------|
| 2. | The statement of operations including the operations of the acquirer and acquiree for the periods presented. |

| NOTE 5 | PRINCIPLES OF CONSOLIDATION AND COMBINATION |
|--------|---------------------------------------------|

| NOTE 6 | USE OF ESTIMATES |
|--------|------------------|

| NOTE 7 | THE EFFECT OF RECENTLY ISSUED ACCOUNTING STANDARDS |
|--------|----------------------------------------------------|

----

| NOTE 8 | OTHER PAYABLES AND ACCRUED EXPENSES |
|--------|-------------------------------------|

|                               |   | As ofJune 30, 2012 |    |   | As ofDecember 31, 2011 |   |
|------------------------------------|--------|--------------------|---------|--------|------------------------|--------|
|                               |   |               |    |   |                   |   |
| Customers deposits and prepayments |   | $                  | 200,847 |   |                   | $      | 177,156 |   |
| Business and other taxes payable   |   |               | 91,266  |   |                   |   | 107,569 |   |
| Other payables                     |   |               | 62,101  |   |                   |   | 67,325 |   |
| Accrued expenses                   |   |               | 537,383 |   |                   |   | 545,024 |   |
|                               |   | $                  | 891,597 |   |                   | $      | 897,074 |   |

| NOTE 9 | SEGMENTS |
|--------|----------|

| 2012                          |   | Advertising |      |   | Consulting service |   |      | E-commerce |   |   | Elimination |   |   | Total  |    |
|-------------------------------|--------|-------------|-----------|--------|--------------------|--------|-----------|------------|--------|--------|-------------|--------|--------|--------|---------|
| Revenues                      |   | $           | 306,706   |   |               | $      | 201,145   |       |   | $      | -           |   |   | $      | (75,598 | ) |   | $ | 432,253 |   |
| Gross profit                  |   |        | 270,581   |   |               |   | 184,531   |       |   |   | (221,093    | )      |   |   | -       |   |   |   | 234,019 |   |
| Net (loss) income             |   |        | (105,020  | )      |               |   | 158,372   |       |   |   | (332,843    | )      |   |   | -       |   |   |   | (279,491 | ) |
| Total assets                  |   |        | 2,001,256 |   |               |   | 219,315   |       |   |   | 927,527     |   |   |   | -       |   |   |   | 3,148,098 |   |
| Capital expenditure           |   |        | 2,032     |   |               |   | 116       |       |   |   | 120,186     |   |   |   | -       |   |   |   | 122,334 |   |
| Depreciation and amortization |   | $           | 18,154    |   |               | $      | 675       |       |   | $      | 41,443      |   |   | $      | -       |   |   | $ | 60,272 |   |
|                          |   |        |      |   |               |   |      |       |   |   |        |   |   |   |    |   |   |   |   |   |
|                          |   |        |      |   |               |   |      |       |   |   |        |   |   |   |    |   |   |   |   |   |
| 2011                          |   | Advertising |      |   | Consulting service |   |      | E-commerce |   |   | Elimination |   |   | Total  |    |
| Revenues                      |   | $           | 204,105   |   |               | $      | 393,817   |       |   | $      | -           |   |   | $      | -       |   |   | $ | 597,922 |   |
| Gross profit                  |   |        | (21,527)  |   |               |   | 313,062   |       |   |   | -           |   |   |   | -       |   |   |   | 291,535 |   |
| Net (loss) income             |   |        | (875,535  | )      |               |   | 805,475   |       |   |   | -           |   |   |   | -       |   |   |   | (70,060 | ) |
| Total assets                  |   |        | 709,695   |   |               |   | 1,336,193 |       |   |   | -           |   |   |   | -       |   |   |   | 2,045,888 |   |
| Capital expenditure           |   |        | 10,437    |   |               |   | 19,652    |       |   |   | -           |   |   |   | -       |   |   |   | 30,089 |   |
| Depreciation and amortization |   | $           | 11,656    |   |               | $      | 21,946    |       |   | $      | -           |   |   | $      | -       |   |   | $ | 33,602 |   |

----

| A reconciliation is provided for unallocated amounts relating to corporate operations which is not included in the segment information |
|----------------------------------------------------------------------------------------------------------------------------------------|
|                                                                                                                                   |   |
|                                                                                                                                   | Three months ended June 30, |   |
|                                                                                                                                   |   |   | 2012 |   |   |   | 2011 |   |
| Total net loss for reportable segments                                                                                                 |   | $ | (279,491 | ) |   | $ | (70,060 | ) |
|                                                                                                                                   |   |   |   |   |   |   |   |   |
| Unallocated amounts relating to corporate operations                                                                                   |   |   |
|    Professional fees                                                                                                    |   |   | (93,015 | ) |   |   | (320,395) |   |
|    Others                                                                                                               |   |   | (8,109 | ) |   |   | (120,291) |   |
|    Total loss                                                                                                           |   | $ | (380,615 | ) |   | $ | (510,746 | ) |

| 2012                          |   | Advertising |      |   | Consulting service |   |      | E-commerce |   |   | Elimination |   |   | Total  |     |
|-------------------------------|--------|-------------|-----------|--------|--------------------|--------|-----------|------------|--------|--------|-------------|--------|--------|--------|----------|
| Revenues                      |   | $           | 491,394   |   |               | $      | 250,734   |       |   | $      | -           |   |   | $      | (143,269 | ) |   | $ | 598,859 |   |
| Gross profit                  |   |        | 329,886   |   |               |   | 215,578   |       |   |   | (364,243    | )      |   |   | -        |   |   |   | 181,221 |   |
| Net (loss) income             |   |        | (221,381  | )      |               |   | 159,497   |       |   |   | (510,387    | )      |   |   | -        |   |   |   | (572,271 | ) |
| Total assets                  |   |        | 2,001,256 |   |               |   | 219,315   |       |   |   | 927,527     |   |   |   | -        |   |   |   | 3,148,098 |   |
| Capital expenditure           |   |        | 3,572     |   |               |   | 391       |       |   |   | 143,857     |   |   |   | -        |   |   |   | 147,820 |   |
| Depreciation and amortization |   | $           | 37,348    |   |               | $      | 4,093     |       |   | $      | 72,259      |   |   | $      | -        |   |   | $ | 113,700 |   |
|                          |   |        |      |   |               |   |      |       |   |   |        |   |   |   |     |   |   |   |   |   |
|                          |   |        |      |   |               |   |      |       |   |   |        |   |   |   |     |   |   |   |   |   |
| 2011                          |   | Advertising |      |   | Consulting service |   |      | E-commerce |   |   | Elimination |   |   | Total  |     |
| Revenues                      |   | $           | 562,647   |   |               | $      | 1,068,870 |       |   | $      | -           |   |   | $      | -        |   |   | $ | 1,631,517 |   |
| Gross profit                  |   |        | 178,705   |   |               |   | 927,519   |       |   |   | -           |   |   |   | -        |   |   |   | 1,106,224 |   |
| Net (loss) income             |   |        | (771,044  | )      |               |   | 682,403   |       |   |   | -           |   |   |   | -        |   |   |   | (88,641 | ) |
| Total assets                  |   |        | 709,695   |   |               |   | 1,336,193 |       |   |   | -           |   |   |   | -        |   |   |   | 2,045,888 |   |
| Capital expenditure           |   |        | 26,850    |   |               |   | 50,553    |       |   |   | -           |   |   |   | -        |   |   |   | 77,403 |   |
| Depreciation and amortization |   | $           | 22,760    |   |               | $      | 42,852    |       |   | $      | -           |   |   | $      | -        |   |   | $ | 65,612 |   |
|                          |   |        |      |   |               |   |      |       |   |   |        |   |   |   |     |   |   |   |   |   |

|                                                 | Six months ended June 30, |   |
|------------------------------------------------------|---------------------------|--------|
|                                                 |                      |   | 2012 |   |   |   | 2011 |   |
| Total net loss for reportable segments               |                      | $      | (572,271 | ) |   | $ | (88,641 | ) |
|                                                 |                      |   |   |   |   |   |   |   |
| Unallocated amounts relating to corporate operations |                      |   |
|    Professional fees                  |                      |   | (135,188 | ) |   |   | (320,395) |   |
|    Others                             |                      |   | (27,772 | ) |   |   | (120,291) |   |
|    Total loss                         |                      | $      | (735,231 | ) |   | $ | (529,327 | ) |

| NOTE 10 | STOCKHOLDERS’ EQUITY |
|---------|----------------------------|

----

| NOTE 11 | COMMITMENTS AND CONTINGENCIES |
|---------|-------------------------------|

| Six months ending December 31, 2012                         |   | $      | 95,389  |   |
|-------------------------------------------------------------|--------|--------|---------|--------|
| Fiscal years ending December 31,                            |   |   |    |   |
|      2012                          |   |   | 95,389  |   |
|      2013                          |   |   | 35,505  |   |
|      2014                          |   |   | 35,505  |   |
|      2015                          |   |   | 17,752  |   |
|          Total |   | $      | 184,151 |   |

| NOTE 12 |  RELATED PARTY TRANSACTIONS |
|---------|----------------------------------|

----

| NOTE 13 |  CONCENTRATIONS AND CREDIT RISKS |
|---------|---------------------------------------|

|                       |   | Supplier A |   |   | Supplier B |   |   | Supplier C |   |
|----------------------------|--------|------------|--------|--------|------------|--------|--------|------------|--------|
| For the three months ended |   |       |   |   |       |   |   |       |   |
| June 30, 2012              |   |       | 91     | %      |       |   | -      |       |   |   | - |   |
| June 30, 2011              |   |       | -      |   |       |   | 60     | %          |   |   | 40 | % |

|                     |   | Supplier A |   |   | Supplier B |   |   | Supplier C |   |
|--------------------------|--------|------------|--------|--------|------------|--------|--------|------------|--------|
| For the six months ended |   |       |   |   |       |   |   |       |   |
| June 30, 2012            |   |       | 83     | %      |       |   | -      |       |   |   | - |   |
| June 30, 2011            |   |       | -      |   |       |   | 60     | %          |   |   | 40 | % |

|                       |   | Customer A |   |
|----------------------------|--------|------------|--------|
| For the three months ended |   |       |   |
| June 30, 2012              |   |       | 37     | % |

|                     |   | Customer A |   |
|--------------------------|--------|------------|--------|
| For the six months ended |   |       |   |
| June 30, 2012            |   |       | 26     | % |

|                                  |   | Customer B |   |   | Customer C |   |   | Customer D |   |
|---------------------------------------|--------|------------|--------|--------|------------|--------|--------|------------|--------|
| As of                                 |   |       |   |   |       |   |   |       |   |
|     June 30, 2012 |   |       | 30     | %      |       |   | 24     | %          |   |   | 15 | % |
| December 31, 2011                     |   |       | -      |   |       |   | 11     | %          |   |   | - |   |

----

| Item 2. | Management’s Discussion and Analysis of Financial Condition and Results of Operations. |
|---------|----------------------------------------------------------------------------------------------|

----

----

----

----

|                                                 |   | Three months ended June 30, |       |
|------------------------------------------------------|--------|--------------------------------------------|------------|
|                                                 |   | 2012                                       |       |   | 2011 |   |
|                                                 |   | Consolidated                               |       |   | Combined |   |
| REVENUE                                              |   |                                       |       |   |   |   |
| Advertising                                          |   | $                                          | 231,108    |   |   | $ | 204,105 |   |
| Consulting service                                   |   |                                       | 201,145    |   |   |   | 393,817 |   |
| E-commerce                                           |   |                                       | -          |   |   |   | - |   |
|    Total revenue                      |   |                                       | 432,253    |   |   |   | 597,922 |   |
|                                                 |   |                                       |       |   |   |   |   |   |
| COST OF REVENUE                                      |   |                                       |       |   |   |   |   |   |
| Advertising                                          |   |                                       | 36,125     |   |   |   | 225,632 |   |
| Consulting service                                   |   |                                       | 16,614     |   |   |   | 80,755 |   |
| E-commerce                                           |   |                                       | 145,495    |   |   |   | - |   |
|    Total cost of revenue              |   |                                       | 198,234    |   |   |   | 306,387 |   |
|                                                 |   |                                       |       |   |   |   |   |   |
| GROSS PROFIT                                         |   |                                       | 234,019    |   |   |   | 291,535 |   |
|                                                 |   |                                       |       |   |   |   |   |   |
| OPERATING EXPENSES                                   |   |                                       |       |   |   |   |   |   |
| Selling expenses                                     |   |                                       | 459,202    |   |   |   | 371,102 |   |
| General and administrative expenses                  |   |                                       | 202,706    |   |   |   | 425,177 |   |
| Impairment of website development cost               |   |                                       | -          |   |   |   | - |   |
| Depreciation and amortization                        |   |                                       | 24,869     |   |   |   | 33,602 |   |
| Loss on disposal of property and equipment           |   |                                       | 4          |   |   |   | 349 |   |
|    Total Operating Expenses, net      |   |                                       | 686,781    |   |   |   | 830,230 |   |
|                                                 |   |                                       |       |   |   |   |   |   |
| NET LOSS FROM OPERATIONS                             |   |                                       | (452,762   | ) |   |   | (538,695 | ) |
|                                                 |   |                                       |       |   |   |   |   |   |
| OTHER INCOME (EXPENSES), NET                         |   |                                       |       |   |   |   |   |   |
| Interest income                                      |   |                                       | 1,758      |   |   |   | 823 |   |
| Interest expenses                                    |   |                                       | -          |   |   |   | (1,461 | ) |
| Other income                                         |   |                                       | 132        |   |   |   | 125 |   |
| Other expenses                                       |   |                                       | (758       | ) |   |   | (4,492 | ) |
|    Total Other Income (Expenses), net |   |                                       | 1,132      |   |   |   | (5,005 | ) |
|                                                 |   |                                       |       |   |   |   |   |   |
| NET LOSS BEFORE TAXES                                |   |                                       | (451,630   | ) |   |   | (543,700 | ) |
|                                                 |   |                                       |       |   |   |   |   |   |
| Income tax benefit                                   |   |                                       | 71,015     |   |   |   | 32,954 |   |
|                                                 |   |                                       |       |   |   |   |   |   |
| NET LOSS                                             |   |                                       | (380,615   | ) |   |   | (510,746 | ) |
|                                                 |   |                                       |       |   |   |   |   |   |
| OTHER COMPREHENSIVE INCOME (LOSS)                    |   |                                       |       |   |   |   |   |   |
| Foreign currency translation (loss) gain             |   |                                       | (8,379     | ) |   |   | 10,491 |   |
|                                                 |   |                                       |       |   |   |   |   |   |
| TOTAL OTHER COMPREHENSIVE LOSS                       |   | $                                          | (388,994   | ) |   | $ | (500,255 | ) |
|                                                 |   |                                       |       |   |   |   |   |   |
| Net loss per share                                   |   |                                       |       |   |   |   |   |   |
| - basic and diluted                                  |   | $                                          | (0.00      | ) |   | $ | (0.01 | ) |
|                                                 |   |                                       |       |   |   |   |   |   |
| Weighted average number of shares                    |   |                                       |       |   |   |   |   |   |
| outstanding during the period                        |   |                                       |       |   |   |   |   |   |
| - basic and diluted                                  |   |                                       | 81,244,000 |   |   |   | 79,999,538 |   |

----

----

----

|                                                   |   | Six months ended June 30, |       |
|--------------------------------------------------------|--------|---------------------------|------------|
|                                                   |   | 2012                      |       |   | 2011 |   |
|                                                   |   | Consolidated              |       |   | Combined |   |
| REVENUE                                                |   |                      |       |   |   |   |
| Advertising                                            |   | $                         | 348,125    |   |   | $ | 562,647 |   |
| Consulting service                                     |   |                      | 250,734    |   |   |   | 1,068,870 |   |
| E-commerce                                             |   |                      | -          |   |   |   | - |   |
|    Total revenue                        |   |                      | 598,859    |   |   |   | 1,631,517 |   |
|                                                   |   |                      |       |   |   |   |   |   |
| COST OF REVENUE                                        |   |                      |       |   |   |   |   |   |
| Advertising                                            |   |                      | 161,508    |   |   |   | 383,942 |   |
| Consulting service                                     |   |                      | 35,156     |   |   |   | 141,351 |   |
| E-commerce                                             |   |                      | 220,974    |   |   |   | - |   |
|    Total cost of revenue                |   |                      | 417,638    |   |   |   | 525,293 |   |
|                                                   |   |                      |       |   |   |   |   |   |
| GROSS PROFIT                                           |   |                      | 181,221    |   |   |   | 1,106,224 |   |
|                                                   |   |                      |       |   |   |   |   |   |
| OPERATING EXPENSES                                     |   |                      |       |   |   |   |   |   |
| Selling expenses                                       |   |                      | 617,923    |   |   |   | 1,060,918 |   |
| General and administrative expenses                    |   |                      | 364,371    |   |   |   | 535.654 |   |
| Impairment of website development cost                 |   |                      | 10,460     |   |   |   | - |   |
| Depreciation and amortization                          |   |                      | 51,162     |   |   |   | 65,612 |   |
| (Gain) loss on disposal of property and equipment |   |                      | (2,296     | )  |   |   | 1,446 |   |
|    Total Operating Expenses, net        |   |                      | 1,041,620  |   |   |   | 1,663,630 |   |
|                                                   |   |                      |       |   |   |   |   |   |
| NET LOSS FROM OPERATIONS                               |   |                      | (860,399   | ) |   |   | (557,406 | ) |
|                                                   |   |                      |       |   |   |   |   |   |
| OTHER INCOME (EXPENSES), NET                           |   |                      |       |   |   |   |   |   |
| Interest income                                        |   |                      | 2,136      |   |   |   | 1,526 |   |
| Interest expenses                                      |   |                      | -          |   |   |   | (6,253 | ) |
| Other income                                           |   |                      | 169        |   |   |   | 1,682 |   |
| Other expenses                                         |   |                      | (1,666     | ) |   |   | (5,109 | ) |
|    Total Other Income (Expenses), net   |   |                      | 639        |   |   |   | (8,154 | ) |
|                                                   |   |                      |       |   |   |   |   |   |
| NET LOSS BEFORE TAXES                                  |   |                      | (859,760   | ) |   |   | (565,560 | ) |
|                                                   |   |                      |       |   |   |   |   |   |
| Income tax benefit                                     |   |                      | 124,529    |   |   |   | 36,233 |   |
|                                                   |   |                      |       |   |   |   |   |   |
| NET LOSS                                               |   |                      | (735,231   | ) |   |   | (529,327 | ) |
|                                                   |   |                      |       |   |   |   |   |   |
| OTHER COMPREHENSIVE INCOME (LOSS)                      |   |                      |       |   |   |   |   |   |
| Foreign currency translation (loss) gain               |   |                      | (10,023    | ) |   |   | 15,841 |   |
|                                                   |   |                      |       |   |   |   |   |   |
| TOTAL OTHER COMPREHENSIVE LOSS                         |   | $                         | (745,254   | ) |   | $ | (513,486 | ) |
|                                                   |   |                      |       |   |   |   |   |   |
| Net loss per share                                     |   |                      |       |   |   |   |   |   |
| - basic and diluted                                    |   | $                         | (0.01      | ) |   | $ | (0.01 | ) |
|                                                   |   |                      |       |   |   |   |   |   |
| Weighted average number of shares                      |   |                      |       |   |   |   |   |   |
| outstanding during the period                          |   |                      |       |   |   |   |   |   |
| - basic and diluted                                    |   |                      | 81,244,000 |   |   |   | 79,999,271 |   |

----

----

----

|                                                           |   | Six months ended June 30 |      |
|----------------------------------------------------------------|--------|--------------------------|-----------|
|                                                           |   | 2012                     |      |   | 2011 |   |
| Net cash used in operating activities                          |   | $                        | (918,162  | ) |   | $ | (572,401 | ) |
| Net cash (used in) provided by investing activities            |   | $                        | (140,538  | ) |   | $ | 950,588 |   |
| Net cash provided by (used in)  financing activities |   | $                        | 1,577,193 |   |   | $ | (255,099 | ) |

|   | ● | Increase in cash loss from operations - Our net loss from operations, excluding depreciation, amortization and impairment of website development cost, increased by $151,098 on a period-to-period basis, from cash loss of $462,269 for the six months ended June 30, 2011 to cash loss of $613,367 for the six months ended June 30, 2012, which negatively impacted our cash flows from operations. The increase in cash loss from operations was due to the decrease of revenue in the first two quarters in 2012 from the same period last year. |
|--------|---------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | ● | Decrease in deferred revenue - Deferred revenue decreased by $102,188 for the first two quarters of 2012, while they increased by $49,464 for the same period in 2011. The reason for the change was that we entered into less advertising and consulting contracts. |
|--------|---------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | ● | Decrease in accounts receivable –Accounts receivable decreased by $1,399,061 for the first two quarters in 2012, while they decreased by $42,006 for the same period in 2011. The reason for the decrease was that we collected service charges in the first two quarters of 2012 payable by the channel service providers. |
|--------|---------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | ● | Increase in prepaid expenses and other current assets—Prepaid expenses and other current assets increased by $1,423,546 for the first two quarters in 2012, while they increased by $158,943 for the same period in 2011. Prepaid expenses and other current assets consisted of prepayments, other receivables and prepaid expenses. The increase in prepaid expenses and other current assets was the result of the increase in other receivables which was $1,464,603, compared with the balances as of December 31, 2011. |
|--------|---------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| ● | Loss of revenue from advertising, consulting services or from the ju51 Mall, which was opened on August 2, 2011; |
|---------|------------------------------------------------------------------------------------------------------------------|

| ● | Guangdong Xingbang’s delay or discontinuance of  payment of consulting fees under the VIE agreements; |
|---------|-----------------------------------------------------------------------------------------------------------------------|

| ● | any change of policy on accounts receivable; |
|---------|----------------------------------------------|

| ● | the enactment of new laws and regulations; |
|---------|--------------------------------------------|

| ● | our inability to grow our business as we anticipate by expanding our existing advertising, consulting services and operation of the new e-commerce business; |
|---------|--------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ● | any other changes in the cost structure of our underlying business model; and |
|---------|-------------------------------------------------------------------------------|

| ● | any of the other risks and uncertainties described in “Item 1A. Risk Factors.” |
|---------|--------------------------------------------------------------------------------------------|

----

|                     |   | As ofJune 30, 2012 |      |   | As ofDecember 31, 2011 |   |
|--------------------------|--------|--------------------|-----------|--------|------------------------|--------|
| Due to a related company |   |               | 5,352     |   |                   |   | 10,161 |   |
| Due to a director        |   |               | 1,574,060 |   |                   |   | - |   |
| Accounts payable         |   |               | 6,392     |   |                   |   | 19,670 |   |
| Total debt               |   |               | 1,585,804 |   |                   |   | 29,831 |   |

----

----

|   |   ● | we would not be able to pay our debts as they become due in the usual course of business; or                                                                                                                                                                                                                                                                                                              |
|--------|---------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |   ● | our total assets would be less than the sum of (i) our total liabilities plus (ii) the amount that would be needed, if we were to be dissolved at the time of distribution, to satisfy the preferential rights upon dissolution of stockholders whose preferential rights are superior to those receiving the distribution (although we presently do not have any stockholders with such preferential rights). |

|   |   ● | The Wholly Foreign Owned Enterprise Law (1986), as amended;                                 |
|--------|---------------------|---------------------------------------------------------------------------------------------|
|   |   ● | The Wholly Foreign Owned Enterprise Law Implementing Rules (1990), as amended;              |
|   |   ● | The Sino-foreign Equity Joint Venture Enterprise Law (1979), as amended; and                |
|   |   ● | The Sino-foreign Equity Joint Venture Enterprise Law Implementing Rules (1983), as amended. |

| Exhibit No. |   | Description                                                                                                                                       |
|-------------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------|
| 31.1*       |   | Certification of Chief Executive Officer pursuant to Rule 13a-14(a) under the Securities Exchange Act of 1934                                     |
| 31.2*       |   | Certification of Chief Financial Officer pursuant to Rule 13a-14(a) under the Securities Exchange Act of 1934                                     |
| 32.1*       |   | Certification of Chief Executive Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 |
| 32.2*       |   | Certification of Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 |

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|                  | China Xingbang Industry Group Inc. |
|-----------------------|------------------------------------|
|                  |                               |   |
| Date: August 14, 2012 | By:                                | /s/ Xiaohong Yao |
|                  |                               | Xiaohong Yao, Chairman, President and CEO |
|                  |                               | (principal executive officer) |
|                  |                               |   |
|                  | By:                                | /s/ Haigang Song |
|                  |                               | Haigang Song, Chief Financial Officer(principal financial and accounting officer) |

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