| x | QUARTERLY 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. |
|--------|-------------------------------------------------------------------------------------------|

|   | Nevada                          |   | 20-2777600          |   |
|--------|---------------------------------|--------|---------------------|--------|
|   | (State or other jurisdiction of |   | (IRS Employer       |   |
|   | incorporation or organization)  |   | Identification No.) |   |

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

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|                                                                |                                                                                                               |   | Page   |
|---------------------------------------------------------------------|--------------------------------------------------------------------------------------------------------------------|--------|--------|
| PART I                                                              | FINANCIAL INFORMATION                                                                                              |   | 3      |
|                                                                |                                                                                                               |   |   |
| Item 1.                                                             | Financial Statements.                                                                                              |   | 3      |
|                                                                |                                                                                                               |   |   |
|                                                                | Consolidated Balance Sheets As of September 30, 2011(Unaudited) and June 30, 2011                                  |   | 5      |
|                                                                |                                                                                                               |   |   |
|                                                                | Consolidated Statements of Operations For the Three Months Ended September 30, 2011 and 2010 (Unaudited)           |   | 6      |
|                                                                |                                                                                                               |   |   |
|                                                                | Consolidated Statements of Comprehensive Income For the Three Months Ended September 30, 2011 and 2010 (Unaudited) |   | 7      |
|                                                                |                                                                                                               |   |   |
|                                                                | Consolidated Statements of Cash Flows For the Three Months Ended September 30, 2011 and 2010 (Unaudited)           |   | 8      |
|                                                                |                                                                                                               |   |   |
|                                                                | Notes to Consolidated Financial Statements (Unaudited)                                                             |   | 9      |
|                                                                |                                                                                                               |   |   |
| Item 2.                                                             | Management’s Discussion and Analysis of Financial Condition and Results of Operations                        |   | 20     |
|                                                                |                                                                                                               |   |   |
| Item 3.                                                             | Quantitative and Qualitative Disclosures about Market Risk                                                         |   | 29     |
|                                                                |                                                                                                               |   |   |
| Item 4.                                                             | Controls and Procedures.                                                                                           |   | 29     |
|                                                                |                                                                                                               |   |   |
| PART II           | OTHER INFORMATION                                                                                                  |   | 30     |
|                                                                |                                                                                                               |   |   |
| Item 6.                                                             | Exhibits                                                                                                           |   | 30     |
|                                                                |                                                                                                               |   |   |
| Signatures                                                          |                                                                                                               | 31     |
|                                                                |                                                                                                               |   |
| Exhibits/Certifications                                             |                                                                                                               | 32     |

----

| Item 1. | Financial Statements |
|---------|----------------------|

----

|                                            |         | Page   |
|-------------------------------------------------|--------------|--------|
|                                            |         |   |
| CONSOLIDATED FINANCIAL STATEMENTS               |         |   |
|                                            |         |   |
| Consolidated Balance Sheets                     |         | 5      |
|                                            |         |   |
| Consolidated Statements of Operations           |         | 6      |
|                                            |         |   |
| Consolidated Statements of Comprehensive Income |         | 7      |
|                                            |         |   |
| Consolidated Statements of Cash Flows           |         | 8      |
|                                            |         |   |
| Notes to Consolidated Financial Statements      |    | 9      |

----

|                                                                                                                                                                         |   | September 30, |        |   | June 30, |   |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|---------------|-------------|--------|----------|--------|
|                                                                                                                                                                         |   | 2011          |        |   | 2011     |   |
|                                                                                                                                                                         |   | (Unaudited)   |        |   |     |   |
| Assets                                                                                                                                                                       |   |          |        |   |     |   |   |   |
| Current assets:                                                                                                                                                              |   |          |        |   |     |   |   |   |
| Cash and cash equivalents                                                                                                                                                    |   | $             | 2,471,845   |   |     | $      | 2,724,146 |   |
| Restricted cash                                                                                                                                                              |   |          | 4,713,880   |   |     |   | 3,565,859 |   |
| Accounts receivable, net of allowance for doubtful accounts of $120,495 and $87,480 at September 30, 2011 and June 30, 2011, respectively                                    |   |          | 22,396,099  |   |     |   | 18,166,580 |   |
| Due from factor                                                                                                                                                              |   |          | -           |   |     |   | 108,545 |   |
| Inventory                                                                                                                                                                    |   |          | 6,876,973   |   |     |   | 4,607,431 |   |
| Trade notes receivable                                                                                                                                                       |   |          | 1,487,192   |   |     |   | 1,343,309 |   |
| Loans to unrelated parties                                                                                                                                                   |   |          | 11,645,835  |   |     |   | 4,495,767 |   |
| Bank loan security deposits                                                                                                                                                  |   |          | 1,241,045   |   |     |   | 917,371 |   |
| Advance payments for inventory                                                                                                                                               |   |          | 2,605,290   |   |     |   | 2,024,943 |   |
| Prepaid VAT taxes                                                                                                                                                            |   |          | -           |   |     |   | 200,006 |   |
| Other current assets                                                                                                                                                         |   |          | 1,835,577   |   |     |   | 1,729,758 |   |
| Total current assets                                                                                                                                                         |   |          | 55,273,736  |   |     |   | 39,883,715 |   |
|                                                                                                                                                                         |   |          |        |   |     |   |   |   |
| Property and equipment, net                                                                                                                                                  |   |          | 39,630,014  |   |     |   | 36,449,318 |   |
|                                                                                                                                                                         |   |          |        |   |     |   |   |   |
| Other assets:                                                                                                                                                                |   |          |        |   |     |   |   |   |
| Advance payments for property and equipment                                                                                                                                  |   |          | 921,885     |   |     |   | 771,414 |   |
| Advance payments – Research & Development                                                                                                                          |   |          | 1,061,070   |   |     |   | 1,048,866 |   |
| Bank loan security deposits – long term                                                                                                                                |   |          | 313,000     |   |     |   | 309,400 |   |
| Intangibles, net                                                                                                                                                             |   |          | 14,955,081  |   |     |   | 15,119,699 |   |
| Total other assets                                                                                                                                                           |   |          | 17,251,036  |   |     |   | 17,249,379 |   |
|                                                                                                                                                                         |   |          |        |   |     |   |   |   |
| Total assets                                                                                                                                                                 |   | $             | 112,154,786 |   |     | $      | 93,582,412 |   |
|                                                                                                                                                                         |   |          |        |   |     |   |   |   |
| Liabilities                                                                                                                                                                  |   |          |        |   |     |   |   |   |
| Current liabilities:                                                                                                                                                         |   |          |        |   |     |   |   |   |
| Accounts payable and accrued expenses                                                                                                                                        |   | $             | 5,805,099   |   |     | $      | 4,617,422 |   |
| Short-term bank loans                                                                                                                                                        |   |          | 20,888,055  |   |     |   | 11,587,030 |   |
| Current portion of long-term bank loan                                                                                                                                       |   |          | 1,095,500   |   |     |   | 1,082,900 |   |
| Loans from unrelated party                                                                                                                                                   |   |          | 4,057,140   |   |     |   | 3,364,992 |   |
| Trade notes payable                                                                                                                                                          |   |          | 4,695,000   |   |     |   | 3,094,000 |   |
| Advances from customers                                                                                                                                                      |   |          | 4,890,072   |   |     |   | 3,273,647 |   |
| Income taxes payable                                                                                                                                                         |   |          | 687,488     |   |     |   | 322,299 |   |
| Other taxes payable                                                                                                                                                          |   |          | 138,335     |   |     |   | - |   |
| Other current liabilities                                                                                                                                                    |   |          | 1,746,924   |   |     |   | 1,039,231 |   |
| Total current liabilities                                                                                                                                                    |   |          | 44,003,613  |   |     |   | 28,381,521 |   |
| Long-term bank loan                                                                                                                                                          |   |          | 13,928,500  |   |     |   | 13,768,300 |   |
|                                                                                                                                                                         |   |          |        |   |     |   |   |   |
| Total liabilities                                                                                                                                                            |   |          | 57,932,113  |   |     |   | 42,149,821 |   |
|                                                                                                                                                                         |   |          |        |   |     |   |   |   |
| Equity                                                                                                                                                                       |   |          |        |   |     |   |   |   |
| Stockholders’ equity:                                                                                                                                                  |   |          |        |   |     |   |   |   |
| Preferred stock, $0.001 par value, 10,000,000 shares authorized, no shares issued or outstanding                                                                             |   |          | -           |   |     |   | - |   |
| Common stock, $0.001 par value, 200,000,000 shares authorized, 29,715,640 and 29,715,666 shares issued and outstanding at September 30, 2011 and June 30, 2011, respectively |   |          | 29,716      |   |     |   | 29,716 |   |
| Additional paid-in capital                                                                                                                                                   |   |          | 21,838,047  |   |     |   | 21,838,047 |   |
| Statutory reserves                                                                                                                                                           |   |          | 1,215,273   |   |     |   | 1,215,273 |   |
| Retained earnings                                                                                                                                                            |   |          | 25,588,246  |   |     |   | 23,378,099 |   |
| Accumulated other comprehensive income                                                                                                                                       |   |          | 5,002,385   |   |     |   | 4,390,669 |   |
| Total stockholders’ equity                                                                                                                                             |   |          | 53,673,667  |   |     |   | 50,851,804 |   |
|                                                                                                                                                                         |   |          |        |   |     |   |   |   |
| Noncontrolling interest                                                                                                                                                      |   |          | 549,006     |   |     |   | 580,787 |   |
|                                                                                                                                                                         |   |          |        |   |     |   |   |   |
| Total equity                                                                                                                                                                 |   |          | 54,222,673  |   |     |   | 51,432,591 |   |
|                                                                                                                                                                         |   |          |        |   |     |   |   |   |
| Total liabilities and equity                                                                                                                                                 |   | $             | 112,154,786 |   |     | $      | 93,582,412 |   |

----

|                                                     |   | For the Three Months EndedSeptember 30, |       |
|----------------------------------------------------------|--------|------------------------------------------------------------------|------------|
|                                                     |   | 2011                                                             |       |   | 2010 |   |
|                                                     |   |                                                             |       |   |   |   |
| Sales                                                    |   | $                                                                | 16,873,076 |   |   | $ | 15,930,811 |   |
|                                                     |   |                                                             |       |   |   |   |   |   |
| Cost of sales                                            |   |                                                             | 12,422,241 |   |   |   | 11,670,760 |   |
|                                                     |   |                                                             |       |   |   |   |   |   |
| Gross profit                                             |   |                                                             | 4,450,835  |   |   |   | 4,260,051 |   |
|                                                     |   |                                                             |       |   |   |   |   |   |
| Operating expenses                                       |   |                                                             |       |   |   |   |   |   |
| Selling expenses                                         |   |                                                             | 155,756    |   |   |   | 38,607 |   |
| General and administrative expenses                      |   |                                                             | 1,161,340  |   |   |   | 1,011,620 |   |
| Total operating expenses                                 |   |                                                             | 1,317,096  |   |   |   | 1,050,227 |   |
|                                                     |   |                                                             |       |   |   |   |   |   |
| Income from operations                                   |   |                                                             | 3,133,739  |   |   |   | 3,209,824 |   |
|                                                     |   |                                                             |       |   |   |   |   |   |
| Other income (expenses):                                 |   |                                                             |       |   |   |   |   |   |
| Government subsidy income                                |   |                                                             | 185,594    |   |   |   | 136,487 |   |
| Interest income                                          |   |                                                             | 19,583     |   |   |   | 8,504 |   |
| Interest expense                                         |   |                                                             | (773,296   | ) |   |   | (394,902 | ) |
| Other income (expenses), net                             |   |                                                             | (14,405    | ) |   |   | 31,121 |   |
| Total other income                                       |   |                                                             | (582,524   | ) |   |   | (218,790 | ) |
|                                                     |   |                                                             |       |   |   |   |   |   |
| Income before provision for income taxes                 |   |                                                             | 2,551,215  |   |   |   | 2,991,034 |   |
|                                                     |   |                                                             |       |   |   |   |   |   |
| Provision for income taxes                               |   |                                                             | 383,294    |   |   |   | 807,135 |   |
|                                                     |   |                                                             |       |   |   |   |   |   |
| Net income                                               |   |                                                             | 2,167,921  |   |   |   | 2,183,899 |   |
|                                                     |   |                                                             |       |   |   |   |   |   |
| Less: net loss attributable to noncontrolling interest   |   |                                                             | (41,583    | ) |   |   | (64,358 | ) |
|                                                     |   |                                                             |       |   |   |   |   |   |
| Net income attributable to BEFUT International Co., Ltd. |   | $                                                                | 2,209,504  |   |   | $ | 2,248,257 |   |
|                                                     |   |                                                             |       |   |   |   |   |   |
| Basic earnings per share                                 |   | $                                                                | 0.07       |   |   | $ | 0.08 |   |
| Diluted earnings per share                               |   | $                                                                | 0.07       |   |   | $ | 0.08 |   |
|                                                     |   |                                                             |       |   |   |   |   |   |
| Weighted average number of common shares outstanding:    |   |                                                             |       |   |   |   |   |   |
| Basic                                                    |   |                                                             | 29,715,640 |   |   |   | 29,715,640 |   |
| Diluted                                                  |   |                                                             | 29,715,640 |   |   |   | 29,752,094 |   |

----

|                                                               |   | For the Three Months EndedSeptember 30, |      |
|--------------------------------------------------------------------|--------|------------------------------------------------------------------|-----------|
|                                                               |   | 2011                                                             |      |   | 2010 |   |
|                                                               |   |                                                             |      |   |   |   |
| Net income                                                         |   | $                                                                | 2,167,921 |   |   | $ | 2,183,899 |   |
|                                                               |   |                                                             |      |   |   |   |   |   |
| Other comprehensive income                                         |   |                                                             |      |   |   |   |   |   |
| Foreign currency translation adjustment                            |   |                                                             | 685,080   |   |   |   | 743,018 |   |
|                                                               |   |                                                             |      |   |   |   |   |   |
| Total comprehensive income                                         |   |                                                             | 2,853,001 |   |   |   | 2,926,917 |   |
|                                                               |   |                                                             |      |   |   |   |   |   |
| Less: comprehensive income attributable to noncontrolling interest |   |                                                             | (31,781   | ) |   |   | (5,197 | ) |
|                                                               |   |                                                             |      |   |   |   |   |   |
| Comprehensive income attributable to BEFUT                         |   | $                                                                | 2,821,220 |   |   | $ | 2,932,114 |   |

----

|                                                                 |   | For the Three Months Ended |        |
|----------------------------------------------------------------------|--------|----------------------------|-------------|
|                                                                 |   | September 30,              |        |
|                                                                 |   | 2011                       |        |   | 2010 |   |
| Cash flows from operating activities:                                |   |                       |        |   |   |   |
| Net Income                                                           |   | $                          | 2,167,921   |   |   | $ | 2,183,899 |   |
| Adjustments to reconcile net income to net cash provided by          |   |                       |        |   |   |   |   |   |
| (used in) operating activities:                                      |   |                       |        |   |   |   |   |   |
| Depreciation and amortization                                        |   |                       | 843,627     |   |   |   | 753,831 |   |
| Provision for bad debts                                              |   |                       | 31,932      |   |   |   | - |   |
| Changes in current assets and current liabilities:                   |   |                       |        |   |   |   |   |   |
| Restricted cash                                                      |   |                       | (1,104,268  | ) |   |   | (1,480,073 | ) |
| Accounts receivable                                                  |   |                       | (4,048,194  | ) |   |   | (4,751,564 | ) |
| Inventory                                                            |   |                       | (2,251,892  | ) |   |   | (1,231,133 | ) |
| Trade notes receivable                                               |   |                       | (127,991    | ) |   |   | - |   |
| Advance payments for inventory                                       |   |                       | (560,057    | ) |   |   | (1,318,366 | ) |
| Prepaid VAT taxes                                                    |   |                       | 201,789     |   |   |   | - |   |
| Other current assets                                                 |   |                       | (124,866    | ) |   |   | (429,085 | ) |
| Accounts payable and accrued expenses                                |   |                       | 1,342,479   |   |   |   | (229,105 | ) |
| Trade notes payable                                                  |   |                       | 1,561,800   |   |   |   | 2,958,000 |   |
| Advances from customers                                              |   |                       | 1,575,108   |   |   |   | 177,334 |   |
| Income taxes payable                                                 |   |                       | 360,699     |   |   |   | 784,816 |   |
| Other taxes payable                                                  |   |                       | 136,458     |   |   |   | - |   |
| Other current liabilities                                            |   |                       | 517,505     |   |   |   | 219,191 |   |
| Total adjustments                                                    |   |                       | (1,645,871  | ) |   |   | (4,546,154 | ) |
|                                                                 |   |                       |        |   |   |   |   |   |
| Net cash provided by (used in) operating activities                  |   |                       | 522,050     |   |   |   | (2,362,255 | ) |
|                                                                 |   |                       |        |   |   |   |   |   |
| Cash flows from investing activities:                                |   |                       |        |   |   |   |   |   |
| Advance payments for property and equipment                          |   |                       | (141,206    | ) |   |   | - |   |
| Due from related party                                               |   |                       | -           |   |   |   | 474,764 |   |
| Additions to property and equipment                                  |   |                       | (3,265,982  | ) |   |   | (622,725 | ) |
| Loans to unrelated parties                                           |   |                       | (7,083,245  | ) |   |   | 10,664 |   |
|                                                                 |   |                       |        |   |   |   |   |   |
| Net cash used in investing activities                                |   |                       | (10,490,433 | ) |   |   | (137,297 | ) |
|                                                                 |   |                       |        |   |   |   |   |   |
| Cash flows from financing activities:                                |   |                       |        |   |   |   |   |   |
| Due from factor                                                      |   |                       | 109,583     |   |   |   | - |   |
| Bank loan security deposits                                          |   |                       | (312,680    | ) |   |   | (26,622 | ) |
| Loans from unrelated parties                                         |   |                       | 676,908     |   |   |   | 1,626,900 |   |
| Proceeds from minority shareholders                                  |   |                       |        |   |   |   | 58,683 |   |
| Proceeds from short-term bank loans                                  |   |                       | 14,642,963  |   |   |   | - |   |
| Repayment of short-term bank loans                                   |   |                       | (5,477,500  | ) |   |   | - |   |
| Capital contribution from minority shareholder for Befut Consultants |   |                       | 3,124       |   |   |   | - |   |
|                                                                 |   |                       |        |   |   |   |   |   |
| Net cash provided by financing activities                            |   |                       | 9,642,398   |   |   |   | 1,658,961 |   |
|                                                                 |   |                       |        |   |   |   |   |   |
| Effect of foreign currency translation on cash                       |   |                       | 73,684      |   |   |   | (16,136 | ) |
|                                                                 |   |                       |        |   |   |   |   |   |
| Net decrease in cash and cash equivalents                            |   |                       | (252,301    | ) |   |   | (856,727 | ) |
|                                                                 |   |                       |        |   |   |   |   |   |
| Cash and cash equivalents – beginning                          |   |                       | 2,724,146   |   |   |   | 1,319,173 |   |
|                                                                 |   |                       |        |   |   |   |   |   |
| Cash and cash equivalents – ending                             |   | $                          | 2,471,845   |   |   | $ | 462,446 |   |

----

----

----

|            |   | September 30, |      |   | June 30, |   |
|-----------------|--------|---------------|-----------|--------|----------|--------|
|            |   | 2011          |      |   | 2011     |   |
|            |   |          |      |   |     |   |
| Raw materials   |   | $             | 2,180,821 |   |     | $      | 1,963,765 |   |
| Work in process |   |          | 411,851   |   |     |   | 241,832 |   |
| Finished goods  |   |          | 4,284,301 |   |     |   | 2,401,834 |   |
| Total           |   | $             | 6,876,973 |   |     | $      | 4,607,431 |   |

----

|                                           |   | September 30, |      |   | June 30, |   |
|------------------------------------------------|--------|---------------|-----------|--------|----------|--------|
|                                           |   | 2011          |      |   | 2011     |   |
|                                           |   |          |      |   |     |   |
| Bank loan security deposits – short-term |   | $             | 1,241,045 |   |     | $      | 917,371 |   |
| Bank loan security deposits – long-term  |   |          | 313,000   |   |     |   | 309,400 |   |
| Total                                          |   | $             | 1,554,045 |   |     | $      | 1,226,771 |   |

|                           |   | September 30, |       |   | June 30, |   |
|--------------------------------|--------|---------------|------------|--------|----------|--------|
|                           |   | 2011          |       |   | 2011     |   |
|                           |   |          |       |   |     |   |
| Buildings                      |   | $             | 21,123,507 |   |     | $      | 20,880,553 |   |
| Machinery and equipment        |   |          | 14,000,187 |   |     |   | 13,737,259 |   |
| Office equipment and furniture |   |          | 532,690    |   |     |   | 505,084 |   |
| Vehicles                       |   |          | 609,785    |   |     |   | 602,771 |   |
| Subtotal                       |   |          | 36,266,169 |   |     |   | 35,725,667 |   |
| Less: Accumulated depreciation |   |          | 4,048,638  |   |     |   | 3,504,649 |   |
|                           |   |          | 32,217,531 |   |     |   | 32,221,018 |   |
| Add: Construction in progress  |   |          | 7,412,483  |   |     |   | 4,228,300 |   |
|                           |   |          |       |   |     |   |   |   |
| Total                          |   | $             | 39,630,014 |   |     | $      | 36,449,318 |   |

----

|                           |   | September 30, |       |   | June 30, |   |
|--------------------------------|--------|---------------|------------|--------|----------|--------|
|                           |   | 2011          |       |   | 2011     |   |
|                           |   |          |       |   |     |   |
| Software                       |   | $             | 30,254     |   |     | $      | 29,906 |   |
| Trademark                      |   |          | 89,205     |   |     |   | 88,179 |   |
| Land use rights                |   |          | 5,848,859  |   |     |   | 5,781,587 |   |
| Patent                         |   |          | 12,325,940 |   |     |   | 12,184,172 |   |
| Subtotal                       |   |          | 18,294,258 |   |     |   | 18,083,844 |   |
| Less: Accumulated amortization |   |          | 3,339,177  |   |     |   | 2,964,145 |   |
| Total                          |   | $             | 14,955,081 |   |     | $      | 15,119,699 |   |

|             |   | September 30, |      |   | June 30, |   |
|------------------|--------|---------------|-----------|--------|----------|--------|
|             |   | 2011          |      |   | 2011     |   |
|             |   |          |      |   |     |   |
| Accounts payable |   | $             | 5,711,992 |   |     | $      | 4,294,818 |   |
| Accrued expenses |   |          | 93,107    |   |     |   | 322,604 |   |
| Total            |   | $             | 5,805,099 |   |     | $      | 4,617,422 |   |

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   | September 30, |   |   | June 30, |   |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|---------------|--------|--------|----------|--------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   | 2011          |   |   | 2011     |   |
| On September 14, 2010, the Company obtained a loan from Harbin Bank with a maturity date of September 13, 2011. The interest is paid monthly at a variable rate equal to 30% per annum above the floating base interest for loans of the same term issued by the People’s Bank of China, the PRC’s central bank. The average annual interest rate for the year ended June 30, 2011 was approximately 8.203%. The loan was secured by the Company’s property and equipment.  The loan was paid off by September 30, 2011. |   | $             | -      |   |     | $      | 3,094,000 |   |

----

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   | September 30, |      |   | June 30, |   |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|---------------|-----------|--------|----------|--------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   | 2011          |      |   | 2011     |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |          |      |   |     |   |
| On October 21, 2010, the Company obtained a loan from Dalian Economic Development Zone Xinhui Town Bank with a maturity date of October 20, 2011. The interest is paid monthly at a variable rate equal to 50% per annum above the floating base interest for loans of the same term issued by the People’s Bank of China. The average interest rate for the three months ended September 30, 2011 was approximately 9.84%. The loan is secured by the Company’s inventory.                                |   | $             | 1,549,350 |   |     | $      | 1,531,530 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |          |      |   |     |   |   |   |
| On November 11, 2010, the Company obtained a loan from the Bank of Dalian with a maturity date of November 10, 2011. The interest is paid monthly at a variable rate equal to 30% per annum above the floating base interest for loans of the same term issued by the People’s Bank of China. The average interest rate for the three months ended September 30, 2011 was approximately 8.528%. The loan is guaranteed by Dalian Zhongdingxin Investment Guarantee Co., Ltd., an unaffiliated third party.       |   | $             | 1,565,000 |   |     | $      | 1,547,000 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |          |      |   |     |   |   |   |
| On November 23, 2010, the Company obtained a loan from the Bank of Dalian with a maturity date of November 22, 2011. The interest is paid monthly at a variable rate equal to 10% per annum above the floating base interest for loans of the same term issued by the People’s Bank of China. The average interest rate for the three months ended September 30, 2011  was approximately 7.216%. The loan is guaranteed by Dalian Tiansi Joint Guarantee Co., Ltd., an unaffiliated third party.       |   | $             | 1,565,000 |   |     | $      | 1,547,000 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |          |      |   |     |   |   |   |
| On January 10, 2011, the Company obtained a loan from the Bank of East Asia with a maturity date of July 10, 2011. The interest is paid monthly at a variable rate equal to 30% per annum above the floating base interest for loans of the same term issued by the People’s Bank of China. The average interest rate for the three months ended September 30, 2011  was approximately 7.93%. The loan was secured by the Company’s accounts receivables and was paid off by September 30, 2011. |   | $             | -         |   |     | $      | 2,320,500 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |          |      |   |     |   |   |   |
| On June 23, 2011, the Company obtained a loan from the Bank of East Asia with a maturity date of December 22, 2011. The interest is paid monthly at a variable rate equal to 30% per annum above the floating base interest for loans of the same term issued by the People’s Bank of China. The average interest rate for the three months ended September 30, 2011 was approximately 7.93%. The loan is secured by the Company’s accounts receivables.                                                   |   | $             | 1,565,000 |   |     | $      | 1,547,000 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |          |      |   |     |   |   |   |
| On July 1, 2011, the Company obtained a loan from the Bank of East Asia with a maturity date of December 31, 2011. The interest is paid monthly at a variable rate equal to 30% per annum above the floating base interest for loans of the same term issued by the People’s Bank of China. The average interest rate for the three months ended September 30, 2011 was approximately 7.93%. The loan is secured by the Company’s accounts receivables.                                                    |   | $             | 2,347,500 |   |     | $      | - |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |          |      |   |     |   |   |   |
| On July 15, 2011, the Company obtained a loan from the Bank of China with a maturity date of November 7, 2011. The interest is paid monthly at a annual interest rate equal to 6.1%. The loan is secured by the Company’s accounts receivables.                                                                                                                                                                                                                                                                  |   | $             | 668,255   |   |     | $      | - |   |

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|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   | September 30, |       |   | June 30, |   |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|---------------|------------|--------|----------|--------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   | 2011          |       |   | 2011     |   |
| On July 19, 2011, the Company obtained a loan from China Merchants Bank with a maturity date of January 18, 2012. The interest is paid monthly at a variable rate equal to 30% per annum above the floating base interest for loans of the same term issued by the People’s Bank of China. The average interest rate for the three months ended September 30, 2011 was approximately 7.93%. The loan is secured by the Company’s accounts receivables.                                  |   | $             | 2,347,500  |   |     | $      | - |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |          |       |   |     |   |   |   |
| On July 29, 2011, the Company obtained a loan from Industrial and Commercial Bank of China with a maturity date of January 28, 2012. The interest is paid monthly at a variable rate equal to 20% per annum above the floating base interest for loans of the same term issued by the People’s Bank of China. The average interest rate f for the three months ended September 30, 2011  was approximately 7.32%. The loan is secured by the Company’s accounts receivables.  |   | $             | 1,408,500  |   |     | $      | - |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |          |       |   |     |   |   |   |
| On September 16, 2011, the Company obtained a loan from Industrial and Commercial Bank of China with a maturity date of March 15, 2012. The interest is paid monthly at a variable rate equal to 20% per annum above the floating base interest for loans of the same term issued by the People’s Bank of China. The average interest rate for the three months ended September 30, 2011  was approximately 7.32%. The loan is secured by the Company’s accounts receivables. |   | $             | 1,611,950  |   |     | $      | - |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |          |       |   |     |   |   |   |
| On September 23, 2011, the Company obtained a loan from Harbin Bank with a maturity date of September 22, 2012. The interest is paid monthly at a variable rate equal to 20% per annum above the floating base interest for loans of the same term issued by the People’s Bank of China. The average interest rate for the three months ended September 30, 2011 was approximately 7.872%. The loan is secured by the Company’s property and equipment.                                 |   | $             | 3,130,000  |   |     | $      | - |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |          |       |   |     |   |   |   |
| On September 27, 2011, the Company obtained a loan from Jilin Bank with a maturity date of September 26, 2012. The interest is paid monthly at a variable rate equal to 30% per annum above the floating base interest for loans of the same term issued by the People’s Bank of China. The average interest rate for the three months ended September 30, 2011 was approximately 8.528%. The loan is guaranteed by a third party Dalian Fangyuan Financial Guarantee Co., Ltd.               |   | $             | 3,130,000  |   |     | $      | - |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |          |       |   |     |   |   |   |
| Total                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   | $             | 20,888,055 |   |     | $      | 11,587,030 |   |

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|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   | September 30, |       |   | June 30, |   |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|---------------|------------|--------|----------|--------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   | 2011          |       |   | 2011     |   |
| On November 2, 2009, Dalian Befut entered into a Loan Agreement with the PRC National Development Bank Joint Equity Corporation (“NDB”) pursuant to which Dalian Befut borrowed RMB100,000,000 (approximately $15,470,000) from NDB (the “Loan”), The term of the Loan is seven years, with a maturity date of November 1, 2016. The interest rate is a variable rate equal to 5% per annum above the floating base interest for loans of the same term promulgated by the People’s Bank of China. The average interest rate for the three months ended September 30, 2011 was approximately 7.245%. The Loan was designated to finance the construction of Dalian Befut’s planned specialty cable production lines with a production capacity of 4,000 km. The Loan was secured by, among other liens, a first priority lien on Dalian Befut’s land use right and its building property ownership and guaranteed by, among other guarantees, Mr. Hongbo Cao and Mr. Tingmin Li, Dalian Befut’s two major shareholders. |   | $             | 15,024,000 |   |     | $      | 14,851,200 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |          |       |   |     |   |   |   |
| Total                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   | $             | 15,024,000 |   |     | $      | 14,851,200 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |          |       |   |     |   |   |   |
| Less: Current portion                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |          | 1,095,500  |   |     |   | 1,082,900 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |          |       |   |     |   |   |   |
| Total noncurrent portion                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   | $             | 13,928,500 |   |     | $      | 13,768,300 |   |

|                                                               |   | For the Three Months EndedSeptember 30, |    |
|--------------------------------------------------------------------|--------|------------------------------------------------------------------|---------|
|                                                               |   | 2011                                                             |    |   | 2010 |   |
|                                                               |   |                                                             |    |   |   |   |
| Appropriation of Technology Innovation Subsidy                     |   | $                                                                | 52,841  |   |   | $ | 35,792 |   |
| Newly Identified Municipal Technical Center Subsidy                |   |                                                             | -       |   |   |   | 73,950 |   |
| Value added tax refund for employing physically-challenged workers |   |                                                             | 132,753 |   |   |   | 26,745 |   |
| Total                                                              |   | $                                                                | 185,594 |   |   | $ | 136,487 |   |

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|                                                                        |   | For the Three Months EndedSeptember 30, |       |
|-----------------------------------------------------------------------------|--------|------------------------------------------------------------------|------------|
|                                                                        |   | 2011                                                             |       |   | 2010 |   |
|                                                                        |   |                                                             |       |   |   |   |
| Net income attributable to BEFUT International Co., Ltd.                    |   | $                                                                | 2,209,504  |   |   | $ | 2,248,257 |   |
|                                                                        |   |                                                             |       |   |   |   |   |   |
| Weighted average common shares (denominator for basic earnings per share)   |   |                                                             | 29,715,640 |   |   |   | 29,715,640 |   |
|                                                                        |   |                                                             |       |   |   |   |   |   |
| Effect of dilutive securities:                                              |   |                                                             |       |   |   |   |   |   |
| Warrants                                                                    |   |                                                             | -          |   |   |   | 36,454 |   |
|                                                                        |   |                                                             |       |   |   |   |   |   |
| Weighted average common shares (denominator for diluted earnings per share) |   |                                                             | 29,715,640 |   |   |   | 29,752,094 |   |
|                                                                        |   |                                                             |       |   |   |   |   |   |
| Basic earnings per share                                                    |   | $                                                                | 0.07       |   |   | $ | 0.08 |   |
| Diluted earnings per share                                                  |   | $                                                                | 0.07       |   |   | $ | 0.08 |   |

----

----

|                       |   | For the Three Months EndedSeptember 30, |    |
|----------------------------|--------|------------------------------------------------------------------|---------|
|                       |   | 2011                                                             |    |   | 2010 |   |
|                       |   |                                                             |    |   |   |   |
| Cash paid for interest     |   | $                                                                | 741,798 |   |   | $ | 337,068 |   |
| Cash paid for income taxes |   | $                                                                | 15,525  |   |   | $ | - |   |

----

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

----

----

|                                                  |   | Three Months ended |       |   | %         |   |
|-------------------------------------------------------|--------|--------------------|------------|--------|-----------|--------|
| Item                                                  |   | 30-Sep-11          |       |   | 30-Sep-10 |   |   | Change |   |
| Sales                                                 |   | $                  | 16,873,076 |   |      | $      | 15,930,811 |   |   |   | 6 | % |
| Cost of sales                                         |   | $                  | 12,422,241 |   |      | $      | 11,670,760 |   |   |   | 6 | % |
| Gross profit                                          |   | $                  | 4,450,835  |   |      | $      | 4,260,051 |   |   |   | 4 | % |
| Total operating expenses                              |   | $                  | 1,317,096  |   |      | $      | 1,050,227 |   |   |   | 25 | % |
| Total other income/(expenses)                         |   | $                  | (582,524   | )      |      | $      | (218,790 | ) |   |   | 166 | % |
| Net income                                            |   | $                  | 2,209,504  |   |      | $      | 2,248,257 |   |   |   | -1.7 | % |
| Gross profit margin                                   |   |               | 26.38      | %      |      |   | 26.74 | % |   |   | -1.36 | % |
| Basic earnings per share                              |   |               | 0.07       |   |      |   | 0.08 |   |   |   | -13 | % |
| Diluted earnings per share                            |   |               | 0.07       |   |      |   | 0.08 |   |   |   | -13 | % |
| Weighted average number of common shares outstanding: |   |               |       |   |      |   |   |   |   |   |   |   |
| Basic                                                 |   |               | 29,715,640 |   |      |   | 29,715,640 |   |   |   | 0 | % |
| Diluted                                               |   |               | 29,715,640 |   |      |   | 29,752,094 |   |   |   | 0 | % |

----

----

| (dollars in thousands, except ratios) |   | September 30,2011 |   |   | June 30,2011 |   |
|-----------------------------------------------------------|--------|------------------------|--------|--------|-------------------|--------|
|                                                      |   |                   |   |   |              |   |
| Cash and cash equivalents and restricted cash             |   | $                      | 7,186  |   |              | $      | 6,290 |   |
|                                                      |   |                   |   |   |              |   |   |   |
| Working capital                                           |   | $                      | 11,270 |   |              | $      | 11,502 |   |
|                                                      |   |                   |   |   |              |   |   |   |
| Ratio of current assets to current liabilities            |   | 1.3:1                  |   |   | 1.4 :1            |   |

----

|                                   |   | For the three months ended |        |
|----------------------------------------|--------|----------------------------|-------------|
|                                   |   | September 30, 2011         |        |   | September 30, 2010 |   |
| Net cash used in operating activities  |   | $                          | 522,050     |   |   | $ | (2,362,255 | ) |
| Net cash used in investing activities  |   | $                          | (10,490,433 | ) |   | $ | (137,297 | ) |
| Net cash used in financing activities  |   | $                          | 9,642,398   |   |   | $ | 1,658,961 |   |
| Net decrease in cash, cash equivalents |   | $                          | (252,301    | ) |   | $ | (856,727 | ) |

| Creditors                                              |   | Loan Amount |       |   | Interest Rate |   |   | Term   |     | Maturity Date |     |
|--------------------------------------------------------|--------|-------------|------------|--------|---------------|--------|--------|--------|----------|---------------|----------|
|                                                   |   |        |       |   |          |   |   |   |     |          |     |
| Xinhui Town Bank                                       |   | $           | 1,549,350  |   |          |   | 9.84   | %+     |     | 1 year        |     | 10/20/11 |   |
|                                                   |   |        |       |   |          |   |   |   |     |          |     |   |   |
| Bank of Dalian                                         |   | $           | 1,565,000  |   |          |   | 8.528  | %*     |     | 1 year        |     | 11/10/11 |   |
|                                                   |   |        |       |   |          |   |   |   |     |          |     |   |   |
| Bank of Dalian                                         |   | $           | 1,565,000  |   |          | 7.216  | %^     |   | 1 year   |          | 11/22/11 |   |
|                                                   |   |        |       |   |          |   |   |   |     |          |     |   |   |
| Bank of East Asia                                      |   | $           | 1,565,000  |   |          |   | 7.93   | % *    |     | 6 months      |     | 12/22/11 |   |
|                                                   |   |        |       |   |          |   |   |   |     |          |     |   |   |
| Bank of East Asia                                      |   | $           | 2,347,500  |   |          |   | 7.93   | %*     |     | 6 months      |     | 12/31/11 |   |
|                                                   |   |        |       |   |          |   |   |   |     |          |     |   |   |
| Bank of China                                          |   | $           | 668,255    |   |          |   | 6.1    | %      |     | 115 days      |     | 11/07/11 |   |
|                                                   |   |        |       |   |          |   |   |   |     |          |     |   |   |
| China Merchants Bank                                   |   | $           | 2,347,500  |   |          |   | 7.93   | %*     |     | 6 months      |     | 01/18/12 |   |
|                                                   |   |        |       |   |          |   |   |   |     |          |     |   |   |
| Industrial and Commercial Bank of China                |   | $           | 1,408,500  |   |          | 7.32   | %& |   | 6 months |          | 01/28/12 |   |
|                                                   |   |        |       |   |          |   |   |   |     |          |     |   |   |
| Industrial and Commercial Bank of China                |   | $           | 1,611,950  |   |          | 7.32   | %& |   | 6 months |          | 03/15/12 |   |
|                                                   |   |        |       |   |          |   |   |   |     |          |     |   |   |
| Harbin Bank                                            |   | $           | 3,130,000  |   |          | 7.872  | %& |   | 1 year   |          | 09/22/12 |   |
|                                                   |   |        |       |   |          |   |   |   |     |          |     |   |   |
| Jilin Bank                                             |   | $           | 3,130,000  |   |          |   | 8.528  | %*     |     | 1 year        |     | 09/26/12 |   |
|                                                   |   |        |       |   |          |   |   |   |     |          |     |   |   |
| PRC National Development Bank Joint Equity Corporation |   | $           | 15,024,000 |   |          |   | 7.245  | %#     |     | 7 years       |     | 11/01/16 |   |

----

| (dollars)         |   | September 30,2011 |      |   | June 30, 2011 |   |
|-------------------|--------|------------------------|-----------|--------|-------------------------|--------|
| Category          |   |                   |      |   |                    |   |
| Raw materials     |   | $                      | 2,180,821 |   |                    | $      | 1,963,765 |   |
| Work-in-process   |   |                   | 411,851   |   |                    |   | 241,832 |   |
| Finished goods    |   |                   | 4,284,301 |   |                    |   | 2,401,834 |   |
| Total inventories |   | $                      | 6,876,973 |   |                    | $      | 4,607,431 |   |

----

----

|   | A. | The total equity investment at risk in the legal entity to be consolidated is insufficient to permit the entity to finance its activities without additional subordinated financial support from other parties, including equity holders; or |
|--------|----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | B. | As a group, holders of the equity investment at risk lack any one of the following characteristics of a controlling financial interest: |
|--------|----|-----------------------------------------------------------------------------------------------------------------------------------------|

----

| Item 3. | Quantitative and Qualitative Disclosures about Market Risk |
|---------|------------------------------------------------------------|

| Item 4. | Controls and Procedures |
|---------|-------------------------|

|   | · | Establishing policies and procedures of transaction level and type to improve our internal control environment; |
|--------|--------|-----------------------------------------------------------------------------------------------------------------|

|   | · | Implementing a financial closing process check list including major book closing steps to perform consolidation and reviews; and |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------|

|   | · | Recruiting qualified accounting professionals with sufficient US GAAP knowledge to enhance the quality of our financial reporting preparation. |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------|

----

| Item 6. | Exhibits |
|---------|----------|

----

|                    | BEFUT INTERNATIONAL CO., LTD. |
|-------------------------|-------------------------------|
|                    |                          |   |
| Date: December 27, 2011 | By:                           | /s/ Hongbo Cao |
|                    |                          | Name: Hongbo Cao |
|                    |                          | Title: President and Chief Executive Officer |
|                    |                          | (principal executive officer) |
|                    |                          |   |
| Date: December 27, 2011 | By:                           | /s/ Mei Yu |
|                    |                          | Name: Mei Yu |
|                    |                          | Title: Chief Financial Officer |
|                    |                          | (principal financial officer and principal |
|                    |                          | accounting officer) |

----

| No.          |         | Description                                                                                         |
|--------------|--------------|-----------------------------------------------------------------------------------------------------|
|         |         |                                                                                                |
| 31.1 – |         | Certification of Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. |
|         |         |                                                                                                |
| 31.2 – |         | Certification of Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. |
|         |         |                                                                                                |
| 32.1 – |         | Certification of Chief Executive Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. |
|         |         |                                                                                                |
| 32.2 – |    | Certification of Chief Financial Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. |

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