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

----

|                    |                                                                                                                                                               | Page   |
|-------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
| PART      I             | FINANCIAL      INFORMATION                                                                                                                                         | 3      |
|                    |                                                                                                                                                               |   |
| Item      1.            | Financial      Statements                                                                                                                                          | 3      |
|                    |                                                                                                                                                               |   |
|                    | Report      of Independent Registered Public Accounting Firm                                                                                                       | 5      |
|                    |                                                                                                                                                               |   |
|                    | Consolidated      Balance Sheets As of March 31, 2010 (Unaudited) and June 30,      2009                                                                      | 6      |
|                    |                                                                                                                                                               |   |
|                    | Consolidated      Statements of Operations and Other Comprehensive Income For the Three      Months and Nine Months Ended March 31, 2010 and 2009      (Unaudited) | 7      |
|                    |                                                                                                                                                               |   |
|                    | Consolidated      Statements of Cash Flows For the Nine Months Ended March 31, 2010 and 2009      (Unaudited)                                                      | 8      |
|                    |                                                                                                                                                               |   |
|                    | Notes      to Consolidated Financial Statements March 31, 2010 and 2009      (Unaudited)                                                                           | 9      |
|                    |                                                                                                                                                               |   |
| Item      2.            | Management’s      Discussion and Analysis of Financial Condition and Results of      Operations                                                              | 17     |
|                    |                                                                                                                                                               |   |
| Item      4T.           | Controls      and Procedures.                                                                                                                                      | 25     |
|                    |                                                                                                                                                               |   |
| PART II                 | OTHER INFORMATION                                                                                                                                                  | 25     |
|                    |                                                                                                                                                               |   |
| Item      6.            | Exhibits                                                                                                                                                           | 25     |
|                    |                                                                                                                                                               |   |
| Signatures              | 26                                                                                                                                                                 |
|                    |                                                                                                                                                               |
| Exhibits/Certifications |                                                                                                                                                               |

----

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

----

|                                                                      | Page   |
|---------------------------------------------------------------------------|--------|
|                                                                      |   |
| CONSOLIDATED      FINANCIAL STATEMENTS                                    |   |
|                                                                      |   |
| Report      of Independent Registered Public Accounting Firm              | 5      |
|                                                                      |   |
| Consolidated      Balance Sheets                                          | 6      |
|                                                                      |   |
| Consolidated      Statements of Operations and Other Comprehensive Income | 7      |
|                                                                      |   |
| Consolidated      Statements of Cash Flows                                | 8      |
|                                                                      |   |
| Notes      to Consolidated Financial Statements                           | 9      |

----

----

|                                                                                                                                                                                    |   | March 31, |       |   | June 30, |   |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|----------------|------------|--------|---------------|--------|
|                                                                                                                                                                                    |   | 2010           |       |   | 2009          |   |
|                                                                                                                                                                                    |   | (Unaudited)    |       |   |          |   |
| Assets                                                                                                                                                                                  |   |           |       |   |          |   |
| Current      assets:                                                                                                                                                                    |   |           |       |   |          |   |
| Cash      and cash equivalents                                                                                                                                                          |   | $              | 1,415,557  |   |          | $      | 210,301 |   |
| Restricted      cash                                                                                                                                                                    |   |           | -          |   |          |   | 586,000 |   |
| Accounts      receivable, net of allowance for doubtful accounts of $20,241 and $20,222      at March 31, 2010 and June 30, 2009, respectively                                          |   |           | 13,085,108 |   |          |   | 8,560,592 |   |
| Inventory                                                                                                                                                                               |   |           | 2,099,599  |   |          |   | 1,353,532 |   |
| Loans      to unrelated parties                                                                                                                                                         |   |           | 5,730,326  |   |          |   | 6,955,623 |   |
| Bank      loan security deposits                                                                                                                                                        |   |           | 1,416,389  |   |          |   | 733,233 |   |
| Advance      payments                                                                                                                                                                   |   |           | 9,240,763  |   |          |   | 866,868 |   |
| Advance      payments – R & D                                                                                                                                                 |   |           | 2,804,904  |   |          |   | 2,956,370 |   |
| Other      current assets                                                                                                                                                               |   |           | 1,056,235  |   |          |   | 273,391 |   |
| Total      current assets                                                                                                                                                               |   |           | 36,848,881 |   |          |   | 22,495,910 |   |
|                                                                                                                                                                                    |   |           |       |   |          |   |   |   |
| Property      and equipment, net                                                                                                                                                        |   |           | 22,889,543 |   |          |   | 18,646,274 |   |
|                                                                                                                                                                                    |   |           |       |   |          |   |   |   |
| Other      assets:                                                                                                                                                                      |   |           |       |   |          |   |   |   |
| Intangibles,      net                                                                                                                                                                   |   |           | 10,520,735 |   |          |   | 11,335,978 |   |
| Long-term      investment                                                                                                                                                               |   |           | -          |   |          |   | 2,930 |   |
| Total      other assets                                                                                                                                                                 |   |           | 10,520,735 |   |          |   | 11,338,908 |   |
|                                                                                                                                                                                    |   |           |       |   |          |   |   |   |
| Total      assets                                                                                                                                                                       |   | $              | 70,259,159 |   |          | $      | 52,481,092 |   |
|                                                                                                                                                                                    |   |           |       |   |          |   |   |   |
| Liabilities                                                                                                                                                                             |   |           |       |   |          |   |   |   |
| Current      liabilities:                                                                                                                                                               |   |           |       |   |          |   |   |   |
| Accounts      payable and accrued expenses                                                                                                                                              |   | $              | 6,533,708  |   |          | $      | 659,142 |   |
| Short-term      bank loans                                                                                                                                                              |   |           | 5,281,200  |   |          |   | 8,057,500 |   |
| Current      portion of long-term bank loans                                                                                                                                            |   |           | 293,400    |   |          |   | - |   |
| Convertible      notes payable                                                                                                                                                          |   |           | 130,000    |   |          |   | 500,000 |   |
| Trade      notes payable                                                                                                                                                                |   |           | -          |   |          |   | 1,172,000 |   |
| Loans      from unrelated parties                                                                                                                                                       |   |           | 2,924,508  |   |          |   | 249,050 |   |
| Advances      from customers                                                                                                                                                            |   |           | 663,253    |   |          |   | 372,417 |   |
| Income      tax payable                                                                                                                                                                 |   |           | 1,671,344  |   |          |   | 777,497 |   |
| Other      taxes payable                                                                                                                                                                |   |           | -          |   |          |   | 37,975 |   |
| Other      current liabilities                                                                                                                                                          |   |           | 701,359    |   |          |   | 636,514 |   |
| Total      current liabilities                                                                                                                                                          |   |           | 18,198,772 |   |          |   | 12,462,095 |   |
|                                                                                                                                                                                    |   |           |       |   |          |   |   |   |
| Long-term      bank loans                                                                                                                                                               |   |           | 14,376,600 |   |          |   | 5,470,310 |   |
|                                                                                                                                                                                    |   |           |       |   |          |   |   |   |
| Total      liabilities                                                                                                                                                                  |   |           | 32,575,372 |   |          |   | 17,932,405 |   |
|                                                                                                                                                                                    |   |           |       |   |          |   |   |   |
| 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, 29,512,784 and      29,488,341 shares issued and outstanding at March 31, 2010 and June 30,      2009, respectively |   |           | 29,513     |   |          |   | 29,488 |   |
| Additional      paid-in capital                                                                                                                                                         |   |           | 21,708,250 |   |          |   | 21,708,275 |   |
| Statutory      reserve                                                                                                                                                                  |   |           | 729,135    |   |          |   | 729,135 |   |
| Retained      earnings                                                                                                                                                                  |   |           | 12,126,112 |   |          |   | 9,750,035 |   |
| Accumulated      other comprehensive income                                                                                                                                             |   |           | 2,004,788  |   |          |   | 1,956,623 |   |
| Total      stockholders’ equity                                                                                                                                                   |   |           | 36,597,798 |   |          |   | 34,173,556 |   |
| `                                                                                                                                                                                       |   |           |       |   |          |   |   |   |
| Noncontrolling      interest                                                                                                                                                            |   |           | 1,085,989  |   |          |   | 375,131 |   |
|                                                                                                                                                                                    |   |           |       |   |          |   |   |   |
| Total      equity                                                                                                                                                                       |   |           | 37,683,787 |   |          |   | 34,548,687 |   |
|                                                                                                                                                                                    |   |           |       |   |          |   |   |   |
| Total      liabilities and equity                                                                                                                                                       |   | $              | 70,259,159 |   |          | $      | 52,481,092 |   |

----

|                                                        |   | For the Three Months Ended |       |   | For the Nine Months Ended |   |
|-------------------------------------------------------------|--------|------------------------------------------------|------------|--------|-----------------------------------------------|--------|
|                                                        |   | March 31,                                 |       |   | March 31,                                |   |
|                                                        |   | 2010                                           |       |   | 2009                                          |   |   | 2010 |   |   | 2009 |   |
|                                                        |   |                                           |       |   |                                          |   |   |   |   |   |   |   |
| Sales                                                       |   | $                                              | 6,708,410  |   |                                          | $      | 2,299,475 |   |   | $ | 19,318,113 |   |   | $ | 13,183,015 |   |
|                                                        |   |                                           |       |   |                                          |   |   |   |   |   |   |   |   |   |   |   |
| Cost      of sales                                          |   |                                           | 5,002,973  |   |                                          |   | 1,738,983 |   |   |   | 14,101,070 |   |   |   | 10,000,530 |   |
|                                                        |   |                                           |       |   |                                          |   |   |   |   |   |   |   |   |   |   |   |
| Gross      profit                                           |   |                                           | 1,705,437  |   |                                          |   | 560,492 |   |   |   | 5,217,043 |   |   |   | 3,182,485 |   |
|                                                        |   |                                           |       |   |                                          |   |   |   |   |   |   |   |   |   |   |   |
| Operating      expenses:                                    |   |                                           |       |   |                                          |   |   |   |   |   |   |   |   |   |   |   |
| Selling      expenses                                       |   |                                           | 11,300     |   |                                          |   | 14,211 |   |   |   | 48,001 |   |   |   | 180,827 |   |
| General      and administrative expenses                    |   |                                           | 731,346    |   |                                          |   | 326,198 |   |   |   | 1,761,895 |   |   |   | 740,305 |   |
| Total      operating expenses                               |   |                                           | 742,646    |   |                                          |   | 340,409 |   |   |   | 1,809,896 |   |   |   | 921,132 |   |
|                                                        |   |                                           |       |   |                                          |   |   |   |   |   |   |   |   |   |   |   |
| Income      from operations                                 |   |                                           | 962,791    |   |                                          |   | 220,083 |   |   |   | 3,407,147 |   |   |   | 2,261,353 |   |
|                                                        |   |                                           |       |   |                                          |   |   |   |   |   |   |   |   |   |   |   |
| Other      income (expenses):                               |   |                                           |       |   |                                          |   |   |   |   |   |   |   |   |   |   |   |
| Government      subsidy income                              |   |                                           | 331,138    |   |                                          |   | - |   |   |   | 685,796 |   |   |   | 159,925 |   |
| Interest      expense, net                                  |   |                                           | (359,567   | )      |                                          |   | (112,397 | ) |   |   | (497,071 | ) |   |   | (392,559 | ) |
| Other      income (expenses)                                |   |                                           | 2,930      |   |                                          |   | (38,658 | ) |   |   | (394,511 | ) |   |   | (4,335 | ) |
| Total      other income (expenses)                          |   |                                           | (25,499    | )      |                                          |   | (151,055 | ) |   |   | (205,786 | ) |   |   | (236,969 | ) |
|                                                        |   |                                           |       |   |                                          |   |   |   |   |   |   |   |   |   |   |   |
| Income      before provision for income tax                 |   |                                           | 937,292    |   |                                          |   | 69,028 |   |   |   | 3,201,361 |   |   |   | 2,024,384 |   |
|                                                        |   |                                           |       |   |                                          |   |   |   |   |   |   |   |   |   |   |   |
| Provision      for income tax                               |   |                                           | 306,698    |   |                                          |   | 43,554 |   |   |   | 892,421 |   |   |   | 145,976 |   |
|                                                        |   |                                           |       |   |                                          |   |   |   |   |   |   |   |   |   |   |   |
| Net      income before noncontrolling interest              |   |                                           | 630,594    |   |                                          |   | 25,474 |   |   |   | 2,308,940 |   |   |   | 1,878,408 |   |
|                                                        |   |                                           |       |   |                                          |   |   |   |   |   |   |   |   |   |   |   |
| Less:      net loss attributable to noncontrolling interest |   |                                           | (61,016    | )      |                                          |   | (10,278 | ) |   |   | (67,137 | ) |   |   | (11,082 | ) |
|                                                        |   |                                           |       |   |                                          |   |   |   |   |   |   |   |   |   |   |   |
| Net      income attributable to BEFUT                       |   |                                           | 691,610    |   |                                          |   | 35,752 |   |   |   | 2,376,077 |   |   |   | 1,889,490 |   |
|                                                        |   |                                           |       |   |                                          |   |   |   |   |   |   |   |   |   |   |   |
| Other      comprehensive income                             |   |                                           |       |   |                                          |   |   |   |   |   |   |   |   |   |   |   |
| Foreign      currency translation adjustment                |   |                                           | 95         |   |                                          |   | (104,386 | ) |   |   | 48,165 |   |   |   | 62,211 |   |
|                                                        |   |                                           |       |   |                                          |   |   |   |   |   |   |   |   |   |   |   |
| Comprehensive      income (loss)                            |   | $                                              | 691,705    |   |                                          | $      | (68,634 | ) |   | $ | 2,424,242 |   |   | $ | 1,951,701 |   |
|                                                        |   |                                           |       |   |                                          |   |   |   |   |   |   |   |   |   |   |   |
| Basic      earnings per share                               |   | $                                              | 0.03       |   |                                          | $      | 0.00 |   |   | $ | 0.08 |   |   | $ | 0.06 |   |
| Diluted      earnings per share                             |   | $                                              | 0.02       |   |                                          | $      | 0.00 |   |   | $ | 0.08 |   |   | $ | 0.06 |   |
|                                                        |   |                                           |       |   |                                          |   |   |   |   |   |   |   |   |   |   |   |
| Weighted      average number of common shares outstanding:  |   |                                           |       |   |                                          |   |   |   |   |   |   |   |   |   |   |   |
| Basic                                                       |   |                                           | 29,512,784 |   |                                          |   | 29,488,341 |   |   |   | 29,512,784 |   |   |   | 29,488,341 |   |
| Diluted                                                     |   |                                           | 30,155,539 |   |                                          |   | 29,488,341 |   |   |   | 30,240,336 |   |   |   | 29,488,341 |   |

----

|                                                                                    |   | For the Nine Months Ended |       |
|-----------------------------------------------------------------------------------------|--------|-----------------------------------------------|------------|
|                                                                                    |   | March 31,                                |       |
|                                                                                    |   | 2010                                          |       |   | 2009 |   |
| Cash      flows from operating activities:                                              |   |                                          |       |   |   |   |
| Net      Income                                                                         |   | $                                             | 2,376,077  |   |   | $ | 1,889,490 |   |
| Adjustments      to reconcile net income to net cash used in operating      activities: |   |                                          |       |   |   |   |   |   |
| Depreciation      and amortization                                                      |   |                                          | 1,087,427  |   |   |   | 196,298 |   |
| Noncontrolling      interest                                                            |   |                                          | (67,137    | ) |   |   | (11,082 | ) |
| Changes      in current assets and current liabilities:                                 |   |                                          |       |   |   |   |   |   |
| Accounts      receivable                                                                |   |                                          | (4,510,985 | ) |   |   | (670,925 | ) |
| Inventory                                                                               |   |                                          | (743,916   | ) |   |   | (652,768 | ) |
| Advance      payments                                                                   |   |                                          | (7,726,696 | ) |   |   | (42,212 | ) |
| Advance      payment - R&D                                                          |   |                                          | 155,438    |   |   |   | - |   |
| Other      current assets                                                               |   |                                          | (815,103   | ) |   |   | 84,173 |   |
| Accounts      payable and accrued expenses                                              |   |                                          | 5,871,576  |   |   |   | (89,011 | ) |
| Trade      notes payable                                                                |   |                                          | (1,173,120 | ) |   |   | 1,171,600 |   |
| Advances      from customers                                                            |   |                                          | 290,209    |   |   |   | 413,093 |   |
| Income      tax payable                                                                 |   |                                          | 892,421    |   |   |   | - |   |
| Other      taxes payable                                                                |   |                                          | (37,983    | ) |   |   | 54,941 |   |
| Other      current liabilities                                                          |   |                                          | 59,082     |   |   |   | 988,920 |   |
| Total      adjustments                                                                  |   |                                          | (6,718,787 | ) |   |   | 1,443,027 |   |
|                                                                                    |   |                                          |       |   |   |   |   |   |
| Net      cash provided by (used in) operating activities                                |   |                                          | (4,342,710 | ) |   |   | 3,332,517 |   |
|                                                                                    |   |                                          |       |   |   |   |   |   |
| Cash      flows from investing activities:                                              |   |                                          |       |   |   |   |   |   |
| Loans      to unrelated parties                                                         |   |                                          | 1,234,288  |   |   |   | (3,986,629 | ) |
| Advance      payment for fixed assets                                                   |   |                                          | (642,672   | ) |   |   | (1,610,950 | ) |
| Additions      to property and equipment                                                |   |                                          | (2,016,175 | ) |   |   | (64,699 | ) |
| Additions      to construction in progress                                              |   |                                          | (2,450,795 | ) |   |   | (3,235,176 | ) |
| Acquisition      of intangible assets                                                   |   |                                          | (6,453     | ) |   |   | - |   |
| Long-term      investment                                                               |   |                                          | 2,933      |   |   |   | - |   |
|                                                                                    |   |                                          |       |   |   |   |   |   |
| Net      cash used in investing activities                                              |   |                                          | (3,878,874 | ) |   |   | (8,897,454 | ) |
|                                                                                    |   |                                          |       |   |   |   |   |   |
| Cash      flows from financing activities:                                              |   |                                          |       |   |   |   |   |   |
| Bank      loan security deposits                                                        |   |                                          | (681,876   | ) |   |   | (118,625 | ) |
| Proceeds      (repayment) of short-term bank loans                                      |   |                                          | (2,786,160 | ) |   |   | 3,441,575 |   |
| Convertible      notes payable                                                          |   |                                          | (370,000   | ) |   |   | - |   |
| Loans      from unrelated parties                                                       |   |                                          | 2,708,908  |   |   |   | - |   |
| Proceeds      (repayment) of long-term bank loans                                       |   |                                          | 9,188,462  |   |   |   |  (316,332 | ) |
| Additional      paid in capital                                                         |   |                                          | -          |   |   |   | 3,233,556 |   |
| Contributed      from minority shareholder                                              |   |                                          | 777,192    |   |   |   |  - |   |
|                                                                                    |   |                                          |       |   |   |   |   |   |
| Net      cash provided by financing activities                                          |   |                                          | 8,836,526  |   |   |   | 6,240,174 |   |
|                                                                                    |   |                                          |       |   |   |   |   |   |
| Effect      of foreign currency translation on cash                                     |   |                                          | 4,314      |   |   |   | 1,346 |   |
|                                                                                    |   |                                          |       |   |   |   |   |   |
| Net      increase in cash and cash equivalents and restricted cash                      |   |                                          | 619,256    |   |   |   | 676,583 |   |
|                                                                                    |   |                                          |       |   |   |   |   |   |
| Cash      and cash equivalents and restricted cash – beginning                    |   |                                          | 796,301    |   |   |   | 353,049 |   |
|                                                                                    |   |                                          |       |   |   |   |   |   |
| Cash      and cash equivalents and restricted cash – ending                       |   | $                                             | 1,415,557  |   |   | $ | 1,029,632 |   |
|                                                                                    |   |                                          |       |   |   |   |   |   |
| Supplemental      schedule of non cash activities                                       |   |                                          |       |   |   |   |   |   |
| Other      receivable reclassified as loan to third party                               |   | $                                             | -          |   |   | $ | 538,462 |   |
| Contributed      intangible assets                                                      |   | $                                             | -          |   |   | $ | 6,253,415 |   |

----

----

----

|                 |   | March 31, |      |   | June 30, |   |
|----------------------|--------|----------------|-----------|--------|---------------|--------|
|                 |   | 2010           |      |   | 2009          |   |
|                 |   |           |      |   |          |   |
| Raw      materials   |   | $              | 919,894   |   |          | $      | 400,343 |   |
| Work      in process |   |           | 121,311   |   |          |   | 60,703 |   |
| Finished      goods  |   |           | 1,058,394 |   |          |   | 892,486 |   |
|                 |   |           |      |   |          |   |   |   |
| Total                |   | $              | 2,099,599 |   |          | $      | 1,353,532 |   |

|                                |   | March 31, |       |   | June 30, |   |
|-------------------------------------|--------|----------------|------------|--------|---------------|--------|
|                                |   | 2010           |       |   | 2009          |   |
|                                |   |           |       |   |          |   |
| Buildings                           |   | $              | 1,025,048  |   |          | $      | 1,019,457 |   |
| Machinery      and equipment        |   |           | 3,541,228  |   |          |   | 1,663,732 |   |
| Office      equipment and furniture |   |           | 80,004     |   |          |   | 57,770 |   |
| Vehicles                            |   |           | 387,832    |   |          |   | 272,327 |   |
| Subtotal                            |   |           | 5,034,112  |   |          |   | 3,013,286 |   |
| Less:      Accumulated depreciation |   |           | 1,334,446  |   |          |   | 1,082,271 |   |
|                                |   |           | 3,699,666  |   |          |   | 1,931,015 |   |
| Add:      Construction in progress  |   |           | 19,189,877 |   |          |   | 16,715,259 |   |
|                                |   |           |       |   |          |   |   |   |
| Total                               |   | $              | 22,889,543 |   |          | $      | 18,646,274 |   |

----

|                                |   | March 31, |       |   | June 30, |   |
|-------------------------------------|--------|----------------|------------|--------|---------------|--------|
|                                |   | 2010           |       |   | 2009          |   |
|                                |   |           |       |   |          |   |
| Software                            |   | $              | 22,526     |   |          | $      | 16,049 |   |
| Well-known      trademark           |   |           | 83,619     |   |          |   | 83,505 |   |
| High-tech      patent               |   |           | 11,554,158 |   |          |   | 11,538,406 |   |
| Subtotal                            |   |           | 11,660,303 |   |          |   | 11,637,960 |   |
| Less:      accumulated amortization |   |           | 1,139,568  |   |          |   | 301,982 |   |
|                                |   |           |       |   |          |   |   |   |
| Total                               |   | $              | 10,520,735 |   |          | $      | 11,335,978 |   |

|                  |   | March 31, |      |   | June 30, |   |
|-----------------------|--------|----------------|-----------|--------|---------------|--------|
|                  |   | 2010           |      |   | 2009          |   |
|                  |   |           |      |   |          |   |
| Accounts      payable |   | $              | 6,525,708 |   |          | $      | 527,142 |   |
| Accrued      expenses |   |           | 8,000     |   |          |   | 132,000 |   |
|                  |   |           |      |   |          |   |   |   |
| Total                 |   | $              | 6,533,708 |   |          | $      | 659,142 |   |

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   | March 31, |   |   | June 30, |   |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|----------------|--------|--------|---------------|--------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   | 2010           |   |   | 2009          |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   |           |   |   |          |   |
| On      July 31, 2008, the Company obtained a loan from Guangdong Development      Bank, of which the principal and interest was paid in full by July 30,      2009. The interest was calculated using an annual fixed interest rate of      9.98% and      paid monthly. The loan was guaranteed by a third party. The guaranty was      released upon the full repayment of the loan.                                                                                    |   | $              | -      |   |          | $      | 586,000 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   |           |   |   |          |   |   |   |
| On      August 27, 2008, the Company obtained a loan from Bank of Dalian, of which      the principal and interest was paid in full by August 27, 2009. The      interest was calculated using an annual fixed interest rate of 10.458% and      paid monthly. The loan was secured by a lien on the Company’s property and      equipment, inventory and guaranteed by a third party. Upon the repayment      in full of the loan, such lien and guaranty were released. |   | $              | -      |   |          | $      | 2,856,750 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   |           |   |   |          |   |   |   |

----

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   | March 31, |      |   | June 30, |   |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|----------------|-----------|--------|---------------|--------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   | 2009           |      |   | 2009          |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |           |      |   |          |   |
| On      November 21, 2008, the Company obtained a loan from Agricultural Bank of      China, of which the principal and interest was paid in full by August 20,      2009.  The interest was calculated using an annual fixed      interest rate of 10.0485% and paid monthly.  The loan was      secured by a lien on the Company’s property and equipment and guaranteed      by a third party.  Upon the repayment in full of      the  loan, such lien and guaranty were released. |   | $              | -         |   |          | $      | 219,750 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |           |      |   |          |   |   |   |
| On      December 24, 2008, the Company obtained a loan from Shanghai Pudong      Development Bank, of which the principal and interest was paid in full      by  December 24, 2009  The interest was calculated      using an annual fixed interest rate of 6.138% and paid      quarterly.  The loan was guaranteed by a third party. The      guaranty was released upon the full repayment of the loan.                                                                                             |   | $              | -         |   |          | $      | 1,465,000 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |           |      |   |          |   |   |   |
| On      May 6, 2009, the Company obtained a loan from China Merchants Bank, of      which the principal and interest was paid in full by October 30, 2009.      The  interest was calculated using an annual fixed interest rate      of 5.841% and paid monthly.  The loan was secured by a lien on      the Company’s property and equipment.  The lien was released      upon the full repayment of the loan.                                                                                 |   | $              | -         |   |          | $      | 2,930,000 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |           |      |   |          |   |   |   |
| On      September 16, 2009, the Company obtained a loan from Harbin Bank, of which      the principal is to be paid in full by September 15, 2010. The interest is      calculated using an annual fixed interest rate of 6.372% and paid monthly.      The loan is secured by a lien on the Company’s property and      equipment.                                                                                                                                                                                            |   | $              | 2,934,000 |   |          | $      | - |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |           |      |   |          |   |   |   |
| On      October 30, 2009, the Company obtained a loan from Bank of Dalian, of      which the principal is to be paid in full by October 29, 2010. The      interest is calculated using an annual fixed interest rate of 6.903% and      paid monthly. The loan is guaranteed by a third party.                                                                                                                                                                                                                                      |   | $              | 2,347,200 |   |          | $      | - |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |           |      |   |          |   |   |   |
| Total                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   | $              | 5,281,200 |   |          | $      | 8,057,500 |   |

|                                                                                                                                                                                                                                                                                                                                                                                                                                                |   | March 31, |   |   | June 30, |   |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|----------------|--------|--------|---------------|--------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                |   | 2010           |   |   | 2009          |   |
| In      November 2006, the Company obtained loans from Construction      Bank  of China, for the purchase of property. As per the terms      of the loan  agreement, the loan will mature in November 2011.      The interest rate is to  be adjusted every twelve months. The      annual      interest rate for the first and  the second year was fixed      at 8.6879% and 7.50312%,      respectively. |   | $              | -      |   |          | $      | 5,470,310 |   |

----

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   | March 31, |       |   | June 30, |   |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|----------------|------------|--------|---------------|--------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   | 2010           |       |   | 2009          |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   |           |       |   |          |   |
| 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  $14,670,000) 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 PRC’s central bank, China People’s Bank.  The Loan was      designated to finance the construction of Dalian Befut’s  planned specialty      cable production lines with a production capacity of 15,000 tons. 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. Cao, and Mr. Li, Dalian  Befut’s two      major shareholders. |   | $              | 14,670,000 |   |          | $      | - |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   |           |       |   |          |   |   |   |
| Total                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   | $              | 14,670,000 |   |          | $      | 5,470,310 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   |           |       |   |          |   |   |   |
| Less:      Current portion                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   |           | 293,400    |   |          |   | - |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   |           |       |   |          |   |   |   |
| Total      long-term loans                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   | $              | 14,376,600 |   |          | $      | 5,470,310 |   |

|                                                                                 |   | For the Three Months Ended March 31, |       |
|--------------------------------------------------------------------------------------|--------|--------------------------------------------------------------------|------------|
|                                                                                 |   | 2010                                                               |       |   | 2009 |   |
|                                                                                 |   |                                                               |       |   |   |   |
| Net      income                                                                      |   | $                                                                  | 691,610    |   |   | $ | 35,752 |   |
|                                                                                 |   |                                                               |       |   |   |   |   |   |
| Weighted      average common shares(denominator      for basic earnings per share)   |   |                                                               | 29,512,784 |   |   |   | 29,488,341 |   |
|                                                                                 |   |                                                               |       |   |   |   |   |   |
| Effect      of dilutive securities:                                                  |   |                                                               |       |   |   |   |   |   |
| Convertible      notes                                                               |   |                                                               | 642,755    |   |   |   | - |   |
|                                                                                 |   |                                                               |       |   |   |   |   |   |
| Weighted      average common shares(denominator      for diluted earnings per share) |   |                                                               | 30,155,539 |   |   |   | 29,488,341 |   |
|                                                                                 |   |                                                               |       |   |   |   |   |   |
| Basic      earnings per share                                                        |   | $                                                                  | 0.03       |   |   | $ | 0.00 |   |
| Diluted      earnings per share                                                      |   | $                                                                  | 0.02       |   |   | $ | 0.00 |   |

----

|                                                                                 |   | For the Nine Months Ended March 31, |       |
|--------------------------------------------------------------------------------------|--------|-------------------------------------------------------------------|------------|
|                                                                                 |   | 2010                                                              |       |   | 2009 |   |
|                                                                                 |   |                                                              |       |   |   |   |
| Net      income                                                                      |   | $                                                                 | 2,376,077  |   |   | $ | 1,889,490 |   |
|                                                                                 |   |                                                              |       |   |   |   |   |   |
| Weighted      average common shares(denominator for basic earnings per      share)   |   |                                                              | 29,512,784 |   |   |   | 29,488,341 |   |
|                                                                                 |   |                                                              |       |   |   |   |   |   |
| Effect      of dilutive securities:                                                  |   |                                                              |       |   |   |   |   |   |
| Convertible      notes                                                               |   |                                                              | 727,522    |   |   |   | - |   |
|                                                                                 |   |                                                              |       |   |   |   |   |   |
| Weighted      average common shares(denominator      for diluted earnings per share) |   |                                                              | 30,240,336 |   |   |   | 29,488,341 |   |
|                                                                                 |   |                                                              |       |   |   |   |   |   |
| Basic      earnings per share                                                        |   | $                                                                 | 0.08       |   |   | $ | 0.06 |   |
| Diluted      earnings per share                                                      |   | $                                                                 | 0.08       |   |   | $ | 0.06 |   |

----

|                            |   | Nine Months Ended March 31, |    |
|---------------------------------|--------|-------------------------------------------------|---------|
|                            |   | 2010                                            |    |   | 2009 |   |
|                            |   |                                            |    |   |   |   |
| Cash      paid for interest     |   | $                                               | 497,071 |   |   | $ | 392,559 |   |
| Cash      paid for income taxes |   | $                                               | -       |   |   | $ | 102,422 |   |

----

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

----

|   | · | Sales      were $6,708,410, an increase of $4,408,935 or 191.7%, as compared to the      three months ended March 31, 2009. |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------|

|   | · | Earnings      per share of $0.023 versus $0.001 for the quarter ended March 31, 2009,      despite the traditionally slow sales period due to the annual Spring      Festival in China. |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Working      capital was $18,650,109 as of March 31, 2010, an increase of $8,616,294 or      85.9%, as compared to the amount of working capital as of June 30,      2009. |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Investment      of approximately $8 million in the purchase of 20 sets of new, latest      technology equipment for wire and cable  manufacturing. |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------|

| All numbers in      thousands |   | Three months ended |   |   | Change in        |   |   | Nine months ended |   |   | Change in        |   |
|-----------------------------------------|--------|------------------------------|--------|--------|-----------------------|--------|--------|-----------------------------|--------|--------|-----------------------|--------|
| Except % numbers              |   | Mar. 31,10              |   |   | Mar. 31, 09 |   |   | %                           |   |   | Mar. 31, 10 |   |   | Mar. 31, 09 |   |   | % |   |
|                                    |   |                         |   |   |                  |   |   |                        |   |   |                  |   |   |   |   |   |   |   |
| Sales                                   |   | $                            | 6,708  |   |                  | $      | 2,299  |                        |   |   | 192                   |   |   | $ | 19,318 |   |   | $ | 13,183 |   |   |   | 47 |   |
| Cost      of sales                      |   | $                            | 5,003  |   |                  | $      | 1,739  |                        |   |   | 188                   |   |   | $ | 14,101 |   |   | $ | 10,001 |   |   |   | 41 |   |
| Gross      profit                       |   | $                            | 1,705  |   |                  | $      | 560    |                        |   |   | 204                   |   |   | $ | 5,217 |   |   | $ | 3,182 |   |   |   | 64 |   |
| Total      operating expenses           |   | $                            | 743    |   |                  | $      | 340    |                        |   |   | 118                   |   |   | $ | 1,810 |   |   | $ | 921 |   |   |   | 93 |   |
| Total      other income/(expenses)      |   | $                            | (25    | )      |                  | $      | (151   | )                           |   |   | 83                    |   |   | $ | (206 | ) |   | $ | (237 | ) |   |   | 13 |   |
| Net      income                         |   | $                            | 692    |   |                  | $      | 36     |                        |   |   | 1834                  |   |   | $ | 2,376 |   |   | $ | 1,889 |   |   |   | 26 |   |
|                                    |   |                         |   |   |                  |   |   |                        |   |   |                  |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Gross      profit margin                |   |                         | 25.4   | %      |                  |   | 24.3   | %                           |   |   | 4.5                   | %      |   |   | 27.0 | % |   |   | 24.1 | % |   |   | 12 | % |

----

----

----

| (dollars in thousands, except ratios) |   | March 31,2010 |   |   | June 30,2009 |   |
|-----------------------------------------------------------|--------|--------------------|--------|--------|-------------------|--------|
|                                                      |   |               |   |   |              |   |
| Cash      and cash equivalents and restricted cash        |   | $                  | 1,415  |   |              | $      | 796 |   |
|                                                      |   |               |   |   |              |   |   |   |
| Working      capital                                      |   | $                  | 18,650 |   |              | $      | 10,033 |   |
|                                                      |   |               |   |   |              |   |   |   |
| Ratio      of current assets to current liabilities       |   | 2.0:1              |   |   | 1.8:1             |   |

----

|                                                               |   | For the Nine Months Ended |   |
|--------------------------------------------------------------------|--------|-----------------------------------------------|--------|
| (dollars in thousands)                                   |   | March 31,                                |   |   | March 31, |   |
|                                                               |   | 2010                                          |   |   | 2009 |   |
| Net      cash provided by (used in) operating activities           |   | $                                             | (4,343 | ) |   | $ | 3,333 |   |
| Net      cash used in investing activities                         |   | $                                             | 3,879  |   |   | $ | 8,897 |   |
| Net      cash provided by financing activities                     |   | $                                             | 8,837  |   |   | $ | 6,240 |   |
| Net      increase in cash and cash equivalents and restricted cash |   | $                                             | 619    |   |   | $ | 677 |   |

----

| Creditors                      |   | Loan      Amount |       |   | Interest      Rate |   |   | Term   |   | Maturity Date |
|--------------------------------|--------|------------------|------------|--------|--------------------|--------|--------|--------|--------|--------------------|
|                           |   |             |       |   |               |   |   |   |   |               |
| Harbin      Bank               |   | $                | 2,934,000  |   |               |   | 6.372  | %      |   | 1      year        |   | 09/15/10 |
|                           |   |             |       |   |               |   |   |   |   |               |   |   |
| Bank      of Dalian            |   | $                | 2,347,200  |   |               |   | 6.903  | %      |   | 1      year        |   | 10/29/10 |
|                           |   |             |       |   |               |   |   |   |   |               |   |   |
| National      Development Bank |   | $                | 14,670,000 |   |               |   | 6.237  | %      |   | 7      years       |   | 11/01/16 |

| (dollars)              |   | March 31,2010 |      |   | March 31,2009 |   |
|------------------------|--------|--------------------|-----------|--------|--------------------|--------|
| Category               |   |               |      |   |               |   |
| Raw      materials     |   | $                  | 919,894   |   |               | $      | 400,343 |   |
| Work-in-process        |   |               | 121,311   |   |               |   | 60,703 |   |
| Finished      goods    |   |               | 1,058,394 |   |               |   | 892,486 |   |
| Total      inventories |   | $                  | 2,099,599 |   |               | $      | 1,353,532 |   |

----

----

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

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

----

|                    |   |  BEFUT      INTERNATIONAL CO., LTD.                                            |
|-------------------------|--------|-------------------------------------------------------------------------------------|
|                    |   |                                                                                |
| Date:      May 14, 2010 | By:    | /s/ Hongbo      Cao                                                                 |   |
|                    |   |  Name:      Hongbo Cao                                                         |
|                    |   |  Title:      President and Chief Executive Officer                             |
|                    |   |  (principal      executive officer)                                            |
|                    |   |                                                                                |
| Date:      May 14, 2010 | 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. |

----