|                                                                          |   |                                             |
|-------------------------------------------------------------------------------|--------|--------------------------------------------------|
| Nevada                                                                        |        | 26-0162321                                       |
| (State                or other jurisdiction of incorporation or organization) |        | (IRS                Employer Identification No.) |

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                              c/o                American Union                Securities 100                Wall Street – 15th Floor   New                York,NY 10005(Address                of principal executive offices) |

|                                       |
|--------------------------------------------|
| 212-232-0120                               |
| (Issuer's                telephone number) |

----

|                                                                                             |                           |   |
|--------------------------------------------------------------------------------------------------|--------------------------------|--------|
| Contents                                                                                         | Page(s)                        |   |
|                                                                                             |                           |   |
| Consolidated                    Balance                    Sheet                                 | F-2                            |   |
| Consolidated                    Statements of Income                    and Comprehensive Income | F-3                            |   |
| Consolidated                    Statement of                    Stockholders Equity              | F-4                            |   |
| Consolidated                    Statements of Cash                    Flows                      | F-5                            |   |
| Notes                    to the Consolidated                    Financial Statements             | F-6                    to F-14 |   |

----

|  MAX                NUTRITION, INC. AND                SUBSIDIARIES |
|--------------------------------------------------------------------------|
|  CONSOLIDATED                BALANCE                SHEET           |
|                                                                     |   |   |   | December                31,                2007 |   |   |   |   |   |   |   |   |   |   |   |   |   |
|  (Unaudited)                                                        |
|                                                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |

|                                                                     |                                                                                                        |                                                                         |                                                                     |   |   |   |   |   |   |   |   |   |   |                                                                                       |                                                                                                |                                                                                                                                        |                                                                  |   |
|--------------------------------------------------------------------------|-------------------------------------------------------------------------------------------------------------|------------------------------------------------------------------------------|--------------------------------------------------------------------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------------------------------------------------------------------------------------------|-----------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------|-----------------------------------------------------------------------|--------|
|  ASSETS                                                             |                                                                                                        |                                                                         |                                                                     |   |   |   |   |   |   |   |   |   |   |                                                                                       |                                                                                                |
|  CURRENT                ASSETS:                                     |                                                                                                        |                                                                         |                                                                     |   |   |   |   |   |   |   |   |   |   |                                                                                       |                                                                                                |
|                                                                     |  Cash                                                                                                  |                                                                         |                                                                     |   |   |   |   |   |   |   |   |   |   |                                                                                       | $                                                                                                   |           2,608,489                                                                       |                                                                  |
|                                                                     |  Accounts                receivable, net of                allowance for doubtful accounts of $245,837 |                                                                         |                                                                     |   |   |   |   |   |   |   |   |   |   |                                                                                       |           4,086,042                               |                                                                                                                                        |
|                                                                     |  Inventories                                                                                           |                                                                         |                                                                     |   |   |   |   |   |   |   |   |   |   |                                                                                       |              495,072               |                                                                                                                                        |
|                                                                     |  Due                from related                parties                                                |                                                                         |                                                                     |   |   |   |   |   |   |   |   |   |   |                                                                                       |           3,640,593                               |                                                                                                                                        |
|                                                                     |  Prepayments                and other                current assets                                    |                                                                         |                                                                     |   |   |   |   |   |   |   |   |   |   |                                                                                       |           1,642,705                               |                                                                                                                                        |
|                                                                     |                                                                                                        |                                                                         |                                                                     |   |   |   |   |   |   |   |   |   |   |                                                                                       |                                                                                                |                                                                                                                                        |                                                                  |   |
|                                                                     |                                                                                                        |  Total                Current                Assets                     |                                                                     |   |   |   |   |   |   |   |   |   |   |                                                                                       |                                                                                                |         12,472,901                                                                                  |                                                                  |
|                                                                     |                                                                                                        |                                                                         |                                                                     |   |   |   |   |   |   |   |   |   |   |                                                                                       |                                                                                                |                                                                                                                                        |                                                                  |   |
|  REAL                ESTATE                                         |                                                                                                        |                                                                         |                                                                     |   |   |   |   |   |   |   |   |   |   |           1,298,295                      |                                                                                                |
|                                                                     |                                                                                                        |                                                                         |                                                                     |   |   |   |   |   |   |   |   |   |   |                                                                                       |                                                                                                |                                                                                                                                        |                                                                  |   |
|  PROPERTY,                PLANT AND                EQUIPMENT, net   |                                                                                                        |                                                                         |                                                                     |   |   |   |   |   |   |   |   |   |   |           1,661,125                      |                                                                                                |
|                                                                     |                                                                                                        |                                                                         |                                                                     |   |   |   |   |   |   |   |   |   |   |                                                                                       |                                                                                                |                                                                                                                                        |                                                                  |   |
|  PATENT                AND PURCHASED                FORMULAE, net   |                                                                                                        |                                                                         |                                                                     |   |   |   |   |   |   |   |   |   |   |               27,417 |                                                                                                |
|                                                                     |                                                                                                        |                                                                         |                                                                     |   |   |   |   |   |   |   |   |   |   |                                                                                       |                                                                                                |                                                                                                                                        |                                                                  |   |
|  LAND                USE RIGHT,                net                  |                                                                                                        |                                                                         |                                                                     |   |   |   |   |   |   |   |   |   |   |           1,474,320                      |                                                                                                |
|                                                                     |                                                                                                        |                                                                         |                                                                     |   |   |   |   |   |   |   |   |   |   |                                                                                       |                                                                                                |                                                                                                                                        |                                                                  |   |
|                                                                     |                                                                                                        |                                                                         | Total                Assets                                              |   |   |   |   |   |   |   |   |   |   |                                                                                       |                                                                                                | $                                                                                                                                           |         16,934,058            |   |
|                                                                     |                                                                                                        |                                                                         |                                                                     |   |   |   |   |   |   |   |   |   |   |                                                                                       |                                                                                                |                                                                                                                                        |                                                                  |   |
|  LIABILITIES                AND                STOCKHOLDERS' EQUITY |                                                                                                        |                                                                         |                                                                     |   |   |   |   |   |   |   |   |   |   |                                                                                       |                                                                                                |
|  CURRENT                LIABILITIES:                                |                                                                                                        |                                                                         |                                                                     |   |   |   |   |   |   |   |   |   |   |                                                                                       |                                                                                                |
|                                                                     |  Accounts                payable                                                                       |                                                                         |                                                                     |   |   |   |   |   |   |   |   |   |   | $                                                                                          |              859,129               |                                                                                                                                        |
|                                                                     |  Accrued                expenses and other                current liabilities                          |                                                                         |                                                                     |   |   |   |   |   |   |   |   |   |   |                                                                                       |           1,153,540                               |                                                                                                                                        |
|                                                                     |                                                                                                        |                                                                         |                                                                     |   |   |   |   |   |   |   |   |   |   |                                                                                       |                                                                                                |                                                                                                                                        |                                                                  |   |
|                                                                     |                                                                                                        |  Total                Current                Liabilities                |                                                                     |   |   |   |   |   |   |   |   |   |   |                                                                                       |                                                                                                |           2,012,669                                                                       |                                                                  |
|                                                                     |                                                                                                        |                                                                         |                                                                     |   |   |   |   |   |   |   |   |   |   |                                                                                       |                                                                                                |                                                                                                                                        |                                                                  |   |
|  LONG-TERM                PAYABLE, LAND USE                RIGHT    |                                                                                                        |                                                                         |                                                                     |   |   |   |   |   |   |   |   |   |   |           1,372,024                      |                                                                                                |
|                                                                     |                                                                                                        |                                                                         |                                                                     |   |   |   |   |   |   |   |   |   |   |                                                                                       |                                                                                                |                                                                                                                                        |                                                                  |   |
|  MINORITY                INTEREST                                   |                                                                                                        |                                                                         |                                                                     |   |   |   |   |   |   |   |   |   |   |           1,733,976                      |                                                                                                |
|                                                                     |                                                                                                        |                                                                         |                                                                     |   |   |   |   |   |   |   |   |   |   |                                                                                       |                                                                                                |                                                                                                                                        |                                                                  |   |
|                                                                     |                                                                                                        |                                                                         | Total                Liabilities                                         |   |   |   |   |   |   |   |   |   |   |                                                                                       |                                                                                                |                                                                                                                                        |           5,118,669 |   |
|                                                                     |                                                                                                        |                                                                         |                                                                     |   |   |   |   |   |   |   |   |   |   |                                                                                       |                                                                                                |                                                                                                                                        |                                                                  |   |
|  COMMITMENTS                AND                CONTINGENCIES        |                                                                                                        |                                                                         |                                                                     |   |   |   |   |   |   |   |   |   |   |                                                                                       |                                                                                                |
|                                                                     |                                                                                                        |                                                                         |                                                                     |   |   |   |   |   |   |   |   |   |   |                                                                                       |                                                                                                |                                                                                                                                        |                                                                  |   |
|  STOCKHOLDERS'                EQUITY:                               |                                                                                                        |                                                                         |                                                                     |   |   |   |   |   |   |   |   |   |   |                                                                                       |                                                                                                |
|                                                                     |  Preferred                stock, $0.001 par                value, 1,000,000 shares authorized,         |                                                                         |                                                                     |   |   |   |   |   |   |   |   |   |   |                                                                                       |                                                                                                |
|                                                                     |                                                                                                        |  none                issued or                outstanding               |                                                                     |   |   |   |   |   |   |   |   |   |   |                                                                                       |                                                                                                |                        - |                                                                  |
|                                                                     |  Common                stock, $0.001 par                value, 74,000,000 shares authorized,           |                                                                         |                                                                     |   |   |   |   |   |   |   |   |   |   |                                                                                       |                                                                                                |
|                                                                     |                                                                                                        |  30,000,000                shares issued and                outstanding |                                                                     |   |   |   |   |   |   |   |   |   |   |                                                                                       |                                                                                                |               30,000                                                  |                                                                  |
|                                                                     |  Additional                paid-in                capital                                              |                                                                         |                                                                     |   |   |   |   |   |   |   |   |   |   |                                                                                       |               4,023,522  |                                                                                                                                        |
|                                                                     |  Statutory                reserves                                                                     |                                                                         |                                                                     |   |   |   |   |   |   |   |   |   |   |                                                                                       |           1,835,233                               |                                                                                                                                        |
|                                                                     |  Retained                earnings                                                                      |                                                                         |                                                                     |   |   |   |   |   |   |   |   |   |   |                                                                                       |           4,740,309                               |                                                                                                                                        |
|                                                                     |  Accumulated                other                comprehensive income:                                 |                                                                         |                                                                     |   |   |   |   |   |   |   |   |   |   |                                                                                       |                                                                                                |                                                                                                                                        |
|                                                                     |                                                                                                        |  Foreign                currency translation                gain        |                                                                     |   |   |   |   |   |   |   |   |   |   |                                                                                       |                                                                                                |           1,186,325                                                                       |                                                                  |
|                                                                     |                                                                                                        |                                                                         |                                                                     |   |   |   |   |   |   |   |   |   |   |                                                                                       |                                                                                                |                                                                                                                                        |                                                                  |   |
|                                                                     |                                                                                                        | Total                Stockholders'                Equity                     |                                                                     |   |   |   |   |   |   |   |   |   |   |                                                                                       |                                                                                                |         11,815,389                                                                                  |                                                                  |
|                                                                     |                                                                                                        |                                                                         |                                                                     |   |   |   |   |   |   |   |   |   |   |                                                                                       |                                                                                                |                                                                                                                                        |                                                                  |   |
|                                                                     |                                                                                                        |                                                                         | Total                Liabilities and                Stockholders' Equity |   |   |   |   |   |   |   |   |   |   |                                                                                       |                                                                                                | $                                                                                                                                           |         16,934,058            |   |
|                                                                     |                                                                                                        |                                                                         |                                                                     |   |   |   |   |   |   |   |   |   |   |                                                                                       |                                                                                                |                                                                                                                                        |                                                                  |   |
|                                                                     |                                                                                                        |                                                                         |                                                                     |   |   |   |   |   |   |   |   |   |   |                                                                                       |
|                                                                     |                                                                                                        |                                                                         |                                                                     |   |   |   |   |   |   |   |   |   |   |                                                                                       |                                                                                                |                                                                                                                                        |                                                                  |   |
|                                                                     |                                                                                                        |                                                                         |                                                                     |   |   |   |   |   |   |   |   |   |   |                                                                                       |                                                                                                |                                                                                                                                        |                                                                  |

----

|                                                                                                                                                           |   |   |   |   |                                                                                  |                                                                          |   |   |                                                                                |   |   |   |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|--------|--------|---------------------------------------------------------------------------------------|-------------------------------------------------------------------------------|--------|--------|-------------------------------------------------------------------------------------|--------|--------|--------|
| MAX                  NUTRITION, INC. AND                  SUBSIDIARIESCONSOLIDATED                STATEMENTS OF INCOME                AND COMPREHENSIVE INCOME |
|                                                                                                                                                           |   |   |   |   |                                                                                  |            (Unaudited) |   |   |                                                                                |   |   |   |   |   |   |   |   |   |
|                                                                                                                                                           |   |   |   |   |                                                                                  |                                                                          |   |   |                                                                                |   |   |   |   |   |   |   |
|                                                                                                                                                           |   |   |   |   |                                                                                  |                                                                          |   |   |                                                                                |   |   |   |   |   |   |   |   |   |
|                                                                                                                                                           |   |   |   |   | For                the Three Months                EndedDecember                  31, |                                                                          |   |   | For                the Six Months                EndedDecember                  31, |
|                                                                                                                                                           |   |   |   |   |                                                                                  |                                                                          |   |   |                                                                                |   |   |   |   |   |   |   |
|                                                                                                                                                           |   |   |   |   |                                                                                  | 2007                                                                          |   |   | 2006                                                                                |   |   |   |   |   | 2007 |   |   | 2006 |
|                                                                                                                                                           |   |   |   |   |                                                                                  |                                                                          |   |   |                                                                                |   |   |   |   |   |   |   |   |   |
|                                                                                                                                                           |   |   |   |   |                                                                                  |                                                                          |   |   |                                                                                |   |   |   |   |   |   |   |   |   |

|  NET                REVENUES                                      |                                                                    |                                                             |  $ |       4,708,687                                                                 |                                                                               |  $                                                  |       2,189,100                                                                 |                                                                               |                                                     |                                          |   |  $ |       7,715,124                                                                 |                                                                               |  $                                                  |       4,357,962                                                                 |
|------------------------------------------------------------------------|-------------------------------------------------------------------------|------------------------------------------------------------------|---------|---------------------------------------------------------------------------------------------------------------|------------------------------------------------------------------------------------|----------------------------------------------------------|---------------------------------------------------------------------------------------------------------------|------------------------------------------------------------------------------------|----------------------------------------------------------|-----------------------------------------------|--------|---------|---------------------------------------------------------------------------------------------------------------|------------------------------------------------------------------------------------|----------------------------------------------------------|---------------------------------------------------------------------------------------------------------------|
|                                                                   |                                                                    |                                                             |    |                                                                                                          |                                                                               |                                                     |                                                                                                          |                                                                               |                                                     |                                          |   |    |                                                                                                          |                                                                               |                                                     |                                                                                                          |   |   |
|  COST                OF GOODS                SOLD                 |                                                                    |                                                             |    |       2,378,083                                                                 |                                                                               |                                                     |       1,407,880                                                                 |                                                                               |                                                     |                                          |   |    |       4,189,838                                                                 |                                                                               |                                                     |       2,785,004                                                                 |
|                                                                   |                                                                    |                                                             |    |                                                                                                          |                                                                               |                                                     |                                                                                                          |                                                                               |                                                     |                                          |   |    |                                                                                                          |                                                                               |                                                     |                                                                                                          |   |   |
|                                                                   |                                                                    |                                                             |    |                                                                                                          |                                                                               |                                                     |                                                                                                          |                                                                               |                                                     |                                          |   |    |                                                                                                          |                                                                               |                                                     |                                                                                                          |   |   |
|  GROSS                PROFIT                                      |                                                                    |                                                             |    |       2,330,604                                                            |                                                                               |                                                     |         781,220                                                  |                                                                               |                                                     |                                          |   |    |       3,525,286                                                            |                                                                               |                                                     |       1,572,958                                                            |
|                                                                   |                                                                    |                                                             |    |                                                                                                          |                                                                               |                                                     |                                                                                                          |                                                                               |                                                     |                                          |   |    |                                                                                                          |                                                                               |                                                     |                                                                                                          |   |   |
|  OPERATING                EXPENSES:                               |                                                                    |                                                             |    |                                                                                                          |                                                                               |                                                     |                                                                                                          |                                                                               |                                                     |                                          |   |    |                                                                                                          |                                                                               |                                                     |                                                                                                          |
|                                                                   |  Selling                expenses                                   |                                                             |    |                                                                                                          |         250,726                            |                                                     |                                                                                                          |         120,555                            |                                                     |                                          |   |    |                                                                                                          |         400,803                            |                                                     |                                                                                                          |         241,271 |
|                                                                   |  General                and administrative                expenses |                                                             |    |                                                                                                          |         284,269                            |                                                     |                                                                                                          |         168,486                            |                                                     |                                          |   |    |                                                                                                          |         483,939                            |                                                     |                                                                                                          |         390,132 |
|                                                                   |                                                                    |                                                             |    |                                                                                                          |                                                                               |                                                     |                                                                                                          |                                                                               |                                                     |                                          |   |    |                                                                                                          |                                                                               |                                                     |                                                                                                          |   |   |
|                                                                   |                                                                    |                                                             |    |                                                                                                          |                                                                               |                                                     |                                                                                                          |                                                                               |                                                     |                                          |   |    |                                                                                                          |                                                                               |                                                     |                                                                                                          |   |   |
|                                                                   |                                                                    |  Total                operating                expenses     |    |                                                                                                          |                                                                               |         534,995  |                                                                                                          |                                                                               |         289,041  |                                          |   |    |                                                                                                          |                                                                               |         884,742  |                                                                                                          |   |         631,403 |
|                                                                   |                                                                    |                                                             |    |                                                                                                          |                                                                               |                                                     |                                                                                                          |                                                                               |                                                     |                                          |   |    |                                                                                                          |                                                                               |                                                     |                                                                                                          |   |   |
|                                                                   |                                                                    |                                                             |    |                                                                                                          |                                                                               |                                                     |                                                                                                          |                                                                               |                                                     |                                          |   |    |                                                                                                          |                                                                               |                                                     |                                                                                                          |   |   |
|  INCOME                FROM                OPERATIONS             |                                                                    |                                                             |    |       1,795,609                                                                 |                                                                               |                                                     |         492,179                                                       |                                                                               |                                                     |                                          |   |    |       2,640,544                                                                 |                                                                               |                                                     |         941,555                                                       |
|                                                                   |                                                                    |                                                             |    |                                                                                                          |                                                                               |                                                     |                                                                                                          |                                                                               |                                                     |                                          |   |    |                                                                                                          |                                                                               |                                                     |                                                                                                          |   |   |
|                                                                   |                                                                    |                                                             |    |                                                                                                          |                                                                               |                                                     |                                                                                                          |                                                                               |                                                     |                                          |   |    |                                                                                                          |                                                                               |                                                     |                                                                                                          |   |   |
|  OTHER                INCOME                (EXPENSE):            |                                                                    |                                                             |    |                                                                                                          |                                                                               |                                                     |                                                                                                          |                                                                               |                                                     |                                          |   |    |                                                                                                          |                                                                               |                                                     |                                                                                                          |
|                                                                   |  Interest                income                                    |                                                             |    |                                                                                                          |             6,729      |                                                     |                                                                                                          |             2,011      |                                                     |                                          |   |    |                                                                                                          |             6,729      |                                                     |                                                                                                          |             2,011 |
|                                                                   |  Interest                expense                                   |                                                             |    |                                                                                                          |         (19,377)                           |                                                     |                                                                                                          |         (11,680)                           |                                                     |                                          |   |    |                                                                                                          |         (41,760)                           |                                                     |                                                                                                          |         (23,080) |
|                                                                   |  Other                income (expense)                        |                                                             |    |                                                                                                          |         (64,333)                           |                                                     |                                                                                                          |           (4,372)                |                                                     |                                          |   |    |                                                                                                          |         (59,787)                           |                                                     |                                                                                                          |           (3,394) |
|                                                                   |                                                                    |                                                             |    |                                                                                                          |                                                                               |                                                     |                                                                                                          |                                                                               |                                                     |                                          |   |    |                                                                                                          |                                                                               |                                                     |                                                                                                          |   |   |
|                                                                   |                                                                    |  Total                other income                (expense) |    |                                                                                                          |                                                                               |         (76,981) |                                                                                                          |                                                                               |         (14,041) |                                          |   |    |                                                                                                          |                                                                               |         (94,818) |                                                                                                          |   |         (24,463) |
|                                                                   |                                                                    |                                                             |    |                                                                                                          |                                                                               |                                                     |                                                                                                          |                                                                               |                                                     |                                          |   |    |                                                                                                          |                                                                               |                                                     |                                                                                                          |   |   |
|                                                                   |                                                                    |                                                             |    |                                                                                                          |                                                                               |                                                     |                                                                                                          |                                                                               |                                                     |                                          |   |    |                                                                                                          |                                                                               |                                                     |                                                                                                          |   |   |
|  INCOME                BEFORE INCOME                TAXES         |                                                                    |                                                             |    |       1,718,628                                                                 |                                                                               |                                                     |         478,138                                                       |                                                                               |                                                     |                                          |   |    |       2,545,726                                                                 |                                                                               |                                                     |         917,092                                                       |
|                                                                   |                                                                    |                                                             |    |                                                                                                          |                                                                               |                                                     |                                                                                                          |                                                                               |                                                     |                                          |   |    |                                                                                                          |                                                                               |                                                     |                                                                                                          |   |   |
|  INCOME                TAXES                                      |                                                                    |                                                             |    |                   - |                                                                               |                                                     |                   - |                                                                               |                                                     |                                          |   |    |                   - |                                                                               |                                                     |                   - |
|                                                                   |                                                                    |                                                             |    |                                                                                                          |                                                                               |                                                     |                                                                                                          |                                                                               |                                                     |                                          |   |    |                                                                                                          |                                                                               |                                                     |                                                                                                          |   |   |
|                                                                   |                                                                    |                                                             |    |                                                                                                          |                                                                               |                                                     |                                                                                                          |                                                                               |                                                     |                                          |   |    |                                                                                                          |                                                                               |                                                     |                                                                                                          |   |   |
|  INCOME                BEFORE MINORITY                INTEREST    |       1,718,628                           |                                                             |    |         478,138                                                       |                                                                               |                                                     |                                                                                                          |                                                                               |                                                     |       2,545,726 |   |    |         917,092                                                       |
|                                                                   |                                                                    |                                                             |    |                                                                                                          |                                                                               |                                                     |                                                                                                          |                                                                               |                                                     |                                          |   |    |                                                                                                          |                                                                               |                                                     |                                                                                                          |   |   |
|  MINORITY                INTEREST                                 |                                                                    |                                                             |    |        (220,231)                                                           |                                                                               |                                                     |        (146,760)                                                           |                                                                               |                                                     |                                          |   |    |        (391,474)                                                           |                                                                               |                                                     |        (283,367)                                                           |
|                                                                   |                                                                    |                                                             |    |                                                                                                          |                                                                               |                                                     |                                                                                                          |                                                                               |                                                     |                                          |   |    |                                                                                                          |                                                                               |                                                     |                                                                                                          |   |   |
|                                                                   |                                                                    |                                                             |    |                                                                                                          |                                                                               |                                                     |                                                                                                          |                                                                               |                                                     |                                          |   |    |                                                                                                          |                                                                               |                                                     |                                                                                                          |   |   |
|  NET                INCOME                                        |                                                                    |                                                             |    |       1,498,397                                                                 |                                                                               |                                                     |         331,378                                                       |                                                                               |                                                     |                                          |   |    |       2,154,252                                                                 |                                                                               |                                                     |         633,725                                                       |
|                                                                   |                                                                    |                                                             |    |                                                                                                          |                                                                               |                                                     |                                                                                                          |                                                                               |                                                     |                                          |   |    |                                                                                                          |                                                                               |                                                     |                                                                                                          |   |   |
|  OTHER                COMPREHENSIVE                INCOME:        |                                                                    |                                                             |    |                                                                                                          |                                                                               |                                                     |                                                                                                          |                                                                               |                                                     |                                          |   |    |                                                                                                          |                                                                               |                                                     |
|                                                                   |  Foreign                currency translation                gain   |                                                             |    |                                                                                                          |         352,752                            |                                                     |                                                                                                          |         117,902                            |                                                     |                                          |   |    |                                                                                                          |         528,136                            |                                                     |                                                                                                          |         206,572 |
|                                                                   |                                                                    |                                                             |    |                                                                                                          |                                                                               |                                                     |                                                                                                          |                                                                               |                                                     |                                          |   |    |                                                                                                          |                                                                               |                                                     |                                                                                                          |   |   |
|                                                                   |                                                                    |                                                             |    |                                                                                                          |                                                                               |                                                     |                                                                                                          |                                                                               |                                                     |                                          |   |    |                                                                                                          |                                                                               |                                                     |                                                                                                          |   |   |
|  COMPREHENSIVE                INCOME                              |                                                                    |                                                             |  $ |       1,851,149                                                                 |                                                                               |  $                                                  |         449,280                                                       |                                                                               |                                                     |                                          |   |  $ |       2,682,388                                                                 |                                                                               |  $                                                  |         840,297                                                       |
|                                                                   |                                                                    |                                                             |    |                                                                                                          |                                                                               |                                                     |                                                                                                          |                                                                               |                                                     |                                          |   |    |                                                                                                          |                                                                               |                                                     |                                                                                                          |   |   |
|  NET                INCOME PER COMMON                SHARE        |                                                                    |                                                             |    |                                                                                                          |                                                                               |                                                     |                                                                                                          |                                                                               |                                                     |                                          |   |    |                                                                                                          |                                                                               |                                                     |
|                                                                   |  -                BASIC AND                DILUTED                 |                                                             |    |  $                                                                                                       |              0.05 |                                                     |  $                                                                                                       |              0.01 |                                                     |                                          |   |    |  $                                                                                                       |              0.07 |                                                     |  $                                                                                                       |              0.02 |
|                                                                   |                                                                    |                                                             |    |                                                                                                          |                                                                               |                                                     |                                                                                                          |                                                                               |                                                     |                                          |   |    |                                                                                                          |                                                                               |                                                     |                                                                                                          |   |   |
|  Weighted                Common Shares                Outstanding |                                                                    |                                                             |    |                                                                                                          |                                                                               |                                                     |                                                                                                          |                                                                               |                                                     |                                          |   |    |                                                                                                          |                                                                               |                                                     |                                                                                                          |
|                                                                   |  -                basic and                diluted                 |                                                             |    |                                                                                                          |     30,000,000                                                 |                                                     |                                                                                                          |     30,000,000                                                 |                                                     |                                          |   |    |                                                                                                          |     30,000,000                                                 |                                                     |                                                                                                          |     30,000,000 |
|                                                                   |                                                                    |                                                             |    |                                                                                                          |                                                                               |                                                     |                                                                                                          |                                                                               |                                                     |                                          |   |    |                                                                                                          |                                                                               |                                                     |                                                                                                          |   |   |
|                                                                   |                                                                    |                                                             |    |                                                                                                          |                                                                               |                                                     |                                                                                                          |                                                                               |                                                     |
|                                                                   |                                                                    |                                                             |    |                                                                                                          |                                                                               |                                                     |                                                                                                          |                                                                               |                                                     |                                          |   |    |                                                                                                          |                                                                               |                                                     |                                                                                                          |   |   |
|                                                                   |                                                                    |                                                             |    |                                                                                                          |                                                                               |                                                     |                                                                                                          |                                                                               |                                                     |                                          |   |    |                                                                                                          |                                                                               |                                                     |                                                                                                          |   |

----

|                                                                                                                                                                                                                  |   |   |   |   |   |                                                                                |   |   |   |   |   |   |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|--------|--------|--------|-------------------------------------------------------------------------------------|--------|--------|--------|--------|--------|--------|
| MAX                    NUTRITION, INC. AND                    SUBSIDIARIESCONSOLIDATED                  STATEMENT OF                  STOCKHOLDERS' EQUITYFor                  the Six Months Ended December 31, 2007 |
|                                                                                                                                                                                                                  |   |   |   |   |   |                            (Unaudited) |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                                                                                                                  |   |   |   |   |   |                                                                                |   |   |   |   |   |   |   |   |   |   |

|   |   |   |   |                                                                   |   |             |   |          |   |                                     |   |           |   |                               |   |                |
|--------|--------|--------|--------|------------------------------------------------------------------------|--------|------------------|--------|---------------|--------|------------------------------------------|--------|----------------|--------|------------------------------------|--------|---------------------|
|   |   |   |   |                                                                   |   |             |   |          |   |                                     |   |           |   | Accumulated                  Other |   |                |
|   |   |   |   |                                                                   |   |             |   |          |   |                                     |   |           |   | Comprehensive                      |   |                |
|   |   |   |   |  Common                  Stock, $0.001 Par                  Value |   |  Additional |   |          |   |                                     |   | Income         |   |  Total                        |
|   |   |   |   |  Number                  of                                       |   |             |   |  Paid-in |   |  Statutory                  Surplus |   |  Retained |   | Foreign                  Currency  |   |  Stockholders' |
|   |   |   |   |  Shares                                                           |   |  Amount     |   |  Capital |   |  Reserve                            |   |  Earnings |   | Translation                  Gain  |   | Equity              |
|   |   |   |   |                                                                   |   |             |   |          |   |                                     |   |           |   |                               |   |                |

|  Balance,                  July 1,                  2005                       |                                                                      |        30,000,000 |   |  $           30,000                  |   |  $      4,023,522             |   |  $            225,672                  |   |  $         854,358        |                                                            |  $                             - |                                                                                                                            |  $         5,133,552                                                                                              |
|-------------------------------------------------------------------------------------|---------------------------------------------------------------------------|------------------------------------------------------|--------|--------------------------------------------------------------------------------------------------|--------|-----------------------------------------------------------------------|--------|---------------------------------------------------------------------------------------------------------|--------|-----------------------------------------------------------------------------|-----------------------------------------------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                                                |                                                                      |                                                 |   |                                                                                             |   |                                                                  |   |                                                                                                    |   |                                                                        |                                                            |                                                                                                                                                                                   |                                                                                                                            |                                                                                                                                                                |   |   |
|  Comprehensive                  income                                         |                                                                      |                                                 |   |                                                                                             |   |                                                                  |   |                                                                                                    |   |                                                                        |                                                            |                                                                                                                                                                                   |                                                                                                                            |                                                                                                                                                                |
|                                                                                |  Net                  income                                         |                                                 |   |                                                                                             |   |                                                                  |   |                                                                                                    |   |                                                                        |          1,499,832 |                                                                                                                                                                                   |                                                                                                                            |                                                                                                                                                                |             1,499,832 |
|                                                                                |  Foreign                  currency translation                  gain |                                                 |   |                                                                                             |   |                                                                  |   |                                                                                                    |   |                                                                        |                                                            |                                                                                                                                                                                   |                     212,255 |                                                                                                                                                                |                212,255 |
|                                                                                |                                                                      |                                                 |   |                                                                                             |   |                                                                  |   |                                                                                                    |   |                                                                        |                                                            |                                                                                                                                                                                   |                                                                                                                            |                                                                                                                                                                |   |   |
|                                                                                |  Total                  comprehensive                  income        |                                                 |   |                                                                                             |   |                                                                  |   |                                                                                                    |   |                                                                        |                                                            |                                                                                                                                                                                   |                                                                                                                            |                                                                                                                                                                |             1,712,087 |
|                                                                                |                                                                      |                                                 |   |                                                                                             |   |                                                                  |   |                                                                                                    |   |                                                                        |                                                            |                                                                                                                                                                                   |                                                                                                                            |                                                                                                                                                                |   |   |
|  Appropriation                  to statutory                  surplus reserves |                                                                      |                                                 |   |                                                                                             |   |                                                                  |   |                259,698       |   |            (259,698) |                                                            |                                                                                                                                                                                   |                                                                                                                            |                            - |
|  Appropriation                  to employee                  welfare funds     |                                                                      |                                                 |   |                                                                                             |   |                                                                  |   |                                                                                                    |   |            (150,107) |                                                            |                                                                                                                                                                                   |                                                                                                                            |              (150,107)                                                                             |
|                                                                                |                                                                      |                                                 |   |                                                                                             |   |                                                                  |   |                                                                                                    |   |                                                                        |                                                            |                                                                                                                                                                                   |                                                                                                                            |                                                                                                                                                                |   |   |
|  Balance,                  June 30,                  2006                      |                                                                      |        30,000,000 |   |               30,000  |   |          4,023,522  |   |                485,370  |   |          1,944,385        |                                                            |                     212,255                                                   |                                                                                                                            |             6,695,532                                                                              |
|                                                                                |                                                                      |                                                 |   |                                                                                             |   |                                                                  |   |                                                                                                    |   |                                                                        |                                                            |                                                                                                                                                                                   |                                                                                                                            |                                                                                                                                                                |   |   |
|  Comprehensive                  income                                         |                                                                      |                                                 |   |                                                                                             |   |                                                                  |   |                                                                                                    |   |                                                                        |                                                            |                                                                                                                                                                                   |                                                                                                                            |                                                                                                                                                                |
|                                                                                |  Net                  income                                         |                                                 |   |                                                                                             |   |                                                                  |   |                                                                                                    |   |                                                                        |          1,991,535 |                                                                                                                                                                                   |                                                                                                                            |                                                                                                                                                                |             1,991,535 |
|                                                                                |  Foreign                  currency translation                  gain |                                                 |   |                                                                                             |   |                                                                  |   |                                                                                                    |   |                                                                        |                                                            |                                                                                                                                                                                   |                     445,934 |                                                                                                                                                                |                445,934 |
|                                                                                |                                                                      |                                                 |   |                                                                                             |   |                                                                  |   |                                                                                                    |   |                                                                        |                                                            |                                                                                                                                                                                   |                                                                                                                            |                                                                                                                                                                |   |   |
|                                                                                |  Total                  comprehensive                  income        |                                                 |   |                                                                                             |   |                                                                  |   |                                                                                                    |   |                                                                        |                                                            |                                                                                                                                                                                   |                                                                                                                            |                                                                                                                                                                |             2,437,469 |
|                                                                                |                                                                      |                                                 |   |                                                                                             |   |                                                                  |   |                                                                                                    |   |                                                                        |                                                            |                                                                                                                                                                                   |                                                                                                                            |                                                                                                                                                                |   |   |
|  Appropriation                  to statutory                  surplus reserves |                                                                      |                                                 |   |                                                                                             |   |                                                                  |   |                564,456       |   |            (564,456) |                                                            |                                                                                                                                                                                   |                                                                                                                            |                            - |
|                                                                                |                                                                      |                                                 |   |                                                                                             |   |                                                                  |   |                                                                                                    |   |                                                                        |                                                            |                                                                                                                                                                                   |                                                                                                                            |                                                                                                                                                                |   |   |
|  Balance,                  June 30,                  2007                      |                                                                      |        30,000,000 |   |               30,000       |   |          4,023,522       |   |             1,049,826                       |   |          3,371,464             |                                                            |                     658,189                                                        |                                                                                                                            |             9,133,001                                                                                   |
|                                                                                |                                                                      |                                                 |   |                                                                                             |   |                                                                  |   |                                                                                                    |   |                                                                        |                                                            |                                                                                                                                                                                   |                                                                                                                            |                                                                                                                                                                |   |   |
|  Comprehensive                  income                                         |                                                                      |                                                 |   |                                                                                             |   |                                                                  |   |                                                                                                    |   |                                                                        |                                                            |                                                                                                                                                                                   |                                                                                                                            |                                                                                                                                                                |
|                                                                                |  Net                  income                                         |                                                 |   |                                                                                             |   |                                                                  |   |                                                                                                    |   |                                                                        |          2,154,252 |                                                                                                                                                                                   |                                                                                                                            |                                                                                                                                                                |             2,154,252 |
|                                                                                |  Foreign                  currency translation                  gain |                                                 |   |                                                                                             |   |                                                                  |   |                                                                                                    |   |                                                                        |                                                            |                                                                                                                                                                                   |                     528,136 |                                                                                                                                                                |                528,136 |
|                                                                                |                                                                      |                                                 |   |                                                                                             |   |                                                                  |   |                                                                                                    |   |                                                                        |                                                            |                                                                                                                                                                                   |                                                                                                                            |                                                                                                                                                                |   |   |
|                                                                                |  Total                  comprehensive                  income        |                                                 |   |                                                                                             |   |                                                                  |   |                                                                                                    |   |                                                                        |                                                            |                                                                                                                                                                                   |                                                                                                                            |                                                                                                                                                                |             2,682,388 |
|                                                                                |                                                                      |                                                 |   |                                                                                             |   |                                                                  |   |                                                                                                    |   |                                                                        |                                                            |                                                                                                                                                                                   |                                                                                                                            |                                                                                                                                                                |   |   |
|  Appropriation                  to statutory                  surplus reserves |                                                                      |                                                 |   |                                                                                             |   |                                                                  |   |                785,407       |   |            (785,407) |                                                            |                                                                                                                                                                                   |                                                                                                                            |                            - |
|                                                                                |                                                                      |                                                 |   |                                                                                             |   |                                                                  |   |                                                                                                    |   |                                                                        |                                                            |                                                                                                                                                                                   |                                                                                                                            |                                                                                                                                                                |   |   |
|  Balance,                  December 31,                  2007                  |                                                                      |        30,000,000 |   |  $           30,000                  |   |  $      4,023,522                  |   |  $         1,835,233                                  |   |  $      4,740,309                        |                                                            |  $              1,186,325                                                                                   |                                                                                                                            |  $       11,815,389                                                                                                         |
|                                                                                |                                                                      |                                                 |   |                                                                                             |   |                                                                  |   |                                                                                                    |   |                                                                        |                                                            |                                                                                                                                                                                   |                                                                                                                            |                                                                                                                                                                |   |   |

----

|                                                                                                                                      |   |   |   |   |   |                                                                          |   |   |   |   |   |   |
|-------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|--------|--------|--------|-------------------------------------------------------------------------------|--------|--------|--------|--------|--------|--------|
| MAX                  NUTRITION, INC. AND                  SUBSIDIARIESCONSOLIDATED                STATEMENTS OF CASH                FLOWS |
|                                                                                                                                      |   |   |   |   |   |            (Unaudited) |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                                      |   |

|                                                                      |   |   |   |   |   |   |   |   |   |   |   | For                the Six Months                EndedDecember                  31, |
|---------------------------------------------------------------------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|-------------------------------------------------------------------------------------|
|                                                                      |   |   |   |   |   |   |   |   |   |   |   |                                                                                |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                      |   |   |   |   |   |   |   |   |   |   |   |                                                                                | 2007 |   |   |   |   |   |   |   |   |   |   |   | 2006 |
|                                                                      |   |   |   |   |   |   |   |   |   |   |   |                                                                                |   |   |   |   |   |   |   |   |   |   |   |   |   |
|  CASH                FLOWS FROM OPERATING                ACTIVITIES: |   |   |   |   |   |   |   |   |   |   |   |                                                                                |   |   |   |   |   |   |   |   |   |   |

|  Net                income                                                                       |                                                                                               |                                                                               |   |   |   |   |   |   |   | $                                                                                                                   |                2,154,252                  |                                                                                                                                                                            |                                                                                                                |   |   |   |   |   |   |   |   | $                                                                                                                              |                   633,726  |
|-------------------------------------------------------------------------------------------------------|----------------------------------------------------------------------------------------------------|------------------------------------------------------------------------------------|--------|--------|--------|--------|--------|--------|--------|---------------------------------------------------------------------------------------------------------------------|----------------------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------|--------|--------|--------|--------|--------|--------|--------|--------|--------------------------------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------|
|  Adjustments                to reconcile net income to net cash                provided by  |                                                                                               |                                                                               |   |   |   |   |   |   |   |                                                                                                                |                                                                                                                 |                                                                                                                                                                            |                                                                                                                |   |   |   |   |   |   |   |   |                                                                                                                           |
|                                                                                                  |  (used                in) operating                activities                                 |                                                                               |   |   |   |   |   |   |   |                                                                                                                |                                                                                                                 |                                                                                                                                                                            |                                                                                                                |   |   |   |   |   |   |   |   |                                                                                                                           |                                                                                                                      |   |
|                                                                                                  |  Depreciation                expense                                                          |                                                                               |   |   |   |   |   |   |   |                                                                                                                |                                                                                                                 |                   167,042                                                             |                                                                                                                |   |   |   |   |   |   |   |   |                                                                                                                           |                                                                                                                      |                   184,346 |
|                                                                                                  |  Amortization                expense                                                          |                                                                               |   |   |   |   |   |   |   |                                                                                                                |                                                                                                                 |                     74,500                                                  |                                                                                                                |   |   |   |   |   |   |   |   |                                                                                                                           |                                                                                                                      |                     59,035 |
|                                                                                                  |  Minority                interest in net                earnings of consolidated subsidiaries |                                                                               |   |   |   |   |   |   |   |                                                                                                                |                   391,474  |                                                                                                                                                                            |                                                                                                                |   |   |   |   |   |   |   |   |                                                                                                                           |                   283,367       |
|                                                                                                  |  Changes                in operating assets                and liabilities:                   |                                                                               |   |   |   |   |   |   |   |                                                                                                                |                                                                                                                 |                                                                                                                                                                            |                                                                                                                |   |   |   |   |   |   |   |   |                                                                                                                           |                                                                                                                      |   |
|                                                                                                  |                                                                                               |  Accounts                receivable                                           |   |   |   |   |   |   |   |                                                                                                                |                                                                                                                 |                                                                                                                                                                            |                 (730,476)           |   |   |   |   |   |   |   |   |                                                                                                                           |                                                                                                                      |   |                 (916,040) |
|                                                                                                  |                                                                                               |  Inventories                                                                  |   |   |   |   |   |   |   |                                                                                                                |                                                                                                                 |                                                                                                                                                                            |                   379,534 |   |   |   |   |   |   |   |   |                                                                                                                           |                                                                                                                      |   |                 (619,648) |
|                                                                                                  |                                                                                               |  Prepayments                and other                current assets           |   |   |   |   |   |   |   |                                                                                                                |                                                                                                                 |                                                                                                                                                                            |                   888,430 |   |   |   |   |   |   |   |   |                                                                                                                           |                                                                                                                      |   |              (1,250,952) |
|                                                                                                  |                                                                                               |  Accounts                payable                                              |   |   |   |   |   |   |   |                                                                                                                |                                                                                                                 |                                                                                                                                                                            |                 (172,232)           |   |   |   |   |   |   |   |   |                                                                                                                           |                                                                                                                      |   |                   458,456 |
|                                                                                                  |                                                                                               |  Accrued                expenses and other                current liabilities |   |   |   |   |   |   |   |                                                                                                                |                                                                                                                 |              (1,635,086)                                                                                       |                                                                                                                |   |   |   |   |   |   |   |   |                                                                                                                           |                                                                                                                      |              (1,257,224) |
|                                                                                                  |                                                                                               |                                                                               |   |   |   |   |   |   |   |                                                                                                                |                                                                                                                 |                                                                                                                                                                            |                                                                                                                |   |   |   |   |   |   |   |   |                                                                                                                           |                                                                                                                      |   |   |
|  NET                CASH PROVIDED BY (USED IN) OPERATING                ACTIVITIES          |                                                                                               |                                                                               |   |   |   |   |   |   |   |                1,517,438                 |                                                                                                                 |                                                                                                                                                                            |                                                                                                                |   |   |   |   |   |   |   |   |              (2,424,934)                                      |
|                                                                                                  |                                                                                               |                                                                               |   |   |   |   |   |   |   |                                                                                                                |                                                                                                                 |                                                                                                                                                                            |                                                                                                                |   |   |   |   |   |   |   |   |                                                                                                                           |                                                                                                                      |   |   |
|  CASH                FLOWS FROM INVESTING                ACTIVITIES:                             |                                                                                               |                                                                               |   |   |   |   |   |   |   |                                                                                                                |                                                                                                                 |                                                                                                                                                                            |                                                                                                                |   |   |   |   |   |   |   |   |                                                                                                                           |
|                                                                                                  |  Purchases                of property, plant                and equipment                     |                                                                               |   |   |   |   |   |   |   |                                                                                                                |                                                                                                                 |                   (22,431)                                                            |                                                                                                                |   |   |   |   |   |   |   |   |                                                                                                                           |                                                                                                                      |                     (4,355) |
|                                                                                                  |  Purchase                of land use                right                                     |                                                                               |   |   |   |   |   |   |   |                                                                                                                |                                                                                                                 |                              - |                                                                                                                |   |   |   |   |   |   |   |   |                                                                                                                           |                                                                                                                      |                   (90,106) |
|                                                                                                  |                                                                                               |                                                                               |   |   |   |   |   |   |   |                                                                                                                |                                                                                                                 |                                                                                                                                                                            |                                                                                                                |   |   |   |   |   |   |   |   |                                                                                                                           |                                                                                                                      |   |   |
|  NET                CASH USED IN INVESTING                ACTIVITIES                             |                                                                                               |                                                                               |   |   |   |   |   |   |   |                                                                                                                |                   (22,431) |                                                                                                                                                                            |                                                                                                                |   |   |   |   |   |   |   |   |                                                                                                                           |                   (94,461)      |
|                                                                                                  |                                                                                               |                                                                               |   |   |   |   |   |   |   |                                                                                                                |                                                                                                                 |                                                                                                                                                                            |                                                                                                                |   |   |   |   |   |   |   |   |                                                                                                                           |                                                                                                                      |   |   |
|  CASH                FLOWS FROM FINANCING                ACTIVITIES:                             |                                                                                               |                                                                               |   |   |   |   |   |   |   |                                                                                                                |                                                                                                                 |                                                                                                                                                                            |                                                                                                                |   |   |   |   |   |   |   |   |                                                                                                                           |
|                                                                                                  |  Proceeds                from long-term debt                                             |                                                                               |   |   |   |   |   |   |   |                                                                                                                |                                                                                                                 |                              - |                                                                                                                |   |   |   |   |   |   |   |   |                                                                                                                           |                                                                                                                      |                   589,433 |
|                                                                                                  |  Repayment                of long-term debt                                              |                                                                               |   |   |   |   |   |   |   |                                                                                                                |                                                                                                                 |              (1,151,537)                                                                                       |                                                                                                                |   |   |   |   |   |   |   |   |                                                                                                                           |                                                                                                                      |                              - |
|                                                                                                  |  Amounts                received from (paid to) related                parties           |                                                                               |   |   |   |   |   |   |   |                                                                                                                |                   823,740  |                                                                                                                                                                            |                                                                                                                |   |   |   |   |   |   |   |   |                                                                                                                           |                   768,348       |
|                                                                                                  |                                                                                               |                                                                               |   |   |   |   |   |   |   |                                                                                                                |                                                                                                                 |                                                                                                                                                                            |                                                                                                                |   |   |   |   |   |   |   |   |                                                                                                                           |                                                                                                                      |   |   |
|  NET                CASH PROVIDED BY (USED IN) FINANCING                ACTIVITIES          |                                                                                               |                                                                               |   |   |   |   |   |   |   |                 (327,797)           |                                                                                                                 |                                                                                                                                                                            |                                                                                                                |   |   |   |   |   |   |   |   |                1,357,781                            |
|                                                                                                  |                                                                                               |                                                                               |   |   |   |   |   |   |   |                                                                                                                |                                                                                                                 |                                                                                                                                                                            |                                                                                                                |   |   |   |   |   |   |   |   |                                                                                                                           |                                                                                                                      |   |   |
|  EFFECT                OF EXCHANGE RATE                CHANGES ON CASH                           |                                                                                               |                                                                               |   |   |   |   |   |   |   |                   124,710 |                                                                                                                 |                                                                                                                                                                            |                                                                                                                |   |   |   |   |   |   |   |   |                     61,339 |
|                                                                                                  |                                                                                               |                                                                               |   |   |   |   |   |   |   |                                                                                                                |                                                                                                                 |                                                                                                                                                                            |                                                                                                                |   |   |   |   |   |   |   |   |                                                                                                                           |                                                                                                                      |   |   |
|  NET                INCREASE (DECREASE) IN                CASH                                   |                                                                                               |                                                                               |   |   |   |   |   |   |   |                                                                                                                |                1,291,920                  |                                                                                                                                                                            |                                                                                                                |   |   |   |   |   |   |   |   |                                                                                                                           |              (1,100,275)                                 |
|                                                                                                  |                                                                                               |                                                                               |   |   |   |   |   |   |   |                                                                                                                |                                                                                                                 |                                                                                                                                                                            |                                                                                                                |   |   |   |   |   |   |   |   |                                                                                                                           |                                                                                                                      |   |   |
|  Cash                at beginning of                period                                       |                                                                                               |                                                                               |   |   |   |   |   |   |   |                                                                                                                |                1,316,569                  |                                                                                                                                                                            |                                                                                                                |   |   |   |   |   |   |   |   |                                                                                                                           |                1,901,815                       |
|                                                                                                  |                                                                                               |                                                                               |   |   |   |   |   |   |   |                                                                                                                |                                                                                                                 |                                                                                                                                                                            |                                                                                                                |   |   |   |   |   |   |   |   |                                                                                                                           |                                                                                                                      |   |   |
|  Cash                at end of period                                                       |                                                                                               |                                                                               |   |   |   |   |   |   |   | $                                                                                                                   |                2,608,489                  |                                                                                                                                                                            |                                                                                                                |   |   |   |   |   |   |   |   | $                                                                                                                              |                   801,540       |
|                                                                                                  |                                                                                               |                                                                               |   |   |   |   |   |   |   |                                                                                                                |                                                                                                                 |                                                                                                                                                                            |                                                                                                                |   |   |   |   |   |   |   |   |                                                                                                                           |                                                                                                                      |   |   |
|  SUPPLEMENTAL                DISCLOSURE OF                CASH FLOW INFORMATION:                 |                                                                                               |                                                                               |   |   |   |   |   |   |   |                                                                                                                |                                                                                                                 |                                                                                                                                                                            |                                                                                                                |   |   |   |   |   |   |   |   |
|                                                                                                  |  Interest                paid                                                                 |                                                                               |   |   |   |   |   |   |   |                                                                                                                | $                                                                                                                    |                              - |                                                                                                                |   |   |   |   |   |   |   |   |                                                                                                                           | $                                                                                                                         |                              - |
|                                                                                                  |  Taxes                paid                                                                    |                                                                               |   |   |   |   |   |   |   |                                                                                                                | $                                                                                                                    |                              - |                                                                                                                |   |   |   |   |   |   |   |   |                                                                                                                           | $                                                                                                                         |                              - |
|                                                                                                  |                                                                                               |                                                                               |   |   |   |   |   |   |   |                                                                                                                |                                                                                                                 |                                                                                                                                                                            |                                                                                                                |   |   |   |   |   |   |   |   |                                                                                                                           |                                                                                                                      |   |   |
|                                                                                                  |                                                                                               |                                                                               |   |   |   |   |   |   |   |                                                                                                                |                                                                                                                 |                                                                                                                                                                            |                                                                                                                |   |   |   |   |   |   |   |   |                                                                                                                           |
|                                                                                                  |                                                                                               |                                                                               |   |   |   |   |   |   |   |                                                                                                                |                                                                                                                 |                                                                                                                                                                            |                                                                                                                |   |   |   |   |   |   |   |   |                                                                                                                           |                                                                                                                      |   |   |
|                                                                                                  |                                                                                               |                                                                               |   |   |   |   |   |   |   |                                                                                                                |                                                                                                                 |                                                                                                                                                                            |                                                                                                                |   |   |   |   |   |   |   |   |                                                                                                                           |                                                                                                                      |   |   |

----

----

----

----

----

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

|   | December                31, 2007                                           |   |                                                       |
|--------|----------------------------------------------------------------------------|--------|------------------------------------------------------------|
|   | Balance                Sheet                                               |   | RMB                7.2946 to US                $1.00       |
|   | Statement                of income                and comprehensive income |   | RMB                7.4958 to US                $1.00  |
|   | December                31,                2006                            |   |                                                       |
|   | Balance                Sheet                                               |   | RMB                7.8041 to US                $1.00       |
|   | Statement                of income                and comprehensive income |   | RMB                7.9144 to US                $1.00       |
|   |                                                                       |   |                                                       |

----

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

| ·   | of                  management’s                  responsibility for establishing                  and maintaining adequate internal control over its financial                  reporting; |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | of                  management’s                  assessment of the effectiveness                  of its internal control over financial reporting as of year end;                  and |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | ofthe                  framework used by management                  to evaluate the effectiveness of the Company’s                  internal control over financial                  reporting. |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|                                              |   |   |    |   |
|---------------------------------------------------|--------|--------|---------|--------|
| Raw                  materials                    |   | $      | 112,102 |   |
| Work                  in                  process |   |   | 297,056 |   |
| Finished                  goods                   |   |   | 85,914  |   |
|                                              |   | $      | 495,072 |   |

----

|                                                                                                                                                           |   |   |      |   |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|-----------|--------|
| Due                  from Weiye Forestry                  Ecosystem and Development Co., Ltd. for the sale of forestry                  development rights (a) |   | $      | 1,431,105 |   |
| Due                  from Dasheng Trading Co., Ltd.                                                                                                            |   |   | 1,989,293 |   |
| Advances                  stockholders/officers (b)                                                                                                            |   |   | 427,348   |   |
|                                                                                                                                                           |   |   |      |   |
|                                                                                                                                                           |   | $      | 3,847,746 |   |

|   | (a) | On                  March 3, 2007, the Company sold its forestry development rights                  to Weiye                  Forestry Ecosystem and Development Co., Ltd., an affiliate of the                  Company,                  at the Company’s cost basis. |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| Segment&                  Entity                               |   | Business                  Activity                                                                                                                                                                                                                                                                                                                            |
|--------------------------------------------------------------------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                               |   |                                                                                                                                                                                                                                                                                                                                                          |
| Organic                  fertilizer                                |   |                                                                                                                                                                                                                                                                                                                                                          |
| Dasheng,                  Lüshen and                  Elemiss |   | Manufacturing                  and marketing of artificial microorganisms (“AM”), high-efficiency                  microorganisms (“HM”) based biological bacterium blends, and Bulgarian                  lactobacillus live stock feed additives for agribusinesses; and                  biological                  preservative. |
|                                                               |   |                                                                                                                                                                                                                                                                                                                                                          |
| Real                  estate                                       |   |                                                                                                                                                                                                                                                                                                                                                          |
| Dasheng                                                            |   | Commercial                  real estate investment                                                                                                                                                                                                                                                                                                            |

|                                                                  |   |   |   |                                                                                                        |   |       |                         |   |   |      |   |
|-----------------------------------------------------------------------|--------|--------|--------|-------------------------------------------------------------------------------------------------------------|--------|------------|------------------------------|--------|--------|-----------|--------|
|                                                                  |   |   |   | As                  of and for the six months endedDecember                  31,                  2007 |   |
|                                                                  |   |   |   | Micro-organicagent                                                                                          |   |       | Real                  estate |   |   | Total     |   |
|                                                                  |   |   |   |                                                                                                        |   |       |                         |   |   |      |   |
| NET                  SALES                                            |   |   |   |                                                                                                        |   |       |                         |   |   |      |   |   |   |   |   |
| Unaffiliated                  customers                               |   |   |   |                                                                                                        | $      | 7,715,124  |                         |   | $      | -         |   |   | $ | 7,715,124 |   |
| Inter-segment                                                         |   |   |   |                                                                                                        |   | -          |                         |   |   | -         |   |   |   | - |   |
| Total                  sales                                          |   |   |   |                                                                                                        |   | 7,715,124  |                         |   |   | -         |   |   |   | 7,715,124 |   |
|                                                                  |   |   |   |                                                                                                        |   |       |                         |   |   |      |   |   |   |   |   |
| COST                  OF GOODS                  SOLD                  |   |   |   |                                                                                                        |   | 4,189,838  |                         |   |   | -         |   |   |   | 4,189,838 |   |
|                                                                  |   |   |   |                                                                                                        |   |       |                         |   |   |      |   |   |   |   |   |
| GROSS                  PROFIT                                         |   |   |   |                                                                                                        |   | 3,525,286  |                         |   |   | -         |   |   |   | 3,525,286 |   |
|                                                                  |   |   |   |                                                                                                        |   |       |                         |   |   |      |   |   |   |   |   |
| OPERATING                  EXPENSES                                   |   |   |   |                                                                                                        |   |       |                         |   |   |      |   |   |   |   |   |
| Selling                  expenses                                     |   |   |   |                                                                                                        |   | 400,803    |                         |   |   | -         |   |   |   | 400,803 |   |
| General                  and administrative                  expenses |   |   |   |                                                                                                        |   | 483,939    |                         |   |   | -         |   |   |   | 483,939 |   |
|                                                                  |   |   |   |                                                                                                        |   |       |                         |   |   |      |   |   |   |   |   |
| Total                  operating                  expenses            |   |   |   |                                                                                                        |   | 884,742    |                         |   |   | -         |   |   |   | 884,742 |   |
|                                                                  |   |   |   |                                                                                                        |   |       |                         |   |   |      |   |   |   |   |   |
| INCOME                  FROM                  OPERATIONS              |   |   |   |                                                                                                        | $      | 2,640,544  |                         |   | $      | -         |   |   | $ | 2,640,544 |   |
|                                                                  |   |   |   |                                                                                                        |   |       |                         |   |   |      |   |   |   |   |   |
| TOTALASSETS                                                           |   |   |   |                                                                                                        | $      | 15,635,763 |                         |   | $      | 1,298,295 |   |   | $ | 16,934,058 |   |
|                                                                  |   |   |   |                                                                                                        |   |       |                         |   |   |      |   |   |   |   |   |

|                                                                  |   |   |   |                                                                                                    |   |       |                         |   |   |      |   |
|-----------------------------------------------------------------------|--------|--------|--------|---------------------------------------------------------------------------------------------------------|--------|------------|------------------------------|--------|--------|-----------|--------|
|                                                                  |   |   |   | As                  of and for the three monthsendedDecember                  31,                  2007 |   |
|                                                                  |   |   |   | Micro-organic                  agent                                                                    |   |       | Real                  estate |   |   | Total     |   |
|                                                                  |   |   |   |                                                                                                    |   |       |                         |   |   |      |   |
| NET                  SALES                                            |   |   |   |                                                                                                    |   |       |                         |   |   |      |   |   |   |   |   |
| Unaffiliated                  customers                               |   |   |   |                                                                                                    | $      | 4,708,687  |                         |   | $      | -         |   |   | $ | 4,708,687 |   |
| Inter-segment                                                         |   |   |   |                                                                                                    |   |       |                         |   |   | -         |   |   |   | - |   |
| Total                  sales                                          |   |   |   |                                                                                                    |   | 4,708,687  |                         |   |   | -         |   |   |   | 4,708,687 |   |
|                                                                  |   |   |   |                                                                                                    |   |       |                         |   |   |      |   |   |   |   |   |
| COST                  OF GOODS                  SOLD                  |   |   |   |                                                                                                    |   | 2,378,083  |                         |   |   | -         |   |   |   | 2,378,083 |   |
|                                                                  |   |   |   |                                                                                                    |   |       |                         |   |   |      |   |   |   |   |   |
| GROSS                  PROFIT                                         |   |   |   |                                                                                                    |   | 2,330,604  |                         |   |   | -         |   |   |   | 2,330,604 |   |
|                                                                  |   |   |   |                                                                                                    |   |       |                         |   |   |      |   |   |   |   |   |
| OPERATING                  EXPENSES                                   |   |   |   |                                                                                                    |   |       |                         |   |   |      |   |   |   |   |   |
| Selling                  expenses                                     |   |   |   |                                                                                                    |   | 250,726    |                         |   |   | -         |   |   |   | 250,726 |   |
| General                  and administrative                  expenses |   |   |   |                                                                                                    |   | 284,269    |                         |   |   | -         |   |   |   | 284,269 |   |
|                                                                  |   |   |   |                                                                                                    |   |       |                         |   |   |      |   |   |   |   |   |
| Total                  operating                  expenses            |   |   |   |                                                                                                    |   | 534,995    |                         |   |   | -         |   |   |   | 534,995 |   |
|                                                                  |   |   |   |                                                                                                    |   |       |                         |   |   |      |   |   |   |   |   |
| INCOME                  FROM                  OPERATIONS              |   |   |   |                                                                                                    | $      | 1,795,609  |                         |   | $      | -         |   |   | $ | 1,795,609 |   |
|                                                                  |   |   |   |                                                                                                    |   |       |                         |   |   |      |   |   |   |   |   |
| TOTAL                  ASSETS                                         |   |   |   |                                                                                                    | $      | 15,635,763 |                         |   | $      | 1,298,295 |   |   | $ | 16,934,058 |   |
|                                                                  |   |   |   |                                                                                                    |   |       |                         |   |   |      |   |   |   |   |   |

----

----

| §of                management’s                responsibility for establishing and maintaining adequate internal                control                over our financial                reporting; |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| §of                management’s                assessment of the effectiveness of our internal control over financial                reporting as of year end; |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| §of                the framework                used by management to evaluate the effectiveness of our internal                control                over financial reporting; and |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| §furthermore,                in the                following fiscal year, it is required to file the auditor's attestation                report separately on the Company's internal control over financial                reporting on whether it believes that the Company has maintained,                in all                material respects, effective internal control over financial reporting. |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

----

|                             | .      |                                                                      |                                                                                                                               |   |
|----------------------------------|--------|---------------------------------------------------------------------------|------------------------------------------------------------------------------------------------------------------------------------|--------|
| PART                II           |
|                             |   |                                                                      |                                                                                                                                    |        |
| OTHER                INFORMATION |
|                             |   |                                                                      |                                                                                                                                    |        |
| Item                1            |   | Legal                Proceedings                                          | None                                                                                                                               |
| Item                1A           |   |                                                                      |                                                                                                                               |
|                             |   |                                                                      | Risk                Factors:  Reference is made to our Current Report on Form 8-K,                dated January 29, 2008 |   |
|                             |   |                                                                      |                                                                                                                               |        |
| Item                2            |   | Unregistered                Sale of Equity Securities and Use of Proceeds |
|                             |   |                                                                      |                                                                                                                                    |        |
|                             |   |                                                                      | None                                                                                                                               |        |
|                             |   |                                                                      |                                                                                                                                    |        |
| Item                3            |   | Defaults                Upon Senior Securities                            |
|                             |   |                                                                      |                                                                                                                                    |        |
|                             |   |                                                                      | None                                                                                                                               |        |
|                             |   |                                                                      |                                                                                                                                    |        |
| Item                4            |   | Submission                of Matters to a Vote of Shareholders            |
|                             |   |                                                                      |                                                                                                                                    |        |
|                             |   |                                                                      | None                                                                                                                               |        |
|                             |   |                                                                      |                                                                                                                                    |        |
| Item                5            |   | Other                Information                                          |
|                             |   |                                                                      |                                                                                                                                    |        |
|                             |   |                                                                      | None                                                                                                                               |        |
|                             |   |                                                                      |                                                                                                                                    |        |
| Item                6            |   | Exhibits                                                                  |
|                             |   |                                                                      |                                                                                                                                    |        |

| Exhibit                  Number |   | Description |
|---------------------------------|--------|-------------|
|                            |   |        |
|                            | 31.1   |        | Section                  302 Certification Of Chief                  Executive Officer And Chief Financial Officer |
|                            |   |        |   |
|                            | 32.1   |        | Certification                  Pursuant To 18                  U.S.C. Section 1350, As Adopted Pursuant To Section 906 Of The                  Sarbanes-Oxley Act Of 2002 – Chief Executive Officer And Chief Financial                  Officer |

----

----