**UNITED
      STATES SECURITIES AND EXCHANGE**


**COMMISSION**


**Washington,
      DC 20549**





**FORM
      10-Q**





þ
            
            **QUARTERLY
                REPORT PURSUANT TO SECTION 13 OR 15(d)**
              **OF
                THE SECURITIES EXCHANGE ACT OF
                1934**





**For
      the quarterly period ended June 30, 2008**





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





**Commission
      file number 001-33799**




**2020
      CHINACAP ACQUIRCO, INC.**


(Exact
      name of registrant as specified in its charter)





**Delaware**
            
            **20-5500605**(State
                or other jurisdiction of
              Incorporation
                or organization)
            
            (I.R.S.
                Employer Identification No.)**c/o
                  Surfmax Corporation**
              **221
                Boston Post Road East**
              **Suite
                410**
              **Marlborough,
                Massachusetts**
            
            **01752**(Address
                of principal executive offices)
            
            (Zip
                Code)





**(508)
      624-4948**


Registrant’s
      telephone number, including area code





Indicate
      by check mark whether the Registrant (1) has filed all reports required to
      be filed by Section 13 or 15(d) of the Exchange Act during the past
      12 months (or for such shorter period that the Registrant was required to
      file such reports), and (2) has been subject to such filing requirements
      for the past 90 days. Yes þ No o





Indicate
      by check mark whether the registrant is large accelerated filer, an accelerated
      filer, a non-accelerated filer, or a smaller reporting company. See definition
      of “large accelerated filer”, “accelerated filer” and “smaller reporting
      company” in Rule 12b-2 of the Exchange Act. (Check one):





Large
      accelerated filed o Accelerated
      filer o


Non-accelerated
      filer o Smaller
      reporting company þ





Indicate
      by check mark whether the Registrant is a shell company (as defined in
      Rule 12b-2 of the Exchange Act).           Yes o   No þ




As
      of
      [Please fill in Date], 2008, 10,500,000  shares of the registrant’s common
      stock, par value $0.0001 per share, were outstanding.









**2020
      CHINACAP ACQUIRCO, INC.**


**(a
      development stage company)**




**Table
      of Contents**




**Page**PART
                I — FINANCIAL INFORMATIONItem
                1. Financial StatementsBalance
                Sheets as of June 30, 2008 (unaudited) and December 31,
                2007
            
            3Statements
                of Operations (unaudited) for the three and six months ended June
                30, 2008
                and 2007, and from August 21, 2006 (date of inception) to June 30,
                2008
            
            4Statement
                of Stockholders’ Equity (unaudited) for the period from August 21, 2006
                (date of inception) to June 30, 2008
            
            5Statements
                of Cash Flows (unaudited) for the six months ended June 30, 2008
                and 2007,
                and from August 21, 2006 (date of inception) to June 30,
                2008
            
            6Notes
                to Financial Statements (unaudited)
            
            7Item
                2. Management’s Discussion and Analysis of Financial Condition and Results
                of Operations
            
            13Item
                3. Quantitative and Qualitative Disclosures about Market
                Risk
            
            15Item
                4. Controls and Procedures
            
            15PART
                II – OTHER INFORMATIONItem
                1. Legal Proceedings
            
            16Item
                1A. Risk Factors
            
            16Item
                2. Unregistered Sales of Equity Securities and Use of
                Proceeds
            
            16Item
                3. Defaults upon Senior Securities
            
            16Item
                4. Submission of Matters to a Vote of Security Holders
            
            16Item
                5. Other Information
            
            16Item
                6. Exhibits
            
            17SIGNATURES
            
            18INDEX
                TO EXHIBITSCertification
                by Principal Executive Officer Pursuant to Section 302Certification
                by Principal Financial Officer Pursuant to Section 302Certification
                by Principal Executive Officer and Principal Financial Officer Pursuant
                to
                Section 906




2




**Item 1.
      Financial Statements**





**2020
      CHINACAP ACQUIRCO, INC.**


**(a
      development stage company)**


**BALANCE
      SHEETS**




**Unaudited**
            
            **Audited****June
                30,**
            
            **December
                31,****2008**
            
            **2007****ASSETS****Current
                Assets**Cash
                and cash equivalents
            
            $
            37,788
            
            $
            269,040Prepaid
                expenses
            
            
            16,333
            
            
            16,333Cash
                held in trust fund
            
            
            68,450,799
            
            
            68,182,942**TOTAL
                ASSETS**
            
            $
            68,504,920
            
            $
            68,468,315**LIABILITIES
                AND STOCKHOLDERS’ EQUITY****Current
                Liabilities**Accrued
                offering costs
            
            $
            413,066
            
            $
            542,879Accrued
                expenses
            
            
            153,832
            
            
            28,948Accrued
                income taxes
            
            
            74,193
            
            
            1,225Payable
                to stockholders
            
            
            —
            
            
            20,244Notes
                payable to stockholders
            
            
            —
            
            
            127,291**Total
                current liabilities**
            
            
            641,091
            
            
            720,587**Long-term
                Liabilities**Deferred
                underwriters’ fees
            
            
            2,415,000
            
            
            2,415,000**TOTAL
                LIABILITIES**
            
            
            3,056,091
            
            
            3,135,587Common
                stock, subject to possible redemption, 2,586,638 shares, at redemption
                value
            
            
            20,486,172
            
            
            20,486,172**STOCKHOLDERS’
                EQUITY**Preferred
                stock — $0.0001 par value; 1,000,000 shares authorized; nil issued and
                outstanding
            
            
            —
            
            
            —Common
                stock - par value of $0.0001 per share, 25,000,000 shares authorized,
                10,500,000 shares issued and outstanding
            
            
            1,050
            
            
            1,050Additional
                paid-in capital
            
            
            44,838,564
            
            
            44,838,564Retained
                earnings
            
            
            123,043
            
            
            6,942Total
                stockholders’ equity
            
            
            44,962,657
            
            
            44,846,556**TOTAL
                LIABILITIES & STOCKHOLDERS’ EQUITY**
            
            $
            68,504,920
            
            $
            68,468,315




See
      accompanying notes to financial statements




3




**2020
      CHINACAP ACQUIRCO, INC.**


**(a
      development stage company)**


**STATEMENTS
      OF OPERATIONS**


**(Unaudited)**




**August
                21,****2006****April
                1,**
            
            **April
                1,**
            
            **January
                1,**
            
            **January
                1,**
            
            **(date
                of inception)****2008
                to**
            
            **2007
                to**
            
            **2008
                to**
            
            **2007
                to**
            
            **to
                June 30,****June
                30,**
            
            **June
                30,**
            
            **June
                30,**
            
            **June
                30,**
            
            **2008****2008**
            
            **2007**
            
            **2008**
            
            **2007**
            
            **(Cumulative)****Interest
                income**
            
            **$**
            233,975
            
            **$**
            —
            
            **$**
            688,260
            
            **$**
            —
            
            **$**
            780,517General
                & administrative expenses
            
            
            258,909
            
            
            5,274
            
            
            493,884
            
            
            10,127
            
            
            577,975**Profit
                (loss) before income taxes**
            
            
            (24,934
            )
            
            (5,274
            )
            
            194,376
            
            
            (10,127
            )
            
            202,542**Income
                taxes (benefit) provision**
            
            
            (10,041
            )
            
            —
            
            
            78,275
            
            
            —
            
            
            79,500**Net
                profit (loss)**
            
            **$**
            (14,893
            )
            **$**
            (5,274
            )
            **$**
            116,101
            
            $
            (10,127
            )
            $
            123,042**Net
                profit (loss) per share – basic and diluted**
            
            **$**
            —
            
            **$**
            —
            
            **$**
            0.01
            
            **$**
            (0.01
            )
            **$**
            0.03**Weighted
                average number of shares outstanding – basic and
                diluted**
            
            
            10,500,000
            
            
            1,875,000
            
            
            10,500,000
            
            
            1,564,243
            
            
            4,311,972




See
      accompanying notes to financial statements ****




4


**2020
          CHINACAP ACQUIRCO, INC.**
 **(a
          development stage company)**
 **STATEMENT
          OF STOCKHOLDERS’ EQUITY**
 **(In
          U.S. dollars, except share data)**
 **(Unaudited)**
 **For
          the period from August 21, 2006 (date of inception) to June 30,
          2008**
 **Retained Earnings****/****(Deficit accumulated)****Additional**
                
                **during the**
                
                **Total****Common
                    Stock**
                
                **paid-in**
                
                **development**
                
                **Stockholders’****Shares**
                
                **Amount**
                
                **capital**
                
                **Stage**
                
                **Equity**Issuance
                    of common stock to founders and insiders on August 21, 2006 at
                    $0.01 per
                    share
                
                
                100
                
                $
                1
                
                $
                99
                
                $
                —
                
                $
                100Net
                    loss
                
                
                —
                
                
                —
                
                
                —
                
                
                (3,825
                )
                
                (3,825
                )**Balance
                    at December 31, 2006**
                
                
                100
                
                
                1
                
                
                99
                
                
                (3,825
                )
                
                (3,725
                )Issuance
                    of common stock at $0.0001 per share
                
                
                1,874,900
                
                
                187
                
                
                24,713
                
                
                —
                
                
                24,900Sales
                    of 7,500,000 units on November 15, 2007 at a price of $8 per
                    unit, net of
                    underwriters’ discount and offering costs (including 2,249,999 shares
                    subject to possible redemption)
                
                
                7,500,000
                
                
                750
                
                
                54,664,936
                
                
                —
                
                
                54,665,686Sales
                    of 1,125,000 units on November 26, 2007 at a price of $8 per
                    unit, net of
                    underwriters’ discount and offering costs (including 336,639 shares
                    subject to possible redemption)
                
                
                1,125,000
                
                
                112
                
                
                8,369,888
                
                
                —
                
                
                8,370,000Common
                    stock, subject to possible redemption, 2,586,638 shares
                
                
                —
                
                
                —
                
                
                (20,486,172
                )
                
                —
                
                
                (20,486,172
                )Proceeds
                    from issuance of warrants
                
                
                —
                
                
                —
                
                
                2,265,000
                
                
                —
                
                
                2,265,000Proceeds
                    from issuance of options
                
                
                —
                
                
                —
                
                
                100
                
                
                —
                
                
                100Net
                    profit
                
                
                —
                
                
                —
                
                
                —
                
                
                10,767
                
                
                10,767**Balance
                    at December 31, 2007**
                
                
                10,500,000
                
                
                1,050
                
                
                44,838,564
                
                
                6,942
                
                
                44,846,556Net
                    profit
                
                
                —
                
                
                —
                
                
                —
                
                
                116,101
                
                
                116,101**Balance
                    at June 30, 2008**
                
                
                10,500,000
                
                $
                1,050
                
                $
                44,838,564
                
                $
                123,043
                
                $
                44,962,657
  See
          accompanying notes to financial statements
  5
  **2020
            CHINACAP ACQUIRCO, INC.**
 **(a
            development stage company)**
 **STATEMENTS
            OF CASH FLOWS**
 **(Unaudited)**
 **August 21, 2006****(date of inception)****Six months**
                
                **Six months**
                
                **to June
                    30,****ended**
                
                **ended**
                
                **2008****June 30, 2008**
                
                **June 30, 2007**
                
                **(Cumulative)****Cash
                    Flows from Operating Activities**Net
                    profit (loss)
                
                $
                116,101
                
                $
                (10,127
                )
                $
                123,043Adjustments
                    to reconcile net profit (loss) to net cash provided by (used
                    in) operating
                    activitiesChange
                    in assets and liabilities:Accrued
                    expenses
                
                
                124,884
                
                
                —
                
                
                153,832Accrued
                    income taxes
                
                
                72,968
                
                
                —
                
                
                74,193Prepaid
                    expenses
                
                
                —
                
                
                —
                
                
                (16,333
                )Net
                    cash provided by (used in) operating activities
                
                
                313,953
                
                
                (10,127
                )
                
                334,735**Net
                    Cash used in Investing Activities**Cash
                    held in trust fund
                
                
                (267,857
                )
                
                —
                
                
                (68,450,799
                )**Cash
                    Flows from Financing Activities**Proceeds
                    from issuance of common stock
                
                
                —
                
                
                24,900
                
                
                25,000Proceeds
                    from the issuance of notes payable to stockholders
                
                
                —
                
                
                80,000
                
                
                130,000Proceeds
                    from issuance of warrants
                
                
                —
                
                
                —
                
                
                2,265,000Gross
                    proceeds from public offering
                
                
                —
                
                
                —
                
                
                60,000,000Gross
                    proceeds from exercise of overallotment options in the
                    offering
                
                
                —
                
                
                —
                
                
                9,000,000Proceeds
                    from issuance of option
                
                
                —
                
                
                —
                
                
                100Payments
                    to stockholders
                
                
                (20,244
                )
                
                100
                
                
                (20,244
                )Payments
                    for underwriters’ discount and offering costs
                
                
                (129,813
                )
                
                (44,873
                )
                
                (3,116,004
                )Principal
                    payments on notes payables
                
                
                (127,291
                )
                
                (243
                )
                
                (130,000
                )Net
                    cash (used in) provided by financing activities
                
                
                (277,348
                )
                
                59,884
                
                
                68,153,852Net
                    (decrease) increase in cash
                
                
                (231,252
                )
                
                49,757
                
                
                37,788**Cash
                    and cash equivalents, beginning of the period**
                
                
                269,040
                
                
                9,988
                
                
                —**Cash
                    and cash equivalents, end of the period**
                
                $
                37,788
                
                $
                59,745
                
                $
                37,788**Supplemental
                    schedule of non-cash financing activities:**Accrual
                    of deferred offering costs
                
                $
                —
                
                $
                403,550
                
                $
                413,066Deferred
                    offering costs advanced by stockholders
                
                $
                —
                
                $
                (100
                )
                $
                (65,704
                )Deferred
                    underwriters’ fee
                
                $
                —
                
                $
                —
                
                $
                2,415,000


See
            accompanying notes to financial statements




6




**2020
      CHINACAP ACQUIRCO, INC.**


**(A
      Development Stage Company)**


**NOTES
      TO FINANCIAL STATEMENTS**





**Note
      1 – Interim Financial Information**


The
      financial statements at June 30, 2008 and for the period ended June 30, 2008
      have been prepared by the Company and are unaudited. In the opinion of
      management, all adjustments (consisting of normal accruals and recurring items)
      have been made that are necessary to present fairly the financial position
      of
      2020 ChinaCap Acquirco, Inc. (the “Company”) as of June 30, 2008 and the results
      of its operations and cash flows for the periods ended June 30, 2008 and 2007.
      Operating results presented for the interim periods are not necessarily
      indicative of the results to be expected for any other interim period or for
      the
      full year.





These
      unaudited financial statements should be read in conjunction with the financial
      statements and notes thereto for the period ended December 31, 2007 included
      in
      the Company’s Annual Report on Form 10-K filed with the Securities and Exchange
      Commission (the “SEC”) on April 15, 2008. The accounting policies used in
      preparing these unaudited financial statements are consistent with those
      described in such filing.





**Note
      2 – Organization, Business Operations and Summary of Significant Accounting
      Policies**


The
      Company was incorporated in Delaware on August 21, 2006 as a public
      acquisition company whose objective is to acquire an operating business that
      either: (1) is located in the People’s Republic of China, the Hong Kong
      Special Administrative Region or the Macau Special Administrative Region
      (collectively, “China”), (2) has its principal operations located in China,
      or (3) in the view of the Board of Directors of the Company, would benefit
      from establishing operations in China. Upon formation, the authorized share
      capital was 3,000 shares of common stock with par value of $0.01 per share.
      According to the preorganization subscription agreement dated August 18,
      2006 with the director and initial stockholder, the Company issued 100 shares
      of
      common stock with par of $0.01 per share to the initial stockholder at $1.00
      each. On January 31, 2007, the initial stockholder and the director
      effected several changes to the Company’s corporate structure by consent in lieu
      of a special meeting, and amended its Certificate of Incorporation as
      follows:




•
            
            Increased
                the number of the authorized shares of the Company’s common stock from
                3,000 to 25,000,000, with par value of $0.0001 per share;




•
            
            Authorized
                1,000,000 shares of preferred stock, with par value of $0.0001 per
                share;
                and




•
            
            Provided
                that, absent a duly authorized amendment to the Certificate of
                Incorporation upon the consummation of a Business Combination, the
                Company
                will continue in existence only to November 8, 2009.




In
      addition to effecting the preceding amendments to the Company’s Certificate of
      Incorporation, the Company also issued an additional 1,874,900 shares of common
      stock with par value of $0.0001 per share for $24,900 by unanimous written
      consent in lieu of a special meeting of the Board of Directors dated as of
      January 31, 2007.




At
      June
      30, 2008, the Company had not yet commenced any operations. All activities
      through June 30, 2008 were related to the Company’s formation, the public
      offering described below in Note 3 (the “Offering”) and the general
      administration of the Company. The Company has selected December 31 as its
      fiscal year-end.




The
      Company’s management has broad discretion with respect to the specific
      application of the net proceeds from the Offering. Although substantially all
      of
      the net proceeds of the Offering are intended to be generally applied toward
      consummating a business combination with an operating business that has its
      principal operations located in China (“Business Combination”), there is no
      assurance that the Company will be able to successfully effect a Business
      Combination. Upon the closing of the Offering, $7.92 per Unit of the proceeds
      from the Offering, net of all applicable discounts and commissions but inclusive
      of $0.28 per Unit in deferred underwriting compensation, and the proceeds from
      the sale of the Insider Warrants (as defined below) were deposited and held
      in a
      trust account for the benefit of the Company. The corpus of the Trust Account
      will be invested in United States “government securities” within the meaning of
      Section 2(a)(16) of the Investment Company Act having a maturity of 180
      days or less or in money market funds meeting certain conditions under Rule
      2a-7
      promulgated under the Investment Company Act until the earlier of (i) the
      consummation of its first Business Combination or (ii) liquidation of the
      Company. The placing of funds in the Trust Account may not protect those funds
      from third party claims against the Company. Although the Company will seek
      to
      have all vendors, prospective target businesses or other entities it engages,
      execute agreements with the Company waiving any right, title, interest or claim
      of any kind in or to any monies held in the Trust Account, there is no guarantee
      that they will execute such agreements.




7




The
      Company’s executive officers and Dr. Jianming Yu, one of the Company’s
      directors, and certain entities controlled by these executive officers and
      Dr. Jianming Yu have agreed that they will be personally liable under
      certain circumstances to ensure that the proceeds in the Trust Account are
      not
      reduced by the claims of target businesses or vendors or other entities that
      are
      owed money by the Company for services rendered or contracted or for products
      sold to the Company. However, there can be no assurance that they will be able
      to satisfy those obligations. The remaining net proceeds (not held in the Trust
      Account) may be used to pay for business, legal and accounting due diligence
      on
      prospective acquisitions and continuing general and administrative expenses.
      Additionally, up to an aggregate of $1,350,000 of interest earned on the Trust
      Account balance, net of taxes, may be released to the Company to fund working
      capital requirements, of which $468,310.35 has been released to the Company
      as
      of June 30, 2008. The Company, after signing a definitive agreement for the
      acquisition of a target business, is required to submit such transaction for
      stockholder approval. In the event that stockholders owning 30% or more of
      the
      shares sold in the Offering vote against the Business Combination and exercise
      their conversion rights described below, the Business Combination will not
      be
      consummated. All of the Company’s stockholders prior to the Offering, including
      all of the officers and directors of the Company (“Initial Stockholders”), have
      agreed to vote their 1,875,000 founding shares of common stock in accordance
      with the vote of the majority in interest of all other stockholders of the
      Company (“Public Stockholders”) with respect to any Business Combination. After
      consummation of a Business Combination, these voting safeguards will no longer
      be applicable.




With
      respect to a Business Combination that is approved and consummated, any Public
      Stockholder who votes against the Business Combination may demand that the
      Company convert his or her shares. The per share conversion price will equal
      the
      amount in the Trust Account, calculated as of two business days prior to the
      consummation of the proposed Business Combination, divided by the number of
      shares of common stock held by Public Stockholders at the consummation of the
      Offering. Accordingly, Public Stockholders holding up to 29.99% of the aggregate
      number of shares owned by all Public Stockholders may seek conversion of their
      shares in the event of a Business Combination. Such Public Stockholders are
      entitled to receive their per share interest in the Trust Account computed
      without regard to the shares held by the Initial Stockholders.




If
      the
      Company has not completed a Business Combination by November 8, 2009, its
      corporate existence will cease except for the purposes of winding up its affairs
      and it will liquidate. In the event of liquidation, it is likely that the per
      share value of the residual assets remaining available for distribution
      (including Trust Account assets) will be less than the initial public offering
      price per share in the Offering (assuming no value is attributed to the Warrants
      contained in the Units offered in the Offering discussed in Note 3).




**Summary
      of Significant Accounting Policies**




***Development
      stage company:***




The
      Company complies with the reporting requirements of Statements of Financial
      Accounting Standards (“SFAS”) No. 7, “Accounting and Reporting by
      Development Stage Enterprises.”




8




***Net
      profit (loss) per common share:***


The
      Company complies with accounting and disclosure requirements of SFAS
      No. 128, “Earnings Per Share.” Net profit (loss) per common share is
      computed by dividing net profit (loss) by the weighted average number of common
      shares outstanding for the period, except where the result would be
      antidilutive. Net profit (loss) per share of common stock, assuming dilution,
      reflects the maximum potential dilution that could occur if securities or other
      contracts to issue common stock were exercised or converted into common stock
      and would then share in the net profit (loss) of the Company.




***Concentration
      of credit risk:***


Financial
      instruments that potentially subject the Company to concentrations of credit
      risk consist of cash accounts in a financial institution, which at times exceeds
      the Federal depository insurance coverage of $100,000. The Company has not
      experienced losses on these accounts and management believes the Company is
      not
      exposed to significant risks on such accounts.




***Fair
      value of financial instruments:***


The
      fair
      value of the Company’s assets and liabilities, which qualify as financial
      instruments under SFAS No. 107, “Disclosure About Fair Value of Financial
      Instruments,” approximates the carrying amounts represented in the balance
      sheet.




***Use
      of estimates:***


The
      preparation of financial statements in conformity with accounting principles
      generally accepted in the United States of America requires management to make
      estimates and assumptions that affect the reported amounts of assets and
      liabilities and disclosure of contingent assets and liabilities at the date
      of
      the financial statements and the reported amounts of revenues and expenses
      during the reporting period. Actual results could differ from those
      estimates.




***Income
      taxes:***


The
      Company complies with SFAS 109, “Accounting for Income Taxes,” which requires an
      asset and liability approach to financial accounting and reporting for income
      taxes. Deferred income tax assets and liabilities are computed for differences
      between the financial statement and tax bases of assets and liabilities that
      will result in future taxable or deductible amounts, based on enacted tax laws
      and rates applicable to the periods in which the differences are expected to
      affect taxable income. Valuation allowances are established, when necessary,
      to
      reduce deferred tax assets to the amount expected to be realized.




Effective
      January 1, 2007, the Company adopted the provisions of the Financial
      Accounting Standards Board (“FASB”) Interpretation No. 48, “Accounting for
      Uncertainty in Income Taxes — an interpretation of FASB Statement No. 109”
(“FIN 48”). There were no unrecognized tax benefits as of December 31, 2007 or
      June 30, 2008. FIN 48 prescribes a recognition threshold and a measurement
      attribute for the financial statement recognition and measurement of tax
      positions taken or expected to be taken in a tax return. For those benefits
      to be recognized, a tax position must be more-likely-than-not to be sustained
      upon examination by taxing authorities. The Company recognizes accrued
      interest and penalties related to unrecognized tax benefits as income tax
      expense. No amounts were accrued for the payment of interest and penalties
      at December 31, 2007 or June 30, 2008.  Management is currently unaware of
      any issues under review that could result in significant payments, accruals
      or
      material deviations from its position. The adoption of the provisions of FIN
      48
      did not have a material impact on the Company’s financial position, results of
      operations and cash flows.




***Recently
      issued accounting standards:***




In
      December 2007, FASB issued SFAS No. 141R, Business Combinations. SFAS No. 141R
      replaces SFAS No. 141, Business Combinations. SFAS No. 141R establishes
      principles and requirements for determining how an enterprise recognizes and
      measures the fair value of certain assets and liabilities acquired in a business
      combination, including non-controlling interests, contingent consideration
      and
      certain acquired contingencies. SFAS No. 141R also requires acquisition-related
      transaction expenses and restructuring costs be expensed as incurred rather
      than
      capitalized as a component of the business combination. This Statement shall
      be
      applied prospectively to business combinations for which the acquisition date
      is
      on or after the beginning of the first annual reporting period beginning on
      or
      after December 15, 2008. Management is currently evaluating the impact of the
      adoption of this statement; however, it is not expected t o
      have a
      material impact on our financial position, results of operation or cash
      flows.




9




In
      December 2007, FA SB
      issued
      SFAS No. 160, Non-controlling Interests in Consolidated Financial
      Statements — an amendment of Accounting Research Bulletin (“ARB”) No.
      51. SFAS No. 160 requires that accounting and reporting for minority interests
      will be recharacterized as non-controlling interests and classified as a
      component of equity. SFAS No. 160 also establishes reporting requirements that
      provide sufficient disclosures that clearly identify and distinguish between
      the
      interests of the parent and the interests of the non-controlling owners. SFAS
      No. 160 applies to all entities that prepare consolidated financial statements,
      except not-for-profit organizations, but will affect only those entities that
      have an outstanding non-controlling interest in one or more subsidiaries or
      that
      deconsolidate a subsidiary. This Statement shall be effective for fiscal years,
      and interim periods within those fiscal years, beginning on or after December
      15, 2008. Management is currently evaluating the impact of the adoption of
      this
      statement; however, it is not expected to have a material impact on our
      financial position, results of operation or cash flows.




Management
      does not believe that any recently issued, but not yet effective, accounting
      standards if currently adopted would have a material effect on the accompanying
      financial statements.





**Note
      3 – Public Offering**


On
      November 15, 2007, the Company consummated the sale of 7,500,000 units
      (“Units”) at a price of $8.00 per Unit in the Offering. Each Unit consists of
      one share of the Company’s common stock, $0.0001 par value, and one redeemable
      common stock purchase warrant (“Warrants”). Each Warrant entitles the holder to
      purchase from the Company one share of common stock at an exercise price of
      $5.25 commencing on the later of (i) November 8, 2008 or (ii) the
      completion of a Business Combination with a target business, and expires on
      November 8, 2011. The Warrants are redeemable at a price of $0.01 per
      Warrant upon 30 days prior notice after the Warrants become exercisable, only
      in
      the event that the last sale price of the common stock is at least $11.50 per
      share for any 20 trading days within a 30 trading day period ending on the
      third
      business day prior to the date on which notice of redemption is given. In
      accordance with the warrant agreement relating to the Warrants sold and issued
      in the Offering, the Company is only required to use its best efforts to
      maintain the effectiveness of the registration statement covering the Warrants.
      The Company will not be obligated to deliver securities, and there are no
      contractual penalties for failure to deliver securities, if a registration
      statement is not effective at the time of exercise. Additionally, in the event
      that a registration is not effective at the time of exercise, the holder of
      such
      Warrants shall not be entitled to exercise such Warrants and in no event
      (whether in the case of a registration statement not being effective or
      otherwise) will the Company be required to net cash settle the warrant exercise.
      Consequently, the Warrants may expire unexercised and unredeemed.




On
      November 26, 2007, the underwriters of the Offering exercised their
      over-allotment option to the extent of 1,125,000 Units. The 8,625,000 Units
      sold in the Offering, including the 1,125,000 Units subject to the
      over-allotment option, were sold at an offering price of $8.00 per Unit,
      generating gross proceeds of $69,000,000. $68,090,685, including $2,265,000
      of proceeds from the previously-announced private placement of the warrants
      issued to entities affiliated with the management team, has been placed in
      the
      Trust Account.




The
      Company paid the underwriters in the Offering an underwriting discount of 3.5%
      of the gross proceeds of the Offering. The underwriters have agreed that an
      additional 3.5% of the underwriting discount will not be payable unless and
      until the Company completes a Business Combination and have waived their right
      to receive such payment upon the Company’s liquidation if it is unable to
      complete a Business Combination. The Company has also issued a unit purchase
      option for $100 to Morgan Joseph to purchase 550,000 Units at an exercise price
      of $10.00 per Unit. The Units issuable upon exercise of this option are
      identical to the Units offered in the Offering. The Company accounted for the
      fair value of the unit purchase option, inclusive of the receipt of the $100
      cash payment, as an expense of the Offering resulting in a charge directly
      to
      stockholders’ equity. The Company estimates that the fair value of this unit
      purchase option is approximately $1,657,226 ($3.01 per Unit) using a
      Black-Scholes option-pricing model. The fair value of the unit purchase option
      granted to the underwriters is estimated as of the date of grant using the
      following assumptions: (1) expected volatility of 45.46%,
      (2) risk-free interest rate of 3.67%, and (3) expected life of 5
      years. The unit purchase option may be exercised for cash or on a *“cashless”* basis,
      at the holder’s option, such that the holder may use the appreciated value of
      the unit purchase option (the difference between the exercise prices of the
      unit
      purchase option and the underlying Warrants and the market price of the Units
      and underlying securities) to exercise the unit purchase option without the
      payment of any cash. The Company will have no obligation to net cash settle
      the
      exercise of the unit purchase option or the Warrants underlying the unit
      purchase option. If the holder is unable to exercise the unit purchase option
      or
      underlying Warrants, the unit purchase option or Warrants, as applicable, will
      expire worthless.




10




**Note
      4 – Deferred and Accrued Offering Costs**


Deferred
      and accrued offering costs consist principally of legal fees, underwriting
      fees
      and other costs incurred through the balance sheet date that are directly
      related to the Offering described in Note 3 and that were charged to
      stockholders’ equity upon the receipt of the capital raised.




The
      Company’s legal counsel agreed to cap legal fees due by the Company at the
      Closing to $350,000, provided that any excess fees shall be paid by the Company
      upon the completion of a Business Combination. Total legal fees payable included
      in accrued offering costs were $409,908 and $409,908 as of June 30, 2008 and
      December 31, 2007, respectively.




Upon
      completion of the Offering of 8,625,000 Units (including 1,125,000 Units
      pursuant to the underwriters’ over-allotment option sold on November 26,
      2007) at a price of $8 per unit, the Company received net proceeds of
      approximately $68,240,685 from the Offering, after deducting offering expenses
      of approximately $5,439,315 which included underwriting discounts of $4,830,000.
      This amount includes $2,415,000 of the underwriting discounts and commissions
      due (deferred underwriters’ fees) which the underwriters have agreed will not be
      payable unless and until the Company consummates a Business
      Combination.








**Note
      5 – Notes Payable to Stockholders**


In
      December 2006, the Company issued a $50,000 unsecured promissory note to one
      of
      its Initial Stockholders, who is also an officer and director of the Company.
      Under the terms of the note, as amended, the Company may reduce the amount
      of
      the note payable by offsetting any funds advanced by the Company to third
      parties at the direction of the lender. The amount of the note payable was
      reduced in this manner to $47,291 as of December 31, 2007. The note payable
      was
      non-interest bearing and was initially payable on the earlier of December 17,
      2007 or the consummation of the Offering. On November 15, 2007, the holders
      of the $50,000 unsecured promissory note and the Company agreed to extend the
      repayment date of the unsecured promissory note to March 31, 2008. Due to the
      short-term nature of the note, the fair value of the note approximates its
      carrying amount.




In
      April
      2007, the Company issued a $80,000 unsecured promissory note to 2020
      International Capital Group Limited, the beneficial owner of a majority of
      the
      outstanding shares of stock of the Company at the time such promissory note
      was
      issued. The note payable was non-interest bearing and
      was
      payable on the earlier of April 5, 2008 or the consummation of the Offering.
      On
      November 15, 2007, the holders of the $80,000 unsecured promissory note and
      the Company agreed to change the repayment date of the unsecured promissory
      note
      to  March 31,
      2008 .





Both
      notes were repaid in full by the Company on March 31, 2008 and each note was
      cancelled as of June 30, 2008.





**Note
      6 – Related Party Transactions**





**Payable
      to Stockholders**





Several
      stockholders of the Company have advanced funds to settle certain deferred
      offering costs and organization costs on behalf of the Company. The advances
      are
      non-interest bearing and are payable on demand. The amount payable to
      stockholders of $20,244 as of December 31, 2007 was repaid in full by the
      Company before 30 June 2008.




11




**Lease
      from Related Party**





The
      Company presently occupies office space provided by a company owned by the
      Company’s Chairman of the Board, Chief Executive Officer and President. Such
      entity has agreed that, until the Company consummates a Business Combination,
      it
      will make such office space, as well as utilities, administrative, technology
      and secretarial services, available to the Company, as may be required by the
      Company from time to time. The Company has agreed to pay such entity $7,500
      per
      month for such services commencing on November 8, 2007. The Company has
      incurred $45,000 and Nil for the six months ended June 30, 2008 and 2007,
      respectively, and $60,000 from August 21, 2006 (date of inception) to June
      30,
      2008.







**Note
      7 – Preferred Stock**


The
      Company is authorized to issue 1,000,000 shares of preferred stock with such
      designations, voting and other rights and preferences as may be determined
      from
      time to time by the Board of Directors. As of June 30, 2008, no preferred stock
      is issued or outstanding. The agreement with the underwriters prohibits the
      Company, prior to a Business Combination, from issuing preferred stock that
      participates in the proceeds of the Trust Account or that votes as a class
      with
      the Common Stock on a Business Combination.




**Note
      8 – Income Tax**


The
      components of the provision for income taxes are as follows:




**August 21, 2006,****Six months Ended**
              
              **Six months Ended**
              
              **(date of inception)**
                **to June 30, 2008****June 30, 2008**
              
              **June 30, 2007**
              
              **(Cumulative)**(unaudited)
              
              (unaudited)
              
              (unaudited)Current:Federal
                  taxes
              
              $
              66,087
              
              $
              —
              
              $
              66,087State
                  taxes
              
              
              12,188
              
              
              —
              
              
              13,413Total
                  provision for income taxes
              
              $
              78,275
              
              $
              —
              
              $
              79,500





The
      total
      provision for income taxes differs from that amount which would be computed
      by
      applying the U.S. Federal income tax rate to income before provision for income
      taxes as follow:


**August 21, 2006,****Six months Ended**
              
              **Six months Ended**
              
              **(date of inception)**
                **to June 30, 2008****June 30, 2008**
              
              **June 30, 2007**
              
              **(Cumulative)**(unaudited)
              
              (unaudited)
              
              (unaudited)Statutory
                  Federal income tax rate
              
              $
              34.00
              %
              $
              —
              
              $
              32.63
              %Effective
                  Mass income tax rate
              
              
              6.27
              %
              
              —
              
              
              6.62
              %Effective
                  income tax rate
              
              $
              40.27
              %
              $
              —
              
              $
              39.25
              %







**Note
      9 – Commitments**


The
      Company presently occupies office space provided by a company owned by the
      Company’s Chairman of the Board, Chief Executive Officer and President. Such
      entity has agreed that, until the Company consummates a Business Combination,
      it
      will make such office space, as well as utilities, administrative, technology
      and secretarial services, available to the Company, as may be required by the
      Company from time to time. The Company has agreed to pay such entity $7,500
      per
      month for such services commencing on November 8, 2007.





Pursuant
      to letter agreements between each of the Initial Stockholders, the Company
      and
      Morgan Joseph, the Initial Stockholders have waived their rights to receive
      distributions with respect to the 1,875,000 founding shares in the event the
      Company is liquidated in accordance with its Articles of Incorporation on
      November 8, 2009.




12




On
      November 15, 2007, Win Wide International, Ltd, a British Virgin Islands
      international business company (“Win Wide”), an entity in which George Lu, the
      Company’s Chairman, Chief Executive Officer and President, his spouse, Yanmei
      May Yang, and Jianming Yu, one of the Company’s directors, collectively own
      approximately 67% of the outstanding securities, and Surfmax Co-Investments
      II,
      LLC, a Delaware limited liability company in which Mr. Lu currently owns
      all of the outstanding securities, purchased privately from the Company a total
      of 2,265,000 warrants at $1.00 per warrant (for an aggregate purchase price
      of
      $2,265,000, the “Insider Warrants”). This purchase took place simultaneously
      with the consummation of the Offering. All of the proceeds received from this
      purchase were placed in the Trust Account. The Insider Warrants purchased are
      identical to the Warrants underlying the Units offered in the Offering except
      that the Insider Warrants may be exercisable, at the holder’s option, on a
“cashless basis” so long as such securities are held by such Initial Holders or
      their affiliates. Additionally, such purchasers have agreed that the Insider
      Warrants will not be sold or transferred by them until after the Company has
      completed a Business Combination. If these warrants are exercised on a cashless
      basis, the holder of the insider warrants would pay the exercise price by
      surrendering his warrants for that number of shares of common stock equal to
      the
      quotient obtained by dividing (x) the product of the number of shares of
      common stock underlying the warrants, multiplied by the difference between
      the
      exercise price of the warrants and the “fair market value” (defined below) by
      (y) the fair market value. The “fair market value” shall mean the average
      reported last sale price of the common stock for the 10 trading days ending
      on
      the third trading day prior to the date on which the notice of redemption is
      sent to holders of warrants.





The
      Company has determined that the purchase price of $1.00 per Insider Warrant
      is
      above the average trading price for warrants of similarly structured blank
      check
      companies. Accordingly, the Company believes that the purchase price of the
      Insider Warrants is greater than the fair value of the warrants included in
      the
      units and, therefore, the Company did not record compensation expense on the
      Insider Warrants.





The
      Initial Stockholders are entitled to registration rights with respect to their
      founding shares pursuant to an agreement signed on November 8, 2007. The
      holders of the majority of these shares are entitled to make up to two demands
      that the Company register these shares at any time after these shares are
      released from escrow six months following the consummation of Business
      Combination. In addition, the Initial Stockholders have certain “piggy-back”
registration rights on registration statements filed subsequent to
      November 8, 2010.





**Note
      10 – Subsequent Events**





On
      August
      1 2008, the Company issued a $150,000 unsecured promissory note to 2020
      International Capital Group Limited, a beneficial principal stockholder of
      the
      Company. The note is non-interest bearing and is payable one year from the
      date
      of execution or the date on which 2020 International Capital Group Limited
      demand full or partial payment of any balance outstanding. The proceeds from
      the
      note shall be used by the Company for working capital purposes.




**ITEM
      2. Management’s Discussion and Analysis of Financial Condition and Results of
      Operations.**




The
      following discussion should be read in conjunction with our Financial Statements
      and footnotes thereto contained in this report.




**Forward
      Looking Statements**




All
      statements other than statements of historical fact included in this Quarterly
      Report on Form 10-Q including, without limitation, statements under
“Management’s Discussion and Analysis of Financial Condition and Results of
      Operations” regarding our financial position, business strategy and the plans
      and objectives of management for future operations, are “forward looking
      statements” within the meaning of the Private Securities Litigation Reform Act
      of 1995, Section 27A of the Securities Act of 1933 and Section 21E of the
      Securities Exchange Act of 1934. When used in this Form 10-Q, words such as
      “anticipate,” “believe,” “estimate,” “expect,” “intend” and similar expressions,
      as they relate to us or our management, identify forward looking statements.
      Such forward looking statements are based on the beliefs of management, as
      well
      as assumptions made by, and information currently available to, our management.
      Actual results could differ materially from those contemplated by the forward
      looking statements as a result of certain factors detailed in our filings with
      the Securities and Exchange Commission. All subsequent written or oral forward
      looking statements attributable to us or persons acting on our behalf are
      qualified in their entirety by this paragraph.




13




**Overview**




We
      are a
      public acquisition company, formed on August 21, 2006, to complete a business
      combination with an operating business that either: (1) is located in
      China, (2) has its principal operations located in China, or, (3) in
      the view of the Board of Directors of the Company, would benefit from
      establishing operations in China. Our efforts to identify a prospective target
      business will not be limited to a particular industry. We intend to effect
      a
      business combination using cash from the proceeds of our recently completed
      initial public offering and the private placements of the sponsors’ warrants,
      our capital stock, debt or a combination of cash, stock and debt. On November
      15, 2007, we completed our initial public offering of 8,625,000 Units (including
      1,125,000 Units pursuant to the underwriters’ over-allotment option sold on
      November 26, 2007) at a price of $8 per unit. We received net proceeds of
      approximately $68.4 million from our Offering.





Pursuant
      to a warrant purchase agreement dated November 8, 2007, certain of the Initial
      Stockholders and their affiliates have purchased from the Company, in the
      aggregate, 2,265,000 Insider Warrants for $2,265,000. The purchase and issuance
      of the Insider Warrants in a private placement occurred simultaneously with
      the
      consummation of the Offering. All of the proceeds we received from these
      purchases were placed in the Trust Account.





For
      a
      description of the proceeds generated in our initial public offering and a
      discussion of the use of such proceeds, we refer you to Note 3 of the unaudited
      financial statements included in Part I, Item I of this Quarterly Report on
      Form
      10-Q.




**Results
      of Operations and Known Trends or Future Events**




For
      the
      three months ended June 30, 2008 and 2007, we had a net loss of $14,893 and
      $5,274, respectively.





For
      the
      six months ended June 30, 2008 and 2007, we had a net profit of $116,101 and
      a
      net loss of $10,127, respectively.





Our
      entire activity from August 21, 2006 (inception) through November 15, 2007
      had
      been to prepare for our initial public offering. Following our initial public
      offering, we began actively searching for a suitable business target to complete
      a business combination. For the six months ended June 30, 2008, we earned
      interest income of $688,260 and a net profit of $116,101 as compared to the
      $10,127 net loss we realized for the same period in 2007 while we were in the
      early phase of preparing for our initial public offering. We believe that we
      have access to sufficient funds to complete a Business Combination with an
      operating business within the required 24 months from the Effective
      Date.




**Liquidity
      and Capital Resources**




As
      of
      June 30, 2008, we had operating cash of $37,788, compared to $269,040 at
      December 31, 2007. Until the initial public offering, as described above, our
      only source of liquidity was two loans made by two stockholders. These loans
      were fully repaid as of June 30, 2008. Our liabilities are mainly deferred
      and
      accrued offering costs related to our initial public offering payable upon
      completion of a business combination. Given our available operating cash of
      $37,788 and our projected interest income, to complete a business combination
      the Company expects to require additional financing to pay expenses associated
      with the identification of a target company and our due diligence review. We
      believe that we have access to capital resources to maintain our operations
      until we complete a business combination.




14




**Off-Balance
      Sheet Financing Arrangements**




We
      have
      no obligations, assets or liabilities that would be considered off-balance
      sheet
      arrangements.




**Contractual
      Obligations**




Other
      than the $7,500 per month fee for
      office space and general and administrative services, the deferred legal fees
      of
      $413,066 as described above, and the $2,415,000 deferred underwriting discounts
      as described in our Annual Report Form 10-K for the year ended December 31,
      2007, the
      Company does not have any other long-term debt, capital lease obligations,
      operating lease obligations or long-term liabilities.




**Critical
      Accounting Policies**




The
      Company’s significant accounting policies are more fully described in Note 2 to
      the financial statements. However certain accounting policies are particularly
      important to the portrayal of financial position and results of operations
      and
      require the application of significant judgments by management. As a result,
      the
      financial statements are subject to an inherent degree of uncertainty. In
      applying those policies, management used its judgment to determine the
      appropriate assumptions to be used in determination of certain estimates. These
      estimates are based on the Company’s historical experience, terms of existing
      contracts, observance of trends in the industry and information available from
      outside sources, as appropriate.




**ITEM
      3. Quantitative and Qualitative Disclosures about Market Risk.**




Not
      applicable.




**ITEM
      4. Controls and Procedures.**




Based
      on
      their evaluation as of the end of the period covered by this Quarterly Report
      on
      Form 10-Q, our principal executive officer and principal financial and
      accounting officer have concluded that our disclosure controls and procedures
      (as defined in Rules 13a-15(e) and 15d-15(e) under the Exchange Act) were
      effective as of the end of the period covered by this report.





There
      were no changes in our internal controls over financial reporting in connection
      with the evaluation required by Rule 13-a(15(d) under the Exchange Act that
      occurred during the period covered by this Quarterly Report on Form 10-Q that
      have materially affected, or are reasonably likely to materially affect, our
      internal controls over financial reporting.





We
      believe that a control system, no matter how well designed and operated, cannot
      provide absolute assurance that the objectives of the control system are met,
      and no evaluation of controls can provide absolute assurance that all control
      issues and instances of fraud, if any, within a company have been detected.
      Our
      disclosure controls and procedures are designed to provide reasonable assurance
      of achieving their objectives, and our principal executive officer and our
      principal financial officer have concluded that these controls and procedures
      are effective at the reasonable assurance level.




15




**PART
      II – OTHER INFORMATION**




**ITEM
      1. Legal Proceedings.**




None.




**ITEM
      1A. Risk Factors.**




Factors
      that could cause our actual results to differ materially from those in this
      report are any of the risks described in our Annual Report on Form 10-K for
      the
      year ended December 31, 2007 filed with the SEC. Any of the factors could result
      in a significant or material adverse effect on our results of operations or
      financial condition. Additional risk factors not presently known to us or that
      we currently deem immaterial may also impair our business or results of
      operations.





As
      of
      June 30, 2008, there have been no material changes to the risk factors disclosed
      in our Annual Report on Form 10-K for the year ended December 31, 2007 filed
      with the SEC.




**ITEM
      2. Unregistered Sales of Equity Securities and Use of Proceeds.**




None.




**ITEM
      3. Defaults Upon Senior Securities.**




None.




**ITEM
      4. Submission of Matters to a Vote of Security Holders.**




The
      Company held its Annual Meeting of the Stockholders on May 6, 2008 in New York.
      The stockholders elected three directors for terms of three years each and
      ratified the appointment of the firm Grobstein, Horwath & Company, LLP as
      the independent auditors for the Company for the fiscal year ending December
      31,
      2008.





The
      votes
      cast for or withheld for the election of the directors were as
      follows:


NAME
              
              FOR
              
              WITHHELDJun
                  Lei
              
              
              7,959,567
              
              
              3,600Meng
                  Ann Lim
              
              
              7,959,567
              
              
              3,600Dr.
                  Jianming Yu
              
              
              6,509,205
              
              
              1,453,962





The
      votes
      cast for, against or abstain for the ratification of the appointment of the
      firm
      Grobstein, Horwath & Company, LLP as the independent auditors for the
      Company for the fiscal year ending December 31, 2008 were as
      follows:


FOR
              
              AGAINST
              
              ABSTAIN7,962,767
              
              
              0
              
              
              400


There
      were no other matters presented to the Company’s stockholders during the quarter
      ended June 30, 2008.




**ITEM
      5. Other Information.**




None.




16




**ITEM
      6. Exhibits.**




(a)
      Exhibits:





31.1
      -
      Section 302 Certification by Chief Executive Officer and President





31.2
      -
      Section 302 Certification by Chief Financial Officer and Treasurer





32.1
      -
      Section 906 Certification by Chief Executive Officer and President





32.2
      -
      Section 906 Certification by Chief Financial Officer and Treasurer




17




**SIGNATURES**




Pursuant
      to the requirements of the Securities Exchange Act of 1934, the registrant
      has
      duly caused this report to be signed on its behalf by the undersigned thereto
      duly authorized.




2020
      ChinaCap Acquirco, Inc.




Dated:
                August __, 2008
            
            
            By:
            /s/
                G. George LuG.
                George Lu
              Chairman,
                Chief Executive Officer and President
              (Principal
                Executive Officer)By:
            /s/
                Louis F. KooLouis
                F. Koo
              Vice
                Chairman, Chief Financial Officer and Treasurer
              (Principal
                Financial Officer)




EXHIBIT
      INDEX




EXHIBIT
      NO.




31.1
            
            Certification
                of Chief Executive Officer, pursuant to Rule 13a-14 and 15d-14 of
                the
                Securities Exchange Act of 1934.31.2
            
            Certification
                of Chief Financial Officer, pursuant to Rule 13a-14 and 15d-14 of
                the
                Securities Exchange Act of 193432.1
            
            Certification
                of Chief Executive Officer, pursuant to 18 U.S.C. Section 1350, as
                adopted
                pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.32.2
            
            Certification
                of Chief Financial Officer, pursuant to 18 U.S.C. Section 1350, as
                adopted
                pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.




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