----

| UNITED STATES                      |
|------------------------------------|
| SECURITIES AND EXCHANGE COMMISSION |
| Washington, D.C. 20549             |
|                               |
| FORM 10-Q                          |
|                               |
| x                                  | QUARTERLY REPORT UNDER TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE |
|                               | ACT OF 1934 |
|                               | FOR THE QUARTERLY PERIOD ENDED JUNE 30, 2010 |
| OR                                 |   |
|  ̈                             | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES |
|                               | EXCHANGE ACT OF 1934 |
|                               |
| Commission file number 000-53224   |

| Large accelerated filer |  ̈ | Accelerated filer         |  ̈ |
|-------------------------|--------|---------------------------|--------|
| Non-accelerated filer   |  ̈ | Smaller reporting company | x      |

----

| Consolidated Financial Statements                          | Page |
|------------------------------------------------------------|------|
| Report of Independent Registered Public Accounting Firm    | 3    |
| Consolidated Balance Sheets                                | 4    |
| Consolidated Statements of Income and Comprehensive Income | 5    |
| Consolidated Statements of Cash Flows                      | 6    |
| Notes to Consolidated Financial Statements                 | 7    |

----

----

|                                                                                                                                                    |   | June 30,    |             |   | December 31, |    |
|---------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-------------|------------------|--------|--------------|---------|
|                                                                                                                                                    |   | 2010        |             |   | 2009         |    |
|                                                                                                                                                    |   | (Unaudited) |             |   |         |    |
| Assets                                                                                                                                                  |   |        |             |   |         |    |
| Current assets:                                                                                                                                         |   |        |             |   |         |    |
| Cash and cash equivalents                                                                                                                               |   | $           | 727,759          |   |         | $       | 694,620 |   |
| Restricted cash                                                                                                                                         |   |        | 295,446          |   |         |    | 294,807 |   |
| Accounts receivable                                                                                                                                     |   |        | 325,914          |   |         |    | 360,581 |   |
| Inventories                                                                                                                                             |   |        | 791,537          |   |         |    | 553,187 |   |
| Advance payments                                                                                                                                        |   |        | 9,223,999        |   |         |    | 15,284,156 |   |
| Dividend receivable                                                                                                                                     |   |        | 177,223          |   |         |    | 333,508 |   |
| Other receivables                                                                                                                                       |   |        | 4,026,446        |   |         |    | 2,300,314 |   |
| Total current assets                                                                                                                                    |   |        | 15,568,324       |   |         |    | 19,821,173 |   |
|                                                                                                                                                    |   |        |             |   |         |    |   |   |
| Property, plant and equipment, net                                                                                                                      |   |        | 4,634,246        |   |         |    | 4,541,763 |   |
|                                                                                                                                                    |   |        |             |   |         |    |   |   |
| Other assets:                                                                                                                                           |   |        |             |   |         |    |   |   |
| Deferred income taxes                                                                                                                                   |   |        | 50,603           |   |         |    | 50,397 |   |
| Goodwill                                                                                                                                                |   |        | 60,577           |   |         |    | 60,330 |   |
| Investment in non-consolidated entities                                                                                                                 |   |        | 9,347,451        |   |         |    | 3,818,615 |   |
| Other non-current assets                                                                                                                                |   |        | 15,207           |   |         |    | 16,055 |   |
| Total other assets                                                                                                                                      |   |        | 9,473,838        |   |         |    | 3,945,397 |   |
|                                                                                                                                                    |   |        |             |   |         |    |   |   |
|                         Total assets |   | $      | 29,676,408       |   |         | $  |  28,308,333 |   |
|                                                                                                                                                    |   |        |             |   |         |    |   |   |
| Liabilities                                                                                                                                             |   |        |             |   |         |    |   |   |
| Current liabilities:                                                                                                                                    |   |        |             |   |         |    |   |   |
| Accounts payable and accrued expenses                                                                                                                   |   | $           | 783,520          |   |         | $       | 833,375 |   |
| Short-term bank loan                                                                                                                                    |   |        | 441,900          |   |         |    | 880,200 |   |
| Trade notes payable                                                                                                                                     |   |        | 589,200          |   |         |    | 586,800 |   |
| Customer advances                                                                                                                                       |   |        | 830,797          |   |         |    | 233,486 |   |
| Due to former shareholders                                                                                                                              |   |        | 1,587,101        |   |         |    | 1,580,636 |   |
| Loans from third parties                                                                                                                                |   |        | 14,371,772       |   |         |    | 13,300,170 |   |
| Current portion of long-term debt and other current liabilities                                                                                         |   |        | 380,511          |   |         |    | 218,651 |   |
| Total current liabilities                                                                                                                               |   |        | 18,984,801       |   |         |    | 17,633,318 |   |
|                                                                                                                                                    |   |        |             |   |         |    |   |   |
| Long-term liabilities:                                                                                                                                  |   |        |             |   |         |    |   |   |
| Long-term bank loan                                                                                                                                     |   |        | -                |   |         |    | 146,700 |   |
|              Total long-term liabilities                                               |   |        | -                |   |         |    | 146,700 |   |
|                                                                                                                                                    |   |        |             |   |         |    |   |   |
| Total liabilities                                                                                                                                       |   |        | 18,984,801       |   |         |    | 17,780,018 |   |
|                                                                                                                                                    |   |        |             |   |         |    |   |   |
| Equity                                                                                                                                                  |   |        |             |   |         |    |   |   |
| Stockholders’ equity:                                                                                                                             |   |        |             |   |         |    |   |   |
| Common stock, $0.00001 par value, 75,000,000 shares authorized,                                                                                         |   |        |             |   |         |    |   |   |
|   12,000,000 shares issued and outstanding                                                                                                    |   |        | 120              |   |         |    | 120 |   |
| Additional paid-in capital                                                                                                                              |   |        | 8,055,262        |   |         |    | 8,055,262 |   |
| Statutory reserve                                                                                                                                       |   |        | 260,836          |   |         |    | 260,836 |   |
| Retained earnings                                                                                                                                       |   |        | 1,917,836        |   |         |    | 1,787,879 |   |
| Accumulated other comprehensive income                                                                                                                  |   |        | 443,898          |   |         |    | 409,222 |   |
| Total stockholders’ equity                                                                                                                        |   |        | 10,677,952       |   |         |    | 10,513,319 |   |
|                                                                                                                                                    |   |        |             |   |         |    |   |   |
| Noncontrolling interest                                                                                                                                 |   |        | 13,655           |   |         |    | 14,996 |   |
|                                                                                                                                                    |   |        |             |   |         |    |   |   |
| Total equity                                                                                                                                            |   |        | 10,691,607       |   |         |    | 10,528,315 |   |
|                                                                                                                                                    |   |        |             |   |         |    |   |   |
| Total liabilities and equity                                                                                                                            |   | $           |  29,676,408 |   |         | $       |  28,308,333 |   |

----

|                                                         |   | For the Three Months |            |   | For the Six Months |   |
|--------------------------------------------------------------|--------|----------------------|-----------------|--------|--------------------|--------|
|                                                         |   | Ended June 30,       |            |   | Ended June 30,     |   |
|                                                         |   | 2010                 |            |   | 2009               |   |   | 2010 |   |   | 2009 |   |
|                                                         |   |                 |            |   |               |   |   |   |   |   |   |   |
|  Sales                                                  |   | $                    | 5,311,443       |   |               | $      | 5,416,252 |   |   | $ | 9,984,439 |   |   | $ | 9,421,115 |   |
|                                                         |   |                 |            |   |               |   |   |   |   |   |   |   |   |   |   |   |
|  Cost of sales                                          |   |                 |  4,674,824 |   |               |   | 4,673,606 |   |   |   | 8,654,492 |   |   |   | 8,014,060 |   |
|                                                         |   |                 |            |   |               |   |   |   |   |   |   |   |   |   |   |   |
|  Gross profit                                           |   |                 | 636,619         |   |               |   | 742,646 |   |   |   | 1,329,947 |   |   |   | 1,407,055 |   |
|                                                         |   |                 |            |   |               |   |   |   |   |   |   |   |   |   |   |   |
| Operating expenses:                                          |   |                 |            |   |               |   |   |   |   |   |   |   |   |   |   |   |
|     Selling expenses                     |   |                 | 391,739         |   |               |   | 449,393 |   |   |   | 811,889 |   |   |   | 951,891 |   |
|     General and administrative expenses: |   |                 |  170,349   |   |               |   | 200,136 |   |   |   | 351,954 |   |   |   | 370,588 |   |
| Total operating expenses                                     |   |                 | 562,088         |   |               |   | 649,529 |   |   |   | 1,163,843 |   |   |   | 1,322,479 |   |
|                                                         |   |                 |            |   |               |   |   |   |   |   |   |   |   |   |   |   |
|  Income from operations                                 |   |                 | 74,531          |   |               |   | 93,117 |   |   |   | 166,104 |   |   |   | 84,576 |   |
|                                                         |   |                 |            |   |               |   |   |   |   |   |   |   |   |   |   |   |
|  Other income (expenses):                               |   |                 |            |   |               |   |   |   |   |   |   |   |   |   |   |   |
| Investment income                                            |   |                 | 78,464          |   |               |   | 78,630 |   |   |   | 156,885 |   |   |   | 156,976 |   |
| Interest expense                                             |   |                 | (217            | )      |               |   | (16,532 | ) |   |   | (32,231 | ) |   |   | (31,209 | ) |
| Other income (expenses)                                      |   |                 |  (7,625    | )      |               |   | 6,369 |   |   |   | (103,786 | ) |   |   | 10,876 |   |
|   Total other income (expenses)                    |   |                 | 70,622          |   |               |   | 68,467 |   |   |   | 20,868 |   |   |   | 136,643 |   |
|                                                         |   |                 |            |   |               |   |   |   |   |   |   |   |   |   |   |   |
|  Income before provision for income taxes               |   |                 | 145,153         |   |               |   | 161,584 |   |   |   | 186,972 |   |   |   | 221,219 |   |
|                                                         |   |                 |            |   |               |   |   |   |   |   |   |   |   |   |   |   |
|  Provision for income taxes                             |   |                 |  39,704    |   |               |   | 39,861 |   |   |   | 58,410 |   |   |   | 50,707 |   |
|                                                         |   |                 |            |   |               |   |   |   |   |   |   |   |   |   |   |   |
|  Income before noncontrolling interest                  |   |                 | 105,449         |   |               |   | 121,723 |   |   |   | 128,562 |   |   |   | 170,512 |   |
|                                                         |   |                 |            |   |               |   |   |   |   |   |   |   |   |   |   |   |
| Less: net income attributable to noncontrolling interest     |   |                 |  (1,333    | )      |               |   | 474 |   |   |   | (1,395 | ) |   |   | 1,235 |   |
|                                                         |   |                 |            |   |               |   |   |   |   |   |   |   |   |   |   |   |
|  Net income attributable to CHPC                        |   |                 | 106,782         |   |               |   | 121,249 |   |   |   | 129,957 |   |   |   | 169,277 |   |
|                                                         |   |                 |            |   |               |   |   |   |   |   |   |   |   |   |   |   |
|  Other comprehensive income (loss)                      |   |                 |            |   |               |   |   |   |   |   |   |   |   |   |   |   |
| Foreign currency translation adjustment                      |   |                 | 34,667          |   |               |   | (41,380 | ) |   |   | 34,676 |   |   |   | 58,938 |   |
|                                                         |   |                 |            |   |               |   |   |   |   |   |   |   |   |   |   |   |
|  Comprehensive income                                   |   | $                    | 141,449         |   |               | $      | 79,869 |   |   | $ | 164,633 |   |   | $ | 228,215 |   |
|                                                         |   |                 |            |   |               |   |   |   |   |   |   |   |   |   |   |   |
|  Weighted average number of shares                      |   |                 |            |   |               |   |   |   |   |   |   |   |   |   |   |   |
| Basic and diluted                                            |   |                 | 12,000,000      |   |               |   | 12,000,000 |   |   |   | 12,000,000 |   |   |   | 12,000,000 |   |
|                                                         |   |                 |            |   |               |   |   |   |   |   |   |   |   |   |   |   |
|  Earnings per share                                     |   |                 |            |   |               |   |   |   |   |   |   |   |   |   |   |   |
| Basic and diluted                                            |   | $                    | 0.01            |   |               | $      | 0.01 |   |   | $ | 0.01 |   |   | $ | 0.01 |   |

----

|                                                            |   | For the six Months Ended June 30, |       |
|-----------------------------------------------------------------|--------|-----------------------------------|------------|
|                                                            |   | 2010                              |       |   | 2009 |   |
|                                                            |   |                              |       |   |   |   |
| Cash flows from operating activities:                           |   |                              |       |   |   |   |
| Net income                                                      |   | $                                 | 129,957    |   |   | $ | 169,277 |   |
| Adjustments to reconcile net income to cash provided by         |   |                              |       |   |   |   |   |   |
|   (used in) operating activities:                     |   |                              |       |   |   |   |   |   |
| Depreciation                                                    |   |                              | 109,940    |   |   |   | 161,556 |   |
| Noncontrolling interest                                         |   |                              | (1,395     | ) |   |   | 1,235 |   |
| Changes in assets and liabilities:                              |   |                              |       |   |   |   |   |   |
| Accounts receivable                                             |   |                              | 35,970     |   |   |   | 374,185 |   |
| Inventories                                                     |   |                              | (234,965   | ) |   |   | (20,418 | ) |
| Advance payments                                                |   |                              | 1,401,028  |   |   |   | (3,767,700 | ) |
| Dividend receivable                                             |   |                              | 156,899    |   |   |   | 156,648 |   |
| Other receivables                                               |   |                              | (1,708,566 | ) |   |   | 96,819 |   |
| Other non current assets                                        |   |                              | 909        |   |   |   | (10 | ) |
| Accounts payable and accrued expenses                           |   |                              | (53,010    | ) |   |   | 102,517 |   |
| Trade notes payable                                             |   |                              | -          |   |   |   | 439,710 |   |
| Customer advances                                               |   |                              | 593,522    |   |   |   | 175,566 |   |
| Current portion of long-term debt and other current liabilities |   |                              | 160,201    |   |   |   | (35,370 | ) |
| Total adjustments                                               |   |                              | 460,533    |   |   |   | (2,315,262 | ) |
|                                                            |   |                              |       |   |   |   |   |   |
| Net cash provided by (used in) operating activities:            |   |                              | 590,490    |   |   |   | (2,145,985 | ) |
|                                                            |   |                              |       |   |   |   |   |   |
| Cash flows from investing activities:                           |   |                              |       |   |   |   |   |   |
| Advance payments for purchase of fixed assets                   |   |                              | (785,898   | ) |   |   | - |   |
| Acquisition of property and equipment                           |   |                              | (183,496   | ) |   |   | (389,130 | ) |
| Investment in non-consolidated entities                         |   |                              | (8,576     | ) |   |   | 58,628 |   |
| Net cash used in investing activities:                          |   |                              | (977,970   | ) |   |   | (330,502 | ) |
|                                                            |   |                              |       |   |   |   |   |   |
| Cash flows from financing activities:                           |   |                              |       |   |   |   |   |   |
| Repayment of short-term bank loans                              |   |                              | (439,800   | ) |   |   | (293,140 | ) |
| Repayment of related party loans                                |   |                              | -          |   |   |   | (492,582 | ) |
| Proceeds from third party loans                                 |   |                              | 1,012,371  |   |   |   | 3,378,271 |   |
| Repayment of long-term bank loan                                |   |                              | (146,600   | ) |   |   | - |   |
| Payments to noncontrolling interest for ownership buyback       |   |                              | -          |   |   |   | (202,468 | ) |
| Net cash provided by financing activities:                      |   |                              | 425,971    |   |   |   | 2,390,081 |   |
|                                                            |   |                              |       |   |   |   |   |   |
| Effect of foreign currency translation on cash                  |   |                              | (4,713     | ) |   |   | (26,958 | ) |
|                                                            |   |                              |       |   |   |   |   |   |
| Net increase (decrease) in cash and cash equivalents and        |   |                              |       |   |   |   |   |   |
|   restricted cash                                     |   |                              | 33,778     |   |   |   | (113,364 | ) |
|                                                            |   |                              |       |   |   |   |   |   |
| Cash and cash equivalents and restricted cash – beginning |   |                              | 989,427    |   |   |   | 1,034,387 |   |
|                                                            |   |                              |       |   |   |   |   |   |
| Cash and cash equivalents and restricted cash – ending    |   | $                                 | 1,023,205  |   |   | $ | 921,023 |   |
|                                                            |   |                              |       |   |   |   |   |   |
| Supplemental schedule of non cash activities                    |   |                              |       |   |   |   |   |   |
| Advance payments for investment in non-consolidated entity      |   | $                                 | 5,478,442  |   |   | $ | - |   |

----

|                                                                                      | Place of                     | Registered and  | Percentage of       |                                                                                                |
|-------------------------------------------------------------------------------------------|------------------------------|-----------------|---------------------|-----------------------------------------------------------------------------------------------------|
| Subsidiaries’ names                                                                 | operation                    | paid-up capital | effective ownership | Principal activities                                                                                |
|                                                                                      |                         |            |                |                                                                                                |
| Origin Orbit Green Resource Company, Ltd (Origin Orbit”)                       | British Virgin Islands  | US$7,950,000    | 100% (a)            | Holding company of the other subsidiaries                                                      |
| Anyang Prosperous Energy Technology Developing Co., Ltd. (Anyang Prosperous”)  | PRC                     | US$5,000,000    | 100% (b)            | Wholesale and retail sales of compressed natural gas and liquefied petroleum gas(“LPG”) |
| Anyang Top Energy Green Resources Co., Ltd. (Anyang Top”)                           | PRC                     | US$2,500,000    | 100% (b)            | Wholesale of compressed natural gas, liquefied petroleum gas and Dimethyl Ether                |
| Jinan Zhenyuan Green Resource Co. Ltd.(Jinan Green Resource”)                       | PRC                     | RMB10,000,000   | 99% (c)             | Sales of LPG for domestic and vehicles usage and related vehicles components                   |
| Handan CityProsperous Car-used Green Resource Co. Ltd. (Handan Green Resource”)     | PRC                     | RMB750,000      | 98% (c)             | Sales of LPG, vehicles components, and new energy research and development                          |

----

|                                                                                            | Place of  | Registered and  | Percentage of       |                                                                                                                                                                                        |
|-------------------------------------------------------------------------------------------------|-----------|-----------------|---------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| Subsidiaries’ names                                                                       | operation | paid-up capital | effective ownership | Principal activities                                                                                                                                                                        |
|                                                                                            |      |            |                |                                                                                                                                                                                        |
| Henan Prosperous Clean Energy Corporation                                                       | PRC  | RMB30,000,000   | 100%(c)             | Investing in and constructing gas filling stations and selling compressed natural gas ("CNG"), liquefied petroleum gas ("LPG"), coal-bed methane, dimethyl ether ("DME") and methane.  |
| Yangquan Zhenyuan Energy Science & Technology Co. Ltd (Yangquan Zhenyuan”)            | PRC  | RMB5,000,000    | 100% (c)            | Construction of gas stations                                                                                                                                                                |
| Fuyang Prosperous Energy Technology Development Co. Ltd. (Fuyang Prosperous”)        | PRC  | RMB10,000,000   | 100% (c) (d)        | Energy technology research and development                                                                                                                                             |
| Weifang Prosperous Energy Technology Development Co. Ltd. (Weifang Prosperous”)      | PRC  | RMB10,000,000   | 100% (c)            | Energy technology research and development, and sales vehicles components and gas equipment                                                                                                 |
| Hengshui Prosperous Energy Technology Development Co. Ltd. (Hengshui Prosperous”)    | PRC  | RMB2,000,000    | 100% (c)            | Gas energy technology research and development                                                                                                                                         |
| Heze Prosperous Energy Technology Development Co. Ltd. (Heze Prosperous”)            | PRC  | RMB5,000,000    | 100% (c)            | Construction of LPG and CNG station, and sales of vehicle componentsLPG and CNG                                                                                                        |
| Shijiazhuang Prosperous Energy Technology Development Co. Ltd. (Shijiazhuang Prosperous”) | PRC  | RMB10,000,000   | 100% (c)            | Gas energy technology research, development and advisory services, and  sales of gas energy product                                                                               |
| Xuchang Zhenyuan Green Resource Technology Development Co. Ltd. (Xuchang Zhenyuan”)  | PRC  | RMB10,000,000   | 100% (c)            | Investment in natural gas business                                                                                                                                                          |
| Yantai Prosperous Energy Technology Development Co. Ltd. (Yantai Prosperous”)             | PRC  | RMB500,000      | 100% (c)            | Gas energy technology research and development, and sales vehicle components and gas energy equipment                                                                                  |

----

|                                                                                              | Place of  | Registered and  | Percentage of       |                                                                                                                                  |
|---------------------------------------------------------------------------------------------------|-----------|-----------------|---------------------|---------------------------------------------------------------------------------------------------------------------------------------|
| Subsidiaries’ names                                                                         | operation | paid-up capital | effective ownership | Principal activities                                                                                                                  |
|                                                                                              |      |            |                |                                                                                                                                  |
| Changzhi City Zhenyuan Energy Technology Development Co. Ltd (Changzhi City”)               | PRC  | RMB4,400,000    | 100% (c)            | Sales of crude oil, natural gas, LPG and related vehicle components, and construction of gas stations                            |
| Jiaozuo City Prosperous Energy Technology Development Co. Ltd. (Jiaozuo City”)         | PRC  | RMB5,000,000    | 100% (c)            | Sales of natural gas, liquefied petroleum gas and vehicle components, construction and operation of gas stations                 |
| Pingdingshan City Zhenyuan Energy Technology Developing Co. Ltd. (Pingdingshan City”)  | PRC  | RMB5,000,000    | 100% (c)            | Energy technology development, sales of natural gas, LPG and vehicle components, and construction and operation of gas stations  |
| Linying Prosperous Energy Technology Development Co. Ltd. (Linyi Prosperous”)          | PRC  | RMB10,000,000   | 100% (c)            | Sales of natural gas and vehicle components.                                                                                     |
| Jiangsu Hengrun Clean Energy Co., Ltd. ("Jiangsu Hengrun ")                                       | PRC       | RMB20,000,000   | 100% (c)            | Research and development of clean energy technology, promotion and application of clean energy technology.                            |

| (a)   | Held directly by CHPC. |
|-----------------|------------------------|

| (b)   | Held indirectly by CHPC through Origin Orbit. |
|-----------------|-----------------------------------------------|

| (c)   | Held indirectly by CHPC through Origin Orbit and Anyang Prosperous. |
|-----------------|---------------------------------------------------------------------|

| (d)   | According to the Companies Law of the PRC, at the incorporation of the investee, shareholders are only required to pay up 20% of the capital contribution requirement as a minimum and can make up the remaining payment in two years. |
|-----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|                                      |   | June 30, |    |   | December 31, |   |
|-------------------------------------------|--------|----------|---------|--------|--------------|--------|
|                                      |   | 2010     |    |   | 2009         |   |
|                                      |   |     |    |   |         |   |
| Compressed natural gas                    |   | $        | 202,951 |   |         | $      | 65,600 |   |
| Liquefied petroleum gas                   |   |     | 350,224 |   |         |   | 150,384 |   |
| Dimethyl ether                            |   |     | 52,136  |   |         |   | 140,660 |   |
| Vehicle modification components and other |   |     | 186,226 |   |         |   | 196,543 |   |
|                                      |   |     |    |   |         |   |   |   |
| Total                                     |   | $        | 791,537 |   |         | $      | 553,187 |   |

|                                  |   | June 30, |      |   | December 31, |   |
|---------------------------------------|--------|----------|-----------|--------|--------------|--------|
|                                  |   | 2010     |      |   | 2009         |   |
|                                  |   |     |      |   |         |   |
| Raw material                          |   | $        | 4,010,998 |   |         | $      | 6,950,996 |   |
| Property and equipment                |   |     | 5,213,001 |   |         |   | 2,850,981 |   |
| Investment in non-consolidated entity |   |     | -         |   |         |   | 5,482,179 |   |
|                                  |   |     |      |   |         |   |   |   |
| Total                                 |   | $        | 9,223,999 |   |         | $      | 15,284,156 |   |

----

|                                    |   | June 30, |       |   | December 31, |   |
|-----------------------------------------|--------|----------|------------|--------|--------------|--------|
|                                    |   | 2010     |       |   | 2009         |   |
|                                    |   |     |       |   |         |   |
| Buildings                               |   | $        | 1,126,089  |   |         | $      | 1,106,703 |   |
| Machinery                               |   |     | 3,083,568  |   |         |   | 3,050,621 |   |
| Office equipment                        |   |     | 77,930     |   |         |   | 72,880 |   |
| Gas storage vehicles and motor vehicles |   |     | 123,657    |   |         |   | 123,153 |   |
| Construction in progress                |   |     | 1,425,031  |   |         |   | 1,275,523 |   |
|                                    |   |     | 5,836,275  |   |         |   | 5,628,880 |   |
| Less: Accumulated depreciation          |   |     | (1,202,029 | )      |         |   | (1,087,117 | ) |
|                                    |   |     |       |   |         |   |   |   |
| Total                                   |   | $        | 4,634,246  |   |         | $      | 4,541,763 |   |

----

| Name of investee                                                              | Place of operation | Percentage of ownership | Principal activities                                                                                                                       |
|-------------------------------------------------------------------------------|--------------------|-------------------------|--------------------------------------------------------------------------------------------------------------------------------------------|
|                                                                          |               |                    |                                                                                                                                       |
| Anyang PetroChina Marketing Company Limited (“Anyang PetroChina”) | PRC                | 34%                     | Sales of crude oil and refined oil and LPG                                                                                            |
| Ancai Energy Co.Ltd                                                      | PRC                | 15%                     | Investment in the construction of long-distance pipeline and delivery networks for natural gas, and pipeline LPG and CNG filling stations. |

----

|             |   | June 30, 2010 |    |   | December 31, 2009 |   |
|------------------|--------|---------------|---------|--------|-------------------|--------|
|             |   |          |    |   |              |   |
| Accounts payable |   | $             | 398,589 |   |              | $      | 820,868 |   |
| Accrued expenses |   |          | 384,931 |   |              |   | 12,507 |   |
|             |   |          |    |   |              |   |   |   |
| Total            |   | $             | 783,520 |   |              | $      | 833,375 |   |

|                                                                       |   | June 30, |    |   | December 31, |   |
|----------------------------------------------------------------------------|--------|----------|---------|--------|--------------|--------|
|                                                                       |   | 2010     |    |   | 2009         |   |
|                                                                       |   |     |    |   |         |   |
| 6.372% one-year term loan from Bank of  China, maturing on       |   |     |    |   |         |   |
| August 30, 2010 and secured by the company's property and                  |   |     |    |   |         |   |
| equipment. Interest is to be paid monthly; and 6.372% one-year             |   |     |    |   |         |   |
| term loan from Bank of  China, maturing on March 24, and secured |   |     |    |   |         |   |
| by the company's Warehouse receipts                                        |   | $        | 441,900 |   |         | $      | 880,200 |   |
|                                                                       |   |     |    |   |         |   |   |   |
| Total                                                                      |   | $        | 441,900 |   |         | $      | 880,200 |   |

----

|                |   | For the Six Months Ended June 30, |   |
|---------------------|--------|-----------------------------------|--------|
|                |   | 2010                              |   |   | 2009 |   |
| Current – PRC |   | $                                 | 58,410 |   |   | $ | 50,707 |   |
| Deferred            |   |                              | -      |   |   |   | - |   |
| Total               |   | $                                 | 58,410 |   |   | $ | 50,707 |   |

|                                             |                              |       |
|--------------------------------------------------|-----------------------------------|------------|
|                                             |  Three Months Ended June 30, |       |
|                                             | 2010                              |       |   | 2009 |   |
|                                             |                              |       |   |   |   |
| Net income                                       | $                                 | 106,782    |   |   | $ | 121,249 |   |
|                                             |                              |       |   |   |   |   |   |
| Weighted average common shares                   |                              | 12,000,000 |   |   |   | 12,000,000 |   |
|  (denominator for basic income per share)   |                              |       |   |   |   |   |   |
|                                             |                              |       |   |   |   |   |   |
| Effect of dilutive securities                    |                              | -          |   |   |   | - |   |
|                                             |                              |       |   |   |   |   |   |
| Weighted average common shares                   |                              | 12,000,000 |   |   |   | 12,000,000 |   |
|  (denominator for diluted income per share) |                              |       |   |   |   |   |   |
|                                             |                              |       |   |   |   |   |   |
| Basic earnings per share                         | $                                 | 0.01       |   |   | $ | 0.01 |   |
| Diluted earnings per share                       | $                                 | 0.01       |   |   | $ | 0.01 |   |
|                                             |                              |       |   |   |   |   |   |
|                                             |  Six Months Ended June 30,   |       |
|                                             |                              | 2010       |   |   |   | 2009 |   |
|                                             |                              |       |   |   |   |   |   |
| Net income                                       | $                                 | 129,957    |   |   | $ | 169,277 |   |
|                                             |                              |       |   |   |   |   |   |
| Weighted average common shares                   |                              | 12,000,000 |   |   |   | 12,000,000 |   |
|  (denominator for basic income per share)   |                              |       |   |   |   |   |   |
|                                             |                              |       |   |   |   |   |   |
| Effect of dilutive securities                    |                              | -          |   |   |   | - |   |
|                                             |                              |       |   |   |   |   |   |
| Weighted average common shares                   |                              | 12,000,000 |   |   |   | 12,000,000 |   |
|  (denominator for diluted income per share) |                              |       |   |   |   |   |   |
|                                             |                              |       |   |   |   |   |   |
| Basic earnings per share                         | $                                 | 0.01       |   |   | $ | 0.01 |   |
| Diluted earnings per share                       | $                                 | 0.01       |   |   | $ | 0.01 |   |

----

|                       |   | Six Months Ended June 30, |   |
|----------------------------|--------|---------------------------|--------|
|                       |   | 2010                      |   |   | 2009 |   |
|                       |   |                      |   |   |   |   |
| Cash paid for interest     |   | $                         | 32,231 |   |   | $ | 31,209 |   |
| Cash paid for income taxes |   | $                         | 58,410 |   |   | $ | 50,707 |   |

| Period ended June 30, |   |   |      |
|-----------------------|--------|--------|-----------|
| 2011                  |   | $      | 271,294   |   |
| 2012                  |   |   | 246,206   |   |
| 2013                  |   |   | 153,482   |   |
| 2014                  |   |   | 145,334   |   |
| 2015                  |   |   | 134,084   |   |
| Thereafter            |   |   | 189,059   |   |
|                  |   |   |      |   |
| Total                 |   | $      | 1,139,459 |   |

----

| Contracted but not yet provided for:                      |   |   |      |
|-----------------------------------------------------------|--------|--------|-----------|
| Investment in Fuyang Prosperous as disclosed in Note 1(d) |   | $      | 1,095,200 |   |

| ▪   | Retail sales of Compressed Natural Gas (“CNG”) through operation of CNG filling stations; |
|---------------------|-------------------------------------------------------------------------------------------------------|

| ▪   | Retail sales of Liquefied Petroleum Gas (“LPG”) through operation of LPG filling stations; and |
|---------------------|------------------------------------------------------------------------------------------------------------|

| ▪   | Wholesale of CNG and LPG |
|---------------------|--------------------------|

|                            |   | For the Six Months Ended June 30, |      |
|---------------------------------|--------|-----------------------------------|-----------|
| Revenue from external customers |   | 2010                              |      |   | 2009 |   |
| CNG retail                      |   | $                                 | 2,762,495 |   |   | $ | 1,888,399 |   |
| LPG retail                      |   |                              | 297,955   |   |   |   | 535,890 |   |
| CNG and LPG wholesale           |   |                              | 5,066,256 |   |   |   | 5,550,076 |   |
| Unallocated                     |   |                              | 1,857,733 |   |   |   | 1,446,750 |   |
| Consolidated                    |   | $                                 | 9,984,439 |   |   | $ | 9,421,115 |   |
|                            |   |                              |      |   |   |   |   |   |
|                            |   | For the Six Months Ended June 30, |      |
| Net income                      |   |                              | 2010      |   |   |   | 2009 |   |
| CNG retail                      |   | $                                 | 259,124   |   |   | $ | 207,724 |   |
| LPG retail                      |   |                              | (24,121   | ) |   |   | 35,282 |   |
| CNG and LPG wholesale           |   |                              | (301,974  | ) |   |   | (163,966 | ) |
| Unallocated                     |   |                              | 196,928   |   |   |   | 90,237 |   |
| Consolidated                    |   | $                                 | 129,957   |   |   | $ | 169,277 |   |

----

|                                                   |   | For the Six Months Ended June 30, |       |
|--------------------------------------------------------|--------|-----------------------------------|------------|
| Investment income from non-consolidated entities       |   |                              | 2010       |   |   |   | 2009 |   |
| Consolidated                                           |   | $                                 | 156,885    |   |   | $ | 156,976 |   |
|                                                   |   |                              |       |   |   |   |   |   |
|                                                   |   | For the Six Months Ended June 30, |       |
| Interest expenses                                      |   |                              | 2010       |   |   |   | 2009 |   |
| Consolidated                                           |   | $                                 | (32,231    | ) |   | $ | (31,209 | ) |
|                                                   |   |                              |       |   |   |   |   |   |
|                                                   |   | For the Six Months Ended June 30, |       |
| Income before noncontrolling interest and income taxes |   |                              | 2010       |   |   |   | 2009 |   |
| Consolidated                                           |   | $                                 | 186,972    |   |   | $ | 221,219 |   |
|                                                   |   |                              |       |   |   |   |   |   |
|                                                   |   | For the Six Months Ended June 30, |       |
| Segment assets                                         |   |                              | 2010       |   |   |   | 2009 |   |
| CNG retail                                             |   | $                                 | 1,895,854  |   |   | $ | 1,114,178 |   |
| LPG retail                                             |   |                              | 46,804     |   |   |   | 52,318 |   |
| CNG and LPG wholesale                                  |   |                              | 1,088,154  |   |   |   | 1,288,982 |   |
| Unallocated                                            |   |                              | 26,645,596 |   |   |   | 15,926,822 |   |
| Consolidated                                           |   | $                                 | 29,676,408 |   |   | $ | 18,382,300 |   |

----

----

----

|                                                                                                                               | June 30, 2010                   | December 31, 2009               |
|------------------------------------------------------------------------------------------------------------------------------------|---------------------------------|---------------------------------|
| Balance sheet items, except for paid-in capital and retained earnings as of the end of period                                      | US$1:RMB6.7889                  | US$1:RMB6.8166                  |
|                                                                                                                               |
|                                                                                                                               | Three months endedJune 30, 2010 | Three months endedJune 30, 2009 |
| Amounts included in the statements of income, statements of stockholders’ equity and statements of cash flows for the period | US$1:RMB6.8335                  | US$1:RMB6.8399                  |
|                                                                                                                               |
|                                                                                                                               | Six months endedJune 30, 2010   | Six months endedJune 30, 2009   |
| Amounts included in the statements of income, statements of stockholders’ equity and statements of cash flows for the period | US$1:RMB6.8171                  | US$1:RMB6.8432                  |

----

----

|                                     |   | For the quarter endedJune 30, 2010 |      |   | For the quarter endedJune 30, 2009 |   |   | Changes |   |
|------------------------------------------|--------|------------------------------------|-----------|--------|------------------------------------|--------|--------|---------|--------|
|                                     |   | Amount                             |      |   | Percentage ofRevenue               |   |   | Amount  |   |   | PercentageofRevenue |   |   | Amount |   |   | Percentage |   |
|                                     |   |  $                            |      |   | (%)                                |   |   |  $ |   |   | (%) |   |   |  $ |   |   | $(%) |   |
| Sales                                    |   | $                                  | 5,311,443 |   |                               |   | 100.00 | %       |   |   | 5,416,252 |   |   |   | 100.00 | % |   |   | (104,819 |  ) |   |   | (1.94 | %) |
|                                     |   |                               |      |   |                               |   |   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Cost of Sales                            |   |                               | 4,674,824 |   |                               |   | 88.01  | %       |   |   | 4,673,606 |   |   |   | 86.29 | % |   |   | 1,218 |   |   |   | 0.03 | % |
|                                     |   |                               |      |   |                               |   |   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Gross Profit                             |   |                               | 636,619   |   |                               |   | 11.99  | %       |   |   | 742,646 |   |   |   | 13.71 | % |   |   | (106,027 | )  |   |   | (14.28 | %) |
|                                     |   |                               |      |   |                               |   |   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Operating Expenses:               |   |                               | 562,088   |   |                               |   | 10.58  | %       |   |   | 649,529 |   |   |   | 11.99 | % |   |   | (87,441 | ) |   |   | (13.46 | %) |
|                                     |   |                               |      |   |                               |   |   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Selling Expenses                         |   |                               | 391,739   |   |                               |   | 7.38   | %       |   |   | 449,393 |   |   |   | 8.30 | % |   |   | (57,654 | ) |   |   | (12.83 | %) |
|                                     |   |                               |      |   |                               |   |   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| General & Administrative Expenses    |   |                               | 170,349   |   |                               |   | 3.21   | %       |   |   | 200,136 |   |   |   | 3.70 | % |   |   | (29,787 | )  |   |   | (14.88 | %) |
|                                     |   |                               |      |   |                               |   |   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Income from Operations                   |   |                               | 74,531    |   |                               |   | 1.40   | %       |   |   | 93,117 |   |   |   | 1.72 | % |   |   | (18,586 |  ) |   |   | (19.96 | %) |
|                                     |   |                               |      |   |                               |   |   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Other Income (Expenses):          |   |                               | 70,622    |   |                               |   | 1.33   | %       |   |   | 68,467 |   |   |   | 1.26 | % |   |   | 2,155 |   |   |   | 3.15 | % |
|                                     |   |                               |      |   |                               |   |   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Investment Income                        |   |                               | 78,464    |   |                               |   | 1.48   | %       |   |   | 78,630 |   |   |   | 1.45 | % |   |   | (166 | )  |   |   | (0.21 | %) |
|                                     |   |                               |      |   |                               |   |   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest Expense                         |   |                               | (217      | )      |                               |   | -      | %       |   |   | (16,532 | ) |   |   | (0.31 | %) |   |   | (16,315 | ) |   |   | (98.69 | %) |
|                                     |   |                               |      |   |                               |   |   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Other Income (Expenses)                  |   |                               | (7,625    | )      |                               |   | (0.14  | %)      |   |   | 6,369 |   |   |   | 0.12 | % |   |   | (13,995 | ) |   |   | (219.07 | %) |
|                                     |   |                               |      |   |                               |   |   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Income before Provision for Income Taxes |   |                               | 145,153   |   |                               |   | 2.73   | %       |   |   | 161,584 |   |   |   | 2.98 | % |   |   | (16,432 | ) |   |   | (10.17 | %) |
|                                     |   |                               |      |   |                               |   |   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Provision for Income Taxes               |   |                               | 39,704    |   |                               |   | 0.75   | %       |   |   | 39,861 |   |   |   | 0.74 | % |   |   | (157 | )  |   |   | (0.39 | %) |
|                                     |   |                               |      |   |                               |   |   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Income before Noncontrolling Interest    |   |                               | 105,449   |   |                               |   | 1.99   | %       |   |   | 121,723 |   |   |   | 2.25 | % |   |   | (16,257 | ) |   |   | (13.37 | %) |

----

| Noncontrolling Interest                 |   |   | (1,333  | )      |   |   | (0.03  | %)      |   |   | 474     |           |   |   | 0.01   | %      |   |   | (1, 808 |  ) |   |   | (381.43 | %)     |
|-----------------------------------------|--------|--------|---------|--------|--------|--------|--------|---------|--------|--------|---------|----------------|--------|--------|--------|--------|--------|--------|---------|---------|--------|--------|---------|--------|
|                                    |   |   |    |   |   |   |   |    |   |   |    |           |   |   |   |   |   |   |    |    |   |   |    |   |
| Net Income                              |   |   | 106,782 |   |   |   | 2.01   | %       |   |   | 121,249 |           |   |   | 2.24   | %      |   |   | (14,467 | )       |   |   | (13.37  | %)     |
|                                    |   |   |    |   |   |   |   |    |   |   |    |           |   |   |   |   |   |   |    |    |   |   |    |   |
| Foreign Currency Translation Adjustment |   |   | 34,667  |   |   |   | 0.65   |  % |   |   | (41,380 |  ) |   |   | (0.76  | %)     |   |   | 76,046  |    |   |   | 183.77  | %      |
|                                    |   |   |    |   |   |   |   |    |   |   |    |           |   |   |   |   |   |   |    |    |   |   |    |   |
| Total Comprehensive Income              |   |   | 141,449 |   |   |   | 2.66%  | %       |   |   | 79,869  |           |   |   | 1.47   | %      |   |   | 61,579  |    |   |   | 77.10   | %      |
|                                    |   |   |    |   |   |   |   |    |   |   |    |           |   |   |   |   |   |   |    |    |   |   |    |   |

----

|                                     |   | For the six monthsendedJune 30, 2010 |      |   | For the six months endedJune 30, 2009 |                  |   | Changes |   |
|------------------------------------------|--------|--------------------------------------|-----------|--------|---------------------------------------|-----------------------|--------|---------|--------|
|                                     |   | Amount                               |      |   | PercentageofRevenue                   |                  |   | Amount  |   |   | PercentageofRevenue |   |   | Amount |   |   | Percentage |   |
|                                     |   | $                                    |      |   | (%)                                   |                  |   | $       |   |   | (%) |   |   | $ |   |   | (%) |   |
| Sales                                    |   |                                 | 9,984,439 |   |                                  |                  | 100.00 | %       |   |   | 9,421,115 |   |   |   | 100.00 | % |   |   | 563,324 |   |   |   | 5.98 | % |
|                                     |   |                                 |      |   |                                  |                  |   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Cost of Sales                            |   |                                 | 8,654,492 |   |                                  |                  | 86.68  | %       |   |   | 8,014,060 |   |   |   | 85.06 | % |   |   | 640,432 |   |   |   | 7.99 | % |
|                                     |   |                                 |      |   |                                  |                  |   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Gross Profit                             |   |                                 | 1,329,947 |   |                                  |                  | 13.32  | %       |   |   | 1,407,055 |   |   |   | 14.94 | % |   |   | (77,108 | ) |   | (5.48%) |   |
|                                     |   |                                 |      |   |                                  |                  |   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Operating Expenses:               |   |                                 | 1,163,843 |   |                                  |                  | 11.66  | %       |   |   | 1,322,479 |   |   |   | 14.04 | % |   |   | (158,636 | ) |   |   | (12.00 | %) |
|                                     |   |                                 |      |   |                                  |                  |   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Selling Expenses                         |   |                                 | 811,889   |   |                                  |                  | 8.13   | %       |   |   | 951,891 |   |   |   | 10.10 | % |   |   | (140,002 | ) |   |   | (14.71 | %) |
|                                     |   |                                 |      |   |                                  |                  |   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| General & Administrative Expenses    |   |                                 | 351,954   |   |                                  |                  | 3.53   | %       |   |   | 370,588 |   |   |   | 3.93 | % |   |   | (18,634 | ) |   |   | (5.03 | %) |
|                                     |   |                                 |      |   |                                  |                  |   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Income from Operations                   |   |                                 | 166,104   |   |                                  |                  | 1.66   | %       |   |   | 84,576 |   |   |   | 0.90 | % |   |   | 81,528 |   |   |   | 96.40 | % |
|                                     |   |                                 |      |   |                                  |                  |   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Other Income (Expenses):          |   |                                 | 20,868    |   |                                  |                  | 0.21   | %       |   |   | 136,643 |   |   |   | 1.45 | % |   |   | (115,775 | ) |   |   | (84.73 | %) |
|                                     |   |                                 |      |   |                                  |                  |   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Investment Income                        |   |                                 | 156,885   |   |                                  |                  | 1.57   | %       |   |   | 156,976 |   |   |   | 1.67 | % |   |   | (91 | ) |   |   | (0.06 | %) |
|                                     |   |                                 |      |   |                                  |                  |   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest Expense                         |   |                                 | (32,231   | )      |                                  |                  | (0.32  | %)      |   |   | (31,209 | ) |   |   | (0.33 | %) |   |   | 1,022 |   |   |   | 3.27 | % |
|                                     |   |                                 |      |   |                                  |                  |   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Other Income (Expenses)                  |   |                                 | (103,786  | )      |                                  | (1.04%) |   |    |   | 10,876 |   |   |   | 0.12 | % |   |   | (114,662 | ) |   |   | (1,054.27 | %) |
|                                     |   |                                 |      |   |                                  |                  |   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Income before Provision for Income Taxes |   |                                 | 186,972   |   |                                  |                  | 1.87   | %       |   |   | 221,219 |   |   |   | 2.35 | % |   |   | (34,247 | ) |   |   | (15.48 | %) |
|                                     |   |                                 |      |   |                                  |                  |   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Provision for Income Taxes               |   |                                 | 58,410    |   |                                  |                  | 0.59   | %       |   |   | 50,707 |   |   |   | 0.54 | % |   |   | 7,703 |   |   |   | 15.19 | % |
|                                     |   |                                 |      |   |                                  |                  |   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Income before Noncontrolling interest    |   |                                 | 128,562   |   |                                  |                  | 1.29   | %       |   |   | 170,512 |   |   |   | 1.81 | % |   |   | (41,950 | ) |   |   | (24.60 | %) |
|                                     |   |                                 |      |   |                                  |                  |   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Noncontrolling Interest                  |   |                                 | (1,395    | )      |                                  | (0.01%) |   |    |   | 1,235 |   |   |   | 0.01 | % |   |   | (2,630 | ) |   |   | (212.96 | %) |
|                                     |   |                                 |      |   |                                  |                  |   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net Income                               |   |                                 | 129,957   |   |                                  |                  | 1.30   | %       |   |   | 169,277 |   |   |   | 1.80 | % |   |   | (39,320 | ) |   |   | (23.23 | %) |
|                                     |   |                                 |      |   |                                  |                  |   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Foreign Currency Translation Adjustment  |   |                                 | 34,676    |   |                                  |                  | 0.35   | %       |   |   | 58,938 |   |   |   | 0.63 | % |   |   | (24,262 | ) |   |   | (41.17 | %) |
|                                     |   |                                 |      |   |                                  |                  |   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total Comprehensive Income               |   |                                 | 164,633   |   |                                  |                  | 1.65   | %       |   |   | 228,215 |   |   |   | 2.42 | % |   |   | (63,582 | ) |   |   | (27.86 | %) |

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|                                |   | For the quarter endedJune 30 2010 |      | For the quarter endedJune 30 2009 |   | Change inPercentage (%) |   |
|-------------------------------------|--------|-----------------------------------|-----------|-----------------------------------|--------|-------------------------|--------|
| Sales                               |   | $                                 | 5,311,443 |                              | $      | 5,416,252               |   |   | (1.94 | %) |
| Net income                          |   | $                                 | 106,782   |                              | $      | 121,249                 |   |   | (11.93 | %) |
| Net Income as a percentage of sales |   | $                                 | 2.01%     |                              | $      | 2.24%                   |   |   | (17.62 | %) |

| 1)   | The sales of our three LPG stations decrease by 41.38%,which was affected by energy policies and the LPG taxis out of the market. |
|----------------|-----------------------------------------------------------------------------------------------------------------------------------|

| 2)   | In the First Half of the Year,a lot of LPG companies blend the LPG with a high cost and DME with a lower cost together to get a lower price, so the sale price decreased, which affected our LPG business very much and caused a decrease of 22.74%. |
|----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 1)   | The sales decreased. Affected by LPG business, the sales decreased by 1.94%. In light of the increasing demand for natural gas, our suppliers increased CNG prices, which led to the increase in our CNG purchasing costs. Because of the above two factors, the gross profit fell by 14.28%, and meanwhile the consolidated net income decreased |
|----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 2)   | The increase in interest expense. In August, 2009, we obtained some interest on deposit from Bank of China in Anyang,which counteracted the effect of increased interest expense. |
|----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Items         |   | For the quarter ended June 30, 2010 ($) |      |   | Percentage(%) |   |   | For the quarter ended June 30, 2009 ($) |   |   | Percentage(%) |   |   | Change in Amount ($) |   |   | Change InPercentage (%) |   |
|---------------|--------|-----------------------------------------|-----------|--------|---------------|--------|--------|-----------------------------------------|--------|--------|---------------|--------|--------|----------------------|--------|--------|------------------------------|--------|
| CNG retail    |   |                                    | 1,443,046 |   |          |   | 27.17  | %                                       |   |   | 960,189       |   |   |                 | 17.73  | %      |                         |   | 482,857 |   |   |   | 50.29 | % |
| CNG wholesale |   |                                    | -         |   |          |   | -      | %                                       |   |   | 1,493         |   |   |                 | 0.03   | %      |                         |   | (1,493 | ) |   |   | (100.00 | %) |
| LPG retail    |   |                                    | 140,290   |   |          |   | 2.64   | %                                       |   |   | 239,318       |   |   |                 | 4.42   | %      |                         |   | (99,028 | ) |   |   | (41.38 | %) |
| LPG wholesale |   |                                    | 2,723,323 |   |          |   | 51.27  | %                                       |   |   | 3,524,737     |   |   |                 | 65.08  | %      |                         |   | (801,414 |   |   |   | (22.74 | %) |
| Others        |   |                                    | 1,004,784 |   |          |   | 18.92  | %                                       |   |   | 690,515       |   |   |                 | 12.75  | %      |                         |   | 314,268 |   |   |   | 45.51 | % |
| TOTAL         |   |                                    | 5,311,443 |   |          |   | 100.00 | %                                       |   |   | 5,416,252     |   |   |                 | 100.00 | %      |                         |   | (104,809 | ) |   |   | (1.94 | %) |

----

| 1)   | Pursuant to the "The Guideline Catalog of Industrial Structure Adjustment (2007)"  issued by National Development and Reform Commission (NDRC) new and clean energy vehicles were officially listed among the “encouraged products” and CNG/petroleum dual-fuel automobiles, a major type of clean energy vehicles,  are staged for full promotion by NDRC, which lead to the significant increase in our CNG retail sales; |
|----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 2)   | In 2009, we have two new CNG fillings stations open for business, which were West Jiefang Road station open in Jiaozuo City in January 2009 and Pingdingshan station in Pingdingshan in March, 2009. In the quarter ended June 30, 2010 these two new stations were in full operations and the Company has in total six fully operating CNG stations, which contributed to the increase in CNG retail sales; |
|----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 3)   | Changzi City, where our Changzhi CNG station is located, adopted a unified retail price for CNG products, which enabled our Changzhi CNG station to avoid unhealthy market competition and to maintain healthy operation that led to the increase in sales of Changzhi CNG station. |
|----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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| Gross Margin  |   | 2010   |   |   | 2009   |   |   | Comparisons |   |
|---------------|--------|--------|--------|--------|--------|--------|--------|-------------|--------|
| TOTAL         |   |   | 11.99% |   |   |   | 13.71% |        |   |   | (1.72%) |   |
| CNG Retail    |   |   | 23.90% |   |   |   | 86.10% |        |   |   | (23.60%) |   |
| CNG Wholesale |   |   |   |   |   |   | 14.04% |        |   |   | (100.00%) |   |
| LPG Retail    |   |   | 11.88% |   |   |   | 86.10% |        |   |   | (74.22%) |   |
| LPG Wholesale |   |   | 2.41%  |   |   |   | 5.17%  |        |   |   | (2.76%) |   |

| Quarter Ended June 30 |   | Retail LPG(per ton) |         |   | Wholesale LPG(per ton) |    |   | CNG(per cube) |   |
|-----------------------|--------|---------------------|--------------|--------|------------------------|---------|--------|---------------|--------|
| 2009                  |   |  $             |  427.98 |   |                   |  $ | 426.12 |          |   |  $ | 0.29 |   |
| 2010                  |   |  $             | 742.04       |   |                   |  $ | 685.69 |          |   |  $ | 0.32 |   |

----

| a)   | We will continue building new CNG filling stations as to expand our market share, such as Linying mother station that was completed in June 2010, equipment installation teating for which is under way. The second gas station  in Changzhi is being built and will be completed by the end of 2010; |
|----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| b)   | The Company will take proper measures to reduce fluctuations in the COS. These measures includes: centralized purchasing to obtain lower prices of raw materials, maintaining long-term stable cooperative relations with the existing gas source suppliers, increasing the development of new gas suppliers, and solving gas supply problems and reducing the cost of sales by way of joint venture and self-built CNG mother stations.  |
|----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| c)   | We are also looking forward to reorganization and optimization of existing management processes, improvement of internal management, increase management efficiency and reduction of administrative costs, which will lead to the increase of our profits. |
|----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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| Cash provided by (used in):  | Six months ended June 30,2010 | Six months ended June 30,2009 | Change                    |
|-----------------------------------|------------------------------------|------------------------------------|---------------------------|
|                              |                               |                               | Amount                    | Percentage |
|                              | ($)                                | ($)                                | ($)                       | (%) |
| Operating Activities              | 590,490                            | (2,145,985)          | 2,736,475                 | 128% |
|                              |                               |                               |                      |   |
| Investing Activities              | (977,970)            | (330,502)            | 647,468                   | 196% |
|                              |                               |                               |                      |   |
| Financing Activities              | 425,971                            | 2,390,081                          | (1,964,110) | (82%) |

| 1)  | Payment advances from customers;                                                                                                                                                                                                                                    |
|----------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|     |                                                                                                                                                                                                                                                                |
| 2)  | The customers of payment in advance reduced. on December 9, 2009, Anyang Prosperous acquired 15% of the shares of Henan Ancai Energy Co., Ltd. Payment in advance of the purchasement was turned into the investment after finishing the acquire procedure in 2010. |

----

|                |   | For the Three Months |   |
|---------------------|--------|----------------------|--------|
|                |   | Ended June 30,       |   |
|                |   | 2010                 |   |   | 2009 |   |
|                |   |                 |   |   |   |   |
| Current – PRC |   | $                    | 39,704 |   |   | $ | 39,861 |   |
|                |   |                 |   |   |   |   |   |   |
| Deferred            |   | $                    | 39,704 |   |   | $ | 39,861 |   |

----

----

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| Exhibit No. | Description |
|------------------|-------------|
|             |        |   |
| 3.1              |        | Articles of Incorporation (1) |
|             |        |   |
| 3.2              |        | Bylaws (1) |
|             |        |   |
| 10.1             |        | Affiliate Stock Purchase Agreement between Walter Brenner and Oracular Dragon Capital Company, Ltd. (2) |
|             |        |   |
| 10.2             |        | Affiliate Stock Purchase Agreement between Horst Balthes and Oracular Dragon Capital Company, Ltd.(2) |

| 10.3   |   | Non-Affiliate Stock Purchase Agreement (2)                                                                  |
|--------|--------|-------------------------------------------------------------------------------------------------------------|
|   |   |                                                                                                        |
| 10.4   |   | Share Exchange Agreement, dated June 30, 2008, between Company and Oracular Dragon Capital Company, Ltd.(3) |
|   |   |                                                                                                        |
| 31.1   |   | Section 302 Certificate of Chief Executive Officer *                                                        |
|   |   |                                                                                                        |
| 31.2   |   | Section 302 Certificate of Chief Financial Officer *                                                        |
|   |   |                                                                                                        |
| 32.1   |   | Section 906 Certificate of Chief Executive Officer *                                                        |
|   |   |                                                                                                        |
| 32.2   |   | Section 906 Certificate of Chief Financial Officer *                                                        |

| Date: August 13, 2010 | CHINA PROSPEROUS CLEAN ENERGY CORPORATION                             |
|-----------------------|-----------------------------------------------------------------------|
|                  |                                                                  |
|                  | /s/Hongjie Zhou          |
|                  |   Hongjie Zhou                                              |
|                  |  Acting Chief Financial Officer                                  |

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