| Nevada                                                        |   | 20-812712                        |
|---------------------------------------------------------------|--------|----------------------------------|
| (State or other jurisdiction ofincorporation or organization) |   | (IRS EmployerIdentification No.) |

| Large Accelerated Filer  ̈ | Accelerated Filer  ̈ | Non-Accelerated Filer  ̈ | Smaller Reporting Company x |
|--------------------------------|--------------------------|------------------------------|-----------------------------|

----

|                                                                    |   | PAGE   |
|-------------------------------------------------------------------------|--------|--------|
| PART I FINANCIAL INFORMATION                                            |   |   |
|                                                                    |   |   |
| ITEM 1. FINANCIAL STATEMENTS                                            |   | 3      |
|                                                                    |   |   |
| ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OR PLAN OF OPERATION |   | 5      |
|                                                                    |   |   |
| ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK      |   | 15     |
|                                                                    |   |   |
| ITEM 4. CONTROLS AND PROCEDURES                                         |   | 15     |
|                                                                    |   |   |
| PART II OTHER INFORMATION                                               |   |   |
|                                                                    |   |   |
| ITEM 1. LEGAL PROCEEDINGS                                               |   | 16     |
|                                                                    |   |   |
| ITEM 1A. RISK FACTORS                                                   |   | 16     |
|                                                                    |   |   |
| ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS     |   | 16     |
|                                                                    |   |   |
| ITEM 3. DEFAULTS UPON SENIOR SECURITIES                                 |   | 16     |
|                                                                    |   |   |
| ITEM 4. (REMOVED AND RESERVED)                                          |   | 16     |
|                                                                    |   |   |
| ITEM 5. OTHER INFORMATION                                               |   | 16     |
|                                                                    |   |   |
| ITEM 6. EXHIBITS                                                        |   | 16     |
|                                                                    |   |   |
| SIGNATURES                                                              |   | 18     |
|                                                                    |   |   |
| EXHIBIT 31.1                                                            |   |   |
|                                                                    |   |   |
| EXHIBIT 31.2                                                            |   |   |
|                                                                    |   |   |
| EXHIBIT 32.1                                                            |   |   |
|                                                                    |   |   |
| EXHIBIT 32.2                                                            |   |   |

----

----

| PAGES  |   | F-1-F-2  |   | CONDENSED CONSOLIDATED BALANCE SHEETS AS OF SEPTEMBER 30, 2011 AND JUNE 30, 2011 (UNAUDITED)                                            |
|--------|--------|----------|--------|-----------------------------------------------------------------------------------------------------------------------------------------|
|   |   |     |   |                                                                                                                                    |
| PAGES  |   | F-3      |   | CONDENSED CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2011 AND 2010 (UNAUDITED) |
|   |   |     |   |                                                                                                                                    |
| PAGES  |   | F-4-F-5  |   | CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2011 AND 2010 (UNAUDITED)                      |
|   |   |     |   |                                                                                                                                    |
| PAGES  |   | F-6-F-25 |   | NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2011 AND 2010 (UNAUDITED)                 |

----

|                                                                                                                                       |   | September 30, |        |   | June 30, |   |
|--------------------------------------------------------------------------------------------------------------------------------------------|--------|---------------|-------------|--------|----------|--------|
|                                                                                                                                       |   | 2011          |        |   | 2011     |   |
| CURRENT ASSETS                                                                                                                             |   |          |        |   |     |   |
| Cash and cash equivalents                                                                                                                  |   | $             | 3,315,719   |   |     | $      | 4,292,507 |   |
| Restricted cash                                                                                                                            |   |          | 219,144     |   |     |   | - |   |
| Accounts receivable, net of allowance for doubtful accounts of $697,154 and $794,850 at September 30, 2011 and June 30, 2011, respectively |   |          | 85,681,726  |   |     |   | 97,785,036 |   |
| Inventories                                                                                                                                |   |          | 20,124,303  |   |     |   | 10,430,199 |   |
| Notes receivable, including bank acceptance notes                                                                                          |   |          | 17,941,825  |   |     |   | 7,214,395 |   |
| Prepayments for goods                                                                                                                      |   |          | 7,550,622   |   |     |   | 5,710,029 |   |
| Prepaid expenses and other receivables                                                                                                     |   |          | 43,753      |   |     |   | 40,362 |   |
| Due from employees                                                                                                                         |   |          | 191,790     |   |     |   | 39,206 |   |
| Due from related party                                                                                                                     |   |          | 26,100      |   |     |   | - |   |
| Total Current Assets                                                                                                                       |   |          | 135,094,982 |   |     |   | 125,511,734 |   |
|                                                                                                                                       |   |          |        |   |     |   |   |   |
| LONG-TERM ASSETS                                                                                                                           |   |          |        |   |     |   |   |   |
| Plant and equipment, net                                                                                                                   |   |          | 3,823,227   |   |     |   | 3,081,362 |   |
| Land use rights, net                                                                                                                       |   |          | 2,369,999   |   |     |   | 925,240 |   |
| Construction in progress                                                                                                                   |   |          | 166,187     |   |     |   | 889,839 |   |
| Deposit for land use right                                                                                                                 |   |          | -           |   |     |   | 1,326,605 |   |
| Deferred taxes                                                                                                                             |   |          | 144,101     |   |     |   | 136,992 |   |
| Total Long-Term Assets                                                                                                                     |   |          | 6,503,514   |   |     |   | 6,360,038 |   |
|                                                                                                                                       |   |          |        |   |     |   |   |   |
| TOTAL ASSETS                                                                                                                               |   | $             | 141,598,496 |   |     | $      | 131,871,772 |   |

----

|                                                                                                                                            |   | September 30, |        |   | June 30, |   |
|-------------------------------------------------------------------------------------------------------------------------------------------------|--------|---------------|-------------|--------|----------|--------|
|                                                                                                                                            |   | 2011          |        |   | 2011     |   |
| CURRENT LIABILITIES                                                                                                                             |   |          |        |   |     |   |
| Accounts payable                                                                                                                                |   | $             | 7,608,417   |   |     | $      | 6,576,118 |   |
| Short-term bank loans                                                                                                                           |   |          | 2,661,032   |   |     |   | 2,630,154 |   |
| Customer deposits                                                                                                                               |   |          | 641,868     |   |     |   | 219,819 |   |
| Notes payable, including related parties                                                                                                        |   |          | 1,625,144   |   |     |   | 1,313,909 |   |
| Current portion of long-term notes payable to related parties                                                                                   |   |          | 93,657      |   |     |   | 90,864 |   |
| Income tax payable                                                                                                                              |   |          | 10,911,574  |   |     |   | 9,723,497 |   |
| Other payables                                                                                                                                  |   |          | 1,293,184   |   |     |   | 1,199,764 |   |
| Value added tax payable                                                                                                                         |   |          | 29,883,367  |   |     |   | 26,331,151 |   |
| Due to employees                                                                                                                                |   |          | 46,969      |   |     |   | 78,953 |   |
| Due to related parties                                                                                                                          |   |          | 213,059     |   |     |   | 132,599 |   |
| Accrued expenses                                                                                                                                |   |          | 845,601     |   |     |   | 829,115 |   |
| Deferred taxes                                                                                                                                  |   |          | 653,668     |   |     |   | 937,880 |   |
| Total Current Liabilities                                                                                                                       |   |          | 56,477,540  |   |     |   | 50,063,823 |   |
|                                                                                                                                            |   |          |        |   |     |   |   |   |
| LONG-TERM LIABILITIES                                                                                                                           |   |          |        |   |     |   |   |   |
| Long-term portion of notes payable to related parties                                                                                           |   |          | 200,199     |   |     |   | 221,667 |   |
| Total Long-Term Liabilities                                                                                                                     |   |          | 200,199     |   |     |   | 221,667 |   |
|                                                                                                                                            |   |          |        |   |     |   |   |   |
| TOTAL LIABILITIES                                                                                                                               |   |          | 56,677,739  |   |     |   | 50,285,490 |   |
|                                                                                                                                            |   |          |        |   |     |   |   |   |
| COMMITMENT AND CONTINGENCIES                                                                                                                    |   |          |        |   |     |   |   |   |
|                                                                                                                                            |   |          |        |   |     |   |   |   |
| SHAREHOLDERS’ EQUITY                                                                                                                      |   |          |        |   |     |   |   |   |
| Common stock, $0.001 par value; 350,000,000 shares authorized; 240,000,000shares issued and outstanding at September 30, 2011 and June 30, 2011 |   |          | 240,000     |   |     |   | 240,000 |   |
| Additional paid-in capital                                                                                                                      |   |          | 892,334     |   |     |   | 892,334 |   |
| Retained earnings (the restricted portion is $204,069 at September 30, 2011 and June 30, 2011)                                                  |   |          | 74,991,600  |   |     |   | 72,613,580 |   |
| Accumulated other comprehensive income                                                                                                          |   |          | 8,796,823   |   |     |   | 7,840,368 |   |
| TOTAL SHAREHOLDERS’ EQUITY                                                                                                                |   |          | 84,920,757  |   |     |   | 81,586,282 |   |
|                                                                                                                                            |   |          |        |   |     |   |   |   |
| TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY                                                                                                |   | $             | 141,598,496 |   |     | $      | 131,871,772 |   |

----

|                                                   |   | Three Months Ended |        |
|--------------------------------------------------------|--------|--------------------|-------------|
|                                                   |   | September 30,2011  |        |   | September 30,2010 |   |
| REVENUES, NET                                          |   | $                  | 22,708,137  |   |   | $ | 30,138,909 |   |
|                                                   |   |               |        |   |   |   |   |   |
| COST OF GOODS SOLD                                     |   |               | (18,884,367 | ) |   |   | (25,612,164 | ) |
| GROSS PROFIT                                           |   |               | 3,823,770   |   |   |   | 4,526,745 |   |
|                                                   |   |               |        |   |   |   |   |   |
| Selling and marketing                                  |   |               | (420,980    | ) |   |   | (1,100,608 | ) |
| General and administrative                             |   |               | (323,026    | ) |   |   | (326,022 | ) |
| Bad debt recoveries                                    |   |               | 106,778     |   |   |   | - |   |
| INCOME FROM OPERATIONS                                 |   |               | 3,186,542   |   |   |   | 3,100,115 |   |
|                                                   |   |               |        |   |   |   |   |   |
| Interest expense, net                                  |   |               | (43,617     | ) |   |   | (141,090 | ) |
| Other income, net                                      |   |               | 12,792      |   |   |   | 134,603 |   |
| Exempted value added tax                               |   |               | -           |   |   |   | 3,231,156 |   |
|                                                   |   |               |        |   |   |   |   |   |
| INCOME BEFORE INCOME TAXES                             |   |               | 3,155,717   |   |   |   | 6,324,784 |   |
|                                                   |   |               |        |   |   |   |   |   |
| INCOME TAXES                                           |   |               | (777,697    | ) |   |   | (868,407 | ) |
|                                                   |   |             |        |   |   |   |   |
| NET INCOME                                             |   |               | 2,378,020   |   |   |   | 5,456,377 |   |
|                                                   |   |               |        |   |   |   |   |   |
| OTHER COMPREHENSIVE INCOME                             |   |               |        |   |   |   |   |   |
| Foreign currency translation gain                      |   |               | 956,456     |   |   |   | 973,804 |   |
|                                                   |   |               |        |   |   |   |   |   |
| COMPREHENSIVE INCOME                                   |   | $                  | 3,334,476   |   |   | $ | 6,430,181 |   |
|                                                   |   |               |        |   |   |   |   |   |
| WEIGHTED AVERAGE SHARES OUTSTANDING, BASIC AND DILUTED |   |               | 240,000,000 |   |   |   | 240,000,000 |   |
|                                                   |   |               |        |   |   |   |   |   |
| NET INCOME PER SHARE, BASIC AND DILUTED                |   | $                  | 0.01        |   |   | $ | 0.02 |   |

----

|                                                                                |   | Three Months Ended |        |
|-------------------------------------------------------------------------------------|--------|--------------------|-------------|
|                                                                                |   | September 30,2011  |        |   | September 30,2010 |   |
| CASH FLOWS FROM OPERATING ACTIVITIES:                                               |   |               |        |   |   |   |
| Net income                                                                          |   | $                  | 2,378,020   |   |   | $ | 5,456,377 |   |
|                                                                                |   |               |        |   |   |   |   |   |
| Adjustments to reconcile net income to net cash provided by operating activities:   |   |               |        |   |   |   |   |   |
| Depreciation and amortization                                                       |   |               | 105,514     |   |   |   | 69,568 |   |
| Provision for doubtful accounts                                                     |   |               | -           |   |   |   | 2,218 |   |
| Exempted value added tax                                                            |   |               | -           |   |   |   | (3,231,156 | ) |
| Deferred taxes                                                                      |   |               | (291,322    | ) |   |   | 442,227 |   |
| Net gain on settlement of accounts receivable and accounts payable for fixed assets |   |               | (4,955      | ) |   |   | (2,487 | ) |
|                                                                                |   |               |        |   |   |   |   |   |
| (Increase) Decrease In:                                                             |   |               |        |   |   |   |   |   |
| Accounts receivable                                                                 |   |               | 12,094,227  |   |   |   | (4,666,502 | ) |
| Inventories                                                                         |   |               | (9,694,104  | ) |   |   | (3,998,198 | ) |
| Prepayments for goods                                                               |   |               | (1,840,593  | ) |   |   | (1,062,173 | ) |
| Prepaid expenses and other receivables                                              |   |               | (3,393      | ) |   |   | (56,808 | ) |
| Due from employees                                                                  |   |               | (152,584    | ) |   |   | (902 | ) |
| Due from related parties                                                            |   |               | (26,100     | ) |   |   | - |   |
|                                                                                |   |               |        |   |   |   |   |   |
| Increase (Decrease) In:                                                             |   |               |        |   |   |   |   |   |
| Accounts payable                                                                    |   |               | 1,042,980   |   |   |   | 2,514,312 |   |
| Other payables                                                                      |   |               | 93,420      |   |   |   | 45,513 |   |
| Value added tax payable                                                             |   |               | 3,552,216   |   |   |   | 4,860,096 |   |
| Taxes payable                                                                       |   |               | 1,188,077   |   |   |   | 511,150 |   |
| Customer deposits                                                                   |   |               | 422,050     |   |   |   | 588,268 |   |
| Due to employees                                                                    |   |               | (31,985     | ) |   |   | (15,754 | ) |
| Due to related parties                                                              |   |               | 80,460      |   |   |   | 54,991 |   |
| Accrued expenses                                                                    |   |               | 16,488      |   |   |   | (78,406 | ) |
| Net cash provided by operating activities                                           |   |               | 8,928,416   |   |   |   | 1,432,334 |   |
|                                                                                |   |               |        |   |   |   |   |   |
| CASH FLOWS FROM INVESTING ACTIVITIES:                                               |   |               |        |   |   |   |   |   |
| Purchases of plant and equipment                                                    |   |               | (69,345     | ) |   |   | (6,660 | ) |
| Purchases of construction in progress                                               |   |               | (205        | ) |   |   | (2,287 | ) |
| Payment for land use right                                                          |   |               | (131,502    | ) |   |   | - |   |
| Repayment of notes receivable                                                       |   |               | 15,445,201  |   |   |   | 21,445,788 |   |
| Issuances of notes receivable                                                       |   |               | (26,063,170 | ) |   |   | (23,471,881 | ) |
| Net cash used in investing activities                                               |   | $                  | (10,819,021 | ) |   | $ | (2,035,040 | ) |

----

|                                                |   | Three Months Ended |       |
|-----------------------------------------------------|--------|--------------------|------------|
|                                                |   | September 30,2011  |       |   | September 30,2010 |   |
| CASH FLOWS FROM FINANCING ACTIVITIES:               |   |               |       |   |   |   |
| Restricted cash                                     |   | $                  | (219,144   | ) |   | $ | - |   |
| Proceeds from short-term loans                      |   |               | 937,002    |   |   |   | 294,971 |   |
| Repayments of short-term loans                      |   |               | (937,002   | ) |   |   | (884,914 | ) |
| Repayments of notes payable                         |   |               | (1,002,354 | ) |   |   | (199,953 | ) |
| Proceeds from notes payable                         |   |               | 1,275,183  |   |   |   | 753,150 |   |
| Net cash provided by (used in) financing activities |   |               | 53,685     |   |   |   | (36,746 | ) |
|                                                |   |               |       |   |   |   |   |   |
| NET DECREASE IN CASH AND CASH EQUIVALENTS           |   |               | (1,836,920 | ) |   |   | (639,452 | ) |
| Effect of exchange rate changes on cash             |   |               | 860,132    |   |   |   | 940,749 |   |
| Cash and cash equivalents at beginning of period    |   |               | 4,292,507  |   |   |   | 3,399,360 |   |
| CASH AND CASH EQUIVALENTS AT END OF PERIOD          |   | $                  | 3,315,719  |   |   | $ | 3,700,657 |   |
|                                                |   |               |       |   |   |   |   |   |
| SUPPLEMENTARY CASH FLOW INFORMATION                 |   |               |       |   |   |   |   |   |
| Income taxes paid                                   |   | $                  | 6,297      |   |   | $ | 5,041 |   |
| Interest paid                                       |   | $                  | 59,971     |   |   | $ | 95,433 |   |

----

| Name                                                       |   | Place and Date ofEstablishment/ Incorporation |   | Relationship                     |   | Principal Activities       |
|------------------------------------------------------------|--------|-----------------------------------------------|--------|----------------------------------|--------|----------------------------|
| Jolly Promise Ltd. (“JPL”)                     |   | British Virgin IslandJuly 2, 2008             |   | Wholly-owned subsidiary of Xinde |   | Investment holding company |
|                                                       |   |                                          |   |                             |   |                       |
| H.K. Sindhi Fuel Injection Co., Ltd (“HKSIND”) |   | Hong Kong, PRC,June 7, 2004                   |   | Wholly-owned subsidiary of JPL   |   | Investment holding company |

----

| Name                                                                       |   | Place and Date ofEstablishment/ Incorporation |   | Relationship                             |   | Principal Activities                                                                                                      |
|----------------------------------------------------------------------------|--------|-----------------------------------------------|--------|------------------------------------------|--------|---------------------------------------------------------------------------------------------------------------------------|
| Weifang Huajie Fuel Injection Co., Ltd.(“Huajie”)              |   | Shandong, PRCOctober 24, 2009                 |   | Wholly-owned subsidiary of HKSIND        |   | Investment holding company                                                                                                |
|                                                                       |   |                                          |   |                                     |   |                                                                                                                      |
| Weifang Xinde Fuel Injection System Co., Ltd.(“Weifang Xinde”) |   | Shandong, PRCOctober 29, 2007                 |   | Wholly-owned subsidiary of Huajie        |   | Investment holding company                                                                                                |
|                                                                       |   |                                          |   |                                     |   |                                                                                                                      |
| Weifang Hengyuan Oil Pump & Oil Fitting Co., Ltd.("Hengyuan")          |   | Shandong, PRC,December 21, 2001               |   | Wholly-owned subsidiary of Weifang Xinde |   | Design, development, manufacture, and commercializing of fuel injection pump, diesel fuel injection systems and injectors |
|                                                                       |   |                                          |   |                                     |   |                                                                                                                      |
| Weifang Jinma Diesel Engine Co., Ltd. (“Jinma”)                |   | Shandong, PRCDecember 19, 2003                |   | Wholly-owned subsidiary of Weifang Xinde |   | Manufacture and sale of multi-cylinder diesel engine and small generating units                                           |
|                                                                       |   |                                          |   |                                     |   |                                                                                                                      |
| Weifang Huaxin Diesel Engine Co., Ltd. (“Huaxin”)              |   | Shandong, PRCOctober 20, 2003                 |   | Wholly-owned subsidiary of Weifang Xinde |   | Manufacture and sale of multi-cylinder diesel engine and small generating units                                           |

----

| (a) | Use of Estimates |
|-----|------------------|

| (b) | Economic and Political Risks |
|-----|------------------------------|

----

| (c) | Fair Value of Financial Instruments |
|-----|-------------------------------------|

|                    |   |                                   |    |   | Fair Value Measurements at Reporting Date Using            |   |
|-------------------------|--------|----------------------------------------|---------|--------|------------------------------------------------------------|--------|
|                    |   | Carrying Value as ofSeptember 30, 2011 |    |   | Quoted Prices inActive Marketsfor IdenticalAssets(Level 1) |   |   | Significant OtherObservableInputs(Level 2) |   |   | SignificantUnobservableInputs(Level 3) |   |
| Long-term notes payable |   | $                                      | 200,199 |   |                                                       |   | - |   |   | $ | 200,199 |   |   | $ | - |   |

| (d) | Cash and Cash Equivalents |
|-----|---------------------------|

----

| (e) | Inventories |
|-----|-------------|

| (f) | Prepayments |
|-----|-------------|

| (g) | Plant and Equipment |
|-----|---------------------|

| Buildings              |   | 30 years     |
|------------------------|--------|--------------|
| Machinery         |   | 10 years     |
| Motor vehicles    |   | 5 years |
| Office equipment  |   | 5 years |

| (h) | Construction in Progress |
|-----|--------------------------|

| (i) | Land Use Rights |
|-----|-----------------|

----

| (j) | Impairment of Long-Term Assets |
|-----|--------------------------------|

| (k) | Revenue Recognition |
|-----|---------------------|

| (l) | Retirement Benefits |
|-----|---------------------|

----

| (m) | Foreign Currency Translation |
|-----|------------------------------|

|                                   |   | September 30,2011 |   | June 30,2011 |   | September 30,2010 |
|----------------------------------------|--------|-------------------|--------|--------------|--------|-------------------|
| Period end RMB : US$ exchange rate     |   | 6.3885            |   | 6.4635       |   | -                 |
| Period average RMB : US$ exchange rate |   | 6.4034            |   | -            |   | 6.7803            |

| (n) | Comprehensive Income |
|-----|----------------------|

| (o) | Earnings Per Share |
|-----|--------------------|

| (p) | Segment and Geographic Reporting |
|-----|----------------------------------|

----

| (q) | Recent Accounting Pronouncements |
|-----|----------------------------------|

----

| (a) | Customers |
|-----|-----------|

|            |   | Sales                            |   |                |
|-----------------|--------|----------------------------------|--------|---------------------|
|            |   | Three Months Ended September 30, |   | Accounts Receivable |
| Major Customers |   | 2011                             |   | 2010                |   | September 30, 2011 |   | June 30, 2011 |
|            |   |                             |   |                |   |   |   |   |
| Company A       |   | 2.9%                             |   | 3.1%                |   | 1.5% |   | 3.0% |
| Company B       |   | -                                |   | 3.0%                |   | - |   | 3.3% |
| Company C       |   | 2.8%                             |   | 2.9%                |   | 2.0% |   | 2.8% |
| Company D       |   | 2.4%                             |   | 2.7%                |   | 0.4% |   | 3.2% |
| Company E       |   | 2.3%                             |   | 2.6%                |   | 0.9% |   | 3.0% |
| Company F       |   | 2.2%                             |   | -                   |   | 1.7% |   | - |

| (b) | Suppliers |
|-----|-----------|

|            |   | Purchases                        |   |             |
|-----------------|--------|----------------------------------|--------|------------------|
|            |   | Three Months Ended September 30, |   | Accounts Payable |
| Major Suppliers |   | 2011                             |   | 2010             |   | September 30, 2011 |   | June 30, 2011 |
|            |   |                             |   |             |   |   |   |   |
| Company G       |   | 3.6%                             |   | 10.7%            |   | 2.2% |   | 0.2% |
| Company H       |   | -                                |   | 5.9%             |   | - |   | - |
| Company I       |   | 3.0%                             |   | -                |   | 0.1% |   |   |
| Company J       |   | -                                |   | 5.6%             |   | - |   | - |
| Company K       |   | 2.7%                             |   | -                |   | 1.0% |   | - |
| Company L       |   | 2.2%                             |   | 4.2%             |   | 0.2% |   | - |
| Company M       |   | 1.3%                             |   | 3.1%             |   | 0.3% |   | - |

----

|              |   | September 30,2011 |       |   | June 30,2011 |   |
|-------------------|--------|-------------------|------------|--------|--------------|--------|
| Raw materials     |   | $                 | 12,717,565 |   |         | $      | 7,503,324 |   |
| Work-in-progress  |   |              | 678,375    |   |         |   | 1,325,905 |   |
| Finished goods    |   |              | 6,728,363  |   |         |   | 1,600,970 |   |
| Total inventories |   | $                 | 20,124,303 |   |         | $      | 10,430,199 |   |

|                                                     |   |   | September 30,2011 |       |   | June 30,2011 |   |
|----------------------------------------------------------|--------|--------|-------------------|------------|--------|--------------|--------|
| Notes receivable from unrelated parties:                 |   |   |              |       |   |         |   |
| Due December 13, 2011, interest at 12% per annum         | (a)    |   | $                 | 1,565,313  |   |         | $      | 1,547,149 |   |
| Due December 13, 2011, interest free                     |   |   |              | 56,351     |   |         |   | 9,283 |   |
| Due December 24, 2011, interest at 10% per annum         |   |   |              | 23,480     |   |         |   | 25,741 |   |
| Due December 24, 2011, interest free                     |   |   |              | 2,968      |   |         |   | 2,661 |   |
| Due January 10, 2012, interest free                      |   |   |              | 95,327     |   |         |   | 61,370 |   |
| Due January 10, 2012, interest at 12% per annum          |   |   |              | 1,095,719  |   |         |   | 1,083,005 |   |
| Subtotal                                                 |   |   | $                 | 2,839,158  |   |         | $      | 2,729,209 |   |
|                                                     |   |   |              |       |   |         |   |   |   |
| Bank acceptance notes (aggregated by month of maturity): |   |   |              |       |   |         |   |   |   |
| Due July, 2011                                           |   |   |              | -          |   |         |   | 1,547 |   |
| Due August, 2011                                         |   |   |              | -          |   |         |   | 77,357 |   |
| Due September, 2011                                      |   |   |              | -          |   |         |   | 416,476 |   |
| Due October, 2011 (Settled on due dates)                 |   |   |              | 804,931    |   |         |   | 909,254 |   |
| Due November, 2011                                       |   |   |              | 797,191    |   |         |   | 1,724,762 |   |
| Due December, 2011                                       |   |   |              | 1,856,745  |   |         |   | 1,355,790 |   |
| Due January, 2012                                        |   |   |              | 3,580,577  |   |         |   | - |   |
| Due February, 2012                                       |   |   |              | 3,673,181  |   |         |   | - |   |
| Due March, 2011                                          |   |   |              | 4,390,042  |   |         |   | - |   |
| Subtotal                                                 |   |   |              | 15,102,667 |   |         |   | 4,485,186 |   |
| Total                                                    |   |   | $                 | 17,941,825 |   |         | $      | 7,214,395 |   |

| (a) | The notes are secured by the total assets of the borrower. |
|-----|------------------------------------------------------------|

----

| (I) | Due To Related Parties |
|-----|------------------------|

|                         |   |   | September 30,2011 |    |   | June 30,2011 |   |
|------------------------------|--------|--------|-------------------|---------|--------|--------------|--------|
|                         |   |   |              |    |   |         |   |
| Jin Xin                      | (a)    |   | $                 | -       |   |         | $      | 373 |   |
| Liu Dianjun                  | (b)    |   |              | 132,578 |   |         |   | 53,154 |   |
| Li Zengshan                  | (c)    |   |              | 80,481  |   |         |   | 79,072 |   |
| Total due to related parties |   |   | $                 | 213,059 |   |         | $      | 132,599 |   |

| (II) | Due From Related Party |
|------|------------------------|

|                         |   |   | September 30,2011 |   |   | June 30,2011 |   |
|------------------------------|--------|--------|-------------------|--------|--------|--------------|--------|
|                         |   |   |              |   |   |         |   |
| Jin Xin                      | (a)    |   | $                 | 26,100 |   |         | $      | - |   |
| Total due from related party |   |   | $                 | 26,100 |   |         | $      | - |   |

| (III) | Due From Employees |
|-------|--------------------|

|                     |   |   | September 30,2011 |    |   | June 30,2011 |   |
|--------------------------|--------|--------|-------------------|---------|--------|--------------|--------|
|                     |   |   |              |    |   |         |   |
| Current                  |   |   | $                 | 191,790 |   |         | $      | 39,206 |   |
| Total due from employees | (d)    |   | $                 | 191,790 |   |         | $      | 39,206 |   |

| (IV) | Due To Employees |
|------|------------------|

|                   |   |   | September 30,2011 |   |   | June 30,2011 |   |
|------------------------|--------|--------|-------------------|--------|--------|--------------|--------|
|                   |   |   |              |   |   |         |   |
| Current                |   |   | $                 | 46,969 |   |         | $      | 78,953 |   |
| Total due to employees | (e)    |   | $                 | 46,969 |   |         | $      | 78,953 |   |

| (a) | Jin Xin is a shareholder of the Company and the chairman of Jinma, a subsidiary of the Company. The receivable balance represents traveling advances, which were unsecured, interest-free and collectible on demand. The payable balance represented business related expenses paid by Jinxin on behalf of the Company, which is unsecured, interest-free and has no fixed repayment term. |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b) | Liu Dianjun is a shareholder of the Company and the chairman of Hengyuan, a subsidiary of the Company. The balances represent amounts advanced from Liu Dianjun, which are interest-free, unsecured and have no fixed repayment terms. |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (c) | Li Zengshan is a shareholder of the Company and the chairman of Huaxin, a subsidiary of the Company. The balances represent business related expenses paid by Li Zengshan on behalf of the Company. The balances are interest-free, unsecured and have no fixed repayment terms. |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| (d) | Due from employees are interest-free, unsecured and have no fixed repayment terms. The Company provides these advances for business-related purposes only, including for the purchases of raw materials and business-related travel in the ordinary course of business. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (e) | Due to employees are interest-free, unsecured and have no fixed repayment terms. The amounts primarily represent business and traveling related expenses paid by sales personnel on behalf of the Company. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                           |   | September 30,2011 |      |   | June 30,2011 |   |
|--------------------------------|--------|-------------------|-----------|--------|--------------|--------|
|                           |   |              |      |   |         |   |
| Cost of land use rights        |   | $                 | 2,546,046 |   |         | $      | 1,087,939 |   |
| Less: Accumulated amortization |   |              | (176,047  | )      |         |   | (162,699 | ) |
| Land use rights, net           |   | $                 | 2,369,999 |   |         | $      | 925,240 |   |

| 2012 (nine months) |   | $      | 40,042    |   |
|--------------------|--------|--------|-----------|--------|
| 2013               |   |   | 53,388    |   |
| 2014               |   |   | 53,388    |   |
| 2015               |   |   | 53,388    |   |
| 2016               |   |   | 53,388    |   |
| Thereafter         |   |   | 2,116,405 |   |
| Total              |   | $      | 2,369,999 |   |

----

|                            |   | September 30,2011 |       |   | June 30,2011 |   |
|---------------------------------|--------|-------------------|------------|--------|--------------|--------|
|                            |   |              |       |   |         |   |
| Buildings                       |   | $                 | 3,005,347  |   |         | $      | 2,970,474 |   |
| Machinery and equipment         |   |              | 1,958,463  |   |         |   | 1,176,778 |   |
| Office equipment                |   |              | 62,161     |   |         |   | 60,458 |   |
| Motor vehicles                  |   |              | 572,117    |   |         |   | 553,238 |   |
|                            |   |              | 5,598,088  |   |         |   | 4,760,948 |   |
| Less : Accumulated depreciation |   |              |       |   |         |   |   |   |
| Buildings                       |   |              | (582,553   | )      |         |   | (551,032 | ) |
| Machinery and equipment         |   |              | (817,471   | )      |         |   | (759,902 | ) |
| Office equipment                |   |              | (45,406    | )      |         |   | (43,336 | ) |
| Motor vehicles                  |   |              | (329,431   | )      |         |   | (325,316 | ) |
|                            |   |              | (1,774,861 | )      |         |   | (1,679,586 | ) |
| Plant and equipment, net        |   | $                 | 3,823,227  |   |         | $      | 3,081,362 |   |

----

|                                                                                                                                                                                 |   | September 30,2011 |      |   | June 30,2011 |   |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-------------------|-----------|--------|--------------|--------|
| Weifang Bank:                                                                                                                                                                        |   |              |      |   |         |   |
|                                                                                                                                                                                 |   |              |      |   |         |   |
| Monthly interest only payments at 9.88% per annum, due January 24, 2012, guaranteed by Weifang Huaxin Diesel Engine Co., Ltd.                                                        |   | $                 | 313,063   |   |         | $      | 309,430 |   |
|                                                                                                                                                                                 |   |              |      |   |         |   |   |   |
| Monthly interest only payments at 7.43% per annum, due July 22, 2011, guaranteed by Weifang Hengyuan Oil Pump & Oil fitting Co., Ltd. (Repaid on its due date)                   |   |              | -         |   |         |   | 618,860 |   |
|                                                                                                                                                                                 |   |              |      |   |         |   |   |   |
| Monthly interest only payments at 8.83% per annum, due February 27, 2012, guaranteed by Weifang Hengyuan Oil Pump & Oil fitting Co., Ltd.                                        |   |              | 313,063   |   |         |   | 309,430 |   |
|                                                                                                                                                                                 |   |              |      |   |         |   |   |   |
| Monthly interest only payments at 7.43% per annum, due July 21, 2012, guaranteed by Weifang Hengyuan Oil Pump & Oil fitting Co., Ltd.                                            |   |              | 626,125   |   |         |   | - |   |
|                                                                                                                                                                                 |   |              |      |   |         |   |   |   |
| China Construction Bank:                                                                                                                                                             |   |              |      |   |         |   |   |   |
|                                                                                                                                                                                 |   |              |      |   |         |   |   |   |
| Monthly interest only payments at 5.84% per annum, due July 29, 2011, collateralized by land use rights. (Repaid on its due date)                                                    |   |              | -         |   |         |   | 309,430 |   |
|                                                                                                                                                                                 |   |              |      |   |         |   |   |   |
| Monthly interest only payments at 6.39% per annum, due January 9, 2012, guaranteed by Weifang Jinma Diesel Engine Co.,Ltd. and Weifang Hengyuan Oil Pump & Oil fitting Co., Ltd. |   |              | 1,095,718 |   |         |   | 1,083,004 |   |
|                                                                                                                                                                                 |   |              |      |   |         |   |   |   |
| Bank of China:                                                                                                                                                                       |   |              |      |   |         |   |   |   |
|                                                                                                                                                                                 |   |              |      |   |         |   |   |   |
| Monthly interest only payments at 7.87% per annum, due July 14, 2012, guaranteed by Weifang Hengyuan Oil Pump & Oil fitting Co., Ltd.                                            |   |              | 313,063   |   |         |   | - |   |
|                                                                                                                                                                                 |   |              |      |   |         |   |   |   |
| Total                                                                                                                                                                                |   | $                 | 2,661,032 |   |         | $      | 2,630,154 |   |

----

|                                                                                                                  |   |   | September 30,2011 |      |   | June 30,2011 |   |
|-----------------------------------------------------------------------------------------------------------------------|--------|--------|-------------------|-----------|--------|--------------|--------|
| Bank acceptance notes:                                                                                                |   |   |              |      |   |         |   |
| Due February 5, 2012                                                                                                  |   |   | $                 | 313,063   |   |         | $      | - |   |
| Subtotal                                                                                                              | (a)    |   |              | 313,063   |   |         |   | - |   |
|                                                                                                                  |   |   |              |      |   |         |   |   |   |
| Notes payable to an unrelated individual:                                                                             |   |   |              |      |   |         |   |   |   |
|                                                                                                                  |   |   |              |      |   |         |   |   |   |
| Due August 4, 2011, interest at 14.40% per annum with the principal payable at the due date. (Repaid on its due date) |   |   |              | -         |   |         |   | 456,409 |   |
| Due October 1, 2011, interest free with the principal payable at the due date. (Repaid on its due date)               |   |   |              | 9,789     |   |         |   | 6,568 |   |
| Due November 27, 2011, interest at 12% per annum with the principal payable at the due date.                          |   |   |              | 156,531   |   |         |   | 154,715 |   |
| Due December 30, 2011, interest at 39.6% per annum with the principal payable at the due date.                        |   |   |              | 46,959    |   |         |   | - |   |
| Due May 4, 2012, interest at 14.36% per annum with the principal payable at the due date.                             |   |   |              | 397,589   |   |         |   | 392,976 |   |
| Due May 4, 2012, interest at 12% per annum with the principal payable at the due date.                                |   |   |              | 150,270   |   |         |   | 148,526 |   |
| Due August 4, 2012, interest at 14.40% per annum with the principal payable at the due date.                          |   |   |              | 391,328   |   |         |   | - |   |
| Due September 18, 2012, interest at 36% per annum with the principal payable at the due date.                         |   |   |              | 31,306    |   |         |   | - |   |
| Subtotal                                                                                                              |   |   |              | 1,183,772 |   |         |   | 1,159,194 |   |
|                                                                                                                  |   |   |              |      |   |         |   |   |   |
| Notes payable to related individuals:                                                                                 |   |   |              |      |   |         |   |   |   |
|                                                                                                                  |   |   |              |      |   |         |   |   |   |
| Due December 24, 2011, interest at 10.00% per annum with the principal payable at the due date                        | (b)    |   |              | 28,129    |   |         |   | 100,565 |   |
| Due June 28, 2012, interest at 10.00% per annum with the principal payable at the due date                            | (b)    |   |              | 100,180   |   |         |   | 54,150 |   |
| Subtotal                                                                                                              |   |   |              | 128,309   |   |         |   | 154,715 |   |
|                                                                                                                  |   |   |              |      |   |         |   |   |   |
| Total                                                                                                                 |   |   | $                 | 1,625,144 |   |         | $      | 1,313,909 |   |

| (a) | The bank acceptance notes are secured by $219,144 of restricted cash at September 30, 2011. |
|-----|---------------------------------------------------------------------------------------------|

| (b) | The notes were due to Mr. Li Zengshan, a shareholder and officer of the Company. The current balances represent loans to the Company which are unsecured. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|                                                                                                                                           |   |   | September 30,2011 |    |   | June 30,2010 |   |
|------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|-------------------|---------|--------|--------------|--------|
| Notes payable to related individuals:                                                                                                          |   |   |              |    |   |         |   |
| Due August 4, 2014, monthly interest payment is 7.46% per annum. Principal is repaid every month in 60 equal installments from August 4, 2009. | (a)    |   | $                 | 293,856 |   |         | $      | 312,531 |   |
| Total long-term notes payable                                                                                                                  |   |   |              | 293,856 |   |         |   | 312,531 |   |
|  Less: Current portion                                                                                                                    |   |   |              | (93,657 | )      |         |   | (90,864 | ) |
| Long-term portion                                                                                                                              |   |   | $                 | 200,199 |   |         | $      | 221,667 |   |

| Years Ended September 30, |   | Amount |    |
|---------------------------|--------|--------|---------|
| 2012                      |   | $      | 93,657  |   |
| 2013                      |   |   | 100,892 |   |
| 2014                      |   |   | 99,307  |   |
| Total                     |   | $      | 293,856 |   |

| (a) | This note is due to Mr. Li Zengshan, who is a shareholder of the Company. The balance represents a loan to the Company to support business operations. |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| (a)  | Corporation Income Tax (“CIT”) |
|-----------|--------------------------------------------|

|               |   | September 30,2011 |      |   | September 30, 2010 |   |
|--------------------|--------|-------------------|-----------|--------|-------------------------|--------|
| Current:           |   |              |      |   |                    |   |
| Provision for CIT  |   | $                 | 1,069,019 |   |                    | $      | 426,180 |   |
|               |   |              |      |   |                    |   |   |   |
| Deferred:          |   |              |      |   |                    |   |   |   |
| Provision for CIT  |   |              | (291,322  | )      |                    |   | 442,227 |   |
|               |   |              |      |   |                    |   |   |   |
| Income tax expense |   | $                 | 777,697   |   |                    | $      | 868,407 |   |

----

|                                    |   | September 30,2011 |    |   | September 30,2010 |   |
|-----------------------------------------|--------|-------------------|---------|--------|-------------------|--------|
|                                    |   |              |    |   |              |   |
| Computed “expected” expense |   | $                 | 788,929 |   |              | $      | 1,581,196 |   |
| Permanent differences                   |   |              | (11,232 | )      |              |   | (379,138 | ) |
| Favourable tax rates                    |   |              | -       |   |              |   | (333,651 | ) |
|                                    |   |              |    |   |              |   |   |   |
| Income tax expense                      |   | $                 | 777,697 |   |              | $      | 868,407 |   |

|                                          |   | September 30,2011 |       |   | June 30,2011 |   |
|-----------------------------------------------|--------|-------------------|------------|--------|--------------|--------|
|                                          |   |              |       |   |         |   |
| Deferred tax assets:                          |   |              |       |   |         |   |
| Current portion:                              |   |              |       |   |         |   |
| Sales                                         |   | $                 | 468        |   |         | $      | 462 |   |
| Bad debt provision                            |   |              | 139,178    |   |         |   | 164,010 |   |
| Other expenses                                |   |              | 291,154    |   |         |   | 231,700 |   |
| Subtotal                                      |   |              | 430,800    |   |         |   | 396,172 |   |
| Deferred tax liabilities:                     |   |              |       |   |         |   |   |   |
| Current portion:                              |   |              |       |   |         |   |   |   |
| Sales cut-off                                 |   |              | (983,508   | )      |         |   | (1,256,924 | ) |
| Other                                         |   |              | (100,960   | )      |         |   | (77,128 | ) |
| Subtotal                                      |   |              | (1,084,468 | )      |         |   | (1,334,052 | ) |
|                                          |   |              |       |   |         |   |   |   |
| Net deferred tax liabilities- current portion |   |              | (653,668   | )      |         |   | (937,880 | ) |
|  Deferred tax assets:                    |   |              |       |   |         |   |   |   |
| Non-current portion:                          |   |              |       |   |         |   |   |   |
| Depreciation                                  |   |              | 141,351    |   |         |   | 132,055 |   |
| Amortization                                  |   |              | 2,750      |   |         |   | 4,937 |   |
| Subtotal                                      |   |              | 144,101    |   |         |   | 136,992 |   |
|                                          |   |              |       |   |         |   |   |   |
| Net deferred tax assets - non-current portion |   |              | 144,101    |   |         |   | 136,992 |   |
|                                          |   |              |       |   |         |   |   |   |
| Total net deferred tax liabilities            |   | $                 | (509,567   | )      |         | $      | (800,888 | ) |

----

| (b)  | Tax Holiday Effect |
|-----------|--------------------|

|                              |   | For the Three Months EndedSeptember 30, |   |
|-----------------------------------|--------|-----------------------------------------|--------|
|                              |   | 2011                                    |   |   | 2010 |   |
| Tax holiday effect                |   | $                                       | -      |   |   | $ | 333,651 |   |
| Basic net income per share effect |   | $                                       | -      |   |   | $ | 0.001 |   |

| (c)  | Value Added Tax (“VAT”) |
|-----------|-------------------------------------|

----

----

----

----

|                    |   |                                                |    |   | Fair Value Measurements at Reporting Date Using             |   |
|-------------------------|--------|-----------------------------------------------------|---------|--------|-------------------------------------------------------------------------------------------|--------|
|                    |   | CarryingValue as ofSeptember 30,2011 |    |   | Quoted Prices inActive Markets forIdentical Assets(Level 1) |   |   | SignificantOtherObservableInputs(Level 2) |   |   | SignificantUnobservableInputs(Level 3) |   |
| Long-term notes payable |   | $                                                   | 200,199 |   |                                                                                      | $      | - |   |   | $ | 200,199 |   |   | $ | - |   |

----

| Buildings:        | 30 years |
|-------------------|----------|
| Machinery:        | 10 years |
| Motor vehicles:   | 5 years  |
| Office equipment: | 5 years  |

----

|                                   |   | September 30, 2011 |   |   | June 30, 2011 |   |   | September 30, 2010 |   |
|----------------------------------------|--------|------------------------------|--------|--------|-------------------------|--------|--------|------------------------------|--------|
| Period end RMB : US$ exchange rate     |   |                         | 6.3885 |   |                    |   | 6.4635 |                         |   |   | - |   |
| Period average RMB : US$ exchange rate |   |                         | 6.4034 |   |                    |   | -      |                         |   |   | 6.7803 |   |

|                       |   | For the Three Months Ended September 30, |        |
|----------------------------|--------|------------------------------------------------------------------------|-------------|
|                       |   |                                                                   |        |
|                       |   | 2011                                                                   |        |   | 2010 |   |   | Comparisons |   |
|                       |   | Amount                                                                 |        |   | % ofRevenues |   |   | Amount |   |   | % ofRevenues |   |   | Change inAmount |   |   | Change in % |   |
|                       |   | $                                                                      |        |   |   |   |   | $ |   |   |   |   |   | $ |   |   |   |   |
| REVENUES, NET              |   |                                                                   | 22,708,137  |   |   |   | 100 | % |   |   | 30,138,909 |   |   |   | 100 | % |   |   | (7,430,772 | ) |   |   | (25 | )% |
|                       |   |                                                                   |        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| COST OF GOODS SOLD         |   |                                                                   | (18,884,367 | ) |   |   | (83) | % |   |   | (25,612,164 | ) |   |   | (85) | % |   |   | 6,727,797 |   |   |   | (26 | )% |
| GROSS PROFIT               |   |                                                                   | 3,823,770   |   |   |   | 17 | % |   |   | 4,526,745 |   |   |   | 15 | % |   |   | (702,975 | ) |   |   | (16 | )% |
|                       |   |                                                                   |        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Selling and marketing      |   |                                                                   | (420,980    | )  |   |   | (2) | % |   |   | (1,100,608 | )  |   |   | (4) | % |   |   | 679,628 |   |   |   | (62 | )% |
| General and administrative |   |                                                                   | (323,026    | ) |   |   | (1) | % |   |   | (326,022 | ) |   |   | (1) | % |   |   | 2,996 |   |   |   | (1 | )% |
| Bad debt recoveries        |   |                                                                   | 106,778     |   |   |   | 0.5 | % |   |   | - |   |   |   | - |   |   |   | 106,778 |   |   |   | - |   |
| INCOME FROM OPERATIONS     |   |                                                                   | 3,186,542   |   |   |   | 14 | % |   |   | 3,100,115 |   |   |   | 10 | % |   |   | 86,427 |   |   |   | 3 | % |

----

|                                       | For the Three Months Ended September 30, |   |
|--------------------------------------------|------------------------------------------------------------------------|--------|
|                                       |                                                                   |   |   |   |   |   |   |   |
|                                       | 2011                                                                   |   |   | 2010 |   |   | Comparisons |   |
|                                       | Amount                                                                 |   |   | % ofRevenues |   |   | Amount |   |   | % ofRevenues |   |   | Change inAmount |   |   | Change in % |   |
|                                       | $                                                                      |   |   |   |   |   | $ |   |   |   |   |   | $ |   |   |   |   |
| Interest expense, net                      |                                                                   |   | (43,617 | ) |   |   | (0.2) | % |   |   | (141,090 | ) |   |   | (0.47) | % |   |   | 97,473 |   |   |   | (69 | )% |
| Other income, net                          |                                                                   |   | 12,792 |   |   |   | 0.1 | % |   |   | 134,603 |   |   |   | 0.45 | % |   |   | (121,811 | )  |   |   | (90 | )% |
| Exempted value added tax                   |                                                                   |   | - |   |   |   | - |   |   |   | 3,231,156 |   |   |   | 11 | % |   |   | (3,231,156 | )  |   |   | (100 | )% |
| INCOME FROM OPERATIONS BEFORE INCOME TAXES |                                                                   |   | 3,155,717 |   |   |   | 14 | % |   |   | 6,324,784 |   |   |   | 21 | % |   |   | (3,169,067 | )  |   |   | (50 | )% |
| INCOME TAXES                               |                                                                   |   | (777,697 | ) |   |   | (3 | )% |   |   | (868,407 | ) |   |   | (3 | )% |   |   | 90,710 |   |   |   | (10 | )% |
| NET INCOME                                 |                                                                   |   | 2,378,020 |   |   |   | 10 | % |   |   | 5,456,377 |   |   |   | 18 | % |   |   | (3,078,357 | )  |   |   | (56 | )% |
| OTHER COMPREHENSIVE INCOME                 |                                                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Foreign currency translation gain          |                                                                   |   | 956,456 |   |   |   | 4 | % |   |   | 973,804 |   |   |   | 3 | % |   |   | (17,348 | )  |   |   | (2 | )% |
|                                       |                                                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| COMPREHENSIVE INCOME                       |                                                                   |   | 3,334,476 |   |   |   | 15 | % |   |   | 6,430,181 |   |   |   | 21 | % |   |   | (3,095,707 | )  |   |   | (48 | )% |

|                         |   | For the Three Months Ended September 30, |       |
|------------------------------|--------|------------------------------------------------------------------------|------------|
|                         |   | 2011                                                                   |       |   | 2010 |   |   | Comparisons |   |
|                         |   | Amount                                                                 |       |   | % ofRevenues |   |   | Amount |   |   | % ofRevenues |   |   | Change inAmount |   |   | Change in % |   |
|                         |   | $                                                                      |       |   |   |   |   | $ |   |   |   |   |   | $ |   |   |   |   |
| Revenues:               |   |                                                                   |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Electric pumps          |   |                                                                   | 1,349,291  |   |   |   | 6 | % |   |   | 3,034,594 |   |   |   | 10 | % |   |   | (1,685,303 | ) |   |   | (56 | )% |
| Multi-cylinder pumps         |   |                                                                   | 4,707,929  |   |   |   | 20 | % |   |   | 10,247,061 |   |   |   | 34 | % |   |   | (5,539,132 | ) |   |   | (54 | )% |
| Single-cylinder pumps   |   |                                                                   | 116,338    |   |   |   | 0.5 | % |   |   | 460,068 |   |   |   | 2 | % |   |   | (343,730 | ) |   |   | (75 | )% |
| Fuel muzzles            |   |                                                                   | 1,357,149  |   |   |   | 6 | % |   |   | 1,513,730 |   |   |   | 5 | % |   |   | (156,581 | ) |   |   | (10 | )% |
| Parts                   |   |                                                                   | 107,762    |   |   |   | 0.5 | % |   |   | 185,730 |   |   |   | 0.6 | % |   |   | (77,968 | ) |   |   | (42 | )% |
| Diesel engines          |   |                                                                   | 6,258,070  |   |   |   | 28 | % |   |   | 8,976,148 |   |   |   | 29 | % |   |   | (2,718,078 | ) |   |   | (30 | )% |
| Generator sets          |   |                                                                   | 8,784,491  |   |   |   | 39 | % |   |   | 5,622,861 |   |   |   | 19 | % |   |   | 3,161,630 |   |   |   | 56 | % |
| Accessories             |   |                                                                   | 37,628     |   |   |   | 0.2 | % |   |   | 106,700 |   |   |   | 0.4 | % |   |   | (69,072 | ) |   |   | (65 | )% |
| Less: sales tax         |   |                                                                   | (10,521    | ) |   |   | - |   |   |   | (7,983 | ) |   |   | - |   |   |   | (2,538 | ) |   | 32  | % |
| Total                        |   |                                                                   | 22,708,137 |   |   |   | 100 | % |   |   | 30,138,909 |   |   |   | 100 | % |   |   | (7,430,772 | ) |   |   | (25 | )% |

----

|                         |   | For the Three Months Ended September 30, |       |
|------------------------------|--------|------------------------------------------------------------------------|------------|
|                         |   | 2011                                                                   |       |   | 2010 |   |   | Comparisons |   |
|                         |   | Amount                                                                 |       |   | % ofCost of Sales |   |   | Amount |   |   | % ofCost of Sales |   |   | Change inAmount |   |   | Change in% |   |
|                         |   | $                                                                      |       |   |   |   |   | $ |   |   |   |   |   | $ |   |   |   |   |
| Costs of Goods Sold:    |   |                                                                   |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Electric pumps          |   |                                                                   | 1,005,270  |   |   |   | 5 | % |   |   | 2,255,677 |   |   |   | 9 | % |   |   | (1,250,407 | )  |   |   | (55 | )% |
| Multi-cylinder pumps    |   |                                                                   | 3,344,493  |   |   |   | 18 | % |   |   | 7,397,716 |   |   |   | 29 | % |   |   | (4,053,223 | )  |   |   | (55 | )% |
| Single-cylinder pumps   |   |                                                                   | 115,751    |   |   |   | 1 | % |   |   | 354,390 |   |   |   | 1 | % |   |   | (238,639 | ) |   |   | (67 | )% |
| Fuel muzzles            |   |                                                                   | 1,033,009  |   |   |   | 5 | % |   |   | 1,337,271 |   |   |   | 5 | % |   |   | (304,262 | ) |   |   | (23 | )% |
| Parts                   |   |                                                                   | 99,054     |   |   |   | 1 | % |   |   | 181,340 |   |   |   | 1 | % |   |   | (82,286 | )  |   |   | (45 | )% |
| Diesel engines          |   |                                                                   | 5,239,068  |   |   |   | 28 | % |   |   | 8,549,330 |   |   |   | 33 | % |   |   | (3,310,262 | )  |   |   | (39 | )% |
| Generator sets          |   |                                                                   | 7,885,005  |   |   |   | 42 | % |   |   | 5,305,116 |   |   |   | 21 | % |   |   | 2,579,889 |   |   |   | 49 | % |
| Accessories             |   |                                                                   | 35,417     |   |   |   | 0.2 | % |   |   | 99,226 |   |   |   | 0.4 | % |   |   | (63,809 | )  |   |   | (64 | )% |
| Sales warranty               |   |                                                                   | 127,300    |   |   |   | 1 | % |   |   | 132,098 |   |   |   | 0.52 | % |   |   | (4,798 | ) |   |   | (4 | )% |
| Total                   |   |                                                                   | 18,884,367 |   |   |   | 100 | % |   |   | 25,612,164 |   |   |   | 100 | % |   |   | (6,727,797 | )  |   |   | (26 | )% |

----

|                                  |   | For the Three Months Ended September 30, |      |
|---------------------------------------|--------|------------------------------------------------------------------------|-----------|
|                                  |   | 2011                                                                   |      |   | 2010 |   |   | Comparisons |   |
|                                  |   | Amount                                                                 |      |   | Gross Margin |   |   | Amount |   |   | GrossMargin |   |   | Change inAmount |   |   | Change in Gross Margin |   |
|                                  |   | $                                                                      |      |   |   |   |   | $ |   |   |   |   |   | $ |   |   |   |   |
| Gross Profit and Gross Margin:   |   |                                                                   |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Electric pumps                   |   |                                                                   | 344,021   |   |   |   | 25 | % |   |   | 778,917 |   |   |   | 26 | % |   |   | (434,896 | ) |   |   | 1 | % |
| Multi-cylinder pumps             |   |                                                                   | 1,363,436 |   |   |   | 29 | % |   |   | 2,849,345 |   |   |   | 28 | % |   |   | (1,485,909 | ) |   |   | 1 | % |
| Single-cylinder pumps            |   |                                                                   | 587       |   |   |   | 1 | % |   |   | 105,678 |   |   |   | 23 | % |   |   | (105,091 | ) |   |   | (22 | )% |

|                   |   | For the Three Months Ended September 30, |      |
|------------------------|--------|------------------------------------------------------------------------|-----------|
|                   |   | 2011                                                                   |      |   | 2010 |   |   | Comparisons |   |
|                   |   | Amount                                                                 |      |   | Gross Margin |   |   | Amount |   |   | GrossMargin |   |   | Change inAmount |   |   | Change in Gross Margin |   |
|                   |   | $                                                                      |      |   |   |   |   | $ |   |   |   |   |   | $ |   |   |   |   |
| Fuel muzzles      |   |                                                                   | 324,140   |   |   | 24 | % |   |   | 176,459 |   |   |   | 12 | % |   |   | 147,681 |   |   |   | 12 | % |
| Parts             |   |                                                                   | 8,707     |   |   | 8 | % |   |   | 4,390 |   |   |   | 2 | % |   |   | 4,317 |   |   |   | 6 | % |
| Diesel engines    |   |                                                                   | 1,019,001 |   |   | 16 | % |   |   | 426,818 |   |   |   | 5 | % |   |   | 592,183 |   |   |   | 11 | % |
| Generator sets    |   |                                                                   | 899,487   |   |   | 10 | % |   |   | 317,745 |   |   |   | 6 | % |   |   | 581,742 |   |   |   | 4 | % |
| Accessory         |   |                                                                   | 2,211     |   |   | 6 | % |   |   | 7,474 |   |   |   | 7 | % |   |   | (5,263 | ) |   |   | (1 | )% |
| Less: sales tax   |   |                                                                   | (10,521   | ) |   | -  |   |   |   | (7,983 | ) |   |   | - |   |   |   | (2,538 | ) |   |   | - |   |
| Sales warranty         |   |                                                                   | (127,300  | ) |   | - |   |   |   | (132,098 | ) |   |   | - |   |   |   | 4,798 |   |   |   | - |   |
| Total             |   |                                                                   | 3,823,770 |   |   | 17%  |   |   |   | 4,526,745 |   |   |   | 15 | % |   |   | (702,975 | ) |   |   | (2 | )% |

----

----

|                                                       | Three Months ended September 30, |
|------------------------------------------------------------|------------------------------------------------------|
|                                                       | 2011                                                 |   |   | 2010 |
|                                                       | $                                                    |   |   | $ |
|                                        |                                                 |   |   |   |
| Net cash provided by operating activities             |                                                 |   | 8,928,416 |   |   |   | 1,432,334 |   |
| Net cash used in by investing activities              |                                                 |   | (10,819,021 | ) |   |   | (2,035,040 | )  |
| Net cash provided by (used in) financing activities   |                                                 |   | 53,685 |   |   |   | (36,746 | ) |
| Net decrease increase in cash and cash equivalents    |                                                 |   | (1,836,920 | )  |   |   | (639,452 | ) |
| Effect of exchange rate changes on cash               |                                                 |   | 860,132 |   |   |   | 940,749 |   |
| Cash and cash equivalents at beginning of period      |                                                 |   | 4,292,507 |   |   |   | 3,399,360 |   |
| Cash and cash equivalents at end of period            |                                                 |   | 3,315,719 |   |   |   | 3,700,657 |   |

----

|                           |   | Payments Due by Period |      |
|--------------------------------|--------|---------------------------------------|-----------|
|                           |   |                                  |      |
|                           |   | Total                                 |      |   | Less than 1 year |   |   | Over 1 year |   |
| Contractual Obligations:       |   |                                  |      |   |   |   |   |   |   |
| Bank Indebtedness              |   | $                                     | 2,661,032 |   |   | $ | 2,661,032 |   |   | $ | - |   |
| Notes payable                  |   |                                  | 1,825,343 |   |   |   | 1,625,144 |   |   |   | 200,199 |   |
| Total Contractual Obligations: |   | $                                     | 4,486,375 |   |   | $ | 4,286,176 |   |   | $ | 200,199 |   |

----

----

| EXHIBITNO. |    | DESCRIPTION                                                                                                                       |    | LOCATION                                                                                                                                                     |
|------------|--------------|-----------------------------------------------------------------------------------------------------------------------------------|--------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------|
|       |         |                                                                                                                              |         |                                                                                                                                                         |
| 2.1        |         | Share Exchange Agreement, dated December 28, 2009, by and between the Company, Jolly Promise Limited and Welldone Pacific Limited |         | Incorporated by reference to Exhibit  2.1 to the Company’s Current Report on Form 8-K as filed with the SEC on December 29, 2009             |
|       |         |                                                                                                                              |         |                                                                                                                                                         |
| 3.1        |         | Articles of Incorporation of the Company                                                                                          |         | Incorporated by reference to Exhibit 3.1 to the Company’s General Form for Registration of Securities on Form 10 as filed with the SEC on May 15, 2009 |
|       |         |                                                                                                                              |         |                                                                                                                                                         |
| 3.2        |         | Amended and Restated Bylaws of the Company                                                                                        |         | Incorporated by reference to Exhibit 3.1 to the Company’s Current Report on Form 8-K as filed with the SEC on September 21, 2010                       |

----

| 3.3        |   | Memorandum and Articles of Association of Jolly Promise Limited, dated July 2, 2008                               |   | Incorporated by reference to Exhibit 3.3 to the Company’s Current Report on Form 8-K as filed with the SEC on December 29, 2009   |
|------------|--------|------------------------------------------------------------------------------------------------------------------------|--------|-----------------------------------------------------------------------------------------------------------------------------------------|
|       |   |                                                                                                                   |   |                                                                                                                                    |
| 3.4        |   | Certificate of Incorporation of Jolly Promise Limited                                                                  |   | Incorporated by reference to Exhibit 3.4 to the Company’s Current Report on Form 8-K as filed with the SEC on December 29, 2009   |
|       |   |                                                                                                                   |   |                                                                                                                                    |
| 10.1       |   | Stock Purchase Agreement between Shaun Carter and the company dated December 28, 2009                             |   | Incorporated by reference to Exhibit 10.1 to the Company’s Current Report on Form 8-K as filed with the SEC on December 29, 2009  |
|       |   |                                                                                                                   |   |                                                                                                                                    |
| 14.1       |   | Code of Business Conduct and Ethics                                                                                    |   | Incorporated by reference to Exhibit 14.1 to the Company’s Current Report on Form 8-K as filed with the SEC on September 21, 2010 |
|       |   |                                                                                                                   |   |                                                                                                                                    |
|  16.1 |   | Letter Regarding Change in Certifying Accountant                                                                       |   | Incorporated by reference to Exhibit 16.1 to the Company’s Current Report on Form 8-K as filed with the SEC on February 9, 2010   |
|       |   |                                                                                                                   |   |                                                                                                                                    |
| 21         |   | List of Subsidiaries of the Company                                                                                    |   | Incorporated by reference to Exhibit 21 to the Company’s Current Report on Form 8-K as filed with the SEC on December 29, 2009    |
|       |   |                                                                                                                   |   |                                                                                                                                    |
| 22         |   | Published Report Regarding Matter Submitted to Vote of Security Holders Regarding Name Change of the Company           |   | Incorporated by reference to the Company’s Current Report on Form 8-K as field with the SEC on April 28, 2010                     |
|       |   |                                                                                                                   |   |                                                                                                                                    |
| 31.1       |   | Certifications of the Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002                |   | Provided herewith                                                                                                                       |
|       |   |                                                                                                                   |   |                                                                                                                                    |
| 31.2       |   | Certifications of the Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002                |   | Provided herewith                                                                                                                       |
|       |   |                                                                                                                   |   |                                                                                                                                    |
| 32.1       |   | Certification Pursuant To 18 U.S.C. Section 1350, As Adopted Pursuant To Section 906 of the Sarbanes-Oxley Act Of 2002 |   | Provided herewith                                                                                                                       |

| 32.2   |   | Certification Pursuant To 18 U.S.C. Section 1350, As Adopted Pursuant To Section 906 of the Sarbanes-Oxley Act Of 2002 |   | Provided herewith                                                                                                                       |
|--------|--------|------------------------------------------------------------------------------------------------------------------------|--------|-----------------------------------------------------------------------------------------------------------------------------------------|
|   |   |                                                                                                                   |   |                                                                                                                                    |
| 99.1   |   | Audit Committee Charter                                                                                                |   | Incorporated by reference to Exhibit 99.1 to the Company’s Current Report on Form 8-K as filed with the SEC on September 21, 2010 |
|   |   |                                                                                                                   |   |                                                                                                                                    |
| 99.2   |   | Compensation Committee Charter                                                                                         |   | Incorporated by reference to Exhibit 99.2 to the Company’s Current Report on Form 8-K as filed with the SEC on September 21, 2010 |
|   |   |                                                                                                                   |   |                                                                                                                                    |
| 99.3   |   | Corporate Governance and Nominating Committee Charter                                                                  |   | Incorporated by reference to Exhibit 99.3 to the Company’s Current Report on Form 8-K as filed with the SEC on September 21, 2010 |

----

| 99.4   |   | Related Person Transaction Policy |   | Incorporated by reference to Exhibit 99.3 to the Company’s Current Report on Form 8-K as filed with the SEC on September 21, 2010 |
|--------|--------|-----------------------------------|--------|-----------------------------------------------------------------------------------------------------------------------------------------|
|   |   |                              |   |                                                                                                                                    |
| 99.5   |   | Written Disclosure Policy         |   | Incorporated by reference to Exhibit 99.5 to the Company’s Annual Report on Form 10-K as filed with the SEC on September 28, 2010 |

| Date: November 14, 2011 | By:    | /s/ Dianjun Liu                                                             |
|------------------------------|--------|-----------------------------------------------------------------------------|
|                         |   | Name: Dianjun Liu                                                           |
|                         |   | Its: President, Chief ExecutiveOfficer and Principal ExecutiveOfficer       |
|                         |   |                                                                        |
| Date: November 14, 2011 | By:    | /s/ Chenglin Wang                                                           |
|                         |   | Name: Chenglin Wang                                                         |
|                         |   | Its: Chief Financial Officer, and PrincipalFinancial and Accounting Officer |

----