----

| UNITED STATES                      |
|------------------------------------|
| SECURITIES AND EXCHANGE COMMISSION |
| Washington, D.C. 20549             |
|                               |
| FORM 10-Q                          |
|                               |
| x                                  | QUARTERLY REPORT UNDER TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE |
|                               | ACT OF 1934 |
|                               | FOR THE QUARTERLY PERIOD ENDED JUNE 30, 2011 |
| OR                                 |   |
|  ̈                             | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES |
|                               | EXCHANGE ACT OF 1934 |
|                               |
| Commission file number 000-53224   |

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

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|                                            | Page   |
|-------------------------------------------------|--------|
| Consolidated Financial Statements               |   |
|                                            |   |
| Consolidated Balance Sheets                     | 4      |
| Consolidated Statements of Operations           | 5      |
| Consolidated Statements of Comprehensive Income | 6      |
| Consolidated Statements of Cash Flows           | 7      |
| Notes to Consolidated Financial Statements      | 8      |

----

|                                                          |   | June 30,    |       |   | December 31, |   |
|---------------------------------------------------------------|--------|-------------|------------|--------|--------------|--------|
|                                                          |   | 2011        |       |   | 2010         |   |
|                                                          |   | (Unaudited) |       |   |         |   |
| Assets                                                        |   |        |       |   |         |   |
| Current assets:                                               |   |        |       |   |         |   |
| Cash and cash equivalents                                     |   | $           | 2,729,582  |   |         | $      | 3,806,939 |   |
| Restricted cash                                               |   |        | 3,549,869  |   |         |   | 304,540 |   |
| Accounts receivable                                           |   |        | 378,307    |   |         |   | 541,809 |   |
| Inventories                                                   |   |        | 791,120    |   |         |   | 1,020,912 |   |
| Advance payments                                              |   |        | 9,676,383  |   |         |   | 9,363,683 |   |
| Loans to third parties                                        |   |        | 4,123,422  |   |         |   | 3,224,210 |   |
| Dividend receivable                                           |   |        | 371,650    |   |         |   | 524,400 |   |
| Other current assets                                          |   |        | 1,360,605  |   |         |   | 986,519 |   |
| Total current assets                                          |   |        | 22,980,938 |   |         |   | 19,773,012 |   |
|                                                          |   |        |       |   |         |   |   |   |
| Property and equipment, net                                   |   |        | 5,812,959  |   |         |   | 4,731,838 |   |
|                                                          |   |        |       |   |         |   |   |   |
| Other assets:                                                 |   |        |       |   |         |   |   |   |
| Advance payments-non current                                  |   |        | 3,534,075  |   |         |   | 3,465,541 |   |
| Deferred income taxes                                         |   |        | 53,145     |   |         |   | 52,114 |   |
| Goodwill                                                      |   |        | 63,620     |   |         |   | 62,386 |   |
| Investment in non-consolidated entity                         |   |        | 9,569,524  |   |         |   | 9,383,948 |   |
| Other non-current assets                                      |   |        | 33,474     |   |         |   | 34,371 |   |
| Total other assets                                            |   |        | 13,253,838 |   |         |   | 12,998,360 |   |
|                                                          |   |        |       |   |         |   |   |   |
| Total assets                                                  |   | $           | 42,047,735 |   |         | $      | 37,503,210 |   |
|                                                          |   |        |       |   |         |   |   |   |
| Liabilities                                                   |   |        |       |   |         |   |   |   |
| Current liabilities:                                          |   |        |       |   |         |   |   |   |
| Accounts payable and accrued expenses                         |   |        | 1,288,968  |   |         | $      | 1,523,027 |   |
| Short-term bank loans                                         |   |        | 1,547,000  |   |         |   | 1,517,000 |   |
| Trade notes payable                                           |   |        | 5,878,600  |   |         |   | 606,800 |   |
| Customer advances                                             |   |        | 29,718     |   |         |   | 1,222,234 |   |
| Current maturities of capital lease obligations               |   |        | 123,351    |   |         |   | - |   |
| Due to former shareholders                                    |   |        | 1,666,833  |   |         |   | 1,634,509 |   |
| Income taxes payable                                          |   |        | 4,234      |   |         |   | 178,643 |   |
| Loans from third parties                                      |   |        | 18,243,890 |   |         |   | 18,873,908 |   |
| Other current liabilities                                     |   |        | 1,047,528  |   |         |   | 611,054 |   |
| Total current liabilities                                     |   |        | 29,830,122 |   |         |   | 26,167,175 |   |
|                                                          |   |        |       |   |         |   |   |   |
| Long- term capital lease obligations                          |   |        | 232,856    |   |         |   | - |   |
|                                                          |   |        |       |   |         |   |   |   |
| Total liabilities                                             |   |        | 30,062,978 |   |         |   | 26,167,175 |   |
|                                                          |   |        |       |   |         |   |   |   |
| Commitments and contingencies                                 |   |        |       |   |         |   |   |   |
|                                                          |   |        |       |   |         |   |   |   |
| Equity                                                        |   |        |       |   |         |   |   |   |
| Stockholders’ equity:                                   |   |        |       |   |         |   |   |   |
| Common stock, $0.001 par value, 75,000,000 shares authorized, |   |        | 125        |   |         |   | 125 |   |
|   125,000 shares issued and outstanding at          |   |        |       |   |         |   |   |   |
|   June 30, 2011 and December 31, 2010.              |   |        |       |   |         |   |   |   |
| Additional paid-in capital                                    |   |        | 8,105,257  |   |         |   | 8,105,257 |   |
| Retained earnings                                             |   |        | 2,546,401  |   |         |   | 2,162,039 |   |
| Statutory reserve                                             |   |        | 283,119    |   |         |   | 283,119 |   |
| Accumulated other comprehensive income                        |   |        | 1,037,726  |   |         |   | 773,166 |   |
| Total stockholders’ equity                              |   |        | 11,972,628 |   |         |   | 11,323,706 |   |
|                                                          |   |        |       |   |         |   |   |   |
| Noncontrolling interest                                       |   |        | 12,129     |   |         |   | 12,329 |   |
|                                                          |   |        |       |   |         |   |   |   |
| Total equity                                                  |   |        | 11,984,757 |   |         |   | 11,336,035 |   |
|                                                          |   |        |       |   |         |   |   |   |
| Total liabilities and equity                                  |   | $           | 42,047,735 |   |         | $      | 37,503,210 |   |

----

|                                                         |   | For the Three Months |      |   | For the Six Months |   |
|--------------------------------------------------------------|--------|----------------------|-----------|--------|--------------------|--------|
|                                                         |   | Ended June 30,       |      |   | Ended June 30,     |   |
|                                                         |   | 2011                 |      |   | 2010               |   |   | 2011 |   |   | 2010 |   |
|                                                         |   |                 |      |   |               |   |   |   |   |   |   |   |
|  Sales                                                  |   | $                    | 7,120,591 |   |               | $      | 5,311,443 |   |   | $ | 16,399,552 |   |   | $ | 9,984,439 |   |
|                                                         |   |                 |      |   |               |   |   |   |   |   |   |   |   |   |   |   |
|  Cost of sales                                          |   |                 | 5,780,571 |   |               |   | 4,674,824 |   |   |   | 14,038,138 |   |   |   | 8,654,492 |   |
|                                                         |   |                 |      |   |               |   |   |   |   |   |   |   |   |   |   |   |
|  Gross profit                                           |   |                 | 1,340,020 |   |               |   | 636,619 |   |   |   | 2,361,414 |   |   |   | 1,329,947 |   |
|                                                         |   |                 |      |   |               |   |   |   |   |   |   |   |   |   |   |   |
| Operating expenses:                                          |   |                 |      |   |               |   |   |   |   |   |   |   |   |   |   |   |
|     Selling expenses                     |   |                 | 628,145   |   |               |   | 391,739 |   |   |   | 1,368,546 |   |   |   | 811,889 |   |
|     General and administrative expenses: |   |                 | 255,135   |   |               |   | 170,349 |   |   |   | 561,780 |   |   |   | 351,954 |   |
| Total operating expenses                                     |   |                 | 883,280   |   |               |   | 562,088 |   |   |   | 1,930,326 |   |   |   | 1,163,843 |   |
|                                                         |   |                 |      |   |               |   |   |   |   |   |   |   |   |   |   |   |
|  Income from operations                                 |   |                 | 456,740   |   |               |   | 74,531 |   |   |   | 431,088 |   |   |   | 166,104 |   |
|                                                         |   |                 |      |   |               |   |   |   |   |   |   |   |   |   |   |   |
|  Other income (expenses):                               |   |                 |      |   |               |   |   |   |   |   |   |   |   |   |   |   |
| Investment income                                            |   |                 | 82,372    |   |               |   | 78,464 |   |   |   | 165,862 |   |   |   | 156,885 |   |
| Interest expense                                             |   |                 | (59,533   | )      |               |   | (217 | ) |   |   | (93,595 | ) |   |   | (32,231 | ) |
| Other expenses                                               |   |                 | (3,713    | )      |               |   | (7,625 | ) |   |   | (2,245 | ) |   |   | (103,786 | ) |
|   Total other income                               |   |                 | 19,126    |   |               |   | 70,622 |   |   |   | 70,022 |   |   |   | 20,868 |   |
|                                                         |   |                 |      |   |               |   |   |   |   |   |   |   |   |   |   |   |
|  Income before provision for income taxes               |   |                 | 475,866   |   |               |   | 145,153 |   |   |   | 501,110 |   |   |   | 186,972 |   |
|                                                         |   |                 |      |   |               |   |   |   |   |   |   |   |   |   |   |   |
|  Provision for income taxes                             |   |                 | 101,879   |   |               |   | 39,704 |   |   |   | 120,394 |   |   |   | 58,410 |   |
|                                                         |   |                 |      |   |               |   |   |   |   |   |   |   |   |   |   |   |
|  Net income                                             |   |                 | 373,987   |   |               |   | 105,449 |   |   |   | 380,716 |   |   |   | 128,562 |   |
|                                                         |   |                 |      |   |               |   |   |   |   |   |   |   |   |   |   |   |
| Less: Net loss attributable to noncontrolling interest       |   |                 | (171      | )      |               |   | (1,333 | ) |   |   | (3,646 | ) |   |   | (1,395 | ) |
|                                                         |   |                 |      |   |               |   |   |   |   |   |   |   |   |   |   |   |
|  Net income attributable to CHPC                        |   | $                    | 374,158   |   |               | $      | 106,782 |   |   | $ | 384,362 |   |   | $ | 129,957 |   |
|                                                         |   |                 |      |   |               |   |   |   |   |   |   |   |   |   |   |   |
|  Weighted average number of shares                      |   |                 |      |   |               |   |   |   |   |   |   |   |   |   |   |   |
| Basic and diluted                                            |   |                 | 125,000   |   |               |   | 120,000 |   |   |   | 125,000 |   |   |   | 120,000 |   |
|                                                         |   |                 |      |   |               |   |   |   |   |   |   |   |   |   |   |   |
|  Earnings per share                                     |   |                 |      |   |               |   |   |   |   |   |   |   |   |   |   |   |
| Basic and diluted                                            |   | $                    | 2.99      |   |               | $      | 0.88 |   |   | $ | 3.07 |   |   | $ | 1.08 |   |

----

|                                           |   | For the Three Months Ended |    |   | For the Six Months Ended |   |
|------------------------------------------------|--------|----------------------------|---------|--------|--------------------------|--------|
|                                           |   | June 30,                   |    |   | June 30,                 |   |
|                                           |   | 2011                       |    |   | 2010                     |   |   | 2011 |   |   | 2010 |   |
|                                           |   |                       |    |   |                     |   |   |   |   |   |   |   |
| Net income                                     |   | $                          | 373,987 |   |                     | $      | 105,449 |   |   | $ | 380,716 |   |   | $ | 128,562 |   |
|                                           |   |                       |    |   |                     |   |   |   |   |   |   |   |   |   |   |   |
| Other comprehensive income                     |   |                       |    |   |                     |   |   |   |   |   |   |   |   |   |   |   |
| Foreign currency translation adjustment        |   |                       | 108,164 |   |                     |   | 34,721 |   |   |   | 268,006 |   |   |   | 34,730 |   |
|                                           |   |                       |    |   |                     |   |   |   |   |   |   |   |   |   |   |   |
| Total other comprehensive income               |   |                       | 108,164 |   |                     |   | 34,721 |   |   |   | 268,006 |   |   |   | 34,730 |   |
|                                           |   |                       |    |   |                     |   |   |   |   |   |   |   |   |   |   |   |
| Comprehensive income                           |   |                       | 482,151 |   |                     |   | 140,170 |   |   |   | 648,722 |   |   |   | 163,292 |   |
|                                           |   |                       |    |   |                     |   |   |   |   |   |   |   |   |   |   |   |
| Less: Comprehensive income attributable to the |   |                       |    |   |                     |   |   |   |   |   |   |   |   |   |   |   |
|   noncontrolling interest            |   |                       | (407    | )      |                     |   | (1,341 | ) |   |   | (200 | ) |   |   | (1,341 | ) |
|                                           |   |                       |    |   |                     |   |   |   |   |   |   |   |   |   |   |   |
| Comprehensive income attributable to CHPC      |   | $                          | 482,558 |   |                     | $      | 141,511 |   |   | $ | 648,922 |   |   | $ | 164,633 |   |

----

|                                                                                                                    |   | For the Six Months Ended June 30, |       |
|-------------------------------------------------------------------------------------------------------------------------|--------|-----------------------------------|------------|
|                                                                                                                    |   | 2011                              |       |   | 2010 |   |
|                                                                                                                    |   |                              |       |   |   |   |
| Cash flows from operating activities:                                                                                   |   |                              |       |   |   |   |
| Net income                                                                                                              |   | $                                 | 380,716    |   |   | $ | 128,562 |   |
| Adjustments to reconcile net income to net cash provided by                                                             |   |                              |       |   |   |   |   |   |
|   (used in) operating activities:                                                                             |   |                              |       |   |   |   |   |   |
|            Depreciation                                          |   |                              | 168,394    |   |   |   | 109,940 |   |
|              Share-based payments                      |   |                              | 25,000     |   |   |   | - |   |
| Changes in assets and liabilities:                                                                                      |   |                              |       |   |   |   |   |   |
| Accounts receivable                                                                                                     |   |                              | 172,426    |   |   |   | 35,970 |   |
| Inventories                                                                                                             |   |                              | 247,412    |   |   |   | (234,965 | ) |
| Advance payments                                                                                                        |   |                              | (126,214   | ) |   |   | 1,401,028 |   |
| Dividend receivable                                                                                                     |   |                              | 161,444    |   |   |   | 156,899 |   |
| Other current assets                                                                                                    |   |                              | (409,564   | ) |   |   | (1,708,566 | ) |
| Other non-current assets                                                                                                |   |                              | 1,561      |   |   |   | 909 |   |
| Accounts payable and accrued expenses                                                                                   |   |                              | (261,463   | ) |   |   | (53,010 | ) |
| Trade notes payable                                                                                                     |   |                              | 5,205,740  |   |   |   | - |   |
| Customer advances                                                                                                       |   |                              | (1,204,182 | ) |   |   | 593,522 |   |
| Other current liabilities                                                                                               |   |                              | 243,914    |   |   |   | 160,201 |   |
|                  Total adjustments |   |                              | 4,224,468  |   |   |   | 461,928 |   |
|                                                                                                                    |   |                              |       |   |   |   |   |   |
| Net cash provided by operating activities:                                                                              |   |                              | 4,605,184  |   |   |   | 590,490 |   |
|                                                                                                                    |   |                              |       |   |   |   |   |   |
| Cash flows from investing activities:                                                                                   |   |                              |       |   |   |   |   |   |
| Acquisition of property and equipment                                                                                   |   |                              | (1,145,788 | ) |   |   | (183,496 | ) |
| Advance payments for purchase of fixed assets                                                                           |   |                              | -          |   |   |   | (785,898 | ) |
| Loans to third parties                                                                                                  |   |                              | (826,863   | ) |   |   | - |   |
| Investment in non-consolidated entities                                                                                 |   |                              | -          |   |   |   | (8,576 | ) |
| Net cash used in investing activities:                                                                                  |   |                              | (1,972,651 | ) |   |   | (977,970 | ) |
|                                                                                                                    |   |                              |       |   |   |   |   |   |
| Cash flows from financing activities:                                                                                   |   |                              |       |   |   |   |   |   |
| Restricted cash                                                                                                         |   |                              | (3,206,014 | ) |   |   | (639 | ) |
| Repayment of short-term bank loans                                                                                      |   |                              | -          |   |   |   | (439,800 | ) |
| Proceeds from (repayment of) third party loans                                                                          |   |                              | (640,409   | ) |   |   | 1,012,371 |   |
| Repayment of long-term bank loan                                                                                        |   |                              | -          |   |   |   | (146,600 | ) |
| Net cash provided by (used in) financing activities:                                                                    |   |                              | (3,846,423 | ) |   |   | 425,332 |   |
|                                                                                                                    |   |                              |       |   |   |   |   |   |
| Effect of foreign currency translation on cash                                                                          |   |                              | 136,533    |   |   |   | (4,713 | ) |
|                                                                                                                    |   |                              |       |   |   |   |   |   |
| Net increase (decrease) in cash and cash equivalents                                                                    |   |                              | (1,077,357 | ) |   |   | 33,139 |   |
|                                                                                                                    |   |                              |       |   |   |   |   |   |
| Cash and cash equivalents – beginning                                                                             |   |                              | 3,806,939  |   |   |   | 694,620 |   |
|                                                                                                                    |   |                              |       |   |   |   |   |   |
| Cash and cash equivalents – ending                                                                                |   | $                                 | 2,729,582  |   |   | $ | 727,759 |   |
|                                                                                                                    |   |                              |       |   |   |   |   |   |
| Supplemental schedule of non cash activities                                                                            |   |                              |       |   |   |   |   |   |
| Advance payments for investment in non-consolidated entity                                                              |   | $                                 | -          |   |   | $ | 5,478,442 |   |

----

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

----

|                                                                                            | Place of  | Registered and  | Percentage of       |                                                                                                                                                                                  |
|-------------------------------------------------------------------------------------------------|-----------|-----------------|---------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| Subsidiaries’ names                                                                       | operation | paid-up capital | effective ownership | Principal activities                                                                                                                                                                  |
|                                                                                            |      |            |                |                                                                                                                                                                                  |
| Henan Prosperous Clean Energy Corporation                                                       | PRC  | RMB30,000,000   | 100%(c)             | Investing in and constructing gas filling stations and selling compressed natural gas ("CNG"), liquefied petroleum gas ("LPG"), coal-bed methane, dimethyl ether ("DME") and methane. |
|                                                                                            |      |            |                |                                                                                                                                                                                  |
| Handan CityProsperous Car-used Green Resource Co. Ltd. (Handan Green Resource”)           | PRC  | RMB750,000      | 98% (c)             | Sales of LPG, vehicles components, and new energy research and development                                                                                                       |
|                                                                                            |      |            |                |                                                                                                                                                                                  |
| Weifang Prosperous Energy Technology Development Co. Ltd. (Weifang Prosperous”)      | PRC  | RMB10,000,000   | 100% (c)            | Energy technology research and development, and sales vehicles components and gas equipment                                                                                           |
|                                                                                            |      |            |                |                                                                                                                                                                                  |
| Hengshui Prosperous Energy Technology Development Co. Ltd. (Hengshui Prosperous”)    | PRC  | RMB2,000,000    | 100% (c)            | Gas energy technology research and development                                                                                                                                   |
|                                                                                            |      |            |                |                                                                                                                                                                                  |
| Heze Prosperous Energy Technology Development Co. Ltd. (Heze Prosperous”)            | PRC  | RMB5,000,000    | 100% (c)            | Construction of LPG and CNG station, and sales of vehicle componentsLPG and CNG                                                                                                  |
|                                                                                            |      |            |                |                                                                                                                                                                                  |
| Shijiazhuang Prosperous Energy Technology Development Co. Ltd. (Shijiazhuang Prosperous”) | PRC  | RMB10,000,000   | 100% (c)            | Gas energy technology research, development and advisory services, and  sales of gas energy product                                                                              |
|                                                                                            |      |            |                |                                                                                                                                                                                  |
| Xuchang Zhenyuan Green Resource Technology Development Co. Ltd. (Xuchang Zhenyuan”)       | PRC  | RMB10,000,000   | 100% (c)            | Investment in natural gas business                                                                                                                                                    |
|                                                                                            |      |            |                |                                                                                                                                                                                  |
| Yantai Prosperous Energy Technology Development Co. Ltd. (Yantai Prosperous”)             | PRC  | RMB500,000      | 100% (c)            | Gas energy technology research and development, and sales vehicle components and gas energy equipment                                                                                 |

----

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

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

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

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

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

----

|                                      |   | June 30, 2011 |    |   | December 31, 2010 |   |
|-------------------------------------------|--------|---------------|---------|--------|-------------------|--------|
|                                      |   |          |    |   |              |   |
| Compressed natural gas                    |   | $             | 137,485 |   |              | $      | 199,569 |   |
| Liquefied petroleum gas                   |   |          | 299,566 |   |              |   | 578,264 |   |
| Dimethyl ether                            |   |          | 24,138  |   |              |   | 97,452 |   |
| Vehicle modification components and other |   |          | 329,931 |   |              |   | 145,627 |   |
|                                      |   |          |    |   |              |   |   |   |
| Total                                     |   | $             | 791,120 |   |              | $      | 1,020,912 |   |

|                          |   | June 30, 2011 |       |   | December 31, 2010 |   |
|-------------------------------|--------|---------------|------------|--------|-------------------|--------|
|                          |   |          |       |   |              |   |
| Inventories                   |   | $             | 9,676,383  |   |              | $      | 9,363,683 |   |
| Property and equipment        |   |          | 3,534,075  |   |              |   | 3,465,541 |   |
|     Total |   | $             | 13,210,458 |   |              | $      | 12,829,224 |   |

----

|                                    |   | June 30, 2011 |       |   | December 31, 2010 |   |
|-----------------------------------------|--------|---------------|------------|--------|-------------------|--------|
|                                    |   |          |       |   |              |   |
| Buildings                               |   | $             | 2,455,584  |   |              | $      | 1,144,422 |   |
| Machinery                               |   |          | 3,938,961  |   |              |   | 3,129,046 |   |
| Machinery – capital lease         |   |          | 320,659    |   |              |   | - |   |
| Office equipment                        |   |          | 95,743     |   |              |   | 75,363 |   |
| Gas storage vehicles and motor vehicles |   |          | 129,869    |   |              |   | 127,350 |   |
| Construction in progress                |   |          | 547,354    |   |              |   | 1,731,539 |   |
|                                    |   |          | 7,488,170  |   |              |   | 6,207,720 |   |
| Less: Accumulated depreciation          |   |          | (1,675,211 | )      |              |   | (1,475,882 | ) |
|                                    |   |          |       |   |              |   |   |   |
| Total                                   |   | $             | 5,812,959  |   |              | $      | 4,731,838 |   |

|                                                                          |   |                      |
|-------------------------------------------------------------------------------|--------|---------------------------|
| Year Ending December 31,                                                      |   | Amount                    |
| 2011                                                                          |   | $ 101,979                 |
| 2012                                                                          |   | 127,114                   |
| 2013                                                                          |   |    127,114 |
| Total minimum lease payments                                                  |   | $ 356,207                 |
| Less: Current maturities of capital                                           |   |                      |
|           lease obligations |   | (123,351)                 |
| Long-term capital lease obligations                                           |   | $ 232,856                 |

----

| Name of investee                                                              | Place of operation | Percentage of ownership | Principal activities                                                       |
|-------------------------------------------------------------------------------|--------------------|-------------------------|----------------------------------------------------------------------------|
|                                                                          |               |                    |                                                                       |
| Anyang Dingran Gas Co., Ltd                                                   | PRC                | 38%                     | Natural gas pipeline, investment and management in CNG filling station     |
|                                                                          |               |                    |                                                                       |
| Anyang PetroChina Marketing Company Limited (“Anyang PetroChina”) | PRC                | 34%                     | Sales of crude oil and refined oil and LPG                                 |
|                                                                          |               |                    |                                                                       |
| Ancai Energy Corporation                                                      | PRC                | 15%                     | Long distance pipe network, LPG pipeline, operation of CNG filling station |

----

|             |   | June 30, 2011 |      |   | December 31, 2010 |   |
|------------------|--------|---------------|-----------|--------|-------------------|--------|
|             |   |          |      |   |              |   |
| Accounts payable |   | $             | 1,261,258 |   |              | $      | 1,509,024 |   |
| Accrued expenses |   |          | 27,710    |   |              |   | 14,003 |   |
|             |   |          |      |   |              |   |   |   |
| Total            |   | $             | 1,288,968 |   |              | $      | 1,523,027 |   |

|                                                                                                                                                                                                                                                                                                                                                        |   | June 30, |                               |   | December 31, |   |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|----------|------------------------------------|--------|--------------|--------|
|                                                                                                                                                                                                                                                                                                                                                        |   | 2011     |                               |   | 2010         |   |
|                                                                                                                                                                                                                                                                                                                                                        |   |     |                               |   |         |   |
| 6.372% one-year term loan from Bank of China, signed on October 8, 2010, which is to be repaid in full by October 8, 2011. The loan is guaranteed by real estate of Anyang Century Plaza Century Real Estate Development Co., Ltd. Interest was paid quarterly.                                                                                        |   | $        |   464,100                |   |         | $      |   455,100 |   |
|                                                                                                                                                                                                                                                                                                                                                        |   |     |                               |   |         |   |   |   |
| 6.672% one-year term loan from Bank of China, signed on November 9, 2010, which is to be repaid in full by November 9, 2011. The loan is guaranteed by real estate of Anyang Century Plaza Century Real Estate Development Co., Ltd. Interest was paid quarterly.                                                                                      |   |     |     309,400              |   |         |   |     303,400 |   |
|                                                                                                                                                                                                                                                                                                                                                        |   |     |                               |   |         |   |   |   |
| 6.1160% one-year term loan from Zhengzhou Branch of Shanghai Pudong Development Bank, signed on November 18, 2010, which is to be repaid in full by November 18, 2011. The loan is guaranteed by 70% of the paid-up capital of $500 and rights to use land of Henan Small & Medium Enterprises Investment Guaranty Co., Ltd. Interest was paid monthly. |   |     |        773,500 |   |         |   |        758,500 |   |
|                                                                                                                                                                                                                                                                                                                                                        |   |     |                               |   |         |   |   |   |
| Total                                                                                                                                                                                                                                                                                                                                                       |   | $        | 1,547,000                          |   |         | $      | 1,517,000 |   |

----

|                                                     |   | June 30, 2011 |       |   | December 31, 2010 |   |
|----------------------------------------------------------|--------|---------------|------------|--------|-------------------|--------|
|                                                     |   |          |       |   |              |   |
| Anyang Zhenyuan Group                                    |   | $             | 16,758,770 |   |              | $      | 17,417,588 |   |
| Beijing Prosperous Energy Technology Developing Co., Ltd |   |          | 1, 485,120 |   |              |   | 1,456,320 |   |
| Total                                                    |   | $             | 18,243,890 |   |              | $      | 18,873,908 |   |

|                             |   | For the six months ended June 30, |    |
|----------------------------------|--------|-----------------------------------|---------|
|                             |   | 2011                              |    |   | 2010 |   |
|                             |   |                              |    |   |   |   |
| Current                          |   | $                                 | 120,394 |   |   | $ | 58,410 |   |
| Deferred                         |   |                              | -       |   |   |   | - |   |
| Total provision for income taxes |   | $                                 | 120,394 |   |   | $ | 58,410 |   |

----

|                                             |   |                        |    |
|--------------------------------------------------|--------|-----------------------------|---------|
|                                             |   | Three Months Ended June 30, |    |
|                                             |   | 2011                        |    |   | 2010 |   |
|                                             |   |                        |    |   |   |   |
| Net income attributable to CHPC                  |   | $                           | 374,158 |   |   | $ | 106,782 |   |
|                                             |   |                        |    |   |   |   |   |   |
| Weighted average common shares                   |   |                        | 125,000 |   |   |   | 120,000 |   |
|  (denominator for basic income per share)   |   |                        |    |   |   |   |   |   |
|                                             |   |                        |    |   |   |   |   |   |
| Effect of dilutive securities                    |   |                        | -       |   |   |   | - |   |
|                                             |   |                        |    |   |   |   |   |   |
| Weighted average common shares                   |   |                        | 125,000 |   |   |   | 120,000 |   |
|  (denominator for diluted income per share) |   |                        |    |   |   |   |   |   |
|                                             |   |                        |    |   |   |   |   |   |
| Basic earnings per share                         |   | $                           | 2.99    |   |   | $ | 0.88 |   |
| Diluted earnings per share                       |   | $                           | 2.99    |   |   | $ | 0.88 |   |

|                                             |   |                      |    |
|--------------------------------------------------|--------|---------------------------|---------|
|                                             |   | Six Months Ended June 30, |    |
|                                             |   | 2011                      |    |   | 2010 |   |
|                                             |   |                      |    |   |   |   |
| Net income attributable to CHPC                  |   | $                         | 384,362 |   |   | $ | 129,957 |   |
|                                             |   |                      |    |   |   |   |   |   |
| Weighted average common shares                   |   |                      | 125,000 |   |   |   | 120,000 |   |
|  (denominator for basic income per share)   |   |                      |    |   |   |   |   |   |
|                                             |   |                      |    |   |   |   |   |   |
| Effect of dilutive securities                    |   |                      | -       |   |   |   | - |   |
|                                             |   |                      |    |   |   |   |   |   |
| Weighted average common shares                   |   |                      | 125,000 |   |   |   | 120,000 |   |
|  (denominator for diluted income per share) |   |                      |    |   |   |   |   |   |
|                                             |   |                      |    |   |   |   |   |   |
| Basic earnings per share                         |   | $                         | 3.07    |   |   | $ | 1.08 |   |
| Diluted earnings per share                       |   | $                         | 3.07    |   |   | $ | 1.08 |   |

----

|                       |   | For the six months ended June 30, |    |
|----------------------------|--------|-----------------------------------|---------|
|                       |   | 2011                              |    |   | 2010 |   |
|                       |   |                              |    |   |   |   |
| Cash paid for interest     |   | $                                 | 93,595  |   |   | $ | 32,231 |   |
| Cash paid for income taxes |   | $                                 | 120,394 |   |   | $ | 58,410 |   |

| Period ended December 31, |   |   |      |
|---------------------------|--------|--------|-----------|
| 2011                      |   | $      | 271,294   |   |
| 2012                      |   |   | 246,206   |   |
| 2013                      |   |   | 153,482   |   |
| 2014                      |   |   | 145,334   |   |
| 2015                      |   |   | 112,149   |   |
| Thereafter                |   |   | 487,739   |   |
|                      |   |   |      |   |
| Total                     |   | $      | 1,416,204 |   |

----

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

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

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

|   | The following table sets out the Company’s segment information. The “Unallocated” column in the following table contains the reconciliation between the amounts for reportable segments and the consolidated amounts, which consists primarily of corporate items not allocated to the operating segments, intersegment eliminations. Intersegment sales are accounted for at fair value as if sales were to third parties. |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                          |   | For the Six Months Ended June 30, |       |
|-------------------------------|--------|-----------------------------------|------------|
| Sales from external customers |   | 2011                              |       |   | 2010 |   |
| CNG retail                    |   | $                                 | 4,239,396  |   |   | $ | 2,762,495 |   |
| LPG retail                    |   |                              | 145,262    |   |   |   | 297,955 |   |
| CNG and LPG wholesale         |   |                              | 8,837,943  |   |   |   | 5,066,256 |   |
| Unallocated                   |   |                              | 3,176,951  |   |   |   | 1,857,733 |   |
| Consolidated                  |   | $                                 | 16,399,552 |   |   | $ | 9,984,439 |   |

|                            |   |                              |    |   |   |   |
|---------------------------------|--------|-----------------------------------|---------|--------|--------|--------|
|                            |   | For the Six Months Ended June 30, |    |
| Net income attributable to CHPC |   | 2011                              |    |   | 2010   |   |
| CNG retail                      |   | $                                 | 404,292 |   |   | $      | 259,124 |   |
| LPG retail                      |   |                              | (12,760 | )      |   |   | (24,121 | ) |
| CNG and LPG wholesale           |   |                              | (58,407 | )      |   |   | (301,974 | ) |
| Unallocated                     |   |                              | 51,237  |   |   |   | 196,928 |   |
| Consolidated                    |   | $                                 | 384,362 |   |   | $      | 129,957 |   |

|                                             |   | For the Six Months Ended June 30, |    |
|--------------------------------------------------|--------|-----------------------------------|---------|
| Investment income from non-consolidated entities |   | 2011                              |    |   | 2010 |   |
| Consolidated                                     |   | $                                 | 165,862 |   |   | $ | 156,885 |   |

|              |   |                              |    |   |   |   |
|-------------------|--------|-----------------------------------|---------|--------|--------|--------|
|              |   | For the Six Months Ended June 30, |    |
| Interest expenses |   | 2011                              |    |   | 2010   |   |
| Consolidated      |   | $                                 | (93,595 | )      |   | $      | (32,231 | ) |

|                                                   |   |                              |    |   |   |   |
|--------------------------------------------------------|--------|-----------------------------------|---------|--------|--------|--------|
|                                                   |   | For the Six Months Ended June 30, |    |
| Income before noncontrolling interest and income taxes |   | 2011                              |    |   | 2010   |   |
| Consolidated                                           |   | $                                 | 501,110 |   |   | $      | 186,972 |   |

|                  |   |          |       |   |              |   |
|-----------------------|--------|---------------|------------|--------|-------------------|--------|
| Segment assets        |   | June 30, 2011 |       |   | December 31, 2010 |   |
| CNG retail            |   | $             | 4,640,804  |   |              | $      | 2,507,361 |   |
| LPG retail            |   |          | 82,610     |   |              |   | 67,582 |   |
| CNG and LPG wholesale |   |          | 2,895,443  |   |              |   | 1,390,697 |   |
| Unallocated           |   |          | 34,428,878 |   |              |   | 33,537,570 |   |
| Consolidated          |   | $             | 42,047,735 |   |              | $      | 37,503,210 |   |

----

----

----

|                                                                                                                               | June 30, 2011                   | December 31, 2010               |
|------------------------------------------------------------------------------------------------------------------------------------|---------------------------------|---------------------------------|
| Balance sheet items, except for paid-in capital and retained earnings as of the end of period                                      | RMB1: US$0.15470                | RMB1: US$0.15170                |
|                                                                                                                               |
|                                                                                                                               | Three months endedJune 30, 2011 | Three months endedJune 30, 2010 |
| Amounts included in the statements of income, statements of stockholders’ equity and statements of cash flows for the period | RMB1: US$0.15434                | RMB1: US$0.14630                |
|                                                                                                                               |
|                                                                                                                               | Six months endedJune 30, 2011   | Six months endedJune 30, 2010   |
| Amounts included in the statements of income, statements of stockholders’ equity and statements of cash flows for the period | RMB1: US$0.15311                | RMB1: US$0.14669                |

----

----

----

|                                     |   | For the quarter endedJune 30, 2011 |      |                 | For the quarter endedJune 30, 2010  |   |   | Changes |                |
|------------------------------------------|--------|------------------------------------|-----------|----------------------|-------------------------------------|--------|--------|---------|---------------------|
|                                     |   | Amount                             |      | Percentage ofRevenue |                                |   | Amount |    | PercentageofRevenue |   |   | Amount |   | Percentage |   |
|                                     |   | $                                  |      | (%)                  |                                |   | $      |    | (%)                 |   |   | $ |   | $(%) |   |
| Sales                                    |   | $                                  | 7,120,591 |                 | 100.00                              | %      |   |    | 5,311,443           |   | 100.00 | % |   |   | 1,809,148 |   | 34.6 | % |
|                                     |   |                               |      |                 |                                |   |   |    |                |   |   |   |   |   |   |   |   |   |
| Cost of Sales                            |   |                               | 5,780,571 |                 | 81.18                               | %      |   |    | 4,674,824           |   | 88.01 | % |   |   | 1,105,747 |   | 23.65 | % |
|                                     |   |                               |      |                 |                              |   |   |    |                |   |   |   |   |   |   |   |   |   |
| Gross Profit                             |   |                               | 1,340,020 |                 | 18.82                               | %      |   |    | 636,619             |   | 11.99 | % |   |   | 703,401 |   | 110.49 | % |
|                                     |   |                               |      |                 |                                |   |   |    |                |   |   |   |   |   |   |   |   |   |
| Operating Expenses:               |   |                               | 883,280   |                 | 12.4                                | %      |   |    | 562,088             |   | 10.58 | % |   |   | 321,192 |   | 57.14 | % |
|                                     |   |                               |      |                 |                                |   |   |    |                |   |   |   |   |   |   |   |   |   |
| Selling Expenses                         |   |                               | 628,145   |                 | 8.82                                | %      |   |    | 391,739             |   | 7.38 | % |   |   | 236,406 |   | 60.35 | % |
|                                     |   |                               |      |                 |                                |   |   |    |                |   |   |   |   |   |   |   |   |   |
| General & Administrative Expenses    |   |                               | 255,135   |                 | 3.58                                | %      |   |    | 170,349             |   | 3.21 | % |   |   | 84,786 |   | 49.77 | % |
|                                     |   |                               |      |                 |                                |   |   |    |                |   |   |   |   |   |   |   |   |   |
| Income from Operations                   |   |                               | 456,740   |                 | 6.41                                | %      |   |    | 74,531              |   | 1.40 | % |   |   | 382,209 |   | 512.82 | % |
|                                     |   |                               |      |                 |                              |   |   |    |                |   |   |   |   |   |   |   |   |   |
| Other Income (Expenses):          |   |                               | 19,126    |                 | 0.27                                | %      |   |    | 70,622              |   | 1.33 | % |   |   | (51,496) |   | (72.92 | %) |
|                                     |   |                               |      |                 |                                |   |   |    |                |   |   |   |   |   |   |   |   |   |
| Investment Income                        |   |                               | 82,372    |                 | 1.16                                | %      |   |    | 78,464              |   | 1.48 | % |   |   | 3908 |   | 4.98 | % |
|                                     |   |                               |      |                 |                                |   |   |    |                |   |   |   |   |   |   |   |   |   |
| Interest Expense                         |   |                               | (59,533)  |                 | (0.84                               | %)     |   |    | (217)               |   | - | % |   |   | 59,316 |   | 27334.56 | % |
|                                     |   |                               |      |                 |                              |   |   |    |                |   |   |   |   |   |   |   |   |   |
| Other Income (Expenses)                  |   |                               | (3,713)   |                 |      (0.05 | %)     |   |    | (7,625)             |   | (0.14 | %) |   |   | (3,912) |   | (51.30 | %) |
|                                     |   |                               |      |                 |                                |   |   |    |                |   |   |   |   |   |   |   |   |   |
| Income before Provision for Income Taxes |   |                               | 475,866   |                 | 6.68                                | %      |   |    | 145,153             |   | 2.73 | % |   |   | 330,714 |   | 227.84 | %) |
|                                     |   |                               |      |                 |                              |   |   |    |                |   |   |   |   |   |   |   |   |   |
| Provision for Income Taxes               |   |                               | 101,879   |                 | 1.43                                | %      |   |    | 39,704              |   | 0.75 | % |   |   | 62,175 |   | 156.60 | % |
|                                     |   |                               |      |                 |                              |   |   |    |                |   |   |   |   |   |   |   |   |   |
| Income before Noncontrolling Interest    |   |                               | 373,987   |                 | 5.25                                | %      |   |    | 105,449             |   | 1.99 | % |   |   | 268,539 |   | 254.66 | %) |
|                                     |   |                               |      |                 |                              |   |   |    |                |   |   |   |   |   |   |   |   |   |
| Noncontrolling Interest                  |   |                               | (171)     |                 | 0.00                                | %      |   |    | (1,333)             |   | (0.03 | %) |   |   | (1,163) |   | (87.18 | %) |

----

|                                    |   |   |          |   |     |    |   |   |    |   |   |   |   |   |    |   |   |   |
|-----------------------------------------|--------|--------|---------------|--------|------------|---------|--------|--------|---------|--------|--------|--------|--------|--------|---------|--------|----------|--------|
| Net Income                              |   |   | 374,158       |   | 5.25       | %       |   |   | 106,782 |   | 2.01   | %      |   |   | 267,376 |   | 250.39   | %      |
|                                    |   |   |          |   |       |    |   |   |    |   |   |   |   |   |    |   |     |   |
| Foreign Currency Translation Adjustment |   |   | 108,400       |   |  1.5  |  % |   |   | 34,729  |   | 0.65   | %      |   |   | 73,671  |   | 212.13   | %      |
|                                    |   |   |          |   |       |    |   |   |    |   |   |   |   |   |    |   |     |   |
| Total Comprehensive Income              |   |   |  482,558 |   |  6.78 | %       |   |   | 141,511 |   | 2.66   | %      |   |   | 341,047 |   | 241.00   | %      |

|                                  |   | For the six monthsendedJune 30, 2010 |             |                | For the six months endedJune 30, 2009 |   | Changes |   |
|---------------------------------------|--------|--------------------------------------|------------------|---------------------|---------------------------------------|--------|---------|--------|
|                                  |   | Amount                               |             | PercentageofRevenue |                                  |   | Amount  |   | PercentageofRevenue |   | Amount |   | Percentage |   |
|                                  |   | $                                    |             | (%)                 |                                  |   | $       |   | (%) |   | $ |   | (%) |   |
| Sales                                 |   |                                 | 16,399,552       |                | 100.00                                | %      |    |   | 9,984,439 |   | 100.00 | % | 6,415,113 |   | 64.25 | % |
|                                  |   |                                 |             |                |                                |   |    |   |   |   |   |   |   |   |   |   |
| Cost of Sales                         |   |                                 |  14,038,138 |                | 85.60                                 | %      |    |   |   8,654,492 |   | 86.68 | % | 5,383,646 |   | 62.21 | % |
|                                  |   |                                 |             |                |                                |   |    |   |   |   |   |   |   |   |   |   |
| Gross Profit                          |   |                                 | 2,361,414        |                | 14.40                                 | %      |    |   | 1,329,947 |   | 13.32 | % | 1,031,467 |   | 77.56 | % |
|                                  |   |                                 |             |                |                                |   |    |   |   |   |   |   |   |   |   |   |
| Operating Expenses:            |   |                                 | 1,930,326        |                | 11.77                                 | %      |    |   | 1,163,843 |   | 11.66 | % | 766,483 |   | 65.86 | % |
|                                  |   |                                 |             |                |                                |   |    |   |   |   |   |   |   |   |   |   |
| Selling Expenses                      |   |                                 | 1,368,546        |                | 8.35                                  | %      |    |   | 811,889 |   | 8.13 | % | 556,657 |   | 68.56 | % |
|                                  |   |                                 |             |                |                                |   |    |   |   |   |   |   |   |   |   |   |
| General & Administrative Expenses |   |                                 | 561,780          |                | 3.43                                  | %      |    |   | 351,954 |   | 3.53 | % | 209,826 |   | 59.62 | % |
|                                  |   |                                 |             |                |                                  |   |    |   |   |   |   |   |   |   |   |   |
| Income from Operations                |   |                                 | 431,088          |                | 2.63                                  | %      |    |   | 166,104 |   | 1.66 | % | 264,984 |   | 159.53 | % |
|                                  |   |                                 |             |                |                                |   |    |   |   |   |   |   |   |   |   |   |
| Other Income (Expenses):       |   |                                 | 70,022           |                | 0.43                                  | %      |    |   | 20,868 |   | 0.21 | % | 49,154 |   | 235.55 | % |
|                                  |   |                                 |             |                |                                |   |    |   |   |   |   |   |   |   |   |   |
| Investment Income                     |   |                                 | 165,862          |                | 1.01                                  | %      |    |   | 156,885 |   | 1.57 | % | 8,977 |   | 5.72 | % |
|                                  |   |                                 |             |                |                                |   |    |   |   |   |   |   |   |   |   |   |
| Interest Expense                      |   |                                 | (93,595)         |                | (0.57                                 | %)     |    |   | (32,231) |   | (0.32 | %) | 61,364 |   | 190.39 | % |
|                                  |   |                                 |             |                |                                |   |    |   |   |   |   |   |   |   |   |   |
| Other Income (Expenses)               |   |                                 | (2,245)          |                | (0.01                                 | %)     |    |   | (103,786) |   | (1.04 | % | (101,541) |   | (97.84 | %) |

----

|                                     |   |   |          |   |   |   |   |   |                                             |   |         |   |          |   |       |    |
|------------------------------------------|--------|--------|---------------|--------|----------|--------|--------|--------|--------------------------------------------------|--------|--------------|--------|---------------|--------|--------------|---------|
| Income before Provision for Income Taxes |   |   | 501,110       |   | 3.06     | %      |   |   | 186,972                                          |   | 1.87         | %      | 314,138       |   | 168.01       | %       |
|                                     |   |   |          |   |   |   |   |   |                                             |   |         |   |          |   |       |    |
| Provision for Income Taxes               |   |   | 120,394       |   | 0.73     | %      |   |   | 58,410                                           |   | 0.59         | %      | 61,984        |   | 106.12       | %       |
|                                     |   |   |          |   |   |   |   |   |                                             |   |         |   |          |   |       |    |
| Income before Noncontrolling interest    |   |   | 380,716       |   | 2.32     | %      |   |   | 128,562                                          |   | 1.29         | %      | 252,154       |   | 196.13       | %       |
|                                     |   |   |          |   |   |   |   |   |                                             |   |         |   |          |   |       |    |
| Noncontrolling Interest                  |   |   | (3,646)       |   | (0.02    | %)     |   |   | (1,395)                                          |   | (0.01 | %)     | 2,251         |   | 161.36       | %       |
|                                     |   |   |          |   |   |   |   |   |                                             |   |         |   |          |   |       |    |
| Net Income                               |   |   | 384,362       |   | 2.34     | %      |   |   | 129,957                                          |   | 1.30         | %      | 254,405       |   | 195.76       | %       |
|                                     |   |   |          |   |     |   |   |   |                                             |   |         |   |          |   |         |    |
| Foreign Currency Translation Adjustment  |   |   |  264,560 |   | 1.16     | %      |   |   |        34,676 |   | 0.35         | %      |  229,884 |   |  662.95 | %  |
|                                     |   |   |          |   |     |   |   |   |                                             |   |         |   |          |   |         |    |
| Total Comprehensive Income               |   |   |  648,923 |   | 3.96     | %      |   |   |     164,633                  |   | 1.65         | %      |  484,290 |   |  294.16 |  % |

|                                |   | For the quarter endedJune 30, 2011 |                |   | For the quarter endedJune 30,2010 |   |      | Change inPercentage (%) |   |
|-------------------------------------|--------|-----------------------------------------|---------------------|--------|-----------------------------------|--------|-----------|-------------------------|--------|
| Sales                               |   | $                                       | 7,120,591           |   |                              | $      | 5,311,443 |                    |   |   | 34.06 | % |
| Net income                          |   | $                                       |   374,158 |   |                              | $      | 106,782   |                    |   |   | 250.39 | % |
| Net Income as a percentage of sales |   | $                                       |   5.25%   | %      |                              | $      | 2.01%     | %                       |   |   | 161.42 | % |

| 1)   | The three new natural gas filling stations of the Company located in Anyang, Linyng, Weifang have been put into  operation in this quarter, along with the increase of filling stations, sales volume increased by 16.12% compared with the same quarter of last year. |
|----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 2)   | The retail prices of natural gas filling stations of the Company have been adjusted upwards along with China's domestic retail prices of crude oil. The average retail prices increased by 21.58% compared with the same quarter of last year. |
|----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Items         |   | For thequarterended June30, 2011 ($) |      | Percentage(%) | For thequarterended June30, 2010  ($) |      | Percentage(%) |   | Change inAmount ($) | Change InPercentage (%) |
|---------------|--------|--------------------------------------|-----------|---------------|-------------------------------------------------|-----------|---------------|--------|---------------------|------------------------------|
| CNG retail    |   |                                 | 2,069,712 |          | 29.07%                                          | 1,443,046 |          |   | 27.17%              |                         | 626,666 | 43.43% |
| CNG wholesale |   |                                 |      |          |                                            | -         |          |   | -                   |                         |   |   |
| LPG retail    |   |                                 | 66,800    |          | 0.94%                                           | 140,290   |          |   | 2.64%               |                         | (73,490) | (52.38%) |
| LPG wholesale |   |                                 | 2,707,574 |          | 38.02%                                          | 2,723,323 |          |   | 51.27%              |                         | (15,749) | (0.58%) |
| Others        |   |                                 | 2,276,505 |          | 31.97%                                          | 1,004,784 |          |   | 18.92%              |                         | 1,271,721 | 126.57% |
| TOTAL         |   |                                 | 7,120,591 |          | 100.00%                                         | 5,311,443 |          |   | 100.00%             |                         | 1,809,148 | 34.06% |

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

| 2)   | In July 2010, one new CNG filling station in Anyang, in 2011 one in Weifang, and the other one in Linying  were put into operation, which contributed to the increase in CNG retail sales; |
|----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 3)   | The retail prices of natural gas have been adjusted upwards along with China's domestic retail prices of crude oil. |
|----------------|---------------------------------------------------------------------------------------------------------------------|

----

| Gross Margin  |   | 2011   |   |   | 2010   |   |   | Comparisons |   |
|---------------|--------|--------|--------|--------|--------|--------|--------|-------------|--------|
| TOTAL         |   |   | 18.82% |   |   |   | 11.99% |        |   |   | (3.83%) |   |
| CNG Retail    |   |   | 25.20% |   |   |   | 23.90% |        |   |   | (2.20%) |   |
| CNG Wholesale |   |   |   |   |   |   |   |        |   |   | (20.00%) |   |
| LPG Retail    |   |   | 8.70%  |   |   |   | 11.88% |        |   |   | (23.28%) |   |
| LPG Wholesale |   |   | 4.30%  |   |   |   | 2.41%  |        |   |   | (0.89%) |   |

| Quarter Ended June 30 |   | Retail LPG(per ton) |   |   | Wholesale LPG(per ton) |    |   | CNG(per cube) |   |
|-----------------------|--------|---------------------|--------|--------|------------------------|---------|--------|---------------|--------|
|                  |   |                |   |   |                   |    |   |          |   |   |   |   |
| 2010                  |   |  $             | 742.04 |   |                   |  $ | 685.69 |          |   |  $ | 0.32 |   |
|                  |   |                |   |   |                   |    |   |          |   |   |   |   |
| 2011                  |   |  $             | 889.73 |   |                   |  $ | 744.13 |          |   |  $ | 0.42 |   |

----

----

| a)   | We will continue building new CNG filling stations as to expand our market share, such as Linying mother station that was completed in June 2010, and put into operation in April,2011. The second gas station  in Changzhi was completed by the end of 2010;One LPG station in Anyang was changed into CNG station and was put into operation in June 2011. |   |
|----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|

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

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

----

| Cash provided by (used in):  |   | Six months ended June 30,2011 |       |   | Six months ended June 30,2010 |   | Change                     |       |
|-----------------------------------|--------|------------------------------------|------------|--------|------------------------------------|--------|----------------------------|------------|
|                              |   |                               |       |   |                               |   | Amount                     | Percentage |   |
|                              |   | ($)                                |       |   | ($)                                |   | ($)                        | (%)        |   |
|                              |   |                               |       |   |                               |   |                       |       |   |   |   |
| Operating Activities              |   |                               | 4,605,184  |   |                               |   |    590,490  |       | 4,014,694 | 679% |   |
|                              |   |                               |       |   |                               |   |                       |       |   |   |   |
| Investing Activities              |   |                               | (1,972,651 | )      |                               |   |    (977,970 | )          | 994,681 | 102% |   |
|                              |   |                               |       |   |                               |   |                       |       |   |   |   |
| Financing Activities              |   |                               | (3,846,423 | )      |                               |   |    425,332  |       | 4,271,755 | 1,004% |   |

----

|                |   | For the Six Months |    |
|---------------------|--------|--------------------|---------|
|                |   | Ended June 30,     |    |
|                |   | 2011               |    |   | 2010 |   |
|                |   |               |    |   |   |   |
| Current – PRC |   | $                  | 120,394 |   |   | $ | 58,410 |   |
|                |   |               |    |   |   |   |   |   |
| Deferred            |   | $                  | 120,394 |   |   | $ | 58,410 |   |

----

----

----

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

| 10.3   |   | Non-Affiliate Stock Purchase Agreement (2)                                                                  |
|--------|--------|-------------------------------------------------------------------------------------------------------------|
|   |   |                                                                                                        |
| 10.4   |   | Share Exchange Agreement, dated June 30, 2008, between Company and Oracular Dragon Capital Company, Ltd.(3) |
|   |   |                                                                                                        |
| 10.5   |   | Consulting Agreement between Company and Zhijun Liu (4)                                                     |
|   |   |                                                                                                        |
| 31.1   |   | Section 302 Certificate of Chief Executive Officer *                                                        |
|   |   |                                                                                                        |
| 31.2   |   | Section 302 Certificate of Chief Financial Officer *                                                        |
|   |   |                                                                                                        |
| 32.1   |   | Section 906 Certificate of Chief Executive Officer *                                                        |
|   |   |                                                                                                        |
| 32.2   |   | Section 906 Certificate of Chief Financial Officer *                                                        |

| Date: August 12, 2011 | CHINA PROSPEROUS CLEAN ENERGY CORPORATION                             |
|-----------------------|-----------------------------------------------------------------------|
|                  |                                                                  |
|                  | /s/Hongjie Zhou          |
|                  |   Hongjie Zhou                                              |
|                  |  Acting Chief Financial Officer                                  |

----