UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549  FORM 10-KSB  (Mark one) [X] ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934  For the fiscal year ended: December 31, 2007  Or  [   ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934   For the transition period from ______________ to _____________  Commission file number: 0-24483  CHINA JUNLIAN INTEGRATED SURVEILLANCE, INC. (Exact name of small business issuer in its charter)   Nevada___________________ 84-1461844_____________ (State or other jurisdiction of (IRS Employer Identification No.) incorporation or organization)  Tianshou Road, Zhanyizhi Street, Dianwuzhonghe Building, Room 2G02 Guangzhou, P.R. China         510060 (Address of principal executive offices)  Issuer's telephone number: 86-139250-71672  Securities registered pursuant to Section 12(b) of the Exchange Act: None  Securities registered pursuant to Section 12(g) of the Exchange Act:  Common Stock, $.001 par value  Check whether the issuer is not required to file reports pursuant to Section 13 or 15(d) of the Exchange Act.  Yes |  |   No |X|  Check whether the issuer (1) filed all reports  required to be filed by Section 13 or 15(d) of the  Exchange  Act during the past 12 months (or for such shorter period that the  registrant was   1  required to file such reports), and (2)has been subject to such filing requirements for the past 90 days.  Yes [X]   No [  ]  Check if there is no disclosure of delinquent filers in response to Item 405 of Regulation S-B contained in this form, and no disclosure will be contained, to the  best of  registrant's  knowledge, in definitive proxy or information statements incorporated by reference in Part III of this Form 10-KSB or any  amendment to this Form 10-KSB.  |X|  Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).  Yes [X]   No [  ]  The issuers revenues for its most recent fiscal year were $246,420  As of April 14, 2008, the voting and non-voting common equity held by non-affiliates had no market value, as there was no public market for the shares and no recent transaction in the shares known to the Company.  The number of shares outstanding of the issuers common stock, as of April 14, 2008 was 9,720,000.  DOCUMENTS INCORPORATED BY REFERENCE:  None   Transitional Small Business Disclosure Format (check one): Yes |  | No |X|   2  PART I  CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS  This Report contains certain forward-looking statements regarding China Junlian, its business and its financial prospects.  These statements represent Managements present intentions and its present belief regarding the Companys future.  Nevertheless, there are numerous risks and uncertainties that could cause our actual results to differ from the results suggested in this Report.  A number of those risks are set forth in the section of this report titled Managements Discussion and Analysis  Risk Factors That May Affect Future Results. Because these and other risks may cause China Junlians actual results to differ from those anticipated by Management, the reader should not place undue reliance on any forward-looking statements that appear in this Report.  Readers should also take note that China Junlian will not necessarily make any public announcement of changes affecting these forward-looking statements, which should be considered accurate on this date only.  ITEM 1. DESCRIPTION OF BUSINESS  China Junlian Integrated Surveillance, Inc. (China Junlian) is a holding company.  Its only asset is 100% of the registered capital stock of Splendid Group Investments Limited (Splendid Group).  Splendid Group is a British Virgin Islands corporation.  Its only asset is 100% of the registered capital stock of Guangzhou Junlian Correspondence Technology Co., Ltd. (Guangzhou Junlian). Guangzhou Junlian is a corporation organized under the laws of the Peoples Republic of China.  It was organized in May 2006 to engage in consulting, systems development, and customer service in the field of surveillance technology.  Guangzhou Junlian was organized by the management of Guangzhou Junlian Correspondence Science and Technology Co., Ltd. (Junlian S&T).  To date, the only business of Guangzhou Junlian has been to provide services to Junlian S&T.  That business relationship was terminated in 2008, however.  Guangzhou Junlian now carries on no business operations. Guangzhou Junlian currently has no employees.  ITEM 2. DESCRIPTION OF PROPERTY  The executive and operational offices of Junlian are located in Guangzhou, in the Peoples Republic of China.  The lessor of the space is Guangzhou Point to Point Business Service Ltd.   Junlian pays an annual rental of approximately 636 RMB ($85) for the offices. ITEM 3. LEGAL PROCEEDINGS None.  ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS No matter was submitted to a vote of our shareholders during the fourth quarter of 2007.    3   PART II  ITEM 5. MARKET FOR COMMON EQITY, RELATED STOCKHOLDER MATTERS AND SMALL BUSINESS ISSUER PURCHASES OF EQUITY SECURITIES.  (a)  Market Information.  There is no quoted marked for our securities.  (b)  Holders. Our shareholders list contains the names of 129 registered stockholders of record of the Companys Common Stock.  No shares are held in street name.  (c)  Dividend Policy.  We have not declared or paid cash  dividends or made distributions  in the  past,  and we do not  anticipate  that we will  pay  cash dividends or make  distributions in the foreseeable  future. We currently intend to retain and reinvest future earnings, if any, to finance our operations.  (d) Recent Sales of Unregistered Securities.  China Junlian did not sell any unregistered securities during the 4th quarter of 2007.  (e) Repurchase of Equity Securities.  China Junlian did not repurchase any of its equity securities that were registered under Section 12 of the Securities Act during the 4th quarter of 2007.  ITEM 6. MANAGEMENT'S DISCUSSION AND ANALYSIS.  Results of Operations  We commenced business operations in July 2006.  Our only business in 2006 and 2007 was to provide services to Junlian S&T pursuant to our contract with Junlian S&T.  The contract provided for a base payment of 180,000 RMB (@$23,965) per month.  In addition, Junlian S&T agreed to pay Guangzhou Junlian commissions that would be negotiated on a per contract basis.  Junlian S&T guaranteed that its aggregate payments per year would be no less than 3,000,000 RMB (@$399,425).  The $246,420 in revenue recorded by China Junlian in 2007 represents ten months of minimum payments by Junlian S&T, due to the fact that the Strategic Cooperation Agreement was suspended for two months in the middle of 2007.  In 2008 Junlian S&T and Guangzhou Junlian terminated the Strategic Cooperation Agreement.  Accordingly, Guangzhou Junlian currently has no business operations.  The expenses that we incurred in 2007 were greater than those we incurred in 2006 for a number of reasons:  Ø First, we carried on business for only six months in 2006. So we incurred only a half year of operating overhead.   4  Ø Second, during 2006 we paid only $18,238 in rent for our offices.  Our lease provided that in 2007 we would pay $88,227.  We are currently examining a number of business opportunities.  However, we have not committed to undertake any business program at this time.  Liquidity and Capital Resources In June 2006 members of Management loaned 700,000 Hong Kong Dollars (@ $90,189) to Splendid Group, which then contributed that sum to the capital of Guangzhou Junlian.  The funds were used to outfit the offices necessary for Guangzhou Junlian to initiate operations and to provide initial working capital.  In 2007, during the two months when the funding agreement with Junlian S&T was suspended, our director loaned funds to the Company to sustain operations.  Now that our operations have terminated, management does not anticipate that significant additional capital contributions will be required.  Management intends to loan to Guangzhou Junlian such funds as it may require for its ongoing expenses.  Off-Balance Sheet Arrangements  We do not have any off-balance sheet arrangements that have or are reasonably likely to have a current or future effect on our financial condition or results of operations.  Critical Accounting Policies and Estimates  In preparing our financial statements we are required to formulate working policies regarding valuation of our assets and liabilities and to develop estimates of those values.  In our preparation of the financial statements for 2007, there were no estimates made which were (a) subject to a high degree of uncertainty and (b) material to our results.  We have made no material changes to our critical accounting policies in connection with the preparation of financial statements for 2007.  ITEM 7. FINANCIAL STATEMENTS  The Companys financial statements, together with notes and the Independent Auditors Report, are set forth immediately following Item 14 of this Form 10-KSB.  ITEM 8. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE.  Not applicable.         5  ITEM 8A. CONTROLS AND PROCEDURES.  (a) Evaluation of disclosure controls and procedures.  The term disclosure controls and procedures (defined in SEC Rule 13a-15(e)) refers to the controls and other procedures of a company that are designed to ensure that information required to be disclosed by a company in the reports that it files under the Securities Exchange Act of 1934 (the Exchange Act) is recorded, processed, summarized and reported within required time periods. The Companys management, with the participation of the Chief Executive Officer and Chief Financial Officer, has evaluated the effectiveness of the Companys disclosure controls and procedures as of the end of the period covered by this annual report (the Evaluation Date). Based on that evaluation, the Companys Chief Executive Officer and Chief Financial Officer have concluded that, as of the Evaluation Date, such controls and procedures were effective.  (b) Changes in internal controls.  The term internal control over financial reporting (defined in SEC Rule 13a-15(f)) refers to the process of a company that is designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. The Companys management, with the participation of the Chief Executive Officer and Chief Financial Officer has evaluated any changes in the Companys internal control over financial reporting that occurred during the fourth quarter of the year covered by this annual report, and they have concluded that there was no change to the Companys internal control over financial reporting that has materially affected, or is reasonably likely to materially affect, the Companys internal control over financial reporting.  (c) Managements Report on Internal Control over Financial Reporting. Management of the Company is responsible for establishing and maintaining adequate internal control over financial reporting as defined in Rule 13a-15(f) under the Securities Exchange Act of 1934.  We have assessed the effectiveness of those internal controls as of December 31, 2007, using the Committee of Sponsoring Organizations of the Treadway Commission (COSO) Internal Control  Integrated Framework as a basis for our assessment. Because of inherent limitations, internal control over financial reporting may not prevent or detect misstatements.  Projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies and procedures may deteriorate.  All internal control systems, no matter how well designed, have inherent limitations.  Therefore, even those systems determined to be effective can provide only reasonable assurance with respect to financial statement preparation and presentation. A material weakness in internal controls is a deficiency in internal control, or combination of control deficiencies, that adversely affects the Companys ability to initiate, authorize, record, process, or report external financial data reliably in accordance with accounting principles generally accepted in the United States of America such that there is more than a remote likelihood that a material misstatement of the Companys annual or interim financial statements that is more than inconsequential will not be prevented or detected. In the course of making our assessment of   6  the effectiveness of internal controls over financial reporting, we identified two material weaknesses in our internal control over financial reporting.  These material weaknesses consisted of: a. Inadequate staffing and supervision within the accounting operations of our company.  The relatively small number of employees who are responsible for accounting functions prevents us from segregating duties within our internal control system.  The inadequate segregation of duties is a weakness because it could lead to the untimely identification and resolution of accounting and disclosure matters or could lead to a failure to perform timely and effective reviews. b. Lack of expertise in U.S accounting principles among the personnel in our Chinese headquarters.  Our books are maintained and our financial statements are prepared by the personnel employed at our executive offices in the City of Guangzhou.  Few of our employees have experience or familiarity with U.S accounting principles.  The lack of personnel in our Guangzhou office who are trained in U.S. accounting principles is a weakness because it could lead to improper classification of items and other failures to make the entries and adjustments necessary to comply with U.S. GAAP. c. Lack of independent control over policy implementation.  Zhang Junchuan is the sole director of China Junlian, as well as its Chief Executive Officer and Chief Financial Officer.  As a result, Mr. Zhang is responsible for both the development of financial policies and for their implementation.  The absence of other directors to review the implementation of the Boards policies and the performance by management is a weakness because it could lead to a failure to note and remedy improper financial accounting. Management is currently reviewing its staffing and their training in order to remedy the weaknesses identified in this assessment.  To date, we are not aware of significant accounting problems resulting from these weaknesses; so we have to weigh the cost of improvement against the benefit of strengthened controls.  However, because of the above conditions, managements assessment is that the Companys internal controls over financial reporting were not effective as of December 31, 2007. This annual report does not include an attestation report of the Companys registered public accounting firm regarding internal control over financial reporting.  Managements report was not subject to attestation by the Companys registered public accounting firm pursuant to temporary rules of the Securities and Exchange Commission that permit the Company to provide only managements report in this annual report.  ITEM 8B. OTHER INFORMATION.  None.          7  PART III  ITEM 9. DIRECTORS AND EXECUTIVE OFFICERS OF THE REGISTRANT  The following individuals are the members of China Junlians Board of Directors and its executive officers. Director Name Age Position with the Company Since Zhang Jun Chuan 34 Director, Chief Executive Officer, 2006 Chief Financial Officer  All directors hold office until the next annual meeting of our shareholders and until their successors have been elected and qualify.  Officers serve at the pleasure of the Board of Directors. Zhang Jun Chuan.Mr. Zhang is currently employed as Chairman of the Board of both Guangzhou Junlian, a company that he founded in 2006, Junlian S&T, a company that he founded in 2003.  During the four years prior to organizing Junlian S&T, Mr. Zhang was employed as Director and General Manager of Guangzhou Peixing Trading Ltd., a trading company.  From 1997 to 1999 Mr. Zhang was the Sales Manager for Shanghai Jinlitai Chemical Paint Co., Ltd.  Mr. Zhang holds a B.A. degree from Shanghai Huadong Chemical Engineering College, with a concentration in chemical engineering.  He also earned an EMBA from the South China University of Technology.  Nominating and Audit Committee The Board of Directors does not have an audit committee or a nominating committee, due to the small size of the Board.  The Board also does not have an audit committee financial expert within the definition given by the Regulations of the Securities and Exchange Commission.  Code of Ethics China Junlian does not have a code of ethics applicable to its executive officers.  Management has not adopted a code of ethics because there are so few members of management.  Section 16(a) Beneficial Ownership Reporting Compliance None of the officers, directors or beneficial owners of more than 10% of the Companys common stock failed to file on a timely basis the reports required by Section 16(a) of the Exchange Act during the year ended December 31, 2007.  ITEM 10. EXECUTIVE COMPENSATION  Zhang Junchuan assumed the office of Chief Executive Officer in 2008.  The Company did not pay any compensation to Zhang Junchuan for services during 2007 and did not pay any compensation to Yuan Gang, who served as Chief Executive Officer during 2007.  There were no executive officers whose total salary and bonus for the fiscal year ended December 31, 2007 exceeded $100,000.   8   Equity Awards  The following tables set forth certain information regarding the stock options acquired by the executive officers named in the table above during the year ended December 31, 2007 and those options held by them on December 31, 2007.  Option Grants in the Last Fiscal Year   Number of securities underlying option grantedPercent
of total options granted to employees in fiscal yearExercise Price
($ share)Expiration DatePotential realizable value at assumed annual rates of appreciation for
option term5%10%Zhang Junchuan------------   The following tables set forth certain information regarding the stock grants received by the executive officers named in the table above during the year ended December 31, 2007 and held by them unvested at December 31, 2007.  Unvested Stock Awards in the Last Fiscal Year  Number of
Shares That
Have Not
VestedMarket Value
of Shares That
Have Not
VestedZhang Junchuan0--  Remuneration of Directors  None of the members of the Board of Directors receives remuneration for service on the Board.  ITEM 11. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT  The following table sets forth information known to us with respect to the beneficial ownership of our common stock as of the date of this prospectus by the following:  · each shareholder known by us to own beneficially more than 5% of our common stock;  · Zhang Junchuan, our Chief Executive Officer  · each of our directors; and   9   · all directors and executive officers as a group.  Except as otherwise indicated, we believe that the beneficial owners of the common stock listed below have sole voting power and investment power with respect to their shares,  subject to community property laws where applicable.  Beneficial ownership is determined in accordance with the rules of the Securities and Exchange Commission.  Name and Address of
Beneficial OwnerAmount and Nature of
Beneficial OwnershipPercentage of ClassZhang Jun Chuan9,234,00095.0%All officers and directors
(1 person)9,234,00095.0%  Equity Compensation Plan Information  The information set forth in the table below regarding equity compensation plans (which include individual compensation arrangements) was determined as of December 31, 2007. Number of securities to be issued upon exercise of outstanding options, warrants and rightsWeighted average exercise price of outstanding options, warrants and rightsNumber of securities remaining available for future issuance under equity compensation plansEquity compensation plans approved by security holders.......00Equity compensation plans not approved by security holders......00Total..............00   ITEM 12. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS AND DIRECTOR INDEPENDENCE  Certain Relationships  The business of Guangzhou Junlian consists primarily of performing services for Junlian S&T.  The revenue that Junlian will earn from performing services for Junlian S&T will be determined primarily by the management of Guangzhou Junlian and the management of Junlian S&T.  Zhang Jun Chuan is the principal owner and Chairman of both companies.   10   Director Independence  None of the members of the Board of Directors is independent, as independent is defined in the rules of the NASDAQ Stock Market.  ITEM 13. EXHIBITS  3-a Articles of Incorporation - filed as an Appendix to the Revised Definitive Proxy Statement on Schedule 14A filed on March 16, 2007, and incorporated herein by reference. 3-b By-laws - filed as an exhibit to the Companys Current Report on Form 8-K, filed on March 22, 2007, and incorporated herein by reference.  31 Rule 13a-14(a) Certification  32 Rule 13a-14(b) Certification   ITEM 14. PRINCIPAL ACCOUNTANT FEES AND SERVICES   China Junlian retained Brock, Schechter & Polakoff, LLP to serve as its principal accountant in March 2008.  Prior to that date, Brock, Schechter & Polakoff, LLP had performed no services for China Junlian or its subsidiaries.  Audit Fees  Brock, Schechter & Polakoff, LLP billed $ 14,000 to the Company for professional services rendered for the audit of our fiscal 2007 financial statements.  Audit-Related Fees  Brock, Schechter & Polakoff, LLP  billed $0 to the Company during fiscal 2006 for assurance and related services that are reasonably related to the performance of the 2006 audit or review of the quarterly financial statements.  Tax Fees  Brock, Schechter & Polakoff, LLP billed $ 0 to the Company during fiscal 2006 for professional services rendered for tax compliance, tax advice and tax planning.  All Other Fees  Brock, Schechter & Polakoff, LLP billed $ 0 to the Company in fiscal 2006 for services not described above.    11  It is the policy of the Companys Board of Directors that all services, other than audit, review or attest services, must be pre-approved by the Board of Directors, acting in lieu of an audit committee.  All of the services described above were approved by the Board of Directors.    12


Index to consolidated Financial Statements    PAGESIndependent Registered Public Accounting FirmF-1Consolidated Statements of OperationsF-2Consolidated Balance SheetsF-3Consolidated Statements of Stockholders Equity (Deficit)F-4Consolidated Statements of Cash FlowsF-5Notes to Consolidated Financial StatementsF-6 - 15


13


Report of Independent Registered Public Accounting Firm   To the Board of Directors and Stockholders of China Junlian Integrated Surveillance, Inc. (Formerly Sunburst Acquisitions VII, Inc.)  We have audited the accompanying consolidated balance sheet of China Junlian Integrated Surveillance, Inc. and its Subsidiaries (the Company) as of December 31, 2007 and the related consolidated statements of operations, shareholders equity, and cash flows for the year ended December 31, 2007. These financial statements are the responsibility of the Companys management. Our responsibility is to express an opinion on these financial statements based on our audit. The financial statements and financial statement schedule of the Company as of and for the year ended December 31, 2006 were audited by other independent accountants whose report dated March 19, 2007 expressed an unqualified opinion on those statements.  We conducted our audit in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion.  In our opinion, the consolidated financial statements referred to above present fairly, in all material respects, the financial position of the Company as of December 31, 2007 and the results of its operations and its cash flows for the year ended December 31, 2007 in conformity with U.S. generally accepted accounting principles.  The accompanying financial statements have been prepared assuming that the Company will continue as a going concern. As discussed in Note 3 to the financial statements, the Company has terminated its Strategic Cooperation Agreement with its only customer, Junlian S&T. Managements plans in regard to these matters are also described in Note 3. The financial statements do not include any adjustments that might result from the outcome of this uncertainty.   /s/ Brock, Schechter & Polakoff, LLP Buffalo, New York April 15, 2008          F-1


CHINA JUNLIAN INTEGRATED SURVEILLANCE, INC. (FORMERLY SUNBURST ACQUISITIONS VII, INC.) CONSOLIDATED STATEMENTS OF OPERATIONS (Stated in US Dollars)    Year endedYear endedDecember 31,December 31,20072006Revenue (Note 4)$246,420$112,755Cost of services rendered(30,185)(20,107)Gross profit216,23592,648Operating expensesSelling expenses28,71821,101General and administrative expenses218,69475,672Depreciation12,0843,461Other expenses19,92628,434Total expenses279,422128,668Loss before the following items and taxes(63,187)(36,020)Interest income52164Other income11-Finance costs (Note 5)(1)(521)Loss before income taxes(63,125)(36,377)Income taxes (Note 6)(5,359)(1,738)Net loss$ (68,484)$ (38,115)Net loss per share- Basic and diluted (Note 7)$(0.01)$(0.01)Weighted average number of common stock outstanding9,720,0007,210,493             See notes to consolidated financial statements  F- 2     CHINA JUNLIAN INTEGRATED SURVEILLANCE, INC. (FORMERLY SUNBURST ACQUISITIONS VII, INC.) CONSOLIDATED BALANCE SHEET (Stated in US Dollars)    Year endedYear endedDecember 31,December 31,20072006ASSETSCurrent AssetsCash and cash equivalents$9,185$26,883Trade receivables (Note 8)4,244-Prepayments, deposits and other receivable (Note 9)6,05219,282Inventories1,5386,052Total Current Assets21,01947,512Property, plant and equipment, net (Note 10)51,92258,629TOTAL ASSETS$72,941$106,141LIABILITIES AND STOCKHOLDERS EQUITYCurrent LiabilitiesAmount due to a director (Note 11)$119,123$94,646Accrued expenses and other payable (Note 12)17,53518,245Income tax payable-332TOTAL LIABILITIES136,658113,223STOCKHOLDERS EQUITY (DEFICIT)Preferred stock, no par value; 20,000,000 shares authorized; no   shares issued and outstanding--Common stock (Note 13)28,43528,435Accumulated deficit(107,304)(38,820)Statutory reserves (Note 14)470705Accumulated other comprehensive income (Note 15)14,6822,598TOTAL STOCKHOLDERS EQUITY (DEFICIT)(63,717)(7,082)TOTAL LIABILITIES AND STOCKHOLDERS EQUITY (DEFICIT)$72,941$106,141       See notes to consolidated financial statements  F- 3     CHINA JUNLIAN INTEGRATED SURVEILLANCE, INC. (FORMERLY SUNBURST ACQUISITIONS VII, INC.) CONSOLIDATED STATEMENTS OF STOCKHOLDERS EQUITY (DEFICIT) (Stated in US Dollars)    AccumulatedotherCommon stockAccumulatedStatutorycomprehensiveNo. of sharesAmountdeficitreservesincomeTotalBalance, January 1, 20079,720,000$28,435$(38,820)$705$2,598$(7,082)RecapitalizationComprehensive lossNet loss(68,484)(68,484)Foreign currency translationadjustments12,08412,084Total comprehensive loss(63,482)Appropriation to reserves(235)(235)Balance, December 31, 20079,720,000$28,435$(107,304)$470$14,682$(63,717)                                 See notes to consolidated financial statements  F- 4    CHINA JUNLIAN INTEGRATED SURVEILLANCE, INC. (FORMERLY SUNBURST ACQUISITIONS VII, INC.) CONSOLIDATED STATEMENTS OF CASH FLOWS (Stated in US Dollars)    Year endedYear endedDecember 31,December 31,20072006Cash flows from operating activitiesNet loss$ (68,484)$ (38,115)Adjustments to reconcile net loss to net cashused in operating activities :Depreciation12,0843,461Other expenses19,92628,434Changes in operating assets and liabilities :Trade receivables(4,244)-Prepayments, deposits and other receivable(6,696)(18,858)Inventories(191)(1,347)Accrued expenses and other payable(711)13,157Income tax payable(332)325Net cash flows used in operating activities(48,648)(12,943)Cash flows from investing activitiesPayments to acquire property, plant and equipment(1,260)(60,882)Cash flows from financing activitiesProceeds from director loan24,47799,724Effect of foreign currency translation on cash and cash equivalents7,733984Net increase (decrease) in cash and cash equivalents(17,698)26,883Cash and cash equivalents, beginning of period26,883-Cash and cash equivalents, end of period9,18526,883              See notes to consolidated financial statements  F- 5    CHINA JUNLIAN INTEGRATED SURVEILLANCE, INC. (FORMERLY SUNBURST ACQUISITIONS VII, INC.) NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Stated in US Dollars)  1. Change of company name and state of incorporation  Pursuant to a special meeting of the stockholders held on March 15, 2007, Sunburst Acquisitions VII, Inc. changed its name to China Junlian Integrated Surveillance, Inc. and its state of incorporation from Colorado to Nevada.  2. Description of the company  China Junlian Integrated Surveillance, Inc. (the Company) was incorporated on June 30, 1998.  The Company was a development stage company and had no operations or employees and owned no real estate prior to the transaction described below.  On August 31, 2006, the Company acquired all of the issued and outstanding capital stock of Splendid Group Investments Limited (Splendid), a corporation organized under the laws of British Virgin Islands, by issuing 5,935,000 shares of its common stock to the original stockholders of Splendid.  Splendid is a holding company that owns 100% of the equity in Guangzhou Junlian Correspondence Technology Co., Ltd. (Junlian), a corporation established under the laws of the Peoples Republic of China (the PRC) on May 23, 2006.  As a result of the aforementioned acquisition, Splendid became a wholly owned subsidiary of the Company and the original stockholders of Splendid became the majority stockholders of the Company.  All of the officers and directors before the closing of the transaction resigned and current officers and directors were appointed to serve in their present capacities.  This transaction constituted a reverse takeover transaction (the RTO).  The Company ended its development stage pursuant to the RTO and, through Junlian, is engaged in consulting, systems development and customer service in the field of surveillance technology in the PRC.  Junlian was organized by the management of Guangzhou Junlian Correspondence Science and Technology Co., Ltd (Junlian S&T), a company in which the Companys present chairman has a beneficial interest.  In May 2006, Junlian S&T and Junlian entered into a Strategic Cooperation Agreement whereby Junlian will provide services required by Junlian S&T in connection with fulfilment of its development contracts.  In compensation of its services, Junlian S&T will pay Junlian a fixed fee of approximately US$18,793 (Renminbi (RMB) 150,000) per month and a commission to be determined by Junlian S&T and Junlian on a per-project basis.  Junlian S&T has guaranteed that its aggregate annual payments to Junlian will be no less than US$375,850 (RMB3,000,000).  On June 28, 2007, Junlian S&T and Junlian agreed to suspend the above Strategic Cooperation Agreement. In November 2007, Junlian S&T and Junlian entered into a new Strategic Cooperation Agreement, effective as of August 1, 2007, whereby Junlian  provided services with upgraded technology to Junlian S&T and charged Junlian S&T a fixed fee of approximately US$23,965 (Renminbi (RMB) 180,000) per month and a commission to be determined by Junlian S&T and Junlian on a per-project basis. Junlian S&T has guaranteed that its aggregate annual payments to Junlian will be no less than US$399,425 (RMB3,000,000). The above mentioned Strategic Cooperation Agreement was terminated in 2008.  Revenue for the reporting period represents the fixed fee income received from Junlian S&T.   F- 6     CHINA JUNLIAN INTEGRATED SURVEILLANCE, INC. (FORMERLY SUNBURST ACQUISITIONS VII, INC.) NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Stated in US Dollars)   3. Basis of presentation  (i) The purchase method under reverse takeover accounting is adopted for the preparation of these consolidated financial statements.  As such, the consolidated financial statements are issued under the name of the legal parent, the Company, but are a continuation of the consolidated financial statements of Splendid.  The comparative figures should be those of Splendid and represent its results of operations and cash flows.  (ii) In 2008 the Strategic Cooperation Agreement effective August 1, 2007 between Junlian S&T and Junlian was terminated. As a result the company now carries on no business operations and does not have any employees. The Group is currently examining a number of business opportunities however as the date of this report no commitments to any business programs have been made. Since operations have terminated management intends to loan Junlian funds as it may require for its ongoing operations.  4. Summary of significant accounting policies  Basis of consolidation  The accompanying consolidated financial statements of the Company have been prepared in accordance with accounting principles generally accepted in the United States of America.  The consolidated financial statements include the accounts of the Company and its subsidiaries. All significant inter-company accounts and transactions have been eliminated in consolidation.  Use of estimates  In preparing financial statements in conformity with accounting principles generally accepted in the United States of America, management makes estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the dates of the consolidated financial statements, as well as the reported amounts of revenues and expenses during the reporting periods.  These accounts and estimates include, but are not limited to, the estimation on useful lives of property, plant and equipment.  Actual results could differ from those estimates.  Concentration of credit risk  The Company has a concentration of credit risk as its revenue was solely derived from services provided to a related party, Junlian S&T.  Cash and cash equivalents  Cash equivalents are highly liquid investments and have maturities of three months or less at the date of purchase.  As of December 31, 2007, majority of the cash and cash equivalents were denominated in RMB which is not freely convertible into foreign currencies.  F- 7    CHINA JUNLIAN INTEGRATED SURVEILLANCE, INC. (FORMERLY SUNBURST ACQUISITIONS VII, INC.) NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Stated in US Dollars)  4. Summary of significant accounting policies (contd) Trade receivables After initial recognition at fair value, trade receivables are measured at amortized cost using the effective interest method except that short-duration receivables with no stated interest rate are normally measured at original invoice amount unless the effect of imputing interest would be significant. Trade receivables are stated after provision for impairment. The amount of the provision for impairment is recognized in the income statement. A trade receivable amount is regarded as impaired if there is objective evidence of impairment as a result of one or more events that occurred after the initial recognition and that loss event has an impact on the estimated future cash flows of the financial asset that can be reliably estimated. The carrying amounts of trade receivables are assumed to approximate their fair value. Normally no interest is charged on trade receivables.  Inventories Inventories are measured at the lower of cost (weighted average method) and net realizable value. Net realizable value is the estimated selling price in the ordinary course of business less the estimated costs of completion and the estimated costs necessary to make the sale. Cost includes all costs of purchase, costs of conversion and other costs incurred in bringing the inventories to their present location and condition. A write down on cost is made when the cost is not recoverable or if the selling prices have declined.  Property, plant and equipment  Property, plant and equipment are stated at cost less accumulated depreciation.  Maintenance, repairs and betterments, including replacement of minor items, are charged to expense; major additions to physical properties are capitalized.  Depreciation is provided using the straight-line method over the estimated useful lives of 5 years.  Impairment of long-lived assets  The Company evaluates long-lived assets for impairment when events or changes in circumstances indicate, in managements judgment, that the carrying value of such assets may not be recoverable.  The impairment of long-lived assets is measured pursuant to the guidelines of Statement of Financial Accounting Standard (SFAS) No.144 Accounting for the Impairment or Disposal of Long-Lived Assets.  When an indicator of impairment has occurred, managements estimate of undiscounted cash flows attributable to the assets is compared to the carrying value of the assets to determine whether impairment has occurred.  If an impairment of the carrying value has occurred, the amount of the impairment recognized in the financial statements is determined by estimating the fair value of the assets and recording a loss of the amount that the carrying value exceeds the estimated fair value.  Revenue recognition  Revenue from fixed fee income is recognized when the right to receive is established and on a monthly basis over the term of the Strategic Cooperative Agreement.   F- 8    CHINA JUNLIAN INTEGRATED SURVEILLANCE, INC. (FORMERLY SUNBURST ACQUISITIONS VII, INC.) NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Stated in US Dollars)   4. Summary of significant accounting policies (contd)  Income taxes  The Company accounts for income tax under the provisions of SFAS No. 109 Accounting for Income Taxes, which requires recognition of deferred tax assets and liabilities for the expected future tax consequences of the events that have been included in the financial statements or tax returns.  Deferred income taxes are recognized for all significant temporary differences between tax and financial statements bases of assets and liabilities.  Valuation allowances are established against net deferred tax assets when it is more likely than not that some portion or all of the deferred tax asset will not be realized.  Off-balance sheet arrangements  The Company does not have any off-balance sheet arrangements.  Comprehensive income  The Company has adopted SFAS 130, Reporting Comprehensive Income, which establishes standards for reporting and display of comprehensive income, its components and accumulated balances.  Components of comprehensive income (loss) include net income (loss) and foreign currency translation adjustments.  Foreign currency translation  The Group uses RMB as its functional currency.  Transactions denominated in currencies other than RMB are translated into RMB at the applicable rates of exchange prevailing at the dates of the transactions, quoted by the Peoples Bank of China (the PBOC).  Monetary assets and liabilities denominated in other currencies are translated into RMB at rates of exchange quoted by the PBOC prevailing at the balance sheet date.  Exchange gains or losses arising from changes in exchange rates subsequent to the transaction dates for monetary assets and liabilities denominated in other currencies are included in the determination of net income (loss) for the respective period.  For financial reporting purposes, RMB has been translated into United States dollars (US$).  Assets and liabilities are translated at the exchange rate in effect at the balance sheet date.  Income statement accounts are translated at the average rate of exchange prevailing during the periods.  Translation adjustments arising from the use of different exchange rates from period to period are included as a component of stockholders equity as Accumulated other comprehensive income.  Gains and losses resulting from foreign currency translations are included in accumulated other comprehensive income.  The exchange rate in effect as of December 31, 2007 was RMB1 for US$ 0.1369.  There is no significant fluctuation in exchange rate for the conversion of RMB to US$ after the balance sheet date.  Stock-based compensation  During the reporting periods, the Company did not make any stock-based compensation payments.  F- 9     CHINA JUNLIAN INTEGRATED SURVEILLANCE, INC. (FORMERLY SUNBURST ACQUISITIONS VII, INC.) NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Stated in US Dollars)   4. Summary of significant accounting policies (contd)  Fair value of financial instruments  The carrying amounts of certain financial instruments, including cash and cash equivalents, other receivable, other payable and amount due to a director approximate their fair values due to the short-term maturity of these items.  The Companys management opines that the Company is not exposed to significant interest, price, foreign currency or credit risks arising from these financial instruments.  Basic and diluted earnings per share  The Company reports basic earnings per share in accordance with SFAS No. 128, Earnings Per Share.  Basic earnings per share is computed using the weighted average number of shares outstanding during the periods presented.  The weighted average number of shares of the Company represents the common stock outstanding during the reporting periods.  Recently issued accounting pronouncements  In July 2006, the FASB issued FIN 48 Accounting for Uncertainty in Income Taxes.  This interpretation requires that the entity recognize in its financial statements the impact of a tax position, if that position is more likely than not of being sustained on audit, based on the technical merits of the position.  The provisions of FIN 48 is effective for fiscal years beginning after December 15, 2006, with the cumulative effect of the change in accounting principle recorded as an adjustment to opening retained earnings.  The Company is currently evaluating the impact of adopting FIN 48 on its consolidated financial statements.  In September 2006, the FASB issued SFAS No. 157 Fair Value Measurements.  SFAS No. 157 defines fair values, establishes a framework for measuring fair value, and expands disclosures about fair value measurements.  This Statement shall be effective for financial statements issued for fiscal years beginning after November 25, 2007, and interim periods within those fiscal years.  Earlier application is encouraged provided that the reporting entity has not yet issued financial statements for that fiscal year, including financial statements for an interim period with that fiscal year.  The provisions of this statement should be applied, except in some circumstances where the statement shall be applied retrospectively.  The Company is currently evaluating the impact of adopting SFAS No. 157 on its consolidated financial statements.  In September 2006, the FASB issued SFAS No. 158 Employers Accounting for Defined Benefit Pension and Other Postretirement Plans : an amendment of FASB Statements No. 87, 88, 106 and 132 (R) which requires an employer to recognize the over funded or under funded status of defined benefit and other postretirement plans as an assets or liability in its statement of financial position and to recognize changes in that funded status in the year in which the changes occur through and adjustment to comprehensive income.  This statement also requires an employer to measure the funded status of a plan as of the date of its year-end statement of financial positions, which limited exceptions and is effective for fiscal years beginning after December 15, 2006.  The Company is currently evaluating the impact of adopting SFAS No. 158 on its consolidated financial statements.  F- 10    CHINA JUNLIAN INTEGRATED SURVEILLANCE, INC. (FORMERLY SUNBURST ACQUISITIONS VII, INC.) NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Stated in US Dollars)  4. Summary of significant accounting policies (contd) Recently issued accounting pronouncements (contd) In September 2006, the SEC issued SAB No. 108, which provides guidance on the process of quantifying financial statement misstatements.  In SAB No. 108, the SEC staff establishes an approach that requires quantification of financial statements errors, under both the iron-curtain and the roll-over methods, based on the effects of the error on each of the Companys financial statements and the related financial statement disclosures.  SAB No. 108 is generally effective for annual financial statements in the first fiscal year ending after November 15, 2006.  The transition provisions of SAB No. 108 permits existing public companies to record the cumulative effect in the first year ending after November 15, 2006 by recording correcting adjustments to the carrying values of assets and liabilities as of the beginning of that year with the offsetting adjustment recorded to the opening balance of retained earnings.  The Company is currently evaluating the impact of adopting SAB No. 108 on its consolidated financial statements.  In February 2007, the FASB released SFAS No. 159, The Fair Value Option for Financial Assets and Financial Liabilities. The standard is effective for fiscal years beginning after November 15, 2007. The standard provides entities the ability, on an elective basis, to report most financial assets and financial liabilities at fair value, with corresponding gains and losses recognized in current earnings. The Company is currently evaluating the impact of adopting SFAS No. 159 on its consolidated financial statements.  In December 2007, the FASB released SFAS No. 141(R), Business Combinations. This standard revises and enhances the guidance set forth in SFAS No. 141 by establishing a definition for the acquirer, providing additional guidance on the recognition of acquired contingencies and noncontrolling interests, and broadening the scope of the standard to include all transactions involving a transfer in control, irrespective of the consideration involved in the transfer. SFAS No. 141(R) is effective for business combinations for which the acquisition date occurs in a fiscal year beginning on or after December 15, 2008. The Company is currently evaluating the impact of adopting SFAS No. 141 on its consolidated financial statements.  In December 2007, the FASB released SFAS No. 160, Noncontrolling Interests in Consolidated Financial Statementsan amendment of ARB No. 51. This statement amends ARB 51 to establish accounting and reporting standards for the noncontrolling interest in a subsidiary and for the deconsolidation of a subsidiary. It clarifies that a noncontrolling interest in a subsidiary is an ownership interest in the consolidated entity that should be reported as equity in the consolidated financial statements. SFAS No. 160 is effective for fiscal years, and interim periods within those fiscal years, beginning on or after December 15, 2008. The Company is currently evaluating the impact of adopting SFAS No. 160 on its consolidated financial statements.  5.Finance costsYear endedYear endedDecember 31,December 31,20072006Bank charges$ -$ -Exchange difference1521$1$521  F- 11    CHINA JUNLIAN INTEGRATED SURVEILLANCE, INC. (FORMERLY SUNBURST ACQUISITIONS VII, INC.) NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Stated in US Dollars)   6. Income taxes  Income tax expenses represent the current tax calculated at 27% on the estimated assessable profits of the Companys subsidiary operating in the PRC.  Year endedYear endedDecember 31,
2007December 31,
2006Current tax expense$1,199$1,738Deferred tax expense4,160-Total income tax expense$5,3591$1,738  The net deferred tax amount in the balance sheet is as follows:  As ofAs ofDecember 31, 2007December 31, 2006Deferred tax assets:Tax loss carryforward
Capital allowance carryforward$4,160$ -Deferred tax assets valuation allowance(4,160)-Balance$ -$ -  An allowance is made to the extent that it is not probable that taxable profit will be available against which the unused tax loss carryforwards can be utilized. The realization of the future income tax benefits from temporary differences from capital allowances is available for 4 years.  7. Net loss per share - Basic and diluted  The basic and diluted net loss per share are calculated using the net loss and the weighted average number of common stock outstanding during the years.  The company has no dilutive instruments and accordingly, the basic and diluted net loss per share are the same.  8. Trade Receivables As ofAs ofDecember 31,December 31,20072006Trade Receivables$4,244$ -$4,244$ -   F- 12     CHINA JUNLIAN INTEGRATED SURVEILLANCE, INC. (FORMERLY SUNBURST ACQUISITIONS VII, INC.) NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Stated in US Dollars)   9. Prepayments, deposits and other receivable As ofAs ofDecember 31,December 31,20072006Rental and other deposits$ -$18,618Other receivables6,052664$6,052$19,282  The net Rental and other deposits amount in the balance sheet is as follows: As ofAs ofDecember 31,December 31,20072006Rental and other deposits:$19,926$-Provision for doubtful debts(19,926)-Balance$ -$ -  The company had an operating lease for its office premises. The lease will expire in 2009 but the company moved out the office in Jan. 2008 and there is low possibility to receive back the related deposit for the rental.  10. Property, plant and equipment, net As ofAs ofDecember 31,December 31,20072006Furniture and fixtures$1,719$1,606Office equipment8,0566,350Motor vehicle54,68551,097Leasehold improvements3,3273,10967,78762,162Accumulated depreciation(15,865)(3,533)Property, plant and equipment, net$51,922$58,629  11. Amount due to a director  The amount is interest-free, unsecured and repayable on demand.  F- 13     CHINA JUNLIAN INTEGRATED SURVEILLANCE, INC. (FORMERLY SUNBURST ACQUISITIONS VII, INC.) NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Stated in US Dollars)  12. Accrued expenses and other payable As ofAs ofDecember 31,December 31,20072006Salary payable$1,148$3,102Other accruals16,38715,143$17,535$18,245  13.Common stockNo. of sharesAmountAuthorized :-No par value100,000,000$ -Issued and outstanding :-As of January 1, 20079,720,000$28,435Common stock issued for the RTO (Note 2)--As of December 31, 20079,720,000$28,435  14. Statutory reserves  The statutory reserves comprised statutory surplus reserve and statutory public welfare fund of the Companys subsidiary in the PRC. As ofAs ofDecember 31,December 31,20072006Statutory surplus reserve$470$470Statutory public welfare fund-235$470$705  (a) Statutory surplus reserve The Companys subsidiary appropriates 10% of its net income reported under the PRC statutory accounts, after offsetting any prior years losses, to the statutory surplus reserve.  When the balance of such reserve reaches 50% of the subsidiarys registered capital, any further appropriation is optional.  (b) Discretionary surplus reserve The appropriation of net income reported under the PRC statutory accounts to the discretionary surplus reserve and the utilization of this reserve are made and determined in accordance with the recommendation of the board of directors and are subject to stockholders approval at their general meeting.  The Companys subsidiary made no appropriation to the discretionary surplus reserve during the years.  F- 14    CHINA JUNLIAN INTEGRATED SURVEILLANCE, INC. (FORMERLY SUNBURST ACQUISITIONS VII, INC.) NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Stated in US Dollars)  15. Accumulated other comprehensive income  The accumulated other comprehensive income consists of foreign currency translation adjustments as follows: ForeigncurrencytranslationadjustmentsBalance, January 1, 2007$2,598Foreign currency translation adjustments12,084Balance, December 31, 2007$14,682  16. Equity incentive plan  The Company currently does not have any equity incentive plan.  17. Defined contribution plan  The Company has a defined contribution plan for all its qualified employees in the PRC.  The Company and its employees are each required to make contributions to the plan at the rates specified in the plan.  The only obligation of the Company with respect to retirement is to make the required contributions under the plan.  No forfeited contribution is available to reduce the contribution payable in future years.  The defined contribution plan contributions were charged to the statement of operations.  Contribution for the years ended December 31, 2007 and December 31, 2006 were $6,723 and $2,724, respectively.   18.Supplemental cash flow informationYear endedYear endedDecember 31,December 31,20072006USDUSDInterest paid$ -$ -Income tax paid$5,715$1,412  19. Related party transactions  Apart from the transactions disclosed elsewhere in the consolidated financial statements, the Company had no other material transactions with its related parties during the year ended December 31, 2007.  20. Segment information  The directors of the Company consider that there is only one business segment and one geographical segment and thus no segment information is presented.  F- 15    SIGNATURES  In accordance with Section 13 or 15(d) of the Exchange Act, the Registrant has caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.  CHINA JUNLIAN INTEGRATED SURVEILLANCE, INC.  By: /s/ Zhang Jun Chuan Zhang Jun Chuan, Chief Executive Officer  In accordance with the Exchange Act, this Report has been signed below on April 15, 2008 by the following persons, on behalf of the Registrant and in the capacities and on the dates indicated.   /s/ Zhang Jun Chuan Zhang Jun Chuan, Director, Chief Executive Officer, Chief Financial Officer