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

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

----

|                                                                    |   | PAGE   |
|-------------------------------------------------------------------------|--------|--------|
| PART I FINANCIAL INFORMATION                                            |   | 1      |
|                                                                    |   |   |
| ITEM 1. FINANCIAL STATEMENTS                                            |   | 1      |
|                                                                    |   |   |
| ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OR PLAN OF OPERATION |   | 2      |
|                                                                    |   |   |
| ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK      |   | 20     |
|                                                                    |   |   |
| ITEM 4. CONTROLS AND PROCEDURES                                         |   | 20     |
|                                                                    |   |   |
| PART II OTHER INFORMATION                                               |   | 21     |
|                                                                    |   |   |
| ITEM 1. LEGAL PROCEEDINGS                                               |   | 21     |
|                                                                    |   |   |
| ITEM 1A. RISK FACTORS                                                   |   | 21     |
|                                                                    |   |   |
| ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS     |   | 21     |
|                                                                    |   |   |
| ITEM 3. DEFAULTS UPON SENIOR SECURITIES                                 |   | 21     |
|                                                                    |   |   |
| ITEM 4. (REMOVED AND RESERVED)                                          |   | 21     |
|                                                                    |   |   |
| ITEM 5. OTHER INFORMATION                                               |   | 21     |
|                                                                    |   |   |
| ITEM 6. EXHIBITS                                                        |   | 22     |
|                                                                    |   |   |
| SIGNATURES                                                              |   | 24     |
|                                                                    |   |   |
| EXHIBIT 31.1                                                            |   |   |
|                                                                    |   |   |
| EXHIBIT 31.2                                                            |   |   |
|                                                                    |   |   |
| EXHIBIT 32.1                                                            |   |   |
|                                                                    |   |   |
| EXHIBIT 32.2                                                            |   |   |

----

| PAGES  |   | F-1-F-2  |   | CONDENSED CONSOLIDATED BALANCE SHEETS AS OF MARCH 31, 2011  AND JUNE 30, 2010 (UNAUDITED)                                                                           |
|--------|--------|----------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |   |     |   |                                                                                                                                                                          |
| PAGES  |   | F-3      |   | CONDENSED CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME  FOR THE THREE AND NINE MONTHS ENDED  MARCH  31, 2011 AND 2010 (UNAUDITED) |
|   |   |     |   |                                                                                                                                                                          |
| PAGES  |   | F-4-F-5  |   | CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS FOR THE NINE MONTHS ENDED MARCH 31, 2011 AND 2010 (UNAUDITED)                                                                 |
|   |   |     |   |                                                                                                                                                                          |
| PAGES  |   | F-6-F-25 |   | NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS FOR THE THREE AND NINE MONTHS ENDED MARCH 31, 2011 AND 2010 (UNAUDITED)                                                  |

----

| ASSETS                                                                                                                                                          |   |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
|                                                                                                                                                            |   | March 31, |   |   | June 30, |   |
|                                                                                                                                                            |   | 2011 |   |   | 2010 |   |
| CURRENT ASSETS                                                                                                                                                  |   |   |   |   |   |   |
| Cash and cash equivalents                                                                                                                                       |   | $ | 3,166,140 |   |   | $ | 3,399,360 |   |
| Accounts receivable, net of allowance for doubtful accounts of $204,910 and      $793,630 at March 31, 2011 and June 30, 2010, respectively |   |   | 69,506,023 |   |   |   | 60,473,007 |   |
| Inventories                                                                                                                                                     |   |   | 21,210,672 |   |   |   | 5,584,317 |   |
| Notes receivable, including bank acceptance notes                                                                                                               |   |   | 3,912,029 |   |   |   | 628,133 |   |
| Prepayments for goods                                                                                                                                           |   |   | 5,705,911 |   |   |   | 3,822,120 |   |
| Prepaid expenses and other receivables                                                                                                                          |   |   | 63,494 |   |   |   | 26,404 |   |
| Due from employees                                                                                                                                              |   |   | 104,342 |   |   |   | 131,400 |   |
| Deferred taxes                                                                                                                                                  |   |   | - |   |   |   | 47,448 |   |
| Total Current Assets                                                                                                                                            |   |   | 103,668,611 |   |   |   | 74,112,189 |   |
|                                                                                                                                                            |   |   |   |   |   |   |   |   |
| LONG-TERM ASSETS                                                                                                                                                |   |   |   |   |   |   |   |   |
| Plant and equipment, net                                                                                                                                        |   |   | 3,081,360 |   |   |   | 3,043,955 |   |
| Land use rights, net                                                                                                                                            |   |   | 931,143 |   |   |   | 948,504 |   |
| Construction in progress                                                                                                                                        |   |   | 750,451 |   |   |   | 685,222 |   |
| Deposit for land use right                                                                                                                                      |   |   | 1,654,203 |   |   |   | 373,821 |   |
| Deferred taxes                                                                                                                                                  |   |   | 148,833 |   |   |   | 129,049 |   |
| Total Long-Term Assets                                                                                                                                          |   |   | 6,565,990 |   |   |   | 5,180,551 |   |
|                                                                                                                                                            |   |   |   |   |   |   |   |   |
| TOTAL ASSETS                                                                                                                                                    |   | $ | 110,234,601 |   |   | $ | 79,292,740 |   |

----

| LIABILITIES AND SHAREHOLDERS’ EQUITY                                                                                                                           |   |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
|                                                                                                                                                                                |   |   |   |   |   |   |
|                                                                                                                                                                                |   | March 31, |   |   | June 30, |   |
|                                                                                                                                                                                |   | 2011 |   |   | 2010 |   |
| CURRENT LIABILITIES                                                                                                                                                                 |   |   |   |   |   |   |
| Accounts payable                                                                                                                                                                    |   | $ | 5,632,628 |   |   | $ | 4,850,579 |   |
| Short-term bank loans                                                                                                                                                               |   |   | 1,526,694 |   |   |   | 2,878,712 |   |
| Customer deposits                                                                                                                                                                   |   |   | 521,259 |   |   |   | 497,206 |   |
| Notes payable, including related parties                                                                                                                                            |   |   | 1,614,590 |   |   |   | 1,014,987 |   |
| Income tax payable                                                                                                                                                                  |   |   | 7,181,131 |   |   |   | 4,990,163 |   |
| Other payables                                                                                                                                                                      |   |   | 1,196,398 |   |   |   | 1,041,766 |   |
| Value added tax payable                                                                                                                                                             |   |   | 18,080,924 |   |   |   | 6,931,841 |   |
| Due to employees                                                                                                                                                                    |   |   | 32,332 |   |   |   | 98,550 |   |
| Due to related parties                                                                                                                                                              |   |   | 157,745 |   |   |   | 413,136 |   |
| Accrued expenses                                                                                                                                                                    |   |   | 1,143,161 |   |   |   | 659,569 |   |
| Deferred taxes                                                                                                                                                                      |   |   | 383,119 |   |   |   | - |   |
| Total Current Liabilities                                                                                                                                                           |   |   | 37,469,981 |   |   |   | 23,376,509 |   |
|                                                                                                                                                                                |   |   |   |   |   |   |   |   |
| LONG-TERM LIABILITIES                                                                                                                                                               |   |   |   |   |   |   |   |   |
| Notes payable to related parties                                                                                                                                                    |   |   | 241,067 |   |   |   | 326,298 |   |
| Total Long-Term Liabilities                                                                                                                                                         |   |   | 241,067 |   |   |   | 326,298 |   |
|                                                                                                                                                                                |   |   |   |   |   |   |   |   |
| TOTAL LIABILITIES                                                                                                                                                                   |   |   | 37,711,048 |   |   |   | 23,702,807 |   |
|                                                                                                                                                                                |   |   |   |   |   |   |   |   |
| COMMITMENT AND CONTINGENCIES                                                                                                                                                        |   |   |   |   |   |   |   |   |
|                                                                                                                                                                                |   |   |   |   |   |   |   |   |
| SHAREHOLDERS’ EQUITY                                                                                                                                                          |   |   |   |   |   |   |   |   |
| Common stock, $0.001 par value; 350,000,000 shares authorized; 240,000,000 shares      issued and outstanding at March 31, 2011 and June 30, 2010, respectively |   |   | 240,000 |   |   |   | 240,000 |   |
| Additional paid-in capital                                                                                                                                                          |   |   | 892,334 |   |   |   | 892,334 |   |
| Retained earnings (the restricted portion is $204,069 at March 31, 2011 and June 30, 2010)                                                                                          |   |   | 64,648,734 |   |   |   | 50,131,203 |   |
| Accumulated other comprehensive income                                                                                                                                              |   |   | 6,742,485 |   |   |   | 4,326,396 |   |
| TOTAL SHAREHOLDERS’ EQUITY                                                                                                                                                    |   |   | 72,523,553 |   |   |   | 55,589,933 |   |
|                                                                                                                                                                                |   |   |   |   |   |   |   |   |
| TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY                                                                                                                                    |   | $ | 110,234,601 |   |   | $ | 79,292,740 |   |

----

|                                                   |   | Three Months Ended |        |   | Nine Months Ended |   |
|--------------------------------------------------------|--------|------------------------------|-------------|--------|-----------------------------|--------|
|                                                   |   | March 31,2011           |        |   | March 31,2010          |   |   | March 31,2011 |   |   | March 31,2010 |   |
| REVENUES, NET                                          |   | $                            | 27,596,387  |   |                        | $      | 26,836,259 |   |   | $ | 90,848,899 |   |   | $ | 100,195,028 |   |
|                                                   |   |                         |        |   |                        |   |   |   |   |   |   |   |   |   |   |   |
| COST OF GOODS SOLD                                     |   |                         | (21,723,469 | )      |                        |   | (21,574,659 | ) |   |   | (73,913,022 | ) |   |   | (82,232,475 | ) |
| GROSS PROFIT                                           |   |                         | 5,872,918   |   |                        |   | 5,261,600 |   |   |   | 16,935,877 |   |   |   | 17,962,553 |   |
|                                                   |   |                         |        |   |                        |   |   |   |   |   |   |   |   |   |   |   |
| Selling and marketing                                  |   |                         | (693,989    | )      |                        |   | (746,566 | ) |   |   | (2,445,004 | ) |   |   | (1,954,398 | ) |
| General and administrative                             |   |                         | (855,401    | )      |                        |   | (688,419 | ) |   |   | (1,619,965 | ) |   |   | (1,250,533 | ) |
| Bad debt recoveries                                    |   |                         | 137,324     |   |                        |   | - |   |   |   | 800,298 |   |   |   | 74,915 |   |
| INCOME FROM OPERATIONS                                 |   |                         | 4,460,852   |   |                        |   | 3,826,615 |   |   |   | 13,671,206 |   |   |   | 14,832,537 |   |
|                                                   |   |                         |        |   |                        |   |   |   |   |   |   |   |   |   |   |   |
| Interest expense, net                                  |   |                         | (97,592     | )      |                        |   | (78,009 | ) |   |   | (302,091 | ) |   |   | (254,920 | ) |
| Other income, net                                      |   |                         | 4,587       |   |                        |   | 15,510 |   |   |   | 244,868 |   |   |   | 14,718 |   |
| Refunded value added tax                               |   |                         | -           |   |                        |   | - |   |   |   | 3,289,036 |   |   |   | - |   |
|                                                   |   |                         |        |   |                        |   |   |   |   |   |   |   |   |   |   |   |
| INCOME BEFORE INCOME TAXES                             |   |                         | 4,367,847   |   |                        |   | 3,764,116 |   |   |   | 16,903,019 |   |   |   | 14,592,335 |   |
|                                                   |   |                         |        |   |                        |   |   |   |   |   |   |   |   |   |   |   |
| INCOME TAXES                                           |   |                         | (736,813    | )      |                        |   | (486,401 | ) |   |   | (2,385,488 | ) |   |   | (2,175,159 | ) |
|                                                   |   |                         |        |   |                        |   |   |   |   |   |   |   |   |   |   |   |
| NET INCOME                                             |   |                         | 3,631,034   |   |                        |   | 3,277,715 |   |   |   | 14,517,531 |   |   |   | 12,417,176 |   |
|                                                   |   |                         |        |   |                        |   |   |   |   |   |   |   |   |   |   |   |
| OTHER COMPREHENSIVE INCOME                             |   |                         |        |   |                        |   |   |   |   |   |   |   |   |   |   |   |
| Foreign currency translation gain                      |   |                         | 596,072     |   |                        |   | 8,380 |   |   |   | 2,416,089 |   |   |   | 36,429 |   |
|                                                   |   |                         |        |   |                        |   |   |   |   |   |   |   |   |   |   |   |
| COMPREHENSIVE INCOME                                   |   | $                            | 4,227,106   |   |                        | $      | 3,286,095 |   |   | $ | 16,933,620 |   |   | $ | 12,453,605 |   |
|                                                   |   |                         |        |   |                        |   |   |   |   |   |   |   |   |   |   |   |
| WEIGHTED AVERAGE SHARES OUTSTANDING, BASIC AND DILUTED |   |                         | 240,000,000 |   |                        |   |   240,000,000 |   |   |   | 240,000,000 |   |   |   |   192,700,730 |   |
| NET INCOME PER SHARE, BASIC AND DILUTED                |   | $                            | 0.02        |   |                        | $      | 0.01 |   |   | $ | 0.06 |   |   | $ | 0.06 |   |

----

|                                                                                                       |   | Nine Months Ended |        |
|------------------------------------------------------------------------------------------------------------|--------|-----------------------------|-------------|
|                                                                                                       |   | March 31,2011          |        |   | March 31,2010 |   |
| CASH FLOWS FROM OPERATING ACTIVITIES:                                                                      |   |                        |        |   |   |   |
| Net income                                                                                                 |   | $                           | 14,517,531  |   |   | $ | 12,417,176 |   |
| Adjustments to reconcile net income to net cash provided by operating activities:                          |   |                        |        |   |   |   |   |   |
| Depreciation and amortization                                                                              |   |                        | 217,714     |   |   |   | 192,231 |   |
| Provision for doubtful accounts                                                                            |   |                        | 190,581     |   |   |   | 121,965 |   |
| Refunded value added tax                                                                                   |   |                        | (3,289,036  | ) |   |   | - |   |
| Deferred taxes                                                                                             |   |                        | 410,783     |   |   |   | (3,865 | ) |
| Net (gain) loss on settlement of accounts receivable and accounts payable for fixed assets and inventories |   |                        | (7,661      | ) |   |   | 61,638 |   |
|                                                                                                       |   |                        |        |   |   |   |   |   |
| Changes in operating assets and liabilities, net of effects of acquisition:                                |   |                        |        |   |   |   |   |   |
| (Increase) Decrease In:                                                                                    |   |                        |        |   |   |   |   |   |
| Accounts receivable                                                                                        |   |                        | (9,244,595  | ) |   |   | (1,568,755 | ) |
| Inventories                                                                                                |   |                        | (15,626,355 | ) |   |   | (10,532,965 | ) |
| Prepayments for goods                                                                                      |   |                        | (1,883,791  | ) |   |   | 104,321 |   |
| Prepaid expenses and other receivables                                                                     |   |                        | (37,092     | ) |   |   | (3,316 | ) |
| Due from employees                                                                                         |   |                        | 27,058      |   |   |   | (131,637 | ) |
| Due from related parties                                                                                   |   |                        | -           |   |   |   | 9,991 |   |
|                                                                                                       |   |                        |        |   |   |   |   |   |
| Increase (Decrease) In:                                                                                    |   |                        |        |   |   |   |   |   |
| Accounts payable                                                                                           |   |                        | 797,062     |   |   |   | 330,994 |   |
| Value added tax payable                                                                                    |   |                        | 14,438,119  |   |   |   | 12,156,870 |   |
| Other payables                                                                                             |   |                        | 154,632     |   |   |   | (712,127 | ) |
| Taxes payable                                                                                              |   |                        | 2,190,968   |   |   |   | 2,171,594 |   |
| Customer deposits                                                                                          |   |                        | 24,053      |   |   |   | (80,740 | ) |
| Due to employees                                                                                           |   |                        | (66,218     | ) |   |   | (427,440 | ) |
| Due to related parties                                                                                     |   |                        | (255,391    | ) |   |   | (341,115 | ) |
| Accrued expenses                                                                                           |   |                        | 483,592     |   |   |   | 567,388 |   |
| Net cash provided by operating activities                                                                  |   |                        | 3,041,954   |   |   |   | 14,332,208 |   |
|                                                                                                       |   |                        |        |   |   |   |   |   |
| CASH FLOWS FROM INVESTING ACTIVITIES:                                                                      |   |                        |        |   |   |   |   |   |
| Purchases of plant and equipment                                                                           |   |                        | (126,356    | ) |   |   | (116,636 | ) |
| Purchases of construction in progress                                                                      |   |                        | (37,551     | ) |   |   | (682,616 | ) |
| Reverse merger, net of cash acquired                                                                       |   |                        | -           |   |   |   | 2,109 |   |
| Repayment of notes receivable                                                                              |   |                        | 64,613,830  |   |   |   | 66,817,706 |   |
| Issuances of notes receivable                                                                              |   |                        | (67,818,675 | ) |   |   | (81,282,298 | ) |
| Net cash used in investing activities                                                                      |   |                        | (3,368,752  | ) |   |   | (15,261,735 | ) |
| CASH FLOWS FROM FINANCING ACTIVITIES:                                                                      |   |                        |        |   |   |   |   |   |
| Proceeds from short-term loans                                                                             |   |                        | 1,201,021   |   |   |   | 3,216,172 |   |
| Repayments of short-term loans                                                                             |   |                        | (2,642,246  | ) |   |   | (2,336,110 | ) |
| Proceeds from notes payable                                                                                |   |                        | 782,934     |   |   |   | (1,498,655 | ) |
| Repayments of notes payable                                                                                |   |                        | (315,278    | ) |   |   | 1,695,772 |   |
| Repayments of long-term debt                                                                               |   |                        | (13,599     | ) |   |   | (126,999 | ) |
| Dividend paid                                                                                              |   |                        | -           |   |   |   | (6,819 | ) |
| Net cash (used in) provided by financing activities                                                        |   | $                           | (987,168    | ) |   | $ | 943,361 |   |

----

|                                                 |   | Nine Months Ended |       |
|------------------------------------------------------|--------|-----------------------------|------------|
|                                                 |   | March 31,2011          |       |   | March 31,2010 |   |
|                                                 |   |                        |       |   |   |   |
| NET (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS |   | $                           | (1,313,966 | ) |   | $ | 13,834 |   |
| Effect of exchange rate changes on cash              |   |                        | 1,080,746  |   |   |   | 59,014 |   |
| Cash and cash equivalents at beginning of period     |   |                        | 3,399,360  |   |   |   | 127,576 |   |
| CASH AND CASH EQUIVALENTS AT END OF PERIOD           |   | $                           | 3,166,140  |   |   |   | 200,424 |   |
|                                                 |   |                        |       |   |   |   |   |   |
| SUPPLEMENTARY CASH FLOW INFORMATION:                 |   |                        |       |   |   |   |   |   |
| Income taxes paid                                    |   | $                           | 13,863     |   |   | $ | 9,712 |   |
| Interest paid                                        |   | $                           | 185,982    |   |   | $ | 194,876 |   |

----

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

----

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

----

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

----

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

|                    |   |                                                  |      |   | Fair Value Measurements at Reporting Date Using       |   |
|-------------------------|--------|-------------------------------------------------------|-----------|--------|-------------------------------------------------------------------------------------|--------|
|                    |   | CarryingValue as of March 31,2011 |      |   | Quoted Prices inActive Marketsfor IdenticalAssets(Level 1) |   |   | SignificantOtherObservableInputs(Level 2) |   |   | SignificantUnobservableInputs(Level 3) |   |
| Bank acceptance notes   |   | $                                                     | 3,580,730 |   |                                                                                | $      | 3,580,730 |   |   | $ | - |   |   | $ | - |   |
| Long-term notes payable |   | $                                                     | 241,067   |   |                                                                                |   | - |   |   | $ | 241,067 |   |   | $ | - |   |

| (c) | Cash and Cash Equivalents |
|-----|---------------------------|

----

| (d) | Inventories |
|-----|-------------|

| (e) | Prepayments |
|-----|-------------|

| (f) | Plant and Equipment |
|-----|---------------------|

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

| (g) | Construction in Progress |
|-----|--------------------------|

| (h) | Land Use Rights |
|-----|-----------------|

----

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

| (j) | Revenue Recognition |
|-----|---------------------|

| (k) | Retirement Benefits |
|-----|---------------------|

----

| (l) | Foreign Currency Translation |
|-----|------------------------------|

|                                                             |   | March 31, 2011 |   |   | June 30,2010 |   |   | March 31,2010 |   |
|------------------------------------------------------------------|--------|--------------------------|--------|--------|-------------------|--------|--------|--------------------|--------|
|                                                             |   |                     |   |   |              |   |   |               |   |
| Period ended RMB:  US$ exchange rate                   |   |                     | 6.5501 |   |              |   | 6.8086 |               |   |   | - |   |
| Average RMB:  US$ exchange rate for three months ended |   |                     | 6.5713 |   |              |   | -      |               |   |   | 6.8360 |   |
| Average RMB:  US$ exchange rate for nine months ended  |   |                     | 6.6610 |   |              |   | -      |               |   |   | 6.8377 |   |

| (m) | Comprehensive Income |
|-----|----------------------|

| (n) | Earnings Per Share |
|-----|--------------------|

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

----

| (p) | Recent Accounting Pronouncements |
|-----|----------------------------------|

|            |   | Purchases         |   |   |             |   |
|-----------------|--------|-------------------|--------|--------|------------------|--------|
|            |   | Nine Months Ended |   |   | Accounts Payable |   |
|            |   | March 31,         |   |   | March 31,        |   |   | June 30, |   |
| Major Suppliers |   | 2011              |   |   | 2010             |   |   | 2011 |   |   | 2010 |   |
|            |   |              |   |   |             |   |   |   |   |   |   |   |
| Company A       |   |              | 11.2   | %      |             |   | 0.2 | % |   |   | 7.8 | % |   |   | 1.7 | % |
| Company B       |   |              | 5.7    | %      |             |   | 1.0 | % |   |   | 4.6 | % |   |   | 1.4 | % |

|              |   | March 31, 2011 |       |   | June 30, 2010 |   |
|-------------------|--------|--------------------------|------------|--------|-------------------------|--------|
| Raw materials     |   | $                        | 13,007,343 |   |                    | $      | 2,798,967 |   |
| Work-in-progress  |   |                     | 721,733    |   |                    |   | 889,937 |   |
| Finished goods    |   |                     | 7,481,596  |   |                    |   | 1,895,413 |   |
| Total inventories |   | $                        | 21,210,672 |   |                    | $      | 5,584,317 |   |

----

|                                                           |   | March 31,2011 |      |   | June 30,2010 |   |
|----------------------------------------------------------------|--------|---------------|-----------|--------|--------------|--------|
| Notes receivable from unrelated individuals:                   |   |          |      |   |         |   |
| Due December 24, 2010, interest at 10% per annum               |   | $             | -         |   |         | $      | 2,857 |   |
| Due December 24, 2010, interest at 10% per annum               |   |          | -         |   |         |   | 22,031 |   |
| Due May 16, 2011, interest at 6% per annum (Repaid in advance) |   |          | -         |   |         |   | 114,560 |   |
| Due May 1, 2011, interest free (Settled on its due date)       |   |          | 305,339   |   |         |   | - |   |
| Due December 24, 2011, interest at 10% per annum               |   |          | 3,059     |   |         |   | - |   |
| Due December 24, 2011, interest at 10% per annum               |   |          | 22,901    |   |         |   | - |   |
| Subtotal                                                       |   | $             | 331,299   |   |         | $      | 139,448 |   |
|                                                           |   |          |      |   |         |   |   |   |
| Bank acceptance notes (aggregated by month of maturity):       |   |          |      |   |         |   |   |   |
| Due December, 2010 (Settled on its due date)                   |   |          | -         |   |         |   | 29,375 |   |
| Due October, 2010 (Settled on its due date)                    |   |          | -         |   |         |   | 29,375 |   |
| Due November, 2010 (Settled on its due date)                   |   |          | -         |   |         |   | 205,220 |   |
| Due December, 2010 (Settled on its due date)                   |   |          | -         |   |         |   | 224,715 |   |
| Due May, 2011                                                  |   |          | 15,267    |   |         |   | - |   |
| Due June, 2011                                                 |   |          | 1,022,885 |   |         |   | - |   |
| Due July, 2011                                                 |   |          | 816,781   |   |         |   | - |   |
| Due August, 2011                                               |   |          | 839,682   |   |         |   | - |   |
| Due September, 2011                                            |   |          | 886,115   |   |         |   | - |   |
| Subtotal                                                       |   |          | 3,580,730 |   |         |   | 488,685 |   |
| Total                                                          |   | $             | 3,912,029 |   |         | $      | 628,133 |   |

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

|                         |   |   |   | March 31,2011 |    |   | June 30,2010 |   |
|------------------------------|--------|--------|--------|---------------|---------|--------|--------------|--------|
|                         |   |   |   |          |    |   |         |   |
| Jin Xin                      |   | (a)    |   | $             | 38,319  |   |         | $      | - |   |
| Liu Dianjun                  |   | (b)    |   |          | 75,017  |   |         |   | 342,994 |   |
| Li Zengshan                  |   | (c)    |   |          | 44,409  |   |         |   | 23,612 |   |
| Zhang Qixiu                  |   | (d)    |   |          | -       |   |         |   | 32,312 |   |
| Jin Wei                      |   | (e)    |   |          | -       |   |         |   | 14,218 |   |
| Total due to related parties |   |   |   | $             | 157,745 |   |         | $      | 413,136 |   |

----

| (II) | Due From Employees |
|------|--------------------|

|                     |   |   |   | March 31,2011 |    |   | June 30,2010 |   |
|--------------------------|--------|--------|--------|---------------|---------|--------|--------------|--------|
|                     |   |   |   |          |    |   |         |   |
| Current                  |   |   |   | $             | 104,342 |   |         | $      | 131,400 |   |
| Total due from employees |   | (f)    |   | $             | 104,342 |   |         | $      | 131,400 |   |

| (III) | Due To Employees |
|-------|------------------|

|                   |   |   |   | March 31,2011 |   |   | June 30,2010 |   |
|------------------------|--------|--------|--------|--------------------|--------|--------|-------------------|--------|
|                   |   |   |   |               |   |   |              |   |
| Current                |   |   |   | $                  | 32,332 |   |              | $      | 98,550 |   |
| Total due to employees |   | (g)    |   | $                  | 32,332 |   |              | $      | 98,550 |   |

| (a) | Jin Xin is an officer of the Company and the chairman of Jinma, a subsidiary of the Company. The payable balance represents business related expenses paid by Jinxin on behalf of the Company, which is unsecured, interest-free and has no fixed repayment term. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

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

| (d) | Zhang Qixiu is the mother of Jin Xin, also see (a). The balance represented business related expenses paid by Zhang Qixiu on behalf of the Company, which was interest-free, unsecured and had no fixed repayment term. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (e) | Jin Wei is the brother of Jin Xin, also see (a). The balance represented an advance from Jin Wei, which was interest-free, unsecured and had no fixed repayment term. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

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

----

|                           |   | March 31,2011 |      |   | June 30,2010 |   |
|--------------------------------|--------|--------------------|-----------|--------|-------------------|--------|
|                           |   |               |      |   |              |   |
| Cost of land use rights        |   | $                  | 1,087,939 |   |              | $      | 1,087,939 |   |
| Less: Accumulated amortization |   |               | (156,796  | )      |              |   | (139,435 | ) |
| Land use rights, net           |   | $                  | 931,143   |   |              | $      | 948,504 |   |

| 2011 (three months) |   | $      | 5,787   |   |
|---------------------|--------|--------|---------|--------|
| 2012                |   |   | 23,149  |   |
| 2013                |   |   | 23,149  |   |
| 2014                |   |   | 23,149  |   |
| 2015                |   |   | 23,149  |   |
| Thereafter          |   |   | 832,760 |   |
| Total               |   | $      | 931,143 |   |

----

|                            |   | March 31,2011 |       |   | June 30,2010 |   |
|---------------------------------|--------|--------------------|------------|--------|-------------------|--------|
|                            |   |               |       |   |              |   |
| Buildings                       |   | $                  | 2,931,201  |   |              | $      | 2,818,371 |   |
| Machinery and equipment         |   |               | 1,144,397  |   |              |   | 1,082,065 |   |
| Office equipment                |   |               | 57,987     |   |              |   | 50,299 |   |
| Motor vehicles                  |   |               | 536,369    |   |              |   | 430,981 |   |
|                            |   |               | 4,669,954  |   |              |   | 4,381,716 |   |
| Less : Accumulated depreciation |   |               |       |   |              |   |   |   |
| Buildings                       |   |               | (519,312   | )      |              |   | (429,115 | ) |
| Machinery and equipment         |   |               | (720,949   | )      |              |   | (611,728 | ) |
| Office equipment                |   |               | (41,555    | )      |              |   | (35,789 | ) |
| Motor vehicles                  |   |               | (306,778   | )      |              |   | (261,129 | ) |
|                            |   |               | (1,588,594 | )      |              |   | (1,337,761 | ) |
| Plant and equipment, net        |   | $                  | 3,081,360  |   |              | $      | 3,043,955 |   |

----

|                                                                                                                                                                                                                      |   | March 31,2011 |   |   | June 30,2010 |   |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|---------------|--------|--------|--------------|--------|
| Rural Credit Cooperative:                                                                                                                                                                                                 |   |          |   |   |         |   |
|                                                                                                                                                                                                                      |   |          |   |   |         |   |
| Monthly interest only payments at 6.89% per annum, due December 1, 2010, guaranteed by Weifang Tongxin Precision Rubber Products Co., Ltd. and Weifang Dachang Energy-Saving Equipment Co., Ltd. (Repaid on its due date) |   | $             | -      |   |         | $      | 88,124 |   |
|                                                                                                                                                                                                                      |   |          |   |   |         |   |   |   |
| Monthly interest only payments at 7.52% per annum, due January 15, 2011, guaranteed by Weifang Jinma Diesel Engine Co., Ltd. and Weifang Dachang Energy-Saving Equipment Co., Ltd. (Repaid on its due date)               |   |          | -      |   |         |   | 440,619 |   |
|                                                                                                                                                                                                                      |   |          |   |   |         |   |   |   |
| Bank of Communications:                                                                                                                                                                                                   |   |          |   |   |         |   |   |   |
|                                                                                                                                                                                                                      |   |          |   |   |         |   |   |   |
| Monthly interest only payments at 5.84% per annum, due July 23, 2010, secured by a land use right and guaranteed by an officer, Liu Dianjun. Also see Note 9. (Repaid on its due date)                                    |   |          | -      |   |         |   | 146,873 |   |

----

|                                                                                                                                                                                                                           |   | March 31,2011 |      |   | June 30,2010 |   |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------------------|-----------|--------|-------------------|--------|
| Weifang Bank:                                                                                                                                                                                                                  |   |               |      |   |              |   |
|                                                                                                                                                                                                                           |   |               |      |   |              |   |
| Monthly interest only payments at 7.43% per annum, due October 27, 2010, guaranteed by Weifang Hengyuan Oil Pump & Oil Fitting Co., Ltd. (Repaid on its due date)                                                          |   | $                  | -         |   |              | $      | 587,492 |   |
|                                                                                                                                                                                                                           |   |               |      |   |              |   |   |   |
| Monthly interest only payments at 7.97% per annum, due October 19, 2010, guaranteed by Weifang Hengyuan Oil Pump & Oil Fitting Co., Ltd. (Repaid on its due date)                                                          |   |               | -         |   |              |   | 293,746 |   |
|                                                                                                                                                                                                                           |   |               |      |   |              |   |   |   |
| Monthly interest only payments at 7.43% per annum, due April 10, 2011, guaranteed by Weifang Hengyuan Oil Pump & Oil Fitting Co., Ltd. (Repaid on its due date)                                                            |   |               | 305,339   |   |              |   | 293,746 |   |
|                                                                                                                                                                                                                           |   |               |      |   |              |   |   |   |
| Monthly interest only payments at 7.43% per annum, due July 27, 2011, guaranteed by Weifang Hengyuan Oil Pump & Oil Fitting Co., Ltd.                                                                                      |   |               | 610,677   |   |              |   | - |   |
|                                                                                                                                                                                                                           |   |               |      |   |              |   |   |   |
| Monthly interest only payments at 9.88% per annum, due January 24, 2012, guaranteed by Weifang Huaxin Diesel Engine Co., Ltd.                                                                                                  |   |               | 305,339   |   |              |   | - |   |
|                                                                                                                                                                                                                           |   |               |      |   |              |   |   |   |
| China Construction Bank:                                                                                                                                                                                                       |   |               |      |   |              |   |   |   |
|                                                                                                                                                                                                                           |   |               |      |   |              |   |   |   |
| Monthly interest only payments at 5.84% per annum, due December 2, 2010, guaranteed by an officer, Liu Dianjun, and Weifang Xinde Fuel Injection System Co., Ltd. (Repaid on its due date)                                     |   |               | -         |   |              |   | 734,365 |   |
|                                                                                                                                                                                                                           |   |               |      |   |              |   |   |   |
| Monthly interest only payments at 5.84% per annum, due July 29, 2011, secured by a land use right. Also see Note 9.                                                                                                            |   |               | 305,339   |   |              |   | - |   |
|                                                                                                                                                                                                                           |   |               |      |   |              |   |   |   |
| Bank of China:                                                                                                                                                                                                                 |   |               |      |   |              |   |   |   |
|                                                                                                                                                                                                                           |   |               |      |   |              |   |   |   |
| Monthly interest only payments at 5.84% per annum, due February 10, 2011, guaranteed by Weifang Hengyuan Oil Pump & Oil fitting Co., Ltd. and by an officer, Li Zengshan, and his wife, Li Guimei (Repaid on its due date) |   |               | -         |   |              |   | 293,747 |   |
| Total                                                                                                                                                                                                                          |   | $                  | 1,526,694 |   |              | $      | 2,878,712 |   |

----

|                                                                                                               |   |   |   | March31, 2011 |      |   | June 30,2010 |   |
|--------------------------------------------------------------------------------------------------------------------|--------|--------|--------|--------------------|-----------|--------|-------------------|--------|
| Notes payable to an unrelated individual:                                                                          |   |   |   |               |      |   |              |   |
| Due December 26, 2010, interest at 6% per annum with the principal payable at the due date                         |   |   |   | $                  | -         |   |              | $      | 84,505 |   |
| Due December 24, 2010, interest at 10% per annum with the principal payable at the due date                        |   |   |   |               | -         |   |              |   | 98,308 |   |
| Due May 4, 2011, interest at 14.36% per annum with the principal payable at the due date. (Repaid on its due date) |   |   |   |               | 387,780   |   |              |   | 373,058 |   |
| Due May 4, 2011, interest at 12% per annum with the principal payable at the due date. (Repaid on its due date)    |   |   |   |               | 146,563   |   |              |   | 140,998 |   |
| Due June 30, 2011, interest at 10.00% per annum with the principal payable at the due date                         |   |   |   |               | 32,305    |   |              |   | - |   |
| Due August 4, 2011, interest at 14.40% per annum with the principal payable at the due date                        |   |   |   |               | 381,674   |   |              |   | - |   |
| Due October 1, 2011, interest free with the principal payable at the due date                                      |   |   |   |               | 50,217    |   |              |   | - |   |
| Due November 1, 2011, interest at 10% per annum with the principal payable at the due date                         |   |   |   |               | 24,091    |   |              |   | - |   |
| Due December 25, 2011, interest at 10.00% per annum with the principal payable at the due date                     |   |   |   |               | 98,624    |   |              |   |   |   |
| Due December 31, 2011, interest at 10.00% per annum with the principal payable at the due date                     |   |   |   |               | 36,404    |   |              |   | - |   |
| Subtotal                                                                                                           |   |   |   |               | 1,157,658 |   |              |   | 696,869 |   |
| Notes payable to related individuals:                                                                              |   |   |   |               |      |   |              |   |   |   |
| Due July 1, 2010, interest at 7.28% per annum(Settled on its due date)                                             |   | (b)    |   |               | -         |   |              |   | 77,843 |   |
| Due December 24, 2010, interest at 10% per annum (Settled in advance)                                              |   | (b)    |   |               | -         |   |              |   | 95,467 |   |
| Due May 2, 2011, interest at 6% per annum with the principal payable at the due date. (Repaid on its due date)     |   | (b)    |   |               | 32,473    |   |              |   | 31,240 |   |
| Due June 30, 2011, interest at 10% per annum with the principal payable at the due date                            |   | (b)    |   |               | 83,968    |   |              |   | 80,930 |   |
| Due June 30, 2011, interest at 5.76% per annum (Settled in advance)                                                |   | (a)    |   |               | -         |   |              |   | 32,638 |   |
| Due November 27, 2011, interest at 10% per annum with the principal payable at the due date                        |   | (c)    |   |               | 152,669   |   |              |   |   |   |
| Due December 24, 2011, interest at 10% per annum with the principal payable at the due date                        |   | (b)    |   |               | 99,235    |   |              |   | - |   |
| Due March 31, 2012, interest at 6.91% per annum with the principal payable at the due date                         |   | (b)    |   |               | 88,587    |   |              |   | - |   |
| Subtotal                                                                                                           |   |   |   |               | 456,932   |   |              |   | 318,118 |   |
|                                                                                                               |   |   |   |               |      |   |              |   |   |   |
| Total                                                                                                              |   |   |   | $                  | 1,614,590 |   |              | $      | 1,014,987 |   |

----

| (a) | The note was due to Mr. Liu Dianjun, an officer of the Company. The amount represented a loan to the Company which was unsecured. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------|

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

| (c) | This note is due to Ms. Zhang Qixiu, the mother of Mr. Jin Xin (also see Note 8a), an officer of the Company. The current balance represents a loan to the Company which is unsecured. |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                                                                                                                                                            |   |   |   | March 31,2011 |    |   | June 30,2010 |   |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|--------|--------------------|---------|--------|-------------------|--------|
| Notes payable to related individuals:                                                                                                                           |   |   |   |               |    |   |              |   |
| Due May 12, 2012, monthly interest payment is 5.76% per annum. Principal is repaid every month in 108 equal installments from May 15, 2003. (Repaid in advance) |   | (a)    |   |               | -       |   |              |   | 29,918 |   |
| Due August 4, 2014, monthly interest payment is 6.91% per annum. Principal is repaid every month in 60 equal installments from August 4, 2009.                  |   | (b)    |   |               | 241,067 |   |              |   | 296,380 |   |
| Total                                                                                                                                                           |   |   |   | $                  | 241,067 |   |              | $      | 326,298 |   |

| (a) | The current note was due to Mr. Liu Dianjun, an officer of the Company. The note represented a loan to the Company to support business operations. |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------|

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

----

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

|               |   | March 31,2011 |      |   | March 31,2010 |   |
|--------------------|--------|--------------------|-----------|--------|--------------------|--------|
| Current:           |   |               |      |   |               |   |
| Provision for CIT  |   | $                  | 1,974,705 |   |               | $      | 2,179,024 |   |
|               |   |               |      |   |               |   |   |   |
| Deferred:          |   |               |      |   |               |   |   |   |
| Provision for CIT  |   |               | 410,783   |   |               |   | (3,865 | ) |
|               |   |               |      |   |               |   |   |   |
| Income tax expense |   | $                  | 2,385,488 |   |               | $      | 2,175,159 |   |

----

|                                    |   | March 31,2011 |      |   | March 31,2010 |   |
|-----------------------------------------|--------|--------------------|-----------|--------|--------------------|--------|
|                                    |   |               |      |   |               |   |
| Computed “expected” expense |   | $                  | 4,225,754 |   |               | $      | 3,648,084 |   |
| Permanent differences                   |   |               | (844,079  | )      |               |   | (52,394 | ) |
| Favourable tax rates                    |   |               | (996,187  | )      |               |   | (1,420,531 | ) |
|                                    |   |               |      |   |               |   |   |   |
| Income tax expense                      |   | $                  | 2,385,488 |   |               | $      | 2,175,159 |   |

|                                                    |   | March 31,2011 |     |   | June 30,2010 |   |
|---------------------------------------------------------|--------|--------------------|----------|--------|-------------------|--------|
| Deferred tax assets:                                    |   |               |     |   |              |   |
| Current portion:                                        |   |               |     |   |              |   |
| Bad debt provision                                      |   | $                  | 24,807   |   |              | $      | 24,174 |   |
| Other expenses                                          |   |               | 51,458   |   |              |   | 76,720 |   |
| Subtotal                                                |   | $                  | 76,265   |   |              | $      | 100,894 |   |
|                                                    |   |               |     |   |              |   |   |   |
| Deferred tax liabilities:                               |   |               |     |   |              |   |   |   |
| Current portion:                                        |   |               |     |   |              |   |   |   |
| Sales cut-off                                           |   | $                  | (433,290 | )      |              | $      | (31,596 | ) |
| Others                                                  |   |               | (26,094  | )      |              |   | (21,850 | ) |
| Subtotal                                                |   |               | (459,384 | )      |              |   | (53,446 | ) |
|                                                    |   |               |     |   |              |   |   |   |
| Net deferred tax (liabilities) assets - current portion |   | $                  | (383,119 | )      |              | $      | 47,448 |   |
|                                                    |   |               |     |   |              |   |   |   |
| Deferred tax assets:                                    |   |               |     |   |              |   |   |   |
| Non-current portion:                                    |   |               |     |   |              |   |   |   |
| Depreciation                                            |   | $                  | 136,871  |   |              | $      | 118,448 |   |
| Amortization                                            |   |               | 11,962   |   |              |   | 10,601 |   |
| Subtotal                                                |   |               | 148,833  |   |              |   | 129,049 |   |
|                                                    |   |               |     |   |              |   |   |   |
| Net deferred tax assets - non-current portion           |   |               | 148,833  |   |              |   | 129,049 |   |
|                                                    |   |               |     |   |              |   |   |   |
| Total net deferred tax (liabilities) assets             |   | $                  | (234,286 | )      |              | $      | 176,497 |   |

----

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

|                              |   | For The Nine Months EndedMarch 31, |    |
|-----------------------------------|--------|-------------------------------------------------------------|---------|
|                              |   | 2011                                                        |    |   | 2010 |   |
| Tax holiday effect                |   | $                                                           | 996,187 |   |   | $ | 1,420,531 |   |
| Basic net income per share effect |   | $                                                           | (0.00   | ) |   | $ | (0.01 | ) |

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

----

----

----

----

----

|                    |   |                                                  |      |   | Fair Value Measurements at Reporting Date Using       |   |
|-------------------------|--------|-------------------------------------------------------|-----------|--------|-------------------------------------------------------------------------------------|--------|
|                    |   | CarryingValue as of March 31,2011 |      |   | Quoted Prices inActive Marketsfor IdenticalAssets(Level 1) |   |   | SignificantOtherObservableInputs (Level 2) |   |   | SignificantUnobservableInputs(Level 3) |   |
|                    |   |                                                  |      |   |                                                                                |   |   |   |   |   |   |   |
| Bank acceptance notes   |   | $                                                     | 3,580,730 |   |                                                                                | $      | 3,580,730 |   |   | $ | - |   |   | $ | - |   |
| Long-term notes payable |   | $                                                     | 241,067   |   |                                                                                | $      | - |   |   | $ | 241,067 |   |   | $ | - |   |

----

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

----

|                                                             |   | March 31,2011 |   |   | June 30,2010 |   |   | March 31,2010 |   |
|------------------------------------------------------------------|--------|--------------------|--------|--------|-------------------|--------|--------|--------------------|--------|
|                                                             |   |               |   |   |              |   |   |               |   |
| Period ended RMB:  US$ exchange rate                   |   |               | 6.5501 |   |              |   | 6.8086 |               |   |   | - |   |
| Average RMB:  US$ exchange rate for three months ended |   |               | 6.5713 |   |              |   | -      |               |   |   | 6.8367 |   |
| Average RMB:  US$ exchange rate for nine months ended  |   |               | 6.6610 |   |              |   | -      |               |   |   | 6.8404 |   |

----

|                              |   | Three Months Ended March 31, |        |
|-----------------------------------|--------|--------------------------------------------------|-------------|
|                              |   | 2011                                             |        |   | 2010 |   |   | Comparisons |   |
|                              |   | Amount                                           |        |   | % of Revenues |   |   | Amount |   |   | % of Revenues |   |   | Change inAmount |   |   | Change in % |   |
| REVENUES, NET                     |   |                                             | 27,596,387  |   |   |   | 100 | % |   |   | 26,836,259 |   |   |   | 100 | % |   |   | 760,128 |   |   |   | 3 | % |
| COST OF GOODS SOLD                |   |                                             | (21,723,469 | ) |   |   | (79 | )% |   |   | (21,574,659 | ) |   |   | (80 | )% |   |   | (148,810 | ) |   |   | 1 | % |
| GROSS PROFIT                      |   |                                             | 5,872,918   |   |   |   | 21 | % |   |   | 5,261,600 |   |   |   | 20 | % |   |   | 611,318 |   |   |   | 12 | % |
|                              |   |                                             |        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Selling and marketing             |   |                                             | (693,989    | ) |   |   | (3 | )% |   |   | (746,566 | ) |   |   | (3 | )% |   |   | 52,577 |   |   |   | (7 | )% |
| General and administrative        |   |                                             | (855,401    | ) |   |   | (3 | )% |   |   | (688,419 | ) |   |   | (3 | )% |   |   | (166,982 | ) |   |   | 24 | % |
| Bad debt recoveries               |   |                                             | 137,324     |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 137,324 |   |   |   | - |   |
| INCOME FROM OPERATIONS            |   |                                             | 4,460,852   |   |   |   | 16 | % |   |   | 3,826,615 |   |   |   | 14 | % |   |   | 634,237 |   |   |   | 17 | % |
|                              |   |                                             |        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest expense, net             |   |                                             | (97,592     | ) |   |   | (0.4 | )% |   |   | (78,009 | ) |   |   | (0.3 | )% |   |   | (19,583 | ) |   |   | 25 | % |
| Other income (expense), net       |   |                                             | 4,587       |   |   |   | 0.02 | % |   |   | 15,510 |   |   |   | 0.06 | % |   |   | (10,923 | ) |   |   | (70 | )% |
| INCOME BEFORE INCOME TAXES        |   |                                             | 4,367,847   |   |   |   | 16 | % |   |   | 3,764,116 |   |   |   | 14 | % |   |   | 603,731 |   |   |   | 16 | % |
|                              |   |                                             |        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| INCOME TAXES                      |   |                                             | (736,813    | ) |   |   | (3 | )% |   |   | (486,401 | ) |   |   | (2 | )% |   |   | (250,412 | ) |   |   | 51 | % |
|                              |   |                                             |        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| NET INCOME                        |   |                                             | 3,631,034   |   |   |   | 13 | % |   |   | 3,277,715 |   |   |   | 12 | % |   |   | 353,319 |   |   |   | 11 | % |
| Foreign currency translation gain |   |                                             | 596,072     |   |   |   | 2 | % |   |   | 8,380 |   |   |   | - |   |   |   | 587,692 |   |   |   | 7,013 | % |
| OTHER COMPREHENSIVE INCOME        |   |                                             | 596,072     |   |   |   | 2 | % |   |   | 8,380 |   |   |   | - |   |   |   | 587,692 |   |   |   | 7,013 | % |
|                              |   |                                             |        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| COMPREHENSIVE INCOME              |   |                                             | 4,227,106   |   |   |   | 15 | % |   |   | 3,286,095 |   |   |   | 12 | % |   |   | 941,011 |   |   |   | 29 | % |

----

|                  |   | Three Months Ended March 31, |       |
|-----------------------|--------|--------------------------------------------------|------------|
|                  |   | 2011                                             |       |   | 2010 |   |   | Comparisons |   |
|                  |   | Amount                                           |       |   | % ofRevenues |   |   | Amount |   |   | % ofRevenues |   |   | Change inAmount |   |   | Changein % |   |
|                  |   | $                                                |       |   |   |   |   | $ |   |   |   |   |   | $ |   |   |   |   |
| Revenues:             |   |                                             |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Electricity pumps     |   |                                             | 3,043,425  |   |   |   | 11 | % |   |   | 2,132,727 |   |   |   | 8 | % |   |   | 910,698 |   |   |   | 43 | % |
| Multi-cylinder pumps  |   |                                             | 7,684,442  |   |   |   | 28 | % |   |   | 6,812,829 |   |   |   | 25 | % |   |   | 871,613 |   |   |   | 13 | % |
| Single-cylinder pumps |   |                                             | 525,174    |   |   |   | 2 | % |   |   | 354,403 |   |   |   | 1 | % |   |   | 170,771 |   |   |   | 48 | % |
| Fuel muzzles          |   |                                             | 2,204,576  |   |   |   | 8 | % |   |   | 1,211,848 |   |   |   | 5 | % |   |   | 992,728 |   |   |   | 82 | % |
| Parts                 |   |                                             | 460,889    |   |   |   | 2 | % |   |   | 71,413 |   |   |   | 0.3 | % |   |   | 389,476 |   |   |   | 545 | % |
| Diesel engines        |   |                                             | 11,392,990 |   |   |   | 41 | % |   |   | 8,930,298 |   |   |   | 33 | % |   |   | 2,462,692 |   |   |   | 28 | % |
| Generator sets        |   |                                             | 2,261,918  |   |   |   | 8 | % |   |   | 6,927,096 |   |   |   | 26 | % |   |   | (4,665,178 | ) |   |   | (67 | )% |
| Accessories           |   |                                             | 32,142     |   |   |   | 0.1 | % |   |   | 401,481 |   |   |   | 1 | % |   |   | (369,339 | ) |   |   | (92 | )% |
| Less: sales tax       |   |                                             | (9,169     | ) |   |   | - |   |   |   | (5,836 | ) |   |   | - |   |   |   | (3,333 | ) |   |   | 57 | % |
| Total                 |   |                                             | 27,596,387 |   |   |   | 100 | % |   |   | 26,836,259 |   |   |   | 100 | % |   |   | 760,128 |   |   |   | 3 | % |

----

|                  |   | Three Months Ended March 31, |       |
|-----------------------|--------|--------------------------------------------------|------------|
|                  |   | 2011                                             |       |   | 2010 |   |   | Comparisons |   |
|                  |   | Amount                                           |       |   | % of Cost ofGoods Sold |   |   | Amount |   |   | % of Cost ofGoods Sold |   |   | Change inAmount |   |   | Change in % |   |
|                  |   | $                                                |       |   |   |   |   | $ |   |   |   |   |   | $ |   |   |   |   |
| Cost of Goods Sold:   |   |                                             |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Electricity pumps     |   |                                             | 2,504,323  |   |   |   | 11.5 | % |   |   | 1,420,004 |   |   |   | 7 | % |   |   | 1,084,319 |   |   |   | 76 | % |
| Multi-cylinder pumps  |   |                                             | 5,119,009  |   |   |   | 24 | % |   |   | 5,057,967 |   |   |   | 23 | % |   |   | 61,042 |   |   |   | 1 | % |
| Single-cylinder pumps |   |                                             | 477,229    |   |   |   | 2 | % |   |   | 283,033 |   |   |   | 1 | % |   |   | 194,196 |   |   |   | 69 | % |
| Fuel muzzles          |   |                                             | 1,907,840  |   |   |   | 9 | % |   |   | 981,953 |   |   |   | 5 | % |   |   | 925,887 |   |   |   | 94 | % |
| Parts                 |   |                                             | 423,310    |   |   |   | 2 | % |   |   | 50,494 |   |   |   | 0.2 | % |   |   | 372,816 |   |   |   | 738 | % |
| Diesel engines        |   |                                             | 9,433,179  |   |   |   | 43 | % |   |   | 7,691,270 |   |   |   | 35.6 | % |   |   | 1,741,909 |   |   |   | 23 | % |
| Generator sets        |   |                                             | 1,721,816  |   |   |   | 8 | % |   |   | 5,747,070 |   |   |   | 27 | % |   |   | (4,025,254 | ) |   |   | (70 | )% |
| Warranty expense      |   |                                             | 106,641    |   |   |   | 0.4 | % |   |   | 38,174 |   |   |   | 0.2 | % |   |   | 68,467 |   |   |   | 179 | % |
| Accessories           |   |                                             | 30,122     |   |   |   | 0.1 | % |   |   | 304,694 |   |   |   | 1 | % |   |   | (274,572 | ) |   |   | (90 | )% |
| Total                 |   |                                             | 21,723,469 |   |   |   | 100 | % |   |   | 21,574,659 |   |   |   | 100 | % |   |   | 148,810 |   |   |   | 1 | % |

----

|                           |   | Three Months Ended March 31, |      |
|--------------------------------|--------|--------------------------------------------------|-----------|
|                           |   | 2011                                             |      |   | 2010 |   |   | Comparisons |   |
|                           |   | Gross Profit                                |      |   | GrossMargin |   |   | GrossProfit |   |   | GrossMargin |   |   | ChangeinAmount |   |   | Change inGrossMargin |   |
|                           |   | $                                                |      |   |   |   |   | $ |   |   |   |   |   | $ |   |   |   |   |
| Gross Profit and Gross Margin: |   |                                             |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Electricity pumps              |   |                                             | 539,102   |   |   |   | 18 | % |   |   | 712,723 |   |   |   | 33 | % |   |   | (173,621 | ) |   |   | (15 | )% |
| Multi-cylinder pumps           |   |                                             | 2,565,433 |   |   |   | 33 | % |   |   | 1,754,862 |   |   |   | 26 | % |   |   | 810,571 |   |   |   | 7 | % |
| Single-cylinder pumps          |   |                                             | 47,945    |   |   |   | 9 | % |   |   | 71,370 |   |   |   | 20 | % |   |   | (23,425 | ) |   |   | (11 | )% |
| Fuel muzzles                   |   |                                             | 296,736   |   |   |   | 13 | % |   |   | 229,895 |   |   |   | 19 | % |   |   | 66,841 |   |   |   | (6 | )% |
| Parts                          |   |                                             | 37,579    |   |   |   | 8 | % |   |   | 20,919 |   |   |   | 29 | % |   |   | 16,660 |   |   |   | (21 | )% |
| Diesel engines                 |   |                                             | 1,959,811 |   |   |   | 17 | % |   |   | 1,239,028 |   |   |   | 14 | % |   |   | 720,783 |   |   |   | 3 | % |
| Generator sets                 |   |                                             | 540,102   |   |   |   | 24 | % |   |   | 1,180,026 |   |   |   | 17 | % |   |   | (639,924 | ) |   |   | 7 | % |
| Accessories                    |   |                                             | 2,020     |   |   |   | 6 | % |   |   | 96,787 |   |   |   | 24 | % |   |   | (94,767 | ) |   |   | (18 | )% |
| Less: warranty expense         |   |                                             | (106,641  | ) |   |   | - |   |   |   | (38,174 | ) |   |   | - |   |   |   | (68,467 | ) |   |   | - |   |
| Less: sales tax                |   |                                             | (9,169    | ) |   |   | - |   |   |   | (5,836 | ) |   |   | - |   |   |   | (3,333 | ) |   |   | - |   |
|                           |   |                                             |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total                          |   |                                             | 5,872,918 |   |   |   | 21 | % |   |   | 5,261,600 |   |   |   | 20 | % |   |   | 611,318 |   |   |   | 1 | % |

----

----

|                              |   | Nine Months Ended March 31 |        |
|-----------------------------------|--------|------------------------------------------------|-------------|
|                              |   | 2011                                           |        |   | 2010 |   |   | Comparisons |   |
|                              |   | Amount                                         |        |   | % of Revenues |   |   | Amount |   |   | % of Revenues |   |   | Change in Amount |   |   | Change in % |   |
|                              |   | $                                              |        |   |   |   |   | $ |   |   |   |   |   |   |   |   |   |   |
| REVENUES, NET                     |   |                                           | 90,848,899  |   |   |   | 100 | % |   |   | 100,195,028 |   |   |   | 100 | % |   |   | (9,346,129 | ) |   |   | (9 | )% |
| COST OF GOODS SOLD                |   |                                           | (73,913,022 | ) |   |   | (81 | )% |   |   | (82,232,475 | ) |   |   | (82 | )% |   |   | 8,319,453 |   |   |   | (10 | )% |
| GROSS PROFIT                      |   |                                           | 16,935,877  |   |   |   | 19 | % |   |   | 17,962,553 |   |   |   | 18 | % |   |   | (1,026,676 | ) |   |   | (6 | )% |
| Selling and marketing             |   |                                           | (2,445,004  | ) |   |   | (3 | )% |   |   | (1,954,398 | ) |   |   | (2 | )% |   |   | (490,606 | ) |   |   | 25 | % |
| General and administrative        |   |                                           | (1,619,965  | ) |   |   | (2 | )% |   |   | (1,250,533 | ) |   |   | (1 | )% |   |   | (369,432 | ) |   |   | 30 | % |
| Bad debt recoveries               |   |                                           | 800,298     |   |   |   | 1 | % |   |   | 74,915 |   |   |   | 0.1 | % |   |   | 725,383 |   |   |   | 968 | % |
|                              |   |                                           |        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| INCOME FROM OPERATIONS            |   |                                           | 13,671,206  |   |   |   | 15 | % |   |   | 14,832,537 |   |   |   | 15 | % |   |   | (1,161,331 | ) |   |   | (8 | )% |
| Interest expense, net             |   |                                           | (302,091    | ) |   |   | (0.33 | )% |   |   | (254,920 | ) |   |   | (0.25 | )% |   |   | (47,171 | ) |   |   | 19 | % |
| Other income, net                 |   |                                           | 244,868     |   |   |   | 0.3 | % |   |   | 14,718 |   |   |   | - |   |   |   | 230,150 |   |   |   | 1,564 | % |
| Refundable value added tax        |   |                                           | 3,289,036   |   |   |   | 4 | % |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |
| INCOME BEFORE INCOME TAXES        |   |                                           | 16,903,019  |   |   |   | 19 | % |   |   | 14,592,335 |   |   |   | 15 | % |   |   | 2,310,684 |   |   |   | 16 | % |
| INCOME TAXES                      |   |                                           | (2,385,488  | ) |   |   | (3 | )% |   |   | (2,175,159 | ) |   |   | (2 | )% |   |   | (210,329 | ) |   |   | 10 | % |
| NET INCOME                        |   |                                           | 14,517,531  |   |   |   | 16 | % |   |   | 12,417,176 |   |   |   | 12 | % |   |   | 2,100,355 |   |   |   | 17 | % |
|                              |   |                                           |        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Foreign currency translation gain |   |                                           | 2,416,089   |   |   |   | 3 | % |   |   | 36,429 |   |   |   | - |   |   |   | 2,379,660 |   |   |   | 6,532 | % |
| OTHER COMPREHENSIVE INCOME        |   |                                           | 2,416,089   |   |   |   | 3 | % |   |   | 36,429 |   |   |   | - |   |   |   | 2,379,660 |   |   |   | 6,532 | % |
| COMPREHENSIVE INCOME              |   |                                           | 16,933,620  |   |   |   | 19 | % |   |   | 12,453,605 |   |   |   | 12 | % |   |   | 4,480,015 |   |   |   | 36 | % |

----

|                  |   | Nine Months Ended March 31, |       |
|-----------------------|--------|-------------------------------------------------|------------|
|                  |   | 2011                                            |       |   | 2010 |   |   | Comparisons |   |
|                  |   | Amount                                          |       |   | % ofRevenues |   |   | Amount |   |   | % ofRevenues |   |   | Change inAmount |   |   | Changein % |   |
|                  |   | $                                               |       |   |   |   |   | $ |   |   |   |   |   | $ |   |   |   |   |
| Revenues:             |   |                                            |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Electricity pumps     |   |                                            | 8,617,713  |   |   |   | 9 | % |   |   | 6,708,168 |   |   |   | 7 | % |   |   | 1,909,545 |   |   |   | 28 | % |
| Multi-cylinder pumps  |   |                                            | 26,168,143 |   |   |   | 29 | % |   |   | 21,232,260 |   |   |   | 21 | % |   |   | 4,935,883 |   |   |   | 23 | % |
| Single-cylinder pumps |   |                                            | 1,612,929  |   |   |   | 2 | % |   |   | 1,756,760 |   |   |   | 2 | % |   |   | (143,831 | ) |   |   | (8 | )% |
| Fuel muzzles          |   |                                            | 5,477,690  |   |   |   | 6 | % |   |   | 4,695,020 |   |   |   | 5 | % |   |   | 782,670 |   |   |   | 17 | % |
| Parts                 |   |                                            | 830,213    |   |   |   | 1 | % |   |   | 488,412 |   |   |   | 0 | % |   |   | 341,801 |   |   |   | 70 | % |
| Diesel engines        |   |                                            | 34,486,451 |   |   |   | 37 | % |   |   | 39,162,336 |   |   |   | 39 | % |   |   | (4,675,885 | ) |   |   | (12 | )% |
| Generator sets        |   |                                            | 12,296,631 |   |   |   | 14 | % |   |   | 25,632,056 |   |   |   | 26 | % |   |   | (13,335,425 | ) |   |   | (52 | )% |
| Accessories           |   |                                            | 1,384,749  |   |   |   | 2 | % |   |   | 539,859 |   |   |   | - |   |   |   | 844,890 |   |   |   | 157 | % |
| Less: sales tax       |   |                                            | (25,620    | ) |   |   | - |   |   |   | (19,843 | ) |   |   | - |   |   |   | (5,777 | ) |   |   | 29 | % |
| Total                 |   |                                            | 90,848,899 |   |   |   | 100 | % |   |   | 100,195,028 |   |   |   | 100 | % |   |   | (9,346,129 | ) |   |   | (9 | )% |

----

|                  |   | Nine Months Ended March 31, |       |
|-----------------------|--------|-------------------------------------------------|------------|
|                  |   | 2011                                            |       |   | 2010 |   |   | Comparisons |   |
|                  |   | Amount                                          |       |   | % ofCost ofGoodsSold |   |   | Amount |   |   | % ofCost ofGoodsSold |   |   | Change inAmount |   |   | Change in % |   |
|                  |   | $                                               |       |   |   |   |   | $ |   |   |   |   |   | $ |   |   |   |   |
| Cost of Goods Sold:   |   |                                            |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Electricity pumps     |   |                                            | 6,622,255  |   |   |   | 9 | % |   |   | 4,662,735 |   |   |   | 6 | % |   |   | 1,959,520 |   |   |   | 42 | % |
| Multi-cylinder pumps  |   |                                            | 18,190,058 |   |   |   | 24.5 | % |   |   | 14,446,453 |   |   |   | 17.9 | % |   |   | 3,743,605 |   |   |   | 26 | % |
| Single-cylinder pumps |   |                                            | 1,332,455  |   |   |   | 2 | % |   |   | 1,656,750 |   |   |   | 2 | % |   |   | (324,295 | ) |   |   | (20 | )% |
| Fuel muzzles          |   |                                            | 4,815,771  |   |   |   | 6.5 | % |   |   | 3,760,536 |   |   |   | 5 | % |   |   | 1,055,235 |   |   |   | 28 | % |
| Parts                 |   |                                            | 813,175    |   |   |   | 1 | % |   |   | 444,033 |   |   |   | 1 | % |   |   | 369,142 |   |   |   | 83 | % |
| Diesel engines        |   |                                            | 30,358,148 |   |   |   | 41 | % |   |   | 34,311,579 |   |   |   | 41 | % |   |   | (3,953,431 | ) |   |   | (12 | )% |
| Generator sets        |   |                                            | 10,330,498 |   |   |   | 14 | % |   |   | 22,412,155 |   |   |   | 26 | % |   |   | (12,081,657 | ) |   |   | (54 | )% |
| Warranty expense      |   |                                            | 388,994    |   |   |   | 1 | % |   |   | 112,435 |   |   |   | 0.1 | % |   |   | 276,559 |   |   |   | 246 | % |
| Accessories           |   |                                            | 1,061,668  |   |   |   | 1 | % |   |   | 425,799 |   |   |   | 1 | % |   |   | 635,869 |   |   |   | 149 | % |
| Total                 |   |                                            | 73,913,022 |   |   |   | 100 | % |   |   | 82,232,475 |   |   |   | 100 | % |   |   | (8,319,453 | ) |   |   | (10 | )% |

----

|                           |   | Nine Months Ended March 31, |       |
|--------------------------------|--------|-------------------------------------------------|------------|
|                           |   | 2011                                            |       |   | 2010 |   |   | Comparisons |   |
|                           |   | GrossProfit                                     |       |   | GrossMargin |   |   | GrossProfit |   |   | GrossMargin |   |   | Change inAmount |   |   | Change inGrossMargin |   |
|                           |   | $                                               |       |   |   |   |   | $ |   |   |   |   |   | $ |   |   |   |   |
| Gross Profit and Gross Margin: |   |                                            |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Electricity pumps              |   |                                            | 1,995,458  |   |   |   | 23 | % |   |   | 2,045,433 |   |   |   | 30 | % |   |   | (49,975 | ) |   |   | (7 | )% |
| Multi-cylinder pumps           |   |                                            | 7,978,085  |   |   |   | 30 | % |   |   | 6,785,807 |   |   |   | 32 | % |   |   | 1,192,278 |   |   |   | (2 | )% |
| Single-cylinder pumps          |   |                                            | 280,474    |   |   |   | 17 | % |   |   | 100,010 |   |   |   | 6 | % |   |   | 180,464 |   |   |   | 11 | % |
| Fuel muzzles                   |   |                                            | 661,919    |   |   |   | 12 | % |   |   | 934,484 |   |   |   | 20 | % |   |   | (272,565 | ) |   |   | (8 | )% |
| Parts                          |   |                                            | 17,038     |   |   |   | 2 | % |   |   | 44,379 |   |   |   | 9 | % |   |   | (27,341 | ) |   |   | (7 | )% |
| Diesel engines                 |   |                                            | 4,128,302  |   |   |   | 12 | % |   |   | 4,850,756 |   |   |   | 12 | % |   |   | (722,454 | ) |   |   | (0.4 | )% |
| Generator sets                 |   |                                            | 1,966,133  |   |   |   | 16 | % |   |   | 3,219,901 |   |   |   | 13 | % |   |   | (1,253,768 | ) |   |   | 3 | % |
| Accessories                    |   |                                            | 323,081    |   |   |   | 23 | % |   |   | 114,060 |   |   |   | 21 | % |   |   | 209,021 |   |   |   | 2 | % |
| Less: warranty expense         |   |                                            | (388,994   | ) |   |   | - |   |   |   | (112,435 | ) |   |   | - |   |   |   | (276,559 | ) |   |   | - |   |
| Less: sales tax                |   |                                            | (25,619    | ) |   |   | - |   |   |   | (19,842 | ) |   |   | - |   |   |   | (5,777 | ) |   |   | - |   |
| Total                          |   |                                            | 16,935,877 |   |   |   | 19 | % |   |   | 17,962,553 |   |   |   | 18 | % |   |   | (1,026,676 | ) |   |   | 1 | % |

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|                                                 |   | Nine Months Ended March 31, |       |
|------------------------------------------------------|--------|-------------------------------------------------|------------|
|                                                 |   | 2011                                            |       |   | 2010 |   |
|                                                 |   | $                                               |       |   | $ |   |
| Net cash provided by operating activities            |   |                                            | 3,041,954  |   |   |   | 14,332,208 |   |
| Net cash (used in) investing activities              |   |                                            | (3,368,752 | ) |   |   | (15,261,735 | ) |
| Net cash (used in) provided by financing activities  |   |                                            | (987,168   | ) |   |   | 943,361 |   |
| Net (decrease) increase in cash and cash equivalents |   |                                            | (1,313,966 | ) |   |   | 13,834 |   |
| Effect of exchange rate changes on cash              |   |                                            | 1,080,746  |   |   |   | 59,014 |   |
| Cash and cash equivalents at beginning of period     |   |                                            | 3,399,360  |   |   |   | 127,576 |   |
| Cash and cash equivalents at end of period           |   |                                            | 3,166,140  |   |   |   | 200,424 |   |

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|                           |   | Payments Due by Period |      |
|--------------------------------|--------|---------------------------------------|-----------|
|                         |   | Total                                 |      |   | Less than 1 year |   |   | Over 1 year |   |
| Contractual Obligations:       |   |                                  |      |   |   |   |   |   |   |
| Bank Indebtedness              |   | $                                     | 1,526,694 |   |   | $ | 1,526,694 |   |   | $ | - |   |
| Notes payable                  |   |                                  | 1,855,657 |   |   |   | 1,614,590 |   |   |   | 241,067 |   |
| Construction In Processing     |   |                                  | 562,506   |   |   |   | 562,506 |   |   |   | - |   |
| Total Contractual Obligations: |   | $                                     | 3,944,857 |   |   | $ | 3,703,790 |   |   | $ | 241,067 |   |

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| EXHIBITNO. |    | DESCRIPTION                                                                                                                       |    | LOCATION                                                                                                                                                     |
|------------|--------------|-----------------------------------------------------------------------------------------------------------------------------------|--------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------|
|       |         |                                                                                                                              |         |                                                                                                                                                         |
| 2.1        |         | Share Exchange Agreement, dated December 28, 2009, by and between the Company, Jolly Promise Limited and Welldone Pacific Limited |         | Incorporated by reference to Exhibit  2.1 to the Company’s Current Report on Form 8-K as filed with the SEC on December 29, 2009             |
|       |         |                                                                                                                              |         |                                                                                                                                                         |
| 3.1        |         | Articles of Incorporation of the Company                                                                                          |         | Incorporated by reference to Exhibit 3.1 to the Company’s General Form for Registration of Securities on Form 10 as filed with the SEC on May 15, 2009 |
|       |         |                                                                                                                              |         |                                                                                                                                                         |
| 3.2        |         | Amended and Restated Bylaws of the Company                                                                                        |         | Incorporated by reference to Exhibit 3.1 to the Company’s Current Report on Form 8-K as filed with the SEC on September 21, 2010                       |
|       |         |                                                                                                                              |         |                                                                                                                                                         |
| 3.3        |         | Memorandum and Articles of Association of Jolly Promise Limited, dated July 2, 2008                                          |         | Incorporated by reference to Exhibit 3.3 to the Company’s Current Report on Form 8-K as filed with the SEC on December 29, 2009                        |
|       |         |                                                                                                                              |         |                                                                                                                                                         |
| 3.4        |         | Certificate of Incorporation of Jolly Promise Limited                                                                             |         | Incorporated by reference to Exhibit 3.4 to the Company’s Current Report on Form 8-K as filed with the SEC on December 29, 2009                        |
|       |         |                                                                                                                              |         |                                                                                                                                                         |
| 10.1       |         | Stock Purchase Agreement between Shaun Carter and the company dated December 28, 2009                                        |         | Incorporated by reference to Exhibit 10.1 to the Company’s Current Report on Form 8-K as filed with the SEC on December 29, 2009                       |
|       |         |                                                                                                                              |         |                                                                                                                                                         |
| 14.1       |         | Code of Business Conduct and Ethics                                                                                               |         | Incorporated by reference to Exhibit 14.1 to the Company’s Current Report on Form 8-K as filed with the SEC on September 21, 2010                      |
|       |         |                                                                                                                              |         |                                                                                                                                                         |
|  16.1 |         | Letter Regarding Change in Certifying Accountant                                                                                  |         | Incorporated by reference to Exhibit 16.1 to the Company’s Current Report on Form 8-K as filed with the SEC on February 9, 2010                        |
|       |         |                                                                                                                              |         |                                                                                                                                                         |
| 21         |         | List of Subsidiaries of the Company                                                                                               |         | Incorporated by reference to Exhibit 21 to the Company’s Current Report on Form 8-K as filed with the SEC on December 29, 2009                         |
|       |         |                                                                                                                              |         |                                                                                                                                                         |
| 22         |         | Published Report Regarding Matter Submitted to Vote of Security Holders Regarding Name Change of the Company                      |         | Incorporated by reference to the Company’s Current Report on Form 8-K as field with the SEC on April 28, 2010                                          |
|       |         |                                                                                                                              |         |                                                                                                                                                         |
| 31.1       |         | Certifications of the Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002                           |         | Provided herewith                                                                                                                                            |
|       |         |                                                                                                                              |         |                                                                                                                                                         |
| 31.2       |         | Certifications of the Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002                           |         | Provided herewith                                                                                                                                            |
|       |         |                                                                                                                              |         |                                                                                                                                                         |
| 32.1       |         | Certification Pursuant To 18 U.S.C. Section 1350, As Adopted Pursuant To Section 906 of the Sarbanes-Oxley Act Of 2002            |         | Provided herewith                                                                                                                                            |

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| 32.2   |   | Certification Pursuant To 18 U.S.C. Section 1350, As Adopted Pursuant To Section 906 of the Sarbanes-Oxley Act Of 2002 |   | Provided herewith                                                                                                                       |
|--------|--------|------------------------------------------------------------------------------------------------------------------------|--------|-----------------------------------------------------------------------------------------------------------------------------------------|
|   |   |                                                                                                                   |   |                                                                                                                                    |
| 99.1   |   | Audit Committee Charter                                                                                                |   | Incorporated by reference to Exhibit 99.1 to the Company’s Current Report on Form 8-K as filed with the SEC on September 21, 2010 |
|   |   |                                                                                                                   |   |                                                                                                                                    |
| 99.2   |   | Compensation Committee Charter                                                                                         |   | Incorporated by reference to Exhibit 99.2 to the Company’s Current Report on Form 8-K as filed with the SEC on September 21, 2010 |
|   |   |                                                                                                                   |   |                                                                                                                                    |
| 99.3   |   | Corporate Governance and Nominating Committee Charter                                                                  |   | Incorporated by reference to Exhibit 99.3 to the Company’s Current Report on Form 8-K as filed with the SEC on September 21, 2010 |
|   |   |                                                                                                                   |   |                                                                                                                                    |
| 99.4   |   | Related Person Transaction Policy                                                                                      |   | Incorporated by reference to Exhibit 99.3 to the Company’s Current Report on Form 8-K as filed with the SEC on September 21, 2010 |
|   |   |                                                                                                                   |   |                                                                                                                                    |
| 99.5   |   | Written Disclosure Policy                                                                                              |   | Incorporated by reference to Exhibit 99.5 to the Company’s Annual Report on Form 10-K as filed with the SEC on September 28, 2010 |

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| Date: May 13, 2011 | By:    | /s/ Dianjun Liu                                                            |   |
|-------------------------|--------|----------------------------------------------------------------------------|--------|
|                    |   | Name: Dianjun Liu                                                          |
|                    |   | Its: President, Chief ExecutiveOfficer and Principal ExecutiveOfficer      |
|                    |   |                                                                       |   |
| Date: May 13, 2011 | By:    | /s/ Chenglin Wang                                                          |   |
|                    |   | Name: Chenglin Wang                                                        |
|                    |   | Its: Chief Financial Officer,and PrincipalFinancial and Accounting Officer |

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