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|          |
|---------------|
| **FORM 10-K** |
|          |

| **NEVADA**                                                            | **41-1559888**                    |
|-----------------------------------------------------------------------|-----------------------------------|
| (State or other jurisdiction of        Incorporation or organization) | (IRS Employer Identification No.) |

|   |
|--------|

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| Large accelerated filer **o** | Accelerated filer **o**                 | Non-accelerated filer **o** |
|-------------------------------|-----------------------------------------|-----------------------------|
|                          | Smaller Reporting Company ****x******** |                        |

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|           |                                                                                                              | **Page No.**  |
|----------------|-------------------------------------------------------------------------------------------------------------------|---------------|
|           |                                                                                                              |          |
| **PART I**     |                                                                                                              |          |
| ITEM 1.        | Business                                                                                                          |   5 |
| ITEM 1A.       | Risk Factors                                                                                                      | 15            |
| ITEM 1B.       | Unresolved Staff Comments                                                                                         | 22            |
| ITEM 2.        | Properties                                                                                                        | 22            |
| ITEM 3.        | Legal Proceedings                                                                                                 | 22            |
| ITEM 4.        | Submission of      Matters to a Vote of Security Holders                                                          | 22            |
|           |                                                                                                              |               |
| **PART II**    |                                                                                                              |               |
| ITEM 5.        | Market for Registrant's Common      Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities | 23            |
| ITEM 6.        | Selected Financial      Data                                                                                      | 23            |
| ITEM 7.        | Market for Registrant's Common      Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities | 23            |
| ITEM 7A.       | Quantitative      and Qualitative Disclosures About Market Risk                                                   | 28            |
| ITEM 8.        | Financial Statements and Supplementary      Data                                                                  | 28            |
| ITEM 9.        | Changes In and      Disagreements with Accountants on Accounting and Financial Disclosure                         | 30            |
| ITEM 9A(T).    | Controls and Procedures                                                                                           | 30            |
| ITEM 9B.       | Other Information                                                                                                 | 31            |
|           |                                                                                                              |               |
| **PART III**   |                                                                                                                   |               |
| ITEM 10.       | Directors and Executive Officers      of the Registrant and Corporate Governance                                  | 32            |
| ITEM 11.       | Executive Compensation                                                                                            | 35            |
| ITEM 12.       | Security Ownership of Certain      Beneficial Owners and Management and Related Stockholder Matters               | 37            |
| ITEM 13.       | Certain Relationships      and Related Transactions, and Director Independence                                    | 38            |
| ITEM 14.       | Principal Accountant Fees and      Services                                                                       | 39            |
|           |                                                                                                              |               |
| **PART IV**    |                                                                                                              |               |
| ITEM 15.       | Exhibits, Financial      Statement Schedules                                                                      | 40            |
|           |                                                                                                              |               |
| **SIGNATURES** | 41                                                                                                                |

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| ****ITEM 1.**** | ****Business**** |
|-----------------|------------------|

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|  |  |
|--|--|

|  |
|--|

|                                    |                           |
|------------------------------------|---------------------------|
| ***Small electric passenger car*** | ***Electric farm truck*** |

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|                                          |                                          |                                              |
|------------------------------------------|------------------------------------------|----------------------------------------------|
| K-type full-intelligent battery charger, | D-type full-intelligent battery charger, | 9KW programmable battery intelligent charger |

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| • | Maintaining our sales contracts with our existing      Hybrid and Electric vehicle manufacturers, power tool and consumer electronics      manufacturers, and E-bikes conversion providers;                                                                                                  |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | Extending our sales efforts in three marketing      centers of Lithium-ion battery industry in China: the Jingjintang area centered      in Beijing area, Zhujiang Delta centered in Guangdong province located in      the southeast China, and Changjiang Delta centered in Shanghai area; |
| • | Developing local sales distributors to sell      our own branded lithium-ion battery products;                                                                                                                                                                                               |
| • | Expanding our cooperation with government agency      in China, including the efforts to participating government-subsidized projects;                                                                                                                                                       |

| • | *Pursue markets and customers where our technology      creates a competitive advantage.* We will continue to focus our efforts      in markets where customers place a premium on high-quality batteries, innovation      and differentiated performance. |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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| • | *Partner with industry leaders in China      to adapt and commercialize our products to meet the requirements of our      target markets.* In each of our target markets, our joint development      and supply agreements with industry-leading companies in China provide us      insight into the performance requirements of that market, allow us to share      product development costs and position our products to serve as a key strategic      element for our partners' success.                       |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | *Remain on the forefront of innovation and      commercialization of new battery and system technologies.* We believe      that our battery design technologies provide us with a competitive advantage,      and we intend to continue to innovate in materials science and product design.                                                                                                                                                                                                                       |
| • | *Reduce costs through assembling improvements,      supply chain efficiencies, innovation in materials and battery technologies.*      We believe that we can lower our battery and battery system costs by improving      our assembling performance, lowering our raw material procurement costs,      improving our inventory and supply chain management and through further      materials science and battery innovation that can help reduce our need for      expensive control and electronic components. |

| ****ITEM 1A.**** | ****Risk Factors**** |
|------------------|----------------------|

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| • | performance and reliability of battery power      products compared to conventional and other non-battery energy sources and      products;                                                                                                                                                                                                   |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | success of alternative battery chemistries,      such as nickel-based batteries, lead-acid batteries and conventional lithium-ion      batteries and the success of other alternative energy technologies, such      as fuel cells and ultra capacitors;                                                                                      |
| • | end-users' perceptions of advanced batteries      as relatively safe and reliable energy storage solutions, which could change      over time if alternative battery chemistries prove unsafe or become the      subject of significant product liability claims and negative publicity is      generated on the battery industry as a whole; |
| • | cost-effectiveness of our products compared      to products powered by conventional energy sources and alternative battery      chemistries;                                                                                                                                                                                                 |
| • | availability of government subsidies and incentives      to support the development of the battery power industry;                                                                                                                                                                                                                            |
| • | fluctuations in economic and market conditions      that affect the cost of energy stored by batteries, such as increases or      decreases in the prices of electricity;                                                                                                                                                                     |
| • | continued investment by the federal government      and our customers in the development of battery powered applications;                                                                                                                                                                                                                     |
| • | heightened awareness of environmental issues      and concern about global warming and climate change; and                                                                                                                                                                                                                                    |
| • | regulation of energy industries.                                                                                                                                                                                                                                                                                                              |

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| ****ITEM 1B.**** | ****Unresolved Staff Comments**** |
|------------------|-----------------------------------|

| ****ITEM 2.**** | ****Properties**** |
|-----------------|--------------------|

| ****ITEM 3.**** | ****Legal Proceedings**** |
|-----------------|---------------------------|

| ****ITEM 4.**** | ****Submission of Matters to a Vote of Security      Holders**** |
|-----------------|------------------------------------------------------------------|

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| ****ITEM 5.**** | ****Market for Registrant's Common Equity,      Related Stockholder Matters and Issuer Purchase of Equity Securities**** |
|-----------------|--------------------------------------------------------------------------------------------------------------------------|

|                              |   | High ($) |   |   |   | Low ($) |   |
|------------------------------|--------|----------|--------|--------|--------|---------|--------|
| **Year Ended June 30, 2010** |   |     |   |   |   |    |   |
| Third Quarter                |   | 1.18     |   |   |   | 0.05    |   |
| Fourth Quarter               |   | 0.10     |   |   |   | 0.09    |   |

| ****ITEM 6.**** | ****Selected Financial Data**** |
|-----------------|---------------------------------|

| **ITEM 7.** | **Management's Discussion and Analysis or      Financial Condition and Results of Operation** |
|-------------|-----------------------------------------------------------------------------------------------|

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|   | 1. | The added value of products increased, which      lead to the raise of the value-added tax. |
|--------|----|---------------------------------------------------------------------------------------------|
|   | 2. | The profit increased, so the amount of company's      income tax increased.                 |
|   | 3. | The payroll tax increased under the Chinese      government's new regulation.               |

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| • | Improve and upgrade our R&D center including      purchase of more advanced research equipments and hiring of key technical      talents in lithium-ion industry; |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | Improve and expand our manufacture facilities      including purchase of new machinery and equipment and construction of new      workshops;                      |
| • | Develop regional distributors for the development      of our own branded products; and                                                                           |
| • | Implement an advertising and marketing program      adequate to assure us of substantial market presence.                                                         |

| ****ITEM 7A.**** | ****Quantitative and Qualitative Disclosures      about Market Risks**** |
|------------------|--------------------------------------------------------------------------|

| ****ITEM 8.**** | ****Financial Statements and Supplementary      Data**** |
|-----------------|----------------------------------------------------------|

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|                                                                                                                                               | ***PAGE***           |   |
|----------------------------------------------------------------------------------------------------------------------------------------------------|----------------------|--------|
|                                                                                                                                               |                 |   |
| ***REPORT      OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM***                                                                                 | ***F-1***            |   |
|                                                                                                                                               |                      |   |
| ***FINANCIAL STATEMENTS:***                                                                                                                        |                      |   |
|                                                                                                                                               |                      |   |
| ***             CONSOLIDATED      BALANCE SHEETS***                               | *****F-2 - F-3*****  |   |
| ***             CONSOLIDATED      STATEMENTS OF INCOME***                         | *****F-4*****        |   |
| ***             CONSOLIDATED      STATEMENT OF CHANGES IN STOCKHOLDERS' EQUITY*** | *****F-5*****        |   |
| ***             CONSOLIDATED      STATEMENTS OF CASH FLOWS***                     | *****F-6 - F-7*****  |   |
|                                                                                                                                               |                      |   |
| ***NOTES TO FINANCIAL      STATEMENTS***                                                                                                           | *****F-8 - F-21***** |   |
|                                                                                                                                               |                      |   |

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|               ***ASSETS***                                                                                                                                                                                          |   | **2010**  |   |   |   | **2009**  |   |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-----------|--------|--------|--------|-----------|--------|
|                                                                                                                                                                                                                                                                                      |   |      |   |   |   |      |   |
| ***Current Assets:***                                                                                                                                                                                                                                                                     |   |      |   |   |   |      |   |
|               Cash      and cash equivalents                                                                                                                                                                        | $      | 2,761,427 |   |   | $      | 407,333   |   |
|               Accounts      Receivable-net                                                                                                                                                                          |   | 4,054,189 |   |   |   | 2,404,088 |   |
|               Other      Accounts Receivable                                                                                                                                                                        |   | 48,621    |   |   |   | 24,507    |   |
|               Advanced      to suppliers                                                                                                                                                                            |   | 12,297    |   |   |   | 785       |   |
|               Inventory                                                                                                                                                                                             |   | 786,013   |   |   |   | 2,567,320 |   |
|               Prepaid      Expenses                                                                                                                                                                                 |   | 68,169    |   |   |   | 106,476   |   |
|                                           **Total      Current Assets** |   | 7,730,716 |   |   |   | 5,510,510 |   |
|                                                                                                                                                                                                                                                                                      |   |      |   |   |   |      |   |
|                                                                                                                                                                                                                                                                                      |   |      |   |   |   |      |   |
| ***Plant & Equipment, net***                                                                                                                                                                                                                                                              |   | 261,811   |   |   |   | 116,426   |   |
| ***Patent and other intangibles, net***                                                                                                                                                                                                                                                   |   | 72,907    |   |   |   | 80,101    |   |
|                                                                                                                                                                                                                                                                                      |   |           |   |   |   |           |   |
|                                          ** Total      Assets**         |   | 8,065,434 |   |   |   | 5,707,037 |   |
|                                                                                                                                                                                                                                                                                      |   |      |   |   |   |      |   |

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|                                                                                                                                                                                                                                                                                                                                                                       |   | **2010**  |   |   |   | **2009**  |   |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-----------|--------|--------|--------|-----------|--------|
| ***Current Liabilities:***                                                                                                                                                                                                                                                                                                                                                 |   |      |   |   |   |      |   |
|               Accounts      Payable                                                                                                                                                                                                                                                                  |   | 1,832,512 |   |   |   | 1,819,740 |   |
|               Advance      from customers                                                                                                                                                                                                                                                            |   | 3,329     |   |   |   | 4,426     |   |
|               Payroll      payable                                                                                                                                                                                                                                                                   |   | 57,186    |   |   |   | 34,123    |   |
|               Tax      Payable                                                                                                                                                                                                                                                                       |   | 310,989   |   |   |   | 174,998   |   |
|               Other      Accounts Payables                                                                                                                                                                                                                                                           |   | 4,495     |   |   |   | 122,873   |   |
|               Interest      Payables                                                                                                                                                                                                                                                                 |   | -         |   |   |   | 32,732    |   |
|               Accrued      expenses                                                                                                                                                                                                                                                                  |   | 45,074    |   |   |   | 29,886    |   |
|               Loan      from shareholders                                                                                                                                                                                                                                                            |   | 83,492    |   |   |   | 381,334   |   |
|               Warrenty                                                                                                                                                                                                                                                                               |   | 237,374   |   |   |   | 186,601   |   |
|                                                                                                                                                                                                                                                                                                                                                                       |   |           |   |   |   |           |   |
|                                           **Total      Current Liabilities**                                                                             |   | 2,574,452 |   |   |   | 2,786,714 |   |
|                                                                                                                                                                                                                                                                                                                                                                       |   |      |   |   |   |      |   |
|                                                                                                                                                                                                                                                                                                                                                                       |   |      |   |   |   |      |   |
| ***Long-Term Liabilities:***                                                                                                                                                                                                                                                                                                                                               |   |      |   |   |   |      |   |
|               Long      Term Loan                                                                                                                                                                                                                                                                    |   | -         |   |   |   | -         |   |
|                                           **Total      Long-Term Liabilities**                                                                           |   | -         |   |   |   | -         |   |
|                                                                                                                                                                                                                                                                                                                                                                       |   |           |   |   |   |           |   |
|                                                         **Total      Liabilities** |   | 2,574,452 |   |   |   | 2,786,714 |   |
|                                                                                                                                                                                                                                                                                                                                                                       |   |           |   |   |   |           |   |
| ***Stockholders' Equity:***                                                                                                                                                                                                                                                                                                                                                |   |           |   |   |   |           |   |
|               Preferred      Stock, par value $0.001, 20,000,000 authorized                       0      shares issued and outstanding                                                                               |   | -         |   |   |   | -         |   |
|               Common      Stock, par value $0.001, 780,000,000 authorized                       1,007,945      shares issued and outstanding as of June 30, 2009                                                     |   | -         |   |   |   | 1,008     |   |
|                 additional      19,151,872 shares issued as of March 31, 2010                       20,159,811      shares issued and outstanding as of June 30, 2010                                      |   | 20,159    |   |   |   | -         |   |
|               Additional      Paid in Capital                                                                                                                                                                                                                                                        |   | 252,771   |   |   |   | 157,436   |   |
|               Reserved      Funds                                                                                                                                                                                                                                                                    |   | 467,186   |   |   |   | -         |   |
|               Accumulated      other comprehensive income                                                                                                                                                                                                                                            |   | 98,594    |   |   |   | 71,387    |   |
|               Retained      Earnings                                                                                                                                                                                                                                                                 |   | 4,652,272 |   |   |   | 2,690,492 |   |
|                                           **Total      Stockholders' Equity**                                                                            |   | 5,490,982 |   |   |   | 2,920,323 |   |
|                                                                                                                                                                                                                                                                                                                                                                       |   |           |   |   |   |           |   |
|                             **Total      Liabilities and Stockholders' Equity**                                                                                                                                                | $      | 8,065,434 |   |   | $      | 5,707,037 |   |
|                                                                                                                                                                                                                                                                                                                                                                       |   |      |   |   |   |      |   |

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|                                                                                                          |   | **2010**   |   |   |   | **2009**   |   |
|---------------------------------------------------------------------------------------------------------------|--------|------------|--------|--------|--------|------------|--------|
| Revenues                                                                                                      | $      | 14,089,484 |   |   | $      | 10,962,927 |   |
|                                                                                                          |   |            |   |   |   |            |   |
| Cost of Goods Sold                                                                                            |   | 9,568,363  |   |   |   | 7,989,327  |   |
|                                                                                                          |   |       |   |   |   |            |   |
| Gross Profit                                                                                                  |   | 4,521,121  |   |   |   | 2,973,600  |   |
|                                                                                                          |   |       |   |   |   |       |   |
| Operating Expenses:                                                                                           |   |       |   |   |   |       |   |
|       Manufacturing      Expenses                                               |   | 250,037    |   |   |   | 112,022    |   |
|       R      & D Expenses                                                       |   | 114,995    |   |   |   | 43,135     |   |
|       Sales Expenses                                                            |   | 419,547    |   |   |   | 258,791    |   |
|       General      and Administrative Expenses                                  |   | 471,414    |   |   |   | 255,703    |   |
|                                                                                                          |   |            |   |   |   |            |   |
|             Total      Operating Expenses         |   | 1,255,993  |   |   |   | 669,652    |   |
|                                                                                                          |   |            |   |   |   |            |   |
| Income from Operations before other Income      and (expenses)                                                |   | 3,265,128  |   |   |   | 2,303,948  |   |
| Other Expense and (Income):                                                                                   |   |            |   |   |   |            |   |
|       Financial      Expenses                                                   |   | -          |   |   |   | 7,830      |   |
|       Other      Income                                                         |   | (1,324     | )      |   |   | (798       | )      |
|             Total      Other Income and (Expense) |   | (1,324     | )      |   |   | 7,032      |   |
|                                                                                                          |   |            |   |   |   |            |   |
| Income Before Income Taxes                                                                                    |   | 3,266,452  |   |   |   | 2,296,916  |   |
|                                                                                                          |   |            |   |   |   |            |   |
| Provision For Income Taxes                                                                                    |   | 837,486    |   |   |   | 574,229    |   |
|                                                                                                          |   |            |   |   |   |            |   |
| Net Income                                                                                                    |   | 2,428,966  |   |   |   | 1,722,687  |   |
|                                                                                                          |   |            |   |   |   |            |   |
| Other Comprehensive Items:                                                                                    |   |            |   |   |   |            |   |
|       Unrealized      Gain on Foreign Currency Translation                      |   | 27,207     |   |   |   | 7,993      |   |
| Net Comprehensive Income                                                                                      | $      | 2,456,173  |   |   | $      | 1,730,680  |   |
|                                                                                                          |   |       |   |   |   |       |   |
| Earnings Per Common Share-Basic and Diluted                                                                   |   | 0.12       |   |   |   | 1.72       |   |
|                                                                                                          |   |       |   |   |   |       |   |
| Weighted Average Common Share - Basic      and Diluted                                                        |   | 20,159,811 |   |   |   | 1,007,936  |   |
|                                                                                                          |   |       |   |   |   |       |   |

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|                                                                                             | **Preferred Stock** |   | **Common Stock** |   | **Additional** |       | **Accumulated        Other** |   |                        |   |                            |   |                         |   |                      |   |                            | **Total** |                             |
|--------------------------------------------------------------------------------------------------|---------------------|--------|------------------|--------|----------------|------------|------------------------------|--------|-----------------------------|--------|---------------------------------|--------|------------------------------|--------|---------------------------|--------|---------------------------------|-----------|----------------------------------|
|                                                                                             | **Shares**          |   | **Amount**       |   | **Shares**     |       | **Amount**                   |   | **Paid in         Capital** |   | **Comprehensive        Income** |   | **Retained        Earnings** |   | **Reserved        Funds** |   | **Comprehensive        Income** |      | **Stockholders'         Equity** |
| Balance-       June 30, 2007                                                                     | -                   |   |             | -      |           | -          |                         | $      | 129,340                     |   |                            | $      | -                            |   |                      | $      | 355                             |      | $                                | (213,983 | ) |   | - |   | - |   | $ | (84,288 | ) |
| Additional       Paid in Capital                                                                 |                |   |             |   |           |       |                         |   |                        |   |                            |   | 29,104                       |   |                      |   |                            |      |                             |  |   |   |   |   |   |   |   | 29,104 |   |
| Comprehensive      income                                                                        |                |   |             |   |           |       |                         |   |                        |   |                            |   |                         |   |                      |   |                            |      |                             |   |   |   |   |   |   |   |   |   |   |
|   Net income         for the year                                            |                |   |             |   |           |       |                         |   |                        |   |                            |   |                         |   |                      |   |                            |      |                             | 1,181,788 |  |  |  |  | 1,181,788 |  |  | 1,181,788 |   |
|   Other        comprehensive        income, net of tax             |                |   |             |   |           |       |                         |   |                        |   |                            |   |                         |   |                      |   |                            |      |                             |   |   |   |   |   |   |   |   |   |   |
|   Foreign currency        translation        adjustment            |                |   |             |   |           |       |                         |   |                        |   |                            |   |                         |   |                      |   | 63,039                          |      |                             |   |   |   |   |   | 63,039 |   |   | 63,039 |   |
| Comprehensive      income                                                                        |                |   |             |   |           |       |                         |   |                        |   |                            |   |                         |   |                      |   |                            |      |                             |   |   |   |   |   | 1,244,827 |   |   |   |   |
| Balance -       June 30, 2008                                                                    |                |   |             |   |           | -          |                         |   | 129,340                     |   |                            |   | 29,104                       |   |                      |   | 63,394                          |      |                             | 967,804 |   |   |   |   |   |   |   | 1,189,643 |   |
| Comprehensive        income        consolidation        adjustment |                |   |             |   |           |            |                         |   | (129,340                    | )      |                            |   | (29,104                      | )      |                      |   |                            |      |                             |   |   |   |   |   |   |   |   | (158,444 | ) |
|   Issuance of        common stock                                            |                |   |             |   |           | 1,007,936  |                         |   | 1,008                       |   |                            |   | 157,436                      |   |                      |   |                            |      |                             |   |   |   |   |   |   |   |   | 158,444 |   |
|   Net income              for the year                                       |                |   |             |   |           |       |                         |   |                        |   |                            |   |                         |   |                      |   |                            |      |                             | 1,722,687 |   |   |   |   | 1,722,687 |   |   | 1,722,687 |   |
|   Other        comprehensive        income, net of tax             |                |   |             |   |           |       |                         |   |                        |   |                            |   |                         |   |                      |   |                            |      |                             |   |   |   |   |   |   |   |   |   |   |
|   Foreign      currency        translations        adjustment      |                |   |             |   |           |       |                         |   |                        |   |                            |   |                         |   |                      |   | 7,993                           |      |                             |   |   |   |   |   | 7,993 |   |   | 7,993 |   |
| Comprehensive      income                                                                        |                |   |             |   |           |       |                         |   |                        |   |                            |   |                         |   |                      |   |                            |      |                             |   |   |   |   |   | 1,730,680 |   |   |   |   |
| Balance -       June 30, 2009                                                                    |                |   |             |   |           | 1,007,936  |                         |   | 1,008                       |   |                            |   | 157,436                      |   |                      |   | 71,387                          |      |                             | 2,690,492 |   |   |   |   |   |   |   | 2,920,323 |   |
|   Issuance of        common stock                                            |                |   |             |   |           | 19,151,875 |                         |   | 19,151                      |   |                            |   | 72,352                       |   |                      |   |                            |      |                             |   |   |   |   |   |   |   |   | 91,503 |   |
|   Net income                                                                           |                |   |             |   |           |       |                         |   |                        |   |                            |   |                         |   |                      |   |                            |      |                             | 2,428,966 |   |   |   |   | 2,428,966 |   |   | 2,428,966 |   |
|   Retained earning        to reserved funds                                  |                |   |             |   |           |       |                         |   |                        |   |                            |   |                         |   |                      |   |                            |      |                             | (467,186 | ) |   | 467,186 |   |   |   |   | - |   |
|   Foreign      currency        adjustment                                    |                |   |             |   |           |       |                         |   |                        |   |                            |   |                         |   |                      |   | 27,207                          |      |                             |   |   |   |   |   | 27,207 |   |   | 27,207 |   |
| Comprehensive      Income                                                                        |                |   |             |   |           |       |                         |   |                        |   |                            |   |                         |   |                      |   |                            |      |                             |   |   |   |   |   | 2,456,173 |   |   |   |   |
| Balance -       June 30, 2010                                                                    |                |   |             |   |           | 20,159,811 |                              |        | 20,159                      |        |                                 |        | 229,788                      |        |                           |        | 98,594                          |           |                                  | 4,652,272 |  |  | 467,186 |  |  |  |  | 5,467,999 |   |
|                                                                                             |                |   |             |   |           |       |                         |   |                        |   |                            |   |                         |   |                      |   |                            |      |                             |   |   |   |   |   |   |   |   |   |   |

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| ***Cash Flows From Operating Activities:***                                                                                                                       |   | **2010**   |   |   |   | **2009**   |   |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|------------|--------|--------|--------|------------|--------|
|                                                                                                                                                              |   |       |   |   |   |       |   |
| Net Income                                                                                                                                                        | $      | 2,428,966  |   |   | $      | 1,722,687  |   |
| Adjustments To Reconcile Net Income To Net      Cash                                                                                                              |   |            |   |   |   |            |   |
|       Provided      (Used) By Operating Activities:                                                                                 |   |            |   |   |   |            |   |
|       Depreciation      and Amortization Expense                                                                                    |   | 79,582     |   |   |   | 39,793     |   |
| (Increase) or Decrease in Current Assets:                                                                                                                         |   |            |   |   |   |            |   |
|       Accounts      Receivable                                                                                                      |   | (1,650,101 | )      |   |   | (1,539,295 | )      |
|       Inventories                                                                                                                   |   | 1,781,307  |   |   |   | (199,629   | )      |
|       Prepaid      Expenses                                                                                                         |   | 38,308     |   |   |   | (65,075    | )      |
|       Advanced      to Suppliers                                                                                                    |   | (11,512    | )      |   |   | (58        | )      |
|       Other Accounts      Receivables                                                                                               |   | (24,114    | )      |   |   | (13,638    | )      |
| Increase or (Decrease) in Current Liabilities:                                                                                                                    |   |            |   |   |   |            |   |
|       Accounts      Payable                                                                                                         |   | 12,771     |   |   |   | 958,692    |   |
|       Advance      from customers                                                                                                   |   | (1,097     | )      |   |   | 2,391      |   |
|       Taxes Payable                                                                                                                 |   | 135,991    |   |   |   | 41,206     |   |
|       Payroll      payable                                                                                                          |   | 23,063     |   |   |   | 138        |   |
|       Interest      Payable                                                                                                         |   | (32,732    | )      |   |   | 8,273      |   |
|       Warrent                                                                                                                       |   | 50,773     |   |   |   | 110,117    |   |
|       Other Account      Payable                                                                                                    |   | (118,378   | )      |   |   | (317,440   | )      |
|       Accrued      Expenses and Other Payables                                                                                      |   | 15,188     |   |   |   | 15,043     |   |
|                                                                                                                                                              |   |            |   |   |   |            |   |
|                   Net      Cash (Used) Provided by Operating Activities |   | 2,728,015  |   |   |   | 763,205    |   |
|                                                                                                                                                              |   |            |   |   |   |            |   |
| ***Cash Flows From Investing Activities:***                                                                                                                       |   |            |   |   |   |            |   |
|                                                                                                                                                              |   |            |   |   |   |            |   |
| Purchases of Property and Equipment                                                                                                                               |   | (223,292   | )      |   |   | (20,082    | )      |
| Purchases of Intangible Assets                                                                                                                                    |   | (2,975     | )      |   |   | (630       | )      |
|                                                                                                                                                              |   |            |   |   |   |            |   |
|                   Net      Cash Used in Investing Activities            |   | (226,268   | )      |   |   | (20,712    | )      |

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| ***Cash Flows From Financing Activities:*********                                                                                                                 |   | **2010**  |   |   |   | **2009** |   |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-----------|--------|--------|--------|----------|--------|
|                                                                                                                                                                   |   |      |   |   |   |     |   |
| Loan from /(Repayment) to Shareholder                                                                                                                             |   | (229,842  | )      |   |   | (305,598 | )      |
| Capital Contribution                                                                                                                                              |   | 114,486   |   |   |   | -        |   |
| Repayment to Short Term Loan                                                                                                                                      |   | -         |   |   |   | (291,045 | )      |
|                                                                                                                                                              |   |           |   |   |   |          |   |
|                   Net      Cash (Used) Provided by Financing Activities |   | (115,356  | )      |   |   | (596,643 | )      |
|                                                                                                                                                              |   |           |   |   |   |          |   |
| Effect of exchange rate changes on cash      and cash equivalents                                                                                                 |   | (35,701   | )      |   |   | (3,208   | )      |
|                                                                                                                                                              |   |           |   |   |   |          |   |
| Increase in Cash and Cash Equivalents                                                                                                                             |   | 2,354,094 |   |   |   | 142,642  |   |
|                                                                                                                                                              |   |           |   |   |   |          |   |
| Cash and Cash Equivalents -Beginning      Balance                                                                                                                 |   | 407,333   |   |   |   | 264,691  |   |
|                                                                                                                                                              |   |           |   |   |   |          |   |
| Cash and Cash Equivalents - Ending Balance                                                                                                                        | $      | 2,761,427 |   |   | $      | 407,333  |   |
|                                                                                                                                                              |   |      |   |   |   |     |   |
| Supplemental Disclosures of Cash Flow      Information:                                                                                                           |   |      |   |   |   |     |   |
|                                                                                                                                                              |   |      |   |   |   |     |   |
| Cash Paid During The Years for:                                                                                                                                   |   |      |   |   |   |     |   |
|                                                                                                                                                              |   |      |   |   |   |     |   |
|                   Interest      Paid                                    |   | 32,732    |   |   |   | -        |   |
|                                                                                                                                                              |   |      |   |   |   |     |   |
|                   Income      Taxes Paid                                | $      | 837,963   |   |   | $      | 493,444  |   |
|                                                                                                                                                              |   |      |   |   |   |     |   |

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| June 30, 2010                                           |                   |   |
|---------------------------------------------------------|------------------------|--------|
| Balance sheet                                           | RMB 6.7889 to US $1.00 |   |
| Statement of income      and other comprehensive income | RMB 6.8180 to US $1.00 |   |
|                                                    |                   |   |
| June 30, 2009                                           |                   |   |
| Balance sheet                                           | RMB 6.8259 to US $1.00 |   |
| Foreign currency translation      (continued)           |                   |   |
| Statement of income and other comprehensive      income | RMB 6.8259 to US $1.00 |   |

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|                            | 30-Jun-10 |    | 30-Jun-09 |
|----------------------------|-----------|---------|-----------|
| Raw materials              | $         | 440,027 |      |   | $ | 1,774,234 |   |
| Work in progress for sales | $         | 90,428  |      |   | $ | 529 |   |
| Finished goods             | $         | 253,827 |      |   | $ | 790,034 |   |
| Low value items            | $         | 1,731   |      |   | $ | 2,523 |   |
| Total                      | $         | 786,013 |      |   | $ | 2,567,320 |   |
|                       |      |    |      |   |   |   |   |

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|                                      |   | Jun -10  |   |   |   | **** Jun-09 |   |
|--------------------------------------|--------|----------|--------|--------|--------|-------------|--------|
| Building and improvement             | $      | 41,859   |   |   | $      | 0           |   |
| Machinery and equipment              |   | 307,249  |   |   |   | 124,480     |   |
| Motor Vehicle                        |   | 29,460   |   |   |   | 29,300      |   |
| Less: Accumulated Depreciation       |   | (116,757 | )      |   |   | (47,182     | )      |
| Construction in progress             |   | -        |   |   |   | 9,828       |   |
|                                 |   |     |   |   |   |        |   |
| Total property & equipment,      net |   | 261,811  |   |   |   | 116,426     |   |
|                                 |   |     |   |   |   |        |   |

|                           |   | June 2010 |   |   |   | June 2009 |   |
|--------------------------------|--------|-----------|--------|--------|--------|-----------|--------|
| Intangible Assets              | $      | 106,719   |   |   | $      | 103,180   |   |
| Less: Accumulated Amortization |   | (33,811   | )      |   |   | (23,079   | )      |
|                           |   |      |   |   |   |      |   |
| Intangible Assets, net         | $      | 72,907    |   |   | $      | 80,101    |   |
|                           |   |      |   |   |   |      |   |

|                                 |   | June 2010 |   |   |   | June 2009 |   |
|--------------------------------------|--------|-----------|--------|--------|--------|-----------|--------|
| Accounts receivable                  | $      | 4,201,211 |   |   | $      | 2,475,997 |   |
| Less allowance for doubtful accounts |   | (147,022  | )      |   |   | (71,908   | )      |
|                                 | $      | 4,054,189 |   |   | $      | 2,404,088 |   |
|                                 |   |      |   |   |   |      |   |

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|             |   | June 2010 |   |   |   | June 2009 |   |
|------------------|--------|-----------|--------|--------|--------|-----------|--------|
|             |   |      |   |   |   |      |   |
| Other Payable    | $      | 4,495     |   |   | $      | 122,873   |   |
| Accrued Expenses |   | 45,074    |   |   |   | 29,886    |   |
|             |   |      |   |   |   |      |   |
|             | $      | 35,583    |   |   | $      | 152,759   |   |
|             |   |      |   |   |   |      |   |

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|   |     |   | Jun-10  |   |   |   | Jun-09  |   |   |
|--------|----------|--------|---------|--------|--------|--------|---------|--------|--------|
|   |     |   |    |   |   |   |    |   |   |
|   | Current  | $      | 837,486 |   |   | $      | 574,229 |   |   |
|   | Deferred |   | -       |   |   |   | -       |   |   |
|   |     |   |    |   |   |   |    |   |   |
|   | Total    | $      | 837,486 |   |   | $      | 574,229 |   |   |
|   |     |   |    |   |   |   |    |   |   |

| Revenue                                                      | ** ** | 30-Jun         2010 | ** ** | ****   | ** ** | 30-Jun         2009 |   |   |
|--------------------------------------------------------------|------------|---------------------|------------|--------|------------|---------------------|--------|--------|
| Battery Safety System                                        |       | 8,404,660           |       |   |       | 7,461,318           |   |   |
| Module of Battery                                            |       | 1,470,849           |       |   |       | 331,165             |   |   |
| Patch of Battery                                             |       | 1,632,175           |       |   |       | 2,274,690           |   |   |
| Electronic MV                                                |       | 1,211,820           |       |   |       | 895,754             |   |   |
| Power                                                        |       | 1,290,470           |       |   |       | -                   |   |   |
| Charger                                                      |       | 79,510              |       |   |       | -                   |   |   |
|         Consolidated |       | 14,089,484          |       |   |       | 10,962,927          |   |   |
|                                                         |       |                |       |   |       |                |   |   |

| Operating Income                                             | ** ** | 30-Jun         2010 | ** ** | ****   | ** ** | 30-Jun        2009 |   |   |
|--------------------------------------------------------------|------------|---------------------|------------|--------|------------|--------------------|--------|--------|
| Battery Safety System                                        |       | 2,099,375           |       |   |       | 2,056,185          |   |   |
| Module of Battery                                            |       | 413,842             |       |   |       | 63,060             |   |   |
| Patch of Battery                                             |       | 27,873              |       |   |       | 90,380             |   |   |
| Electronic MV                                                |       | 87,634              |       |   |       | 94,323             |   |   |
| Power                                                        |       | 611,936             |       |   |       | -                  |   |   |
| Charger                                                      |       | 24,468              |       |   |       | -                  |   |   |
|         Consolidated |       | 3,265,128           |       |   |       | 2,303,948          |   |   |
|                                                         |       |                |       |   |       |               |   |   |

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|                                                      | **2010**   |   |   | **2009** |   |       |
|------------------------------------------------------|------------|--------|--------|----------|--------|------------|
| **Customer Name**                                    | **Amount** |   | **%**  |     |   | **Amount** |   | **%** |   |   |
| Beijing Anhualianhe      Co., Ltd                    | 275,539    |   | 6.56%  |     |   | -          |   | 0.00% |   |   |
| Beijing Renxinyu Trading Co., Ltd                    | 474,070    |   | 11.28% |     |   | 84,753     |   | 3.42% |   |   |
| Yangguangsanwei Electronic      Appliance Co., Ltd   | 258,880    |   | 6.16%  |     |   | 5,418      |   | 0.22% |   |   |
| Beijing Ziqiangfa Technology Co., Ltd                | 256,231    |   | 6.10%  |     |   | 49,388     |   | 1.99% |   |   |
| Beijing Jiruiyueda      Electronic Facility Co., Ltd | 349,617    |   | 8.32%  |     |   | -          |   | 0.00% |   |   |
| Guangzhou Chuangxin Power Technology      Co., Ltd   | 413,795    |   | 9.85%  |     |   | -          |   | 0.00% |   |   |

|                                                     | **2010**   |   |        | **2009** |   |       |
|-----------------------------------------------------|------------|--------|-------------|----------|--------|------------|
| **Vendor Name**                                     | **Amount** |   | **%**       |     |   | **Amount** |   | **%** |   |   |
| Heilongjiang Zhongqiang      Power Tech Ltd         | 1,593,055  |   | 86.93%      |     |   | 1,462,803  |   | 80.39% |   |   |
| Guangzhou Fanyubaiyun Electronic Co.,      Ltd **** | 98,574     |   |  5.38% |     |   | -          |   |  0.00% |   |   |

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|                                                         | **2010**   |   |   | **2009** |   |       |
|---------------------------------------------------------|------------|--------|--------|----------|--------|------------|
| **Customer Name**                                       | **Amount** |   | **%**  |     |   | **Amount** |   | **%** |   |   |
| Guangzhou Chuangxin      Power Technology Co., Ltd      | 696,983    |   | 4.96%  |     |   | -          |   | 0.00% |   |   |
| Yangguangsanwei Electronic Appliance      Co., Ltd      | 931,367    |   | 6.62%  |     |   | 943,450    |   | 8.61% |   |   |
| Tianjin Dongfang Weier      Technology Co., Ltd         | 683,181    |   | 4.86%  |     |   | 864,861    |   | 7.89% |   |   |
| Beijing Fuerxuan Technology Co., Ltd                    | 649,665    |   | 4.62%  |     |   | 815,219    |   | 7.44% |   |   |
| Beijing Ziqiangfa      Technology Co., Ltd              | 842,380    |   | 5.99%  |     |   | 576,399    |   | 5.26% |   |   |
| Beijing Renxinyu Trading Co., Ltd                       | 1,018,604  |   | 7.24%  |     |   | 691,245    |   | 6.31% |   |   |
| Beijing Anhualianhe Co.,      Ltd                       | 954,797    |   | 6.79%  |     |   | 583,005    |   | 5.32% |   |   |
| Hebei Shijihengxing Electronic Technology Co.,      Ltd | 819,221    |   | 5.83%  |     |   | 500,276    |   | 4.56% |   |   |

|                                                       | **2010**   |   |         | **2009** |   |       |
|-------------------------------------------------------|------------|--------|--------------|----------|--------|------------|
| **Vendor Name**                                       | **Amount** |   | **%**        |     |   | **Amount** |   | **%** |   |   |
| Heilongjiang Zhongqiang      Power Tech Co., Ltd      | 6,713,349  |   | 88.54%       |     |   | 7,479,764  |   | 92.74% |   |   |
| Guangzhou Fanyu Baiyun Electricity Co.,      Ltd **** | 397,352    |   |   5.24% |     |   | -          |   |  0.00% |   |   |

|   | Year Ending June 30, |   |   |    |   |
|--------|----------------------|--------|--------|---------|--------|
|   |                 | 2010   | $      | 71,900  |   |   |
|   |                 | 2011   |   | 124,000 |   |   |
|   |                 | 2012   |   | 119,000 |   |   |
|   |                 | 2013   |   | 61,000  |   |   |
|   |                 | 2014   |   | 44,000  |   |   |
|   |                 |   | $      | 419,900 |   |   |
|   |                 |   |   |    |   |   |

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| ****ITEM 9.**** | ****Changes In and Disagreements with Accountants      on Accounting and Financial Disclosure**** |
|-----------------|---------------------------------------------------------------------------------------------------|

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| ****ITEM 9B.**** | ****Other Information**** |
|------------------|---------------------------|

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| **ITEM 10.** | **Directors and Executive Officers of the      Registrant, and Corporate Governance** |
|--------------|---------------------------------------------------------------------------------------|

| *Name*        | *Age* | *Positions with the Company*     |   |
|---------------|-------|----------------------------------|--------|
|          |       |                             |   |
| Kun Liu       | 34    | Chairman, CEO                    |   |
|          |       |                             |   |
| Chunping Fong | 54    | Chief Financial Officer          |   |
|          |       |                             |   |
| Fang Ai       | 30    | Chief Technology Officer         |   |
|          |       |                             |   |
| Jijun Zhang   | 31    | Vice President and      Director |   |
|          |       |                             |   |
| Qiang Fu      | 33    | Director                         |   |
|          |       |                             |   |
| Chengzhou Xu  | 61    | Chief Engineer                   |   |

| **Mr. Kun Liu**       | Chairman and CEO. Mr. Liu is the founder of      Beijing Guoqiang and has been the Chairman of the Company since 2007. From      2004 to 2006, he was president in Beijing Ulong Runsheng S&T Development      Co.,Ltd. a company engaged in manufacturing related battery products like      protected board, charger, etc. From 2002 to 2004, he was general manager      in Tianjin Runyi S&T Development Co., Ltd. a company engaged in research      and development of power Li-thium batteries. Mr. Liu has a Master of Engineering      of Industry Engineering Department in Tsinghua University.                             |
|-----------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| ****                  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
| **Ms. ChunPing Fong** | Chief Financial Officer. Ms. Fong has worked      for Beijing Guoqiang since 2008. From 1993 to 1998, she was financial officer      and deputy audit officer in Beijing Printing Group a company engaged in      printing industry. From 1986 to 1992, she was deputy factory director in      Beijing Grand View Garden Industrial Arts Factory a company engaged in industrial      art and from 1976 to 1985 she was financial officer in Beijing Machine Factory      a company engaged in metallurgy industry. She has a bachelor's degree graduated      from Beijing Technology and Business University majored in accounting. |
| ****                  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
| **Mr. Fang Ai**       | Chief Technology Officer..Mr. Ai has worked      for Beijing Guoqiang since 2008. From 2007 to 2008, he was business manager      in Tongfang Integrated Circuit Co., Ltd. a company engaged in digital information      and security system. From 2003 to 2007, he was associate general engineer      in Hengxin China Holding Co., Ltd., one of the largest digital television's      chip designer and manufacturer in China. Mr. Ai has a Master of Engineering      of Electronic Message Engineering System in Beijing Information S&T University.                                                                              |

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| **Mr. JiJun Zhang**  | Vice President and Director. Mr. Zhang has      worked for Beijing Guoqiang since 2009. From 2008 to 2009, he was office      chief in Beijing Fuqiang Global Consulting Co., Ltd. a consulting company.      From 2006 to 2008, he taught at Hebei Normal University. From 2004 to 2005,      he was training manager in Beijing JSD Management Consulting Co., Ltd, a      company engaged in financial consultation. . Mr. Zhang has a Master's degree      graduated from Hebei University of Economics & Business in the major of      administration management.                                                                                                                                                                                                                                                                |
|----------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| ****                 |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
| **Mr. ChengZhou Xu** | Chief Engineer. Mr. Xu has worked for Beijing      Guoqiang since 2007. He worked at Zhejiang Fujitec a company engaged in      manufacturing product lines as a general engineer from 2002 to 2003 and      was general engineer at Zhejiang Philips a company engaged in electrical      wiring industry from 1997 to 2002. He was general engineer at Henan Huaxia      Electric Group a company engaged in the manufacture and distribution of      electric products. From 1994 to 1996 and general engineer and director in      Illumination Company of Hainan Asian Pacific Group a company engaged in      research and development of traditional electrical and light power. Mr.      Xu has a bachelor's degree from Shanghai University of Technology in the      major of communication and electronic engineering.     |
| ****                 |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
| **Qiang Fu**         | Director. Mr. Fu became our director in March,      2010. Mr. Fu is also the Chairman of the Board and CEO of China Digital      Animation Development, Inc. a company engaged in the business of digital      animation production, financial information services, and cultural productions      in China. He has been employed since 2003 as the President of Heilongjiang      Science & Technology Development Co., Ltd., the subsidiary of China digital      Animation in China, which is engaged in the business of developing software      and information technology networks. In 1998 Fu Qiang obtained a certificate      for attending the Business Administration Training Program by Qinghua University      and in 1996 he earned a Bachelor's Degree in Law from Heilongjiang Public      Administration Institute. |

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| • | Any bankruptcy petition filed by or against      any business of which such person was a general partner or executive officer      either at the time of bankruptcy or within two years prior to that time;      or                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | Any conviction in a criminal proceeding or      being subject to a pending criminal proceeding (excluding traffic violations      and other minor offenses); or                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
| • | Being subject to any order, judgment, or decree,      not subsequently reversed, suspended or vacated, of any court of competent      jurisdiction, permanently or temporarily enjoining, barring, suspending      or otherwise limiting his involvement in any type of business, securities      or banking activities; or                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
| • | Being found by a court of competent jurisdiction      (in a civil violation), the SEC or the Commodity Future Trading Commission      to have violated a federal or state securities or commodities law, and the      judgment has not been reversed, suspended, or vacated; or                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
| • | Being the subject of, or a party to, any Federal      or State judicial or administrative order, judgment, decree, or finding,      not subsequently reversed, suspended or vacated, relating to an alleged      violation of: any Federal or State securities or commodities law or regulation;      or any law or regulation respecting financial institutions or insurance      companies including, but not limited to, a temporary or permanent injunction,      order of disgorgement or restitution, civil money penalty or temporary or      permanent cease-and-desist order, or removal or prohibition order; or any      law or regulation prohibiting mail or wire fraud or fraud in connection      with any business entity. This violation does not apply to any settlement      of a civil proceeding among private litigants; or |
| • | Being the subject of, or a party to, any sanction      or order, not subsequently reversed, suspended or vacated, of any self-regulatory      organization (as defined in Section 3(a)(26) of the Exchange Act (15 U.S.C.      78c(a)(26))), any registered entity (as defined in Section 1(a)(29) of the      Commodity Exchange Act (7 U.S.C. 1(a)(29))), or any equivalent exchange,      association, entity or organization that has disciplinary authority over      its members or persons associated with a member.                                                                                                                                                                                                                                                                                                                       |

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| • | Honest and ethical conduct, including the ethical      handling of actual or apparent conflicts of interest between personal and      professional relationships;                        |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | Full, fair, accurate, timely and understandable      disclosure in reports and documents that we file with, or submit to, the      SEC, and in other public communications that we made; |
| • | Compliance with applicable governing laws,      rules and regulations;                                                                                                                   |
| • | The prompts internal reporting of violations      of the Code to the appropriate person or persons; and                                                                                  |
| • | Accountability for adherence to this Code.                                                                                                                                               |

| **ITEM 11.** | **Executive Compensation** |
|--------------|----------------------------|

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| Name and Position  | Year   | Salary         ($) | Bonus         ($) | Stock         Awards         ($) | Option         Awards         ($) | Non-Equity        Incentive         Plan        Compensation         ($) | Nonqualified        Deferred        Compensation        Earnings        ($) | All Other        Compensation        ($) | Total         ($) |
|--------------------|--------|--------------------|-------------------|----------------------------------|-----------------------------------|--------------------------------------------------------------------------|-----------------------------------------------------------------------------|------------------------------------------|-------------------|
| Kun Liu, CEO       | 2010   | $17,647            | -                 | -                                | -                                 | -                                                                        | -                                                                           | -                                        | $17,647           |
|               | 2009   | $17,647            | -                 | -                                | -                                 | -                                                                        | -                                                                           | -                                        | $17,647           |
|               | 2008   | $17,647            | -                 | -                                | -                                 | -                                                                        | -                                                                           | -                                        | $17,647           |
|               |        |                    |                   |                                  |                                   |                                                                          |                                                                             |                                          |                   |
| Xin Xu (1)         | -      | -                  | -                 | -                                | -                                 | -                                                                        | -                                                                           | -                                        | -                 |
|               | 2009   | $14,700            | -                 | -                                | -                                 | -                                                                        | -                                                                           | -                                        | $14,700           |
|               | 2008   | $14,700            | -                 | -                                | -                                 | -                                                                        | -                                                                           | -                                        | $14,700           |
|               |   |               |              |                             |                              |                                                                     |                                                                        |                                     |              |
| Chunping Fong, CFO | 2010   | $14,700            | -                 | -                                | -                                 | -                                                                        | -                                                                           | -                                        | $14,700           |
|               | 2009   | $14,700            | -                 | -                                | -                                 | -                                                                        | -                                                                           | -                                        | $14,700           |
|               | 2008   | $14,700            | -                 | -                                | -                                 | -                                                                        | -                                                                           | -                                        | $14,700           |

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**Table of Contents**

| **ITEM 12.** | **Security Ownership of Certain Beneficial      Owners and Management and Related Stockholder Matters** |
|--------------|---------------------------------------------------------------------------------------------------------|

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**Table of Contents**

| *Name and Address ofBeneficial Owner(1)*                        |   | *Amount and Nature of Beneficial Ownership(2)* |   | *Percentageof Class* |   |
|-----------------------------------------------------------------|--------|------------------------------------------------|--------|----------------------|--------|
|                                                            |   |                                                |   |                      |   |
| Kun Liu(1)                                                      |   | 5,514,503                                      |   | 27.4%                |   |
|                                                            |   |                                                |   |                      |   |
| Jijun Zhang                                                     |   | 0                                              |   | 0%                   |   |
|                                                            |   |                                                |   |                      |   |
| Qiang Fu (2)                                                    |   | 5,000,000                                      |   | 24.8%                |   |
|                                                            |   |                                                |   |                      |        |
| All officers and directors            as a group (3 persons)(3) |   | 20,159,811                                     |   | 52.2%                |   |

| **ITEM 13.** | **Certain Relationships and Related Transactions** |
|--------------|----------------------------------------------------|

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**Table of Contents**

| a) | None of our directors, executive officers or      controlling shareholder or their affiliates has had any interest, direct      or indirect, in any material transaction to which we are a party.                                                                                   |
|----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| b) | None of our directors, executive officers or      controlling shareholder or their affiliates has had any interest, direct      or indirect, in any company that carries the same business or similar trade      which competes materially and directly with our existing business. |
| c) | None of our directors, executive officers or      controlling shareholder or their affiliates has had any interest, direct      or indirect, in any enterprise or company that is our major customer or      supplier of goods or services.                                         |
| d) | None of our directors, executive officers or      controlling shareholder or their affiliates has had any interest, direct      or indirect, in any material transaction we have undertaken within the last      three years.                                                       |

| **ITEM 14.** | **Principal Accountant Fees and Services** |
|--------------|--------------------------------------------|

|   | **Services      (US$'000)****** | ****   | ** ** | **2010** | ** ** | ****   | ** ** | **2009** |   |   |
|--------|---------------------------------|--------|------------|----------|------------|--------|------------|----------|--------|--------|
|   | Audit Fees                      |   | $          | 45,000   |       |   | $          | 30,000   |   |   |
|   |                            |   |       |          |       |   |       |          |   |   |
|   | Audit Related Fees              |   |       | -        |       |   |       | -        |   |   |
|   |                            |   |       |          |       |   |       |          |   |   |
|   | Tax Fees                        |   |       | -        |       |   |       | -        |   |   |
|   |                            |   |       |          |       |   |       |          |   |   |
|   | All Other Fees                  |   |       | -        |       |   |       | -        |   |   |
|   |                            |   |       |     |       |   |       |     |   |   |
|   | TOTAL                           |   | $          | 45,000   |       |   | $          | 30,000   |   |   |

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**Table of Contents**

| **ITEM 15.** | **Exhibits, Financial Statement Schedules** |
|--------------|---------------------------------------------|

| ExhibitNumber | Description                                                                                                                                                                                                       |
|---------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 10-a          | Share Purchase Agreement dated March 4, 2010      between Kun Liu and Michael Friess and Sanford Schwartz (Filed 8k with SEC      on March 25, 2010)                                                              |
| 10-b          | Share Exchange Agreement dated February 12,      2010 between China Lithium Technologies, Inc. and Sky Achieve (Filed 8k      with SEC on March 25, 2010)                                                         |
| 10-c          | Consulting Agreement dated January 5, 2010      between the Sky Achieve and Beijing Guoqiang (Filed 8k with SEC on March      25, 2010)                                                                           |
| 10-d          | Operating Agreement dated January 5, 2010 between      the Sky Achieve and Beijing Guoqiang (Filed 8k with SEC on March 25, 2010)                                                                                 |
| 10-e          | Equity Pledge Agreement dated January 5, 2010      between the Sky Achieve and Beijing Guoqiang (Filed 8k with SEC on March      25, 2010)                                                                        |
| 10-f          | Option Agreement dated January 5, 2010 between      the Sky Achieve and Beijing Guoqiang (Filed 8k with SEC on March 25, 2010)                                                                                    |
| 10-g          | Proxy Agreement dated January 5, 2010 between      the Sky Achieve and Beijing Guoqiang (Filed 8k with SEC on March 25, 2010)                                                                                     |
| 31.1          | Certification      of the Chief Executive Officer Pursuant to Section 302 of the Sarbanes-Oxley      Act of 2002 (pursuant to Rule 13a-14(a) and Rule 15d-14(a) of the Securities      Exchange Act, as amended). |
| 31.2          | Certification      of the Chief Financial Officer Pursuant to Section 302 of the Sarbanes-Oxley      Act of 2002 (pursuant to Rule 13a-14(a) and Rule 15d-14(a) of the Securities      Exchange Act, as amended). |
| 32.1          | Certification      pursuant to 18 U.S.C. Section 1350, as adopted, pursuant to Section 906      of the Sarbanes- Oxley Act of 2002 from the Chief Executive Officer                                               |
| 32.2          | Certification      pursuant to 18 U.S.C. Section 1350, as adopted, pursuant to Section 906      of the Sarbanes- Oxley Act of 2002 from the Chief Financial Officer                                               |

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**Table of Contents**

|                           | **CHINA LITHIUM TECHNOLOGIES, INC.**                                                                                                                                                                                                                                                                                                            |
|---------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                      |                                                                                                                                                                                                                                                                                                                                            |
|                      |                                                                                                                                                                                                                                                                                                                                            |
|                      |    /s/ Kun Liu                                                    |
| Dated: September 28, 2010 | Kun Liu, Chief Executive Officer and Chairman            (Principal executive officer)                                                                                                                                                                                                                                                          |
|                      |                                                                                                                                                                                                                                                                                                                                            |
|                      |                                                                                                                                                                                                                                                                                                                                            |
|                      |    /s/ Chunping Fong                                                                                                               |
| Dated: September 28, 2010 | Chunping Fong, Chief Financial Officer       (Principal financial officer and principal       accounting officer)                                                                                                                                                                                                                               |
|                      |                                                                                                                                                                                                                                                                                                                                            |
|                      |                                                                                                                                                                                                                                                                                                                                            |

| **Name**             | ****   | **Title(s)**             | ****   | **Date**           |
|----------------------|--------|--------------------------|--------|--------------------|
|                 |   |                     |   |               |
| /s/      Kun Liu     |   | Chairman/Director        |   | September 28, 2010 |
| Kun Liu              |   |                     |   |                    |
|                 |   |                     |   |                    |
| /s/      Jijun Zhang |   | Vice President/ Director |   | September 28, 2010 |
| Jijun Zhang          |   |                     |   |                    |
|                 |   |                     |   |                    |
| /s/      Qiang Fu    |   | Director                 |   | September 28, 2010 |
| Qiang Fu             |   |                     |   |               |
|                 |   |                     |   |               |
|                 |   |                     |   |               |

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