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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                                                                                                          | 2            |
| ITEM 1A.       | Risk Factors                                                                                                      | 13           |
| ITEM 1B.       | Unresolved Staff Comments                                                                                         | 20           |
| ITEM 2.        | Properties                                                                                                        | 20           |
| ITEM 3.        | Legal Proceedings                                                                                                 | 20           |
| ITEM 4.        | Submission of      Matters to a Vote of Security Holders                                                          | 20           |
|           |                                                                                                              |              |
| **PART II**    |                                                                                                              |              |
| ITEM 5.        | Market for Registrant's Common      Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities | 21           |
| ITEM 6.        | Selected Financial      Data                                                                                      | 21           |
| ITEM 7.        | Management's Discussion and Analysis      of Financial Condition and Results of Operations                        | 22           |
| ITEM 7A.       | Quantitative      and Qualitative Disclosures About Market Risk                                                   | 24           |
| ITEM 8.        | Financial Statements and Supplementary      Data                                                                  | 24           |
| ITEM 9.        | Changes In and      Disagreements with Accountants on Accounting and Financial Disclosure                         | 81           |
| ITEM 9A(T).    | Controls and Procedures                                                                                           | 81           |
| ITEM 9B.       | Other Information                                                                                                 | 81           |
|           |                                                                                                              |              |
| **PART III**   |                                                                                                                   |              |
| ITEM 10.       | Directors and Executive Officers      of the Registrant and Corporate Governance                                  | 82           |
| ITEM 11.       | Executive Compensation                                                                                            | 85           |
| ITEM 12.       | Security Ownership of Certain      Beneficial Owners and Management and Related Stockholder Matters               | 86           |
| ITEM 13.       | Certain Relationships      and Related Transactions, and Director Independence                                    | 87           |
| ITEM 14.       | Principal Accountant Fees and      Services                                                                       | 89           |
|           |                                                                                                              |              |
| **PART IV**    |                                                                                                              |              |
| ITEM 15.       | Exhibits, Financial      Statement Schedules                                                                      | 90           |
|           |                                                                                                              |              |
| **SIGNATURES** | 91                                                                                                                |

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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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|                                                | 2008  | 2011  | Occupancy        rate of        lithium-         ion battery | Battery         demand        (10,000) | Battery        capacity        KWH /         battery) | Average         price of         battery dollars/        KWH | Market        capacity        ($mil) | Total        ($ mil) |
|-----------------------------------------------------|-------|-------|--------------------------------------------------------------|----------------------------------------|-------------------------------------------------------------|--------------------------------------------------------------------------|--------------------------------------|----------------------|
| Highway            passenger car 10,000 | 178   | 214   | 5%                                                           | 11                                     | 120                                                         | 400                                                                      | 5 130                                |                 |
| Small            passenger car  10,000  | 935   | 1122  | 5%                                                           | 56                                     | 30                                                          | 600                                                                      | 10 100                               | 15 740               |
| Bicycle      power      battery (10,000)            | 8566  | 10279 | 5%                                                           | 514                                    | 0.18                                                        | 400                                                                      | 370                                  |                 |
| Export      of       electric tool10,000)     | 16970 | 18667 | 5%                                                           | 933                                    | 0.024                                                       | 600                                                                      | 130                                  |                 |

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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 manufacturing 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 manufacturing 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. |

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| ****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;                                                                                                                                                                                                                     |

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|   | • | 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**** |
|-----------------|--------------------------------------------------------------------------------------------------------------------------|

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

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

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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.                                                         |

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| ****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***                                                                    | ***26***      |   |
|                                                                                                                                  |               |   |
| ***FINANCIAL STATEMENTS:***                                                                                                           |               |   |
|                                                                                                                                  |               |   |
| ***             BALANCE      SHEETS***                               | ***27***      |   |
| ***             STATEMENTS      OF OPERATIONS***                     | ***28***      |   |
| ***             STATEMENT      OF CHANGES IN STOCKHOLDERS' EQUITY*** | ***29***      |   |
| ***             STATEMENTS      OF CASH FLOWS***                     | ***30***      |   |
|                                                                                                                                  |               |   |
| ***NOTES TO FINANCIAL STATEMENTS***                                                                                                   | ***31 - 36*** |   |
|                                                                                                                                  |               |   |

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|                                                                                                                                                                                                                                                                                                            |   | December 31,        2009 |   |   |   | December 31,        2008 |   |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------------------------|--------|--------|--------|--------------------------|--------|
| Current Assets:                                                                                                                                                                                                                                                                                            |   |                     |   |   |   |                     |   |
|          Cash                                                                                                                                                                                                                                                 |   | 13                       |   |   |   | 490                      |   |
| TOTAL ASSETS                                                                                                                                                                                                                                                                                               | $      | 13                       |   |   | $      | 490                      |   |
|                                                                                                                                                                                                                                                                                                       |   |                     |   |   |   |                     |   |
| **LIABILITIES AND STOCKHOLDERS' (DEFICIT)**                                                                                                                                                                                                                                                                |   |                     |   |   |   |                     |   |
|                                                                                                                                                                                                                                                                                                       |   |                     |   |   |   |                     |   |
| Current Liabilities:                                                                                                                                                                                                                                                                                       |   |                     |   |   |   |                     |   |
|          Accounts      payable                                                                                                                                                                                                                                | $      | 3,140                    |   |   | $      | 3,518                    |   |
|          Accounts      payable, related party (Note 4)                                                                                                                                                                                                        |   | 33,071                   |   |   |   | 28,840                   |   |
|                   Total      Current Liabilities                                                                                                                                                                 |   | 36,211                   |   |   |   | 32,358                   |   |
|                                                                                                                                                                                                                                                                                                       |   |                          |   |   |   |                          |   |
|                            TOTAL      LIABILITIES                                                                                                                   |   | 36,211                   |   |   |   | 32,358                   |   |
|                                                                                                                                                                                                                                                                                                       |   |                          |   |   |   |                          |   |
| Commitments and contingencies (Notes 1,2,3      and 4)                                                                                                                                                                                                                                                     |   |                          |   |   |   |                          |   |
|                                                                                                                                                                                                                                                                                                       |   |                          |   |   |   |                          |   |
| **Stockholders' (Deficit)**                                                                                                                                                                                                                                                                                |   |                          |   |   |   |                          |   |
|          Preferred      Stock, $.001 par value 20,000,000 shares authorized;                  No shares      issued and outstanding (Note 3)                                                           |   | -                        |   |   |   | -                        |   |
|          Common      stock, $.001 par value 780,000,000 shares authorized, 2,217,480 and                  983,496      issued and outstanding at December 31, 2009 and December 31, 2008 (Note      3) |   | 2,218                    |   |   |   | 984                      |   |
|          Additional      paid-in capital                                                                                                                                                                                                                      |   | 526,722                  |   |   |   | 514,072                  |   |
|          Accumulated      (Deficit)                                                                                                                                                                                                                           |   | (508,940                 | )      |   |   | (508,940                 | )      |
|          (Deficit)      accumulated during the development stage                                                                                                                                                                                              |   | (56,198                  | )      |   |   | (37,984                  | )      |
| TOTAL STOCKHOLDERS' (DEFICIT)                                                                                                                                                                                                                                                                              |   | (36,198                  | )      |   |   | (31,868                  | )      |
|                                                                                                                                                                                                                                                                                                       |   |                          |   |   |   |                          |   |
| TOTAL LIABILITIES AND STOCKHOLDERS' (DEFICIT)                                                                                                                                                                                                                                                              | $      | 13                       |   |   | $      | 490                      |   |
|                                                                                                                                                                                                                                                                                                       |   |                     |   |   |   |                     |   |

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|                                                                                                                            |   | For the Year Ended        December 31, |   |   | Period from        June 25,         2007 (date of        commencement         of development        stage) to        December 31, |
|---------------------------------------------------------------------------------------------------------------------------------|--------|----------------------------------------|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------|
|                                                                                                                                 |   | 2009                                   |   |   |                                                                                                                              | 2008 |   |   |   | 2009 |   |
| Revenue                                                                                                                         | $      | -                                      |   |   | $                                                                                                                                 | - |   |   | $ | - |   |
|                                                                                                                            |   |                                        |   |   |                                                                                                                              |  |   |   |   |  |   |
| Expenses:                                                                                                                       |   |                                        |   |   |                                                                                                                              |  |   |   |   |  |   |
|          Legal      and accounting fees                                            |   | 13,002                                 |   |   |                                                                                                                              | 24,807 |   |   |   | 40,445 |   |
|          Transfer      agent fees                                                  |   | 2,494                                  |   |   |                                                                                                                              | 2,460 |   |   |   | 9,973 |   |
|          Printing      and mailing fees                                            |   | 51                                     |   |   |                                                                                                                              | 1,232 |   |   |   | 1,283 |   |
|          General      corporate fees                                               |   | 1,188                                  |   |   |                                                                                                                              | 263 |   |   |   | 1,987 |   |
|          Other                                                                     |   | 1,479                                  |   |   |                                                                                                                              | 985 |   |   |   | 2,510 |   |
|                   Total      Expenses |   | 18,214                                 |   |   |                                                                                                                              | 29,747 |   |   |   | 56,198 |   |
|                                                                                                                            |   |                                        |   |   |                                                                                                                              |  |   |   |   |  |   |
|          Net      (Loss)                                                           |   | (18,214                                | )      |   |                                                                                                                              | (29,747 | ) |   |   | (56,198 | ) |
|                                                                                                                            |   |                                   |   |   |                                                                                                                              |   |   |   |   |   |   |
| Per Share                                                                                                                       | $      | (.01                                   | )      |   | $                                                                                                                                 | (.03 | ) |   | $ | (.04 | ) |
|                                                                                                                            |   |                                   |   |   |                                                                                                                              |   |   |   |   |   |   |
| Weighted Average Shares Outstanding                                                                                             |   | 2,112,676                              |   |   |                                                                                                                              | 983,496 |   |   |   | 1,360,081 |   |
|                                                                                                                            |   |                                   |   |   |                                                                                                                              |   |   |   |   |   |   |

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|                                                                        |            |   |         |   |   |   |      |   |   |   |   |   |        |    |   |   |        |      |        |   |   | DEFICIT |   |   |   |    |   |
|------------------------------------------------------------------------|-----------------|--------|--------------|--------|--------|--------|-----------|--------|--------|--------|--------|--------|-------------|---------|--------|--------|-------------|-----------|-------------|--------|--------|---------|--------|--------|--------|---------|--------|
|                                                                   | PREFERRED STOCK |   | COMMON STOCK |   |   |   |      |   |   |   |   |   | ACCUMULATED |    |   |   |        |
|                                                                   |            |   |         |   |   |   |      |   |   |   |   |   | ADDITIONAL  |    |   |   |        |      | DURING THE  |   |   |    |   |
|                                                                   |            |   |         |   |   |   |      |   |   |   |   |   |        | PAID-IN |   |   | ACCUMULATED |      | DEVELOPMENT |   |   |    |   |
|                                                                   | SHARES          |   |         | AMOUNT |   |   | SHARES    |   |   | AMOUNT |   |   |        | CAPITAL |   |   |             | (DEFICIT) |        |   |   | STAGE   |   |   |   | TOTAL   |   |
| Balance, June 25,      2007                                            | -               |   | $            | -      |   |   | 88,699    |   | $      | 89     |   |   | $           | 504,824 |   |   | $           | (508,940  | )           |   | $      | -       |   |   | $      | (4,027  | )      |
|                                                                   |                 |   |         |        |   |   |           |   |   |        |   |   |        |         |   |   |        |           |        |   |   |         |   |   |   |         |   |
| Debt converted to            equity July 31, 2007      (Note 4)        | -               |   |         | -      |   |   | 354,797   |   |   | 355    |   |   |        | 3,672   |   |   |        | -         |        |   |   | -       |   |   |   | 4,027   |   |
|                                                                   |                 |   |         |        |   |   |           |   |   |        |   |   |        |         |   |   |        |           |        |   |   |         |   |   |   |         |   |
| Issuance of stock      for      cash at $.002       September 30, 2007 | -               |   |         | -      |   |   | 540,000   |   |   | 540    |   |   |        | 5,576   |   |   |        | -         |        |   |   | -       |   |   |   | 6,116   |   |
|                                                                   |                 |   |         |        |   |   |           |   |   |        |   |   |        |         |   |   |        |           |        |   |   |         |   |   |   |         |   |
| Net (loss for       the period)                                        | -               |   |         | -      |   |   | -         |   |   | -      |   |   |        | -       |   |   |        | -         |        |   |   | (8,237  | )      |   |   | (8,237  | )      |
|                                                                   |                 |   |         |        |   |   |           |   |   |        |   |   |        |         |   |   |        |           |        |   |   |         |   |   |   |         |   |
| Balance,       December 31, 2007                                       | -               |   |         | -      |   |   | 983,496   |   |   | 984    |   |   |        | 514,072 |   |   |        | (508,940  | )           |   |   | (8,237  | )      |   |   | (2,121  | )      |
|                                                                   |                 |   |         |        |   |   |           |   |   |        |   |   |        |         |   |   |        |           |        |   |   |         |   |   |   |         |   |
| Net (loss) for      the year                                           | -               |   |         | -      |   |   | -         |   |   | -      |   |   |        | -       |   |   |        | -         |        |   |   | (29,747 | )      |   |   | (29,747 | )      |
|                                                                   |                 |   |         |        |   |   |           |   |   |        |   |   |        |         |   |   |        |           |        |   |   |         |   |   |   |         |   |
| Balance,       December 31, 2008                                       | -               |   |         | -      |   |   | 983,496   |   |   | 984    |   |   |        | 514,072 |   |   |        | (508,940  | )           |   |   | (37,984 | )      |   |   | (31,868 | )      |
|                                                                   |                 |   |         |        |   |   |           |   |   |        |   |   |        |         |   |   |        |           |        |   |   |         |   |   |   |         |   |
| Issuance of Stock      for cash at $.001       January 22, 2009        | -               |   |         | -      |   |   | 1,233,984 |   |   | 1,234  |   |   |        | 12,650  |   |   |        | -         |        |   |   | -       |   |   |   | 13,884  |   |
|                                                                   |                 |   |         |        |   |   |           |   |   |        |   |   |        |         |   |   |        |           |        |   |   |         |   |   |   |         |   |
| Net (loss) for       the year                                          | -               |   |         | -      |   |   | -         |   |   | -      |   |   |        | -       |   |   |        | -         |        |   |   | (18,214 | )      |   |   | (18,214 | )      |
|                                                                   |                 |   |         |        |   |   |           |   |   |        |   |   |        |         |   |   |        |           |        |   |   |         |   |   |   |         |   |
| Balance,       December 31, 2009                                       | -               |   | $            | -      |   |   | 2,217,480 |   | $      | 2,218  |   |   | $           | 526,722 |   |   | $           | (508,940  | )           |   | $      | (56,198 | )      |   | $      | (36,198 | )      |
|                                                                   |            |   |         |   |   |   |      |   |   |   |   |   |        |    |   |   |        |      |        |   |   |    |   |   |   |    |   |

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|                                                                                                                    |   | For the Year Ended        December 31, |   |   | Period from         June 25,         2007 (date of        commencement         of development        stage) to        December 31, |
|-------------------------------------------------------------------------------------------------------------------------|--------|----------------------------------------|--------|--------|------------------------------------------------------------------------------------------------------------------------------------|
|                                                                                                                    |   | 2009                                   |   |   |                                                                                                                               | 2008 |   |   |   | 2009 |   |
| Cash Flows from Operating      Activities                                                                               |   |                                   |   |   |                                                                                                                               |   |   |   |   |   |   |
|           Net      (loss)                                             | $      | (18,214                                | )      |   | $                                                                                                                                  | (29,747 | ) |   | $ | (56,198 | ) |
|                                                                                                                    |   |                                        |   |   |                                                                                                                               |  |   |   |   |  |   |
| Adjustments to reconcile net loss to net cash      provided by(used in) operating activities:                           |   |                                        |   |   |                                                                                                                               |  |   |   |   |  |   |
|           Increase      in accounts payable                           |   | (378                                   | )      |   |                                                                                                                               | 93 |   |   |   | 3,140 |   |
|                                                                                                                    |   |                                        |   |   |                                                                                                                               |  |   |   |   |  |   |
| Net Cash (Used in) Operating      Activities                                                                            |   | (18,592                                | )      |   |                                                                                                                               | (29,654 | ) |   |   | (53,058 | ) |
|                                                                                                                    |   |                                        |   |   |                                                                                                                               |  |   |   |   |  |   |
| Cash Flows from Investing      Activities:                                                                              |   | -                                      |   |   |                                                                                                                               | - |   |   |   | - |   |
|                                                                                                                    |   |                                        |   |   |                                                                                                                               |  |   |   |   |  |   |
| Net Cash Provided by Investing      Activities                                                                          |   | -                                      |   |   |                                                                                                                               | - |   |   |   | - |   |
|                                                                                                                    |   |                                        |   |   |                                                                                                                               |  |   |   |   |  |   |
| Cash Flows from Financing      Activities:                                                                              |   |                                        |   |   |                                                                                                                               |  |   |   |   |  |   |
|           Sale      of common stock                                   |   | -                                      |   |   |                                                                                                                               | 13,884 |   |   |   | 20,000 |   |
|           Advances      from related party                            |   | 18,115                                 |   |   |                                                                                                                               | 11,745 |   |   |   | 33,071 |   |
| Net Cash Provided by Financing Activities                                                                               |   | 18,115                                 |   |   |                                                                                                                               | 25,629 |   |   |   | 53,071 |   |
|                                                                                                                    |   |                                        |   |   |                                                                                                                               |  |   |   |   |  |   |
| Cash Flows from (Used In):                                                                                              |   |                                        |   |   |                                                                                                                               |  |   |   |   |  |   |
|           Discontinued      Operations                                |   | -                                      |   |   |                                                                                                                               | - |   |   |   | (55 | ) |
|           Net      cash provided by (used in) Discontinued Operations |   | -                                      |   |   |                                                                                                                               | - |   |   |   | (55 | ) |
|                                                                                                                    |   |                                        |   |   |                                                                                                                               |  |   |   |   |  |   |
| (Decrease) in Cash                                                                                                      |   | (477                                   | )      |   |                                                                                                                               | (4,025 | ) |   |   | (42 | ) |
|                                                                                                                    |   |                                        |   |   |                                                                                                                               |  |   |   |   |  |   |
| Cash, Beginning of Period                                                                                               |   | 490                                    |   |   |                                                                                                                               | 4,515 |   |   |   | 55 |   |
|                                                                                                                    |   |                                   |   |   |                                                                                                                               |   |   |   |   |   |   |
| Cash, End of Period                                                                                                     | $      | 13                                     |   |   | $                                                                                                                                  | 490 |   |   | $ | 13 |   |
|                                                                                                                    |   |                                   |   |   |                                                                                                                               |   |   |   |   |   |   |
| Interest Paid                                                                                                           | $      | -                                      |   |   | $                                                                                                                                  | - |   |   | $ | - |   |
|                                                                                                                    |   |                                   |   |   |                                                                                                                               |   |   |   |   |   |   |
| Income Taxes Paid                                                                                                       | $      | -                                      |   |   | $                                                                                                                                  | - |   |   | $ | - |   |
|                                                                                                                    |   |                                   |   |   |                                                                                                                               |   |   |   |   |   |   |
| Schedule of Non-cash Activities                                                                                         |   |                                   |   |   |                                                                                                                               |   |   |   |   |   |   |
|           Stock      issued in exchange for related Party advances    | $      | 13,884                                 |   |   | $                                                                                                                                  | - |   |   | $ | 13,884 |   |
|                                                                                                                    |   |                                   |   |   |                                                                                                                               |   |   |   |   |   |   |

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| Period Ending     | Estimated NOL Carry-forward | NOL Expires | Estimated         Tax Benefit from NOL | Valuation Allowance | Change in         Valuation Allowance | Net Tax Benefit |
|-------------------|-----------------------------|-------------|----------------------------------------|---------------------|---------------------------------------|-----------------|
| December 31, 2008 | 537,984                     | Various     | 99,527                                 | (99,527)            | (5,503)                               | -               |
| December 31, 2009 | 18,214                      | 2029        | 3,370                                  | (3,370)             | (3,370)                               | -               |

|   | Income      tax benefit at statutory rate resulting from net operating loss carry forward | (15.0%) |   |
|--------|-------------------------------------------------------------------------------------------|---------|--------|
|   | State tax (benefit) net of Federal benefit                                                | (3.5)%  |   |
|   | Deferred income tax valuation      allowance                                              | 18.5%   |   |
|   | Actual tax rate                                                                           | 0%      |   |
|   |                                                                                      |    |   |

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|                                                                                                                                  | ***PAGE***    |   |
|---------------------------------------------------------------------------------------------------------------------------------------|---------------|--------|
|                                                                                                                                  |               |   |
| ***AUDITOR'S REPORT***                                                                                                                | ***38***      |   |
|                                                                                                                                  |               |   |
| ***FINANCIAL STATEMENTS:***                                                                                                           |               |   |
|                                                                                                                                  |               |   |
| ***             BALANCE      SHEETS***                               | ***39-40***   |   |
| ***             STATEMENTS      OF INCOME***                         | ***41***      |   |
| ***             STATEMENTS      OF CHANGE IN STOCKHOLDERS' EQUITY*** | ***42***      |   |
| ***             STATEMENTS      OF CASH FLOWS***                     | ***43 & 44*** |   |
|                                                                                                                                  |               |   |
| ***NOTES TO FINANCIAL      STATEMENTS***                                                                                              | ***45 - 54*** |   |
|                                                                                                                                  |               |   |

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**Table of Contents**

|                                                                                                                                                                                                                                                                         |   | **2009**  |   |   |   | **2008**  |   |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-----------|--------|--------|--------|-----------|--------|
|              ***ASSETS***                                                                                                                                                                              |   |      |   |   |   |      |   |
|                                                                                                                                                                                                                                                                    |   | 5,510,510 |   |   |   | 3,550,173 |   |
| ***Current Assets:***                                                                                                                                                                                                                                                   |   |      |   |   |   |      |   |
|              Cash      and cash equivalents                                                                                                                                                            | $      | 407,333   |   |   | $      | 264,691   |   |
|              Accounts      Receivable                                                                                                                                                                  |   | 2,404,088 |   |   |   | 864,794   |   |
|              Other      Accounts Receivable                                                                                                                                                            |   | 24,507    |   |   |   | 10,869    |   |
|              Advanced      to suppliers                                                                                                                                                                |   | 785       |   |   |   | 728       |   |
|              Inventory                                                                                                                                                                                 |   | 2,567,320 |   |   |   | 2,367,691 |   |
|              Prepaid      Expenses                                                                                                                                                                     |   | 106,476   |   |   |   | 41,401    |   |
|                                        **Total      Current Assets** |   | 5,510,510 |   |   |   | 3,550,173 |   |
|                                                                                                                                                                                                                                                                    |   |      |   |   |   |      |   |
| ***Plant & Equipments, net***                                                                                                                                                                                                                                           |   | 116,426   |   |   |   | 115,274   |   |
| ***Patent and Other Intangibles, net*********                                                                                                                                                                                                                           |   | 80,101    |   |   |   | 89,132    |   |
|                                                                                                                                                                                                                                                                    |   |           |   |   |   |           |   |
|                                        **Total      Assets**         |   | 5,707,037 |   |   |   | 3,754,580 |   |
|                                                                                                                                                                                                                                                                    |   |      |   |   |   |      |   |

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|                                                                                                                                                                                                                                                                                                                                                                                                                                  |   | **2009**  |   |   |   | **2008**  |   |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-----------|--------|--------|--------|-----------|--------|
| ***LIABILITIES AND STOCKHOLDERS' EQUITY***                                                                                                                                                                                                                                                                                                                                                                                       |   |      |   |   |   |      |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                             |   |      |   |   |   |      |   |
| ***Current liabilities:***                                                                                                                                                                                                                                                                                                                                                                                                       |   |      |   |   |   |      |   |
|              Accounts      Payable                                                                                                                                                                                                                                                                                                                              |   | 1,819,740 |   |   |   | 861,048   |   |
|              Advance      from Customers                                                                                                                                                                                                                                                                                                                        |   | 4,426     |   |   |   | 2,034     |   |
|              Payroll      Payable                                                                                                                                                                                                                                                                                                                               |   | 34,123    |   |   |   | 33,985    |   |
|              Tax      Payable                                                                                                                                                                                                                                                                                                                                   |   | 174,998   |   |   |   | 133,792   |   |
|              Other      Accounts Payables                                                                                                                                                                                                                                                                                                                       |   | 122,873   |   |   |   | 440,314   |   |
|              Interest      Payables                                                                                                                                                                                                                                                                                                                             |   | 32,732    |   |   |   | 24,459    |   |
|              Accrued      expenses                                                                                                                                                                                                                                                                                                                              |   | 29,886    |   |   |   | 14,843    |   |
|              Loan      from Shareholders                                                                                                                                                                                                                                                                                                                        |   | 381,334   |   |   |   | 686,933   |   |
|              Short-term      Loan                                                                                                                                                                                                                                                                                                                               |   | -         |   |   |   | 291,045   |   |
|              Products      Liabilities                                                                                                                                                                                                                                                                                                                          |   | 186,601   |   |   |   | 76,485    |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                             |   |      |   |   |   |      |   |
|                                        **Total      Current Liabilities**                                                                                                                                                     |   | 2,786,714 |   |   |   | 2,564,937 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                             |   |      |   |   |   |      |   |
| ***Long-Term Liabilities:***                                                                                                                                                                                                                                                                                                                                                                                                     |   |      |   |   |   |      |   |
|              Long      Term Loan                                                                                                                                                                                                                                                                                                                                |   | -         |   |   |   | -         |   |
|                                      **  Total      Long-Term Liabilities**                                                                                                                                                   |   | -         |   |   |   | -         |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                             |   |           |   |   |   |           |   |
|                                                                  **Total      Liabilities** |   | 2,786,714 |   |   |   | 2,564,937 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                             |   |      |   |   |   |      |   |
| ***Stockholders' Equity:***                                                                                                                                                                                                                                                                                                                                                                                                      |   |           |   |   |   |           |   |
|              Paid      in Capital                                                                                                                                                                                                                                                                                                                               |   | 129,340   |   |   |   | 129,340   |   |
|              Additional      Paid in Capital                                                                                                                                                                                                                                                                                                                    |   | 29,104    |   |   |   | 29,104    |   |
|              Accumulated      other comprehensive income                                                                                                                                                                                                                                                                                                        |   | 71,387    |   |   |   | 63,394    |   |
|              Retained      Earnings                                                                                                                                                                                                                                                                                                                             |   | 2,690,492 |   |   |   | 967,804   |   |
|                                        **Total      Stockholders' Equity**                                                                                                                                                    |   | 2,920,323 |   |   |   | 1,189,643 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                             |   |           |   |   |   |           |   |
|                           **Total      Liabilities and Stockholders' Equity**                                                                                                                                                                                                                  | $      | 5,707,037 |   |   | $      | 3,754,580 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                             |   |      |   |   |   |      |   |

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|                                                                                                                                                   |   | **2009**   |   |   |   | **2008**   |   |
|---------------------------------------------------------------------------------------------------------------------------------------------------|--------|------------|--------|--------|--------|------------|--------|
|                                                                                                                                              |   |       |   |   |   |       |   |
| Revenues                                                                                                                                          | $      | 10,962,927 |   |   | $      | 6,791,445  |   |
|                                                                                                                                              |   |            |   |   |   |            |   |
| Cost of Goods Sold                                                                                                                                |   | (7,989,327 | )      |   |   | (4,488,749 | )      |
|                                                                                                                                              |   |            |   |   |   |            |   |
| Gross Profit                                                                                                                                      |   | 2,973,600  |   |   |   | 2,302,696  |   |
|                                                                                                                                              |   |       |   |   |   |       |   |
| Operating Expenses:                                                                                                                               |   |       |   |   |   |       |   |
|          Manufacturing      Expenses                                                                 |   | 112,022    |   |   |   | 72,448     |   |
|          R      & D Expenses                                                                         |   | 43,135     |   |   |   | 161,096    |   |
|          Sales      Expenses                                                                         |   | 258,791    |   |   |   | 316,213    |   |
|          General      and Administrative Expenses                                                    |   | 255,703    |   |   |   | 169,576    |   |
|                                                                                                                                              |   |            |   |   |   |            |   |
|                   Total      Operating Expenses         |   | 669,652    |   |   |   | 719,332    |   |
|                                                                                                                                              |   |            |   |   |   |            |   |
| Income from Operations                                                                                                                            |   | 2,303,948  |   |   |   | 1,583,364  |   |
| Other Expense and (Income):                                                                                                                       |   |            |   |   |   |            |   |
|          Loan      Interest                                                                          |   | 7,830      |   |   |   | 19,842     |   |
|          Other      Income                                                                           |   | (798       | )      |   |   | (776       | )      |
|                   Total      Other Income and (Expense) |   | 7,032      |   |   |   | 19,066     |   |
|                                                                                                                                              |   |            |   |   |   |            |   |
| Income Before Income Taxes                                                                                                                        |   | 2,296,916  |   |   |   | 1,564,298  |   |
|                                                                                                                                              |   |            |   |   |   |            |   |
| Provision For Income Taxes                                                                                                                        |   | 574,229    |   |   |   | 382,510    |   |
|                                                                                                                                              |   |            |   |   |   |            |   |
| Income After Provision for Income Taxes                                                                                                           | $      | 1,722,687  |   |   | $      | 1,181,788  |   |
|                                                                                                                                              |   |       |   |   |   |       |   |

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**Table of Contents**

|                                                                             |   | **Capital         Amount** |   |   |   | **Additional        Paid in         Capital** |   |   | **Accumulated        Other         Comprehensive         Income** |   |   | **Retained         Earnings** |   |      |   | **Comprehensive        Income** |   | **Total         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                                                        |   |                       |   |   |   |                                          |   |   |                                                              |   |   |                          |   |           |   |                            |   |                                           |   |   |   |   |  |   |
|                                                                        |   |                       |   |   |   |                                          |   |   |                                                              |   |   |                          |   |      |   |                            |   |                                           |   |   |   |   |   |   |
| Balance - June 30,      2008                                                |   | 129,340                    |   |   |   | 29,104                                        |   |   |                                                              | 63,394 |   |                          |   | 967,804   |   |                            |   |                                           | 1,244,827 |   |   |   | 1,189,643 |   |
| Comprehensive income                                                        |   |                       |   |   |   |                                          |   |   |                                                              |   |   |                          |   |           |   |                            |   |                                           |  |   |   |   |   |   |
|      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                                                        |   |                       |   |   |   |                                          |   |   |                                                              |   |   |                          |   |      |   |                            |   |                                           |  |   |   |   |   |   |
|                                                                        |   |                       |   |   |   |                                          |   |   |                                                              |   |   |                          |   |      |   |                            |   |                                           |   |   |   |   |   |   |
| Balance - June 30, 2009                                                     | $      | 129,340                    |   |   | $      | 29,104                                        |   |   | $                                                                 | 71,387 |   |                          | $      | 2,690,492 |   |                            |   | $                                              | 1,730,680 |   |   | $ | 2,920,323 |   |
|                                                                        |   |                       |   |   |   |                                          |   |   |                                                              |   |   |                          |   |      |   |                            |   |                                           |   |   |   |   |   |   |

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**Table of Contents**

| ****                                                                                                                                    |   | **2009**   |   |   |   | **2008**   |   |
|-----------------------------------------------------------------------------------------------------------------------------------------|--------|------------|--------|--------|--------|------------|--------|
| ***Cash Flows From Operating Activities:***                                                                                             |   |       |   |   |   |       |   |
| Net Income                                                                                                                              | $      | 1,722,687  |   |   | $      | 1,181,788  |   |
|        Adjustments      To Reconcile Net Income To Net Cash Provided (Used) By Operating Activities: |   |            |   |   |   |            |   |
|        Depreciation      and Amortization Expense                                                    |   | 39,793     |   |   |   | 25,082     |   |
| (Increase) or Decrease in Current Assets:                                                                                               |   |            |   |   |   |            |   |
|        Accounts      Receivable                                                                      |   | (1,539,295 | )      |   |   | (695,159   | )      |
|        Inventories                                                                                   |   | (199,629   | )      |   |   | (1,485,076 | )      |
|        Prepaid      Expenses                                                                         |   | (65,075    | )      |   |   | (34,329    | )      |
|        Advanced      to Suppliers                                                                    |   | (58        | )      |   |   | 28,202     |   |
|        Other      Accounts Receivables                                                               |   | (13,638    | )      |   |   | (8,209     | )      |
| Increase or (Decrease) in Current Liabilities:                                                                                          |   |            |   |   |   |            |   |
|        Accounts      Payable                                                                         |   | 958,692    |   |   |   | 372,291    |   |
|        Advance      from customers                                                                   |   | 2,391      |   |   |   | (54,760    | )      |
|        Taxes      Payable                                                                            |   | 41,206     |   |   |   | 283,996    |   |
|        Payroll      payable                                                                          |   | 138        |   |   |   | 21,034     |   |
|        Interest Payable                                                                              |   | 8,273      |   |   |   | 22,535     |   |
|        Sales      Guarantee Accrual                                                                  |   | 110,117    |   |   |   | 76,485     |   |
|        Other Account      Payable                                                                    |   | (317,440   | )      |   |   | 349,194    |   |
|        Accrued      Expenses and Other Payables                                                      |   | 15,043     |   |   |   | 14,843     |   |
|                                                                                                                                    |   |            |   |   |   |            |   |
|        Net      Cash (Used) Provided by Operating Activities                                         |   | 763,205    |   |   |   | 97,919     |   |
|                                                                                                                                    |   |            |   |   |   |            |   |
| ***Cash Flows From Investing      Activities:***                                                                                        |   |            |   |   |   |            |   |
| Purchases of Property and Equipment                                                                                                     |   | (20,082    | )      |   |   | (68,916    | )      |
| Purchases of Intangible Assets                                                                                                          |   | (630       | )      |   |   | -          |   |
|                                                                                                                                    |   |            |   |   |   |            |   |
|        Net      Cash Used in Investing Activities                                                    |   | (20,712    | )      |   |   | (68,916    | )      |

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| *****Cash Flows From Financing Activities:*****                                                   |   | **2009** |   |   |   | **2008** |   |
|---------------------------------------------------------------------------------------------------|--------|----------|--------|--------|--------|----------|--------|
|                                                                                              |   |     |   |   |   |     |   |
| Repayment to Shearholder        ******                                                            |   | (305,598 | )      |   |   | 256,015  |   |
| Capital Contribution                                                                              |   | -        |   |   |   | 29,104   |   |
| Repayment to Short Term        Loan                                                               |   | (291,045 | )      |   |   | (103,455 | )      |
|                                                                                              |   |          |   |   |   |          |   |
|        Net        Cash (Used) Provided by Financing Activities |   | (596,643 | )      |   |   | 181,663  |   |
|                                                                                              |   |          |   |   |   |          |   |
| Effect of exchange rate        changes on cash and cash equivalents                               |   | (3,208   | )      |   |   | 48,948   |   |
|                                                                                              |   |          |   |   |   |          |   |
| Increase in Cash and Cash        Equivalents                                                      |   | 142,642  |   |   |   | 259,614  |   |
|                                                                                              |   |          |   |   |   |          |   |
| Cash and Cash Equivalents        -Beginning Balance                                               |   | 264,691  |   |   |   | 5,077    |   |
|                                                                                              |   |          |   |   |   |          |   |
| Cash and Cash Equivalents        - Ending Balance                                                 | $      | 407,333  |   |   | $      | 264,691  |   |
|                                                                                              |   |     |   |   |   |     |   |
| Supplemental Disclosures        of Cash Flow Information:                                         |   |     |   |   |   |     |   |
|                                                                                              |   |     |   |   |   |     |   |
| Cash Paid During The Years        for:                                                            |   |     |   |   |   |     |   |
|                                                                                              |   |     |   |   |   |     |   |
|        Interest        Paid                                    |   | -        |   |   |   | -        |   |
|                                                                                              |   |     |   |   |   |     |   |
|        Income        Taxes Paid                                | $      | 493,444  |   |   | $      | 302,452  |   |
|                                                                                              |   |     |   |   |   |     |   |

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**Table of Contents**

|              Buildings      and improvements | 20 years  |
|---------------------------------------------------------------------------------------------------------------|-----------|
|              Machinery      and equipment    | 3-5 years |

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**Table of Contents**

| June 30, 2009                                           |                   |   |
|---------------------------------------------------------|------------------------|--------|
| Balance sheet                                           | RMB 6.8259 to US $1.00 |   |
| Statement of income      and other comprehensive income | RMB 6.8259 to US $1.00 |   |
| June 30, 2008                                           |                   |   |
| Balance sheet                                           | RMB 6.8718 to US $1.00 |   |
| Statement of income and other comprehensive      income | RMB 7.2906 to US $1.00 |   |

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**Table of Contents**

|                  | 2009   |      | 2008   |
|------------------|--------|-----------|--------|
| Raw materials    | $      | 1,774,234 |   |   | $ | 1,563,906 |   |
| Work in progress | $      | 529       |   |   | $ | 525 |   |
| Finished goods   | $      | 790,034   |   |   | $ | 803,145 |   |
| Low value items  | $      | 2,523     |   |   | $ | 115 |   |
| Total            | $      | 2,567,320 |   |   | $ | 2,367,691 |   |
|             |   |      |   |   |   |   |   |

|                                |   | **2009** |   |   |   | **2008** |   |   |
|--------------------------------|--------|----------|--------|--------|--------|----------|--------|--------|
| Machinery and Equipment        | $      | 124,480  |   |   | $      | 103,701  |   |   |
| Motor Vehicles                 |   | 29,300   |   |   |   | 29,104   |   |   |
| Construction in progress       |   | 9,828    |   |   |   | -        |   |   |
| Total Property & equipment     |   | 163,608  |   |   |   | 132,805  |   |   |
|                           |   |          |   |   |   |          |   |   |
| Less: Accumulated Depreciation |   | (47,181  | )      |   |   | (17,531  | )      |   |
|                           |   |     |   |   |   |     |   |   |
| Total Property & equipment-net | $      | 116,427  |   |   | $      | 115,274  |   |   |
|                           |   |     |   |   |   |     |   |   |

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**Table of Contents**

|                           |   | 2009       |   |   |   | 2008       |   |
|--------------------------------|--------|------------|--------|--------|--------|------------|--------|
| Intangible Assets              | $      | 103,179.95 |   |   | $      | 101,865.60 |   |
| Less: Accumulated Amortization |   | (23,079.00 | )      |   |   | (12,733.20 | )      |
|                           |   |       |   |   |   |       |   |
| Intangible Assets, net         | $      | 80,100.95  |   |   | $      | 89,132.40  |   |
|                           |   |       |   |   |   |       |   |

|                                 |   | 2009      |   |   |   | 2008    |   |
|--------------------------------------|--------|-----------|--------|--------|--------|---------|--------|
| Accounts receivable                  | $      | 2,475,997 |   |   | $      | 867,866 |   |
| Less allowance for doubtful accounts |   | (71,908   | )      |   |   | (3,072  | )      |
|                                 | $      | 2,404,088 |   |   | $      | 864,794 |   |
|                                 |   |      |   |   |   |    |   |

|             |   | 2009      |   |   |   | 2008    |   |
|------------------|--------|-----------|--------|--------|--------|---------|--------|
| Accounts payable | $      | 1,819,740 |   |   | $      | 861,048 |   |
|             |   |      |   |   |   |    |   |
|             | $      | 1,819,740 |   |   | $      | 861,048 |   |
|             |   |      |   |   |   |    |   |

----

**Table of Contents**

|             |   | 2009    |   |   |   | 2008    |   |
|------------------|--------|---------|--------|--------|--------|---------|--------|
| Other Payable    | $      | 122,873 |   |   | $      | 440,314 |   |
| Accrued Expenses |   | 29,886  |   |   |   | 14,843  |   |
|             | $      | 152,759 |   |   | $      | 455,157 |   |
|             |   |    |   |   |   |    |   |

|                |   | 2009    |   |   |   | 2008   |   |   |
|---------------------|--------|---------|--------|--------|--------|--------|--------|--------|
| Product liabilities |   | 186,601 |   |   |   | 76,485 |   |   |
|                |   |    |   |   |   |   |   |   |

----

**Table of Contents**

|   |      |   | 2009    |   |   |   | 2008    |   |   |
|--------|-----------|--------|---------|--------|--------|--------|---------|--------|--------|
|   | PRC only: |   |    |   |   |   |    |   |   |
|   |      |   |    |   |   |   |    |   |   |
|   | Current   | $      | 574,229 |   |   | $      | 382,510 |   |   |
|   | Deferred  |   | -       |   |   |   | -       |   |   |
|   |      |   |    |   |   |   |    |   |   |
|   | Total     | $      | 574,229 |   |   | $      | 382,510 |   |   |
|   |      |   |    |   |   |   |    |   |   |

| **Revenue**           | ** ** | **2009**   | ** ** | ****   | ** ** | **2008**  |   |   |
|-----------------------|------------|------------|------------|--------|------------|-----------|--------|--------|
| Battery Safety System | $          | 7,461,318  |       |   | $          | 6,064,024 |   |   |
| Module of Battery     |       | 331,165    |       |   |       | 386,191   |   |   |
| Patch of Battery      |       | 2,274,691  |       |   |       | 341,230   |   |   |
| Electronic MV         |       | 895,754    |       |   |       | -         |   |   |
| Total Revenue         | $          | 10,962,928 |       |   | $          | 6,791,445 |   |   |

----

**Table of Contents**

| **Cost of Goods Sold**  | ** ** | **2009**  | ** ** | ****   | ** ** | **2008**  |   |   |
|-------------------------|------------|-----------|------------|--------|------------|-----------|--------|--------|
| Battery Safety System   | $          | 4,949,371 |       |   | $          | 3,940,056 |   |   |
| Module of Battery       |       | 247,876   |       |   |       | 263,817   |   |   |
| Patch of Battery        |       | 2,045,365 |       |   |       | 284,876   |   |   |
| Electronic MV           |       | 746,715   |       |   |       | -         |   |   |
| Total Cost of Good Sold | $          | 7,989,327 |       |   | $          | 4,488,749 |   |   |

| **Operating income**   | ** ** | **2009**  | ** ** | ****   | ** ** | **2008**  |   |   |
|------------------------|------------|-----------|------------|--------|------------|-----------|--------|--------|
| Battery Safety System  | $          | 2,056,185 |       |   | $          | 1,456,529 |   |   |
| Module of Battery      |       | 63,061    |       |   |       | 81,470    |   |   |
| Patch of Battery       |       | 90,380    |       |   |       | 45,365    |   |   |
| Electronic MV          |       | 94,323    |       |   |       | -         |   |   |
| Total Operating income | $          | 2,303,949 |       |   | $          | 1,583,364 |   |   |

----

**Table of Contents**

----

**Table of Contents**

| ****ITEM 8:**** | ****Supplementary Data:     Unaudited      Pro Forma Financial Information**** |
|-----------------|----------------------------------------------------------------------------------------------------|

|                                                                                                                                  | ***PAGE***    |   |
|---------------------------------------------------------------------------------------------------------------------------------------|---------------|--------|
|                                                                                                                                  |               |   |
| ***FINANCIAL STATEMENTS:***                                                                                                           |               |   |
|                                                                                                                                  |               |   |
| ***             BALANCE      SHEETS***                               | ***56-57***   |   |
| ***             STATEMENTS      OF INCOME***                         | ***58***      |   |
| ***             STATEMENTS      OF CHANGE IN STOCKHOLDERS' EQUITY*** | ***59***      |   |
| ***             STATEMENTS      OF CASH FLOWS***                     | ***60 & 61*** |   |
|                                                                                                                                  |               |   |
| ***NOTES TO FINANCIAL      STATEMENTS***                                                                                              | ***62 - 75*** |   |
|                                                                                                                                  |               |   |

----

**Table of Contents**

|                                                                                                                                                                                                                                                                         |   | **2009**         |   |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|------------------|--------|
|                                                                                                                                                                                                                                                                         |   | **December 31,** |   |   |   | **June 30,** |   |
|                                                                                                                                                                                                                                                                    |   | (Unaudited)      |   |   |   | (Audited) |   |
|              ***ASSETS***                                                                                                                                                                              |   |             |   |   |   |   |   |
|                                                                                                                                                                                                                                                                    |   |             |   |   |   |   |   |
| ***Current Assets:***                                                                                                                                                                                                                                                   |   |             |   |   |   |   |   |
|              Cash      and Cash Equivalents                                                                                                                                                            | $      | 896,012          |   |   | $ | 407,333 |   |
|              Accounts      Receivable                                                                                                                                                                  |   | 4,220,786        |   |   |   | 2,404,088 |   |
|              Other      Accounts Receivable                                                                                                                                                            |   | 46,757           |   |   |   | 24,507 |   |
|              Advanced      to Suppliers                                                                                                                                                                |   | 12,852           |   |   |   | 785 |   |
|              Inventory                                                                                                                                                                                 |   | 1,294,408        |   |   |   | 2,567,320 |   |
|              Prepaid      Expenses                                                                                                                                                                     |   | 73,210           |   |   |   | 70,000 |   |
|                                        **Total      Current Assets** |   | 6,544,025        |   |   |   | 5,474,033 |   |
|                                                                                                                                                                                                                                                                    |   |                  |   |   |   |  |   |
| ***Plant & Equipments, net***                                                                                                                                                                                                                                           |   | 265,492          |   |   |   | 153,392 |   |
| ***Patent and Other Intangibles, net***                                                                                                                                                                                                                                 |   | 74,450           |   |   |   | 79,611 |   |
|                                                                                                                                                                                                                                                                    |   |                  |   |   |   |  |   |
|                                        **Total      Assets**         |   | 6,883,967        |   |   |   | 5,707,036 |   |
|                                                                                                                                                                                                                                                                    |   |             |   |   |   |   |   |

----

**Table of Contents**

|                                                                                                                                                                                                                                                                               |   | **2009**         |   |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|------------------|--------|
|                                                                                                                                                                                                                                                                               |   | **December 31,** |   |   |   | **June 30,** |   |
|                                                                                                                                                                                                                                                                          |   | (Unaudited)      |   |   |   | (Audited) |   |
| ***LIABILITIES AND STOCKHOLDERS' EQUITY***                                                                                                                                                                                                                                    |   |             |   |   |   |   |   |
|                                                                                                                                                                                                                                                                          |   |             |   |   |   |   |   |
| ***Current liabilities:***                                                                                                                                                                                                                                                    |   |             |   |   |   |   |   |
|              Accounts      Payable                                                                                                                                                                           |   | 1,941,632        |   |   |   | 1,819,740 |   |
|              Advance      from Customers                                                                                                                                                                     |   | 3,316            |   |   |   | 4,426 |   |
|              Payroll      Payable                                                                                                                                                                            |   | 52,915           |   |   |   | 34,123 |   |
|              Tax      Payable                                                                                                                                                                                |   | 290,290          |   |   |   | 174,998 |   |
|              Other      Accounts Payables                                                                                                                                                                    |   | 3,102            |   |   |   | 122,873 |   |
|              Interest      Payables                                                                                                                                                                          |   | -                |   |   |   | 32,732 |   |
|              Accrued      Expenses                                                                                                                                                                           |   | 29,927           |   |   |   | 29,886 |   |
|              Lending      from Shareholders                                                                                                                                                                  |   | -                |   |   |   | 381,334 |   |
|              Sales      Guarantee Accrual                                                                                                                                                                    |   | 219,680          |   |   |   | 186,601 |   |
|                                                                                                                                                                                                                                                                          |   |                  |   |   |   |  |   |
|                                        **Total      Current Liabilities**  |   | 2,540,862        |   |   |   | 2,786,713 |   |
|                                                                                                                                                                                                                                                                          |   |                  |   |   |   |  |   |
| ***Stockholders' Equity:***                                                                                                                                                                                                                                                   |   |                  |   |   |   |  |   |
|              Paid      in Capital                                                                                                                                                                            |   | 129,340          |   |   |   | 129,340 |   |
|              Additional      Paid in Capital                                                                                                                                                                 |   | 143,590          |   |   |   | 29,104 |   |
|              Reserve      Funds                                                                                                                                                                              |   | 467,186          |   |   |   | - |   |
|              Accumulated      Other Comprehensive Income                                                                                                                                                     |   | 75,896           |   |   |   | 71,387 |   |
|              Retained      Earnings                                                                                                                                                                          |   | 3,527,093        |   |   |   | 2,690,492 |   |
|                                        **Total      Stockholders' Equity** |   | 4,343,105        |   |   |   | 2,920,323 |   |
|                                                                                                                                                                                                                                                                          |   |                  |   |   |   |  |   |
|                           **Total      Liabilities and Stockholders' Equity**                                                               | $      | 6,883,967        |   |   | $ | 5,707,036 |   |
|                                                                                                                                                                                                                                                                          |   |             |   |   |   |   |   |

----

**Table of Contents**

|                                                                                                                                       |   | **Three Months Ended        December 31,** |   |   |   | **Six Months Ended        December 31,** |   |
|---------------------------------------------------------------------------------------------------------------------------------------|--------|--------------------------------------------|--------|--------|--------|------------------------------------------|--------|
|                                                                                                                                       |   | **2009**                                   |   |   |   | **2008**                                 |   |   |   | **2009** |   |   |   | **2008** |   |
| ***Revenues***                                                                                                                        |   |                                       |   |   |   |                                     |   |   |   |   |   |   |   |   |   |
|         Battery      Safety System                                                            | $      | 2,287,378                                  |   |   | $      | 1,693,465                                |   |   | $ | 4,769,197 |   |   | $ | 3,544,298 |   |
|         Module      of Battery                                                                |   | 274,636                                    |   |   |   | 72,604                                   |   |   |   | 390,358 |   |   |   | 166,944 |   |
|         Patch      of Battery Materials                                                       |   | 293,340                                    |   |   |   | 488,200                                  |   |   |   | 1,345,925 |   |   |   | 938,631 |   |
|         Electronic      MV                                                                    |   | 267,378                                    |   |   |   | 91,318                                   |   |   |   | 818,820 |   |   |   | 91,318 |   |
|         Power                                                                                 |   | 373,444                                    |   |   |   | -                                        |   |   |   | 373,444 |   |   |   | - |   |
|         Charger                                                                               |   | 9,297                                      |   |   |   | -                                        |   |   |   | 9,297 |   |   |   | - |   |
| **Total Revenue**                                                                                                                     |   | 3,505,473                                  |   |   |   | 2,345,587                                |   |   |   | 7,707,041 |   |   |   | 4,741,191 |   |
| Cost of Goods Sold                                                                                                                    |   | 2,294,508                                  |   |   |   | 1,695,606                                |   |   |   | 5,445,920 |   |   |   | 3,398,692 |   |
|                                                                                                                                  |   |                                            |   |   |   |                                          |   |   |   |  |   |   |   |  |   |
| **Gross Profit**                                                                                                                      |   | 1,210,965                                  |   |   |   | 649,981                                  |   |   |   | 2,261,121 |   |   |   | 1,342,499 |   |
|                                                                                                                                  |   |                                            |   |   |   |                                          |   |   |   |  |   |   |   |  |   |
| **Operating Expenses:**                                                                                                               |   |                                            |   |   |   |                                          |   |   |   |  |   |   |   |  |   |
|         Manufacturing      Expenses                                                           |   | 66,356                                     |   |   |   | 28,069                                   |   |   |   | 94,369 |   |   |   | 57,113 |   |
|         R      & D Expenses                                                                   |   | 20,615                                     |   |   |   | 11,785                                   |   |   |   | 48,740 |   |   |   | 22,486 |   |
|         Sales      Expenses                                                                   |   | 68,843                                     |   |   |   | 66,356                                   |   |   |   | 177,453 |   |   |   | 134,715 |   |
|         General      and Administrative Expenses                                              |   | 148,333                                    |   |   |   | 48,188                                   |   |   |   | 202,228 |   |   |   | 87,218 |   |
|                                                                                                                                  |   |                                            |   |   |   |                                          |   |   |   |  |   |   |   |  |   |
|                 Total      Operating Expenses         |   | 304,147                                    |   |   |   | 154,398                                  |   |   |   | 522,790 |   |   |   | 301,532 |   |
|                                                                                                                                  |   |                                            |   |   |   |                                          |   |   |   |  |   |   |   |  |   |
| **Income from Operations      before Other Income and (Expenses)**                                                                    |   | 906,818                                    |   |   |   | 495,583                                  |   |   |   | 1,738,331 |   |   |   | 1,040,968 |   |
| Other Expense and (Income):                                                                                                           |   |                                            |   |   |   |                                          |   |   |   |  |   |   |   |  |   |
|         Financial      Expenses and (Income)                                                  |   | -                                          |   |   |   | 3,361                                    |   |   |   | - |   |   |   | 7,601 |   |
|         Other      Income                                                                     |   | (53                                        | )      |   |   | 671                                      |   |   |   | (53 | ) |   |   | 619 |   |
|                 Total      Other Income and (Expense) |   | (53                                        | )      |   |   | 4,032                                    |   |   |   | (53 | ) |   |   | 8,220 |   |
|                                                                                                                                  |   |                                            |   |   |   |                                          |   |   |   |  |   |   |   |  |   |
| **Income Before Income Taxes**                                                                                                        |   | 906,871                                    |   |   |   | 491,551                                  |   |   |   | 1,738,384 |   |   |   | 1,032,748 |   |
|                                                                                                                                  |   |                                            |   |   |   |                                          |   |   |   |  |   |   |   |  |   |
| Provision For Income Taxes                                                                                                            |   | 226,718                                    |   |   |   | 122,888                                  |   |   |   | 434,596 |   |   |   | 258,187 |   |
|                                                                                                                                  |   |                                            |   |   |   |                                          |   |   |   |  |   |   |   |  |   |
| Income After Provision for      Income Taxes                                                                                          | $      | 680,153                                    |   |   | $      | 368,663                                  |   |   | $ | 1,303,788 |   |   | $ | 774,561 |   |
|                                                                                                                                  |   |                                       |   |   |   |                                     |   |   |   |   |   |   |   |   |   |

----

**Table of Contents**

|                                                                                                                |   | **Paid in         Capital         Amount** |   |   |   | **Additional        Paid in         Capital** |   |   | **Accumulated        Other         Comprehensive         Income** |   |   | **Retained         Earnings** |   |      |   | **Reserved         Funds** |   |    | **Comprehensive        Income** |   | **Total         Stockholders'         Equity** |
|----------------------------------------------------------------------------------------------------------------|--------|--------------------------------------------|--------|--------|--------|-----------------------------------------------|--------|--------|-------------------------------------------------------------------|--------|--------|-------------------------------|--------|-----------|--------|----------------------------|--------|---------|---------------------------------|--------|------------------------------------------------|
| Balance - June 30,      2008                                                                                   | $      | 129,340                                    |   |   | $      | 29,104                                        |   |   | $                                                                 | 63,394 |   |                          | $      | 967,804   |   |                       | $      | -       |                            |   | $                                              | - |   |   | $ | 1,189,642 |   |
| Capital Contribution                                                                                           |   |                                       |   |   |   |                                          |   |   |                                                              |   |   |                          |   |           |   |                       |   |         |                            |   |                                           |  |   |   |   |  |   |
|      Net      income for the year                                                     |   |                                       |   |   |   |                                               |   |   |                                                              |   |   |                          |   | 1,722,687 |   |                       |   |         |                            |   |                                           | 1,722,687 |   |   |   | 1,722,687 |   |
|      Other      comprehensive           income, net of tax   |   |                                       |   |   |   |                                          |   |   |                                                              |   |   |                          |   |           |   |                       |   |         |                            |   |                                           |  |   |   |   |  |   |
|      Foreign      currency           translation adjustment  |   |                                       |   |   |   |                                          |   |   |                                                              | 7,993  |   |                          |   |           |   |                       |   |         |                            |   |                                           | 7,993 |   |   |   | 7,993 |   |
| Comprehensive income                                                                                           |   |                                       |   |   |   |                                          |   |   |                                                              |   |   |                          |   |           |   |                       |   |         |                            |   |                                           |   |   |   |   |  |   |
|                                                                                                           |   |                                       |   |   |   |                                          |   |   |                                                              |   |   |                          |   |      |   |                       |   |    |                            |   |                                           |   |   |   |   |   |   |
| Balance - June 30, 2009                                                                                        |   | 129,340                                    |   |   |   | 29,104                                        |   |   |                                                              | 71,387 |   |                          |   | 2,690,491 |   |                       |   | -       |                            |   |                                           | 1,730,680 |   |   |   | 2,920,322 |   |
| Additional Paid in      Capital                                                                                |   |                                       |   |   |   | 114,486                                       |   |   |                                                              |   |   |                          |   |           |   |                       |   |         |                            |   |                                           |  |   |   |   | 114,486 |   |
| Reserved Funds                                                                                                 |   |                                       |   |   |   |                                          |   |   |                                                              |   |   |                          |   |           |   |                       |   | 467,186 |                            |   |                                           | 467,186 |   |   |   | 467,186 |   |
| Comprehensive income                                                                                           |   |                                       |   |   |   |                                          |   |   |                                                              |   |   |                          |   |           |   |                       |   |    |                            |   |                                           |  |   |   |   |  |   |
|      Net income      for the year                                                     |   |                                       |   |   |   |                                          |   |   |                                                              |   |   |                          |   | 1,303,788 |   |                       |   |    |                            |   |                                           | 1,303,788 |   |   |   | 1,303,788 |   |
|      Retained      Earning           transferred to Reserved |   |                                       |   |   |   |                                          |   |   |                                                              |   |   |                          |   | (467,186  | )      |                       |   |    |                            |   |                                           | (467,186 | ) |   |   | (467,186 | ) |
|      Other      comprehensive           income, net of tax   |   |                                       |   |   |   |                                          |   |   |                                                              |   |   |                          |   |      |   |                       |   |    |                            |   |                                           |  |   |   |   |   |   |
|      Foreign      currency           translation adjustment  |   |                                       |   |   |   |                                          |   |   |                                                              | 4,509  |   |                          |   |      |   |                       |   |    |                            |   |                                           | 4,509 |   |   |   | 4,509 |   |
| Comprehensive income                                                                                           |   |                                       |   |   |   |                                          |   |   |                                                              |   |   |                          |   |      |   |                       |   |    |                            |   |                                           |  |   |   |   |   |   |
|                                                                                                           |   |                                       |   |   |   |                                          |   |   |                                                              |   |   |                          |   |      |   |                       |   |    |                            |   |                                           |   |   |   |   |   |   |
| Balance - December 31, 2009                                                                                    | $      | 129,340                                    |   |   | $      | 143,590                                       |   |   | $                                                                 | 75,896 |   |                          | $      | 3,527,093 |   |                       | $      | 467,186 |                            |   | $                                              | 1,308,297 |   |   | $ | 4,343,105 |   |
|                                                                                                           |   |                                       |   |   |   |                                          |   |   |                                                              |   |   |                          |   |      |   |                       |   |    |                            |   |                                           |   |   |   |   |   |   |

----

**Table of Contents**

| ****                                                                                                                                    |   | **DECEMBER 31,** |   |
|-----------------------------------------------------------------------------------------------------------------------------------------|--------|------------------|--------|
| ****                                                                                                                                    |   | **2009**         |   |   |   | **2008** |   |
| ***Cash Flows From Operating Activities:***                                                                                             |   |             |   |   |   |   |   |
| Net Income                                                                                                                              | $      | 1,303,788        |   |   | $ | 774,561 |   |
|        Adjustments      to reconcile Net Income to Net Cash Provided (Used) By Operating Activities: |   |                  |   |   |   |  |   |
|        Depreciation      and Amortization Expense                                                    |   | 42,041           |   |   |   | 10,375 |   |
| (Increase) or Decrease in Current Assets:                                                                                               |   |                  |   |   |   |  |   |
|        Accounts      Receivable                                                                      |   | (1,816,698       | )      |   |   | (986,109 | ) |
|        Inventories                                                                                   |   | 1,272,912        |   |   |   | 1,080,858 |   |
|        Prepaid      Expenses                                                                         |   | (3,210           | )      |   |   | 1,821 |   |
|        Advanced      to Suppliers                                                                    |   | (12,067          | )      |   |   | (28,466 | ) |
|        Other      Accounts Receivables                                                               |   | (22,250          | )      |   |   | (12,804 | ) |
| Increase or (Decrease) in Current Liabilities:                                                                                          |   |                  |   |   |   |  |   |
|        Accounts      Payable                                                                         |   | 121,892          |   |   |   | 533,436 |   |
|        Advance      from Customers                                                                   |   | (1,110           | )      |   |   | 677 |   |
|        Taxes      Payable                                                                            |   | 115,292          |   |   |   | 51,462 |   |
|        Payroll      Payable                                                                          |   | 18,792           |   |   |   | 1,006 |   |
|        Interest Payable                                                                              |   | (32,732          | )      |   |   | 8,318 |   |
|        Sales      Guarantee Accrual                                                                  |   | 33,079           |   |   |   | 48,094 |   |
|        Other Account      Payable                                                                    |   | (119,471         | )      |   |   | (58,506 | ) |
|        Other      Accrued Expenses                                                                   |   | 41               |   |   |   | 120 |   |
|                                                                                                                                    |   |                  |   |   |   |  |   |
|        Net      Cash (Used) Provided by Operating Activities                                         |   | 900,299          |   |   |   | 1,424,843 |   |
|                                                                                                                                    |   |                  |   |   |   |  |   |
| ***Cash Flows From Investing      Activities:***                                                                                        |   |                  |   |   |   |  |   |
| Purchases of Property and Equipment                                                                                                     |   | (148,981         | )      |   |   | (27,376 | ) |
| Purchases of Intangible Assets                                                                                                          |   | -                |   |   |   | (629 | ) |
|                                                                                                                                    |   |                  |   |   |   |  |   |
|        Net      Cash Used in Investing Activities                                                    | $      | (148,981         | )      |   | $ | (28,005 | ) |

----

**Table of Contents**

| ****                                                                                              |   | **DECEMBER 31,** |   |
|---------------------------------------------------------------------------------------------------|--------|------------------|--------|
| ****                                                                                              |   | **2009**         |   |   |   | **2008** |   |
| ***Cash Flows From Financing Activities:***                                                       |   |             |   |   |   |   |   |
| Repayment to Shareholder                                                                          | $      | (381,334         | )      |   | $ | (305,445 | ) |
| Capital Contribution                                                                              |   | 114,486          |   |   |   | - |   |
|                                                                                              |   |                  |   |   |   |  |   |
|        Net        Cash (Used) Provided by Financing Activities |   | (266,848         | )      |   |   | (305,445 | ) |
|                                                                                              |   |                  |   |   |   |  |   |
| Effect of Exchange Rate Changes on        Cash and Cash Equivalents                               |   | 4,509            |   |   |   | 11,810 |   |
|                                                                                              |   |                  |   |   |   |  |   |
| Increase in Cash and Cash Equivalents                                                             |   | 488,979          |   |   |   | 1,103,203 |   |
|                                                                                              |   |                  |   |   |   |  |   |
| Cash and Cash Equivalents -Beginning        Balance                                               |   | 407,333          |   |   |   | 264,691 |   |
|                                                                                              |   |                  |   |   |   |  |   |
| Cash and Cash Equivalents - Ending        Balance                                                 | $      | 896,312          |   |   | $ | 1,367,894 |   |
|                                                                                              |   |             |   |   |   |   |   |
| Supplemental Disclosures of Cash Flow        Information                                          |   |             |   |   |   |   |   |
|                                                                                              |   |             |   |   |   |   |   |
| Cash Paid During The Years for:                                                                   |   |             |   |   |   |   |   |
|                                                                                              |   |             |   |   |   |   |   |
|        Interest        Paid                                    | $      | 32,776           |   |   | $ | - |   |
|                                                                                              |   |                  |   |   |   |  |   |
|        Income        Taxes Paid                                | $      | 423,628          |   |   | $ | 249,669 |   |
|                                                                                              |   |             |   |   |   |   |   |

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| December 31, 2009                                       |                   |   |
|---------------------------------------------------------|------------------------|--------|
| Balance sheet                                           | RMB 6.8372 to US $1.00 |   |
| Statement of income      and other comprehensive income | RMB 6.8393 to US $1.00 |   |
|                                                    |                   |   |
| December 31, 2008                                       |                   |   |
| Balance sheet                                           | RMB 6.8166 to US $1.00 |   |
| Statement of income      and other comprehensive income | RMB 6.8278 to US $1.00 |   |

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|                          |   | December 31, 2009 |   |   |   | June 30, 2009 |   |
|-------------------------------|--------|-------------------|--------|--------|--------|---------------|--------|
| Raw materials                 | $      | 1,161,942         |   |   | $      | 1,774,234     |   |
| Work in progress for sales    |   | 530               |   |   |   | 529           |   |
| Work in progress for research |   | 11,425            |   |   |   | -             |   |
| Finished goods                |   | 118,771           |   |   |   | 790,034       |   |
| Low value items               |   | 1,740             |   |   |   | 2,523         |   |
| Totals                        | $      | 1,294,408         |   |   | $      | 2,567,320     |   |

|                                 | Dec 31, 2009 |    | June 30, 2009 |
|---------------------------------|--------------|---------|---------------|
| Machinery and Equipment         | $            | 278,526 |          |   | $ | 124,479 |   |
| Motor Vehicles                  |         | 29,340  |          |   |   | 29,300 |   |
| Leasehold Improvement           |         | 41,688  |          |   |   | 36,966 |   |
| Less: Accumulated Depreciation  |         | (84,062 | )             |   |   | (47,181 | ) |
| Construction in progress        |         | -       |          |   |   | 9,828 |   |
| Total property & equipment, net | $            | 265,492 |          |   | $ | 153,392 |   |
|                            |         |    |          |   |   |   |   |

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**Table of Contents**

|                                | Dec 31, 2009 |         | June 30, 2009 |
|--------------------------------|--------------|--------------|---------------|
| Intangible Assets              | $            | 102,690      |          |   | $ | 102,690 |   |
| Less: Accumulated Amortization |         | (28,240      | )             |   |   | (23,079 | ) |
|                           |         |    |          |   |   |    |   |
| Intangible Assets, net         | $            | 74,450       |          |   | $ | 79,611  |   |

|                                      | Dec 31, 2009 |      | June 30, 2009 |
|--------------------------------------|--------------|-----------|---------------|
| Accounts receivable                  | $            | 4,352,777 |          |   | $ | 2,475,996 |   |
|                                 |         |      |          |   |   |   |   |
| Less allowance for doubtful accounts |         | (131,991  | )             |   |   | (71,908 | ) |
|                                 | $            | 4,220,786 |          |   | $ | 2,404,088 |   |
|                                 |         |      |          |   |   |   |   |

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**Table of Contents**

| ******           |   | Dec 2009 |   |   |   | June 2009 |   |
|------------------|--------|----------|--------|--------|--------|-----------|--------|
| Other Payable    | $      | 3,102    |   |   | $      | 122,873   |   |
| Accrued Expenses |   | 29,927   |   |   |   | 29,886    |   |
|             | $      | 33,029   |   |   | $      | 152,759   |   |
|             |   |     |   |   |   |      |   |

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**Table of Contents**

|     | **December 31, 2009** |    | **December 31, 2008** |
|----------|-----------------------|---------|-----------------------|
| Current  | $                     | 434,596 |                  |   | $ | 258,187 |   |
| Deferred |                  | -       |                  |   |   | - |   |
| Total    | $                     | 434,596 |                  |   | $ | 258,187 |   |
|     |                  |    |                  |   |   |   |   |

|                  |   | **For the three months ended         December 31,** |   |   |   | **For the six months ended        December 31,** |   |
|-----------------------|--------|-----------------------------------------------------|--------|--------|--------|--------------------------------------------------|--------|
|                  |   | **2009**                                            |   |   |   | **2008**                                         |   |   |   | **2009** |   |   |   | **2008** |   |
| Battery Safety System | $      | 2,287,378                                           |   |   | $      | 1,693,465                                        |   |   | $ | 4,769,197 |   |   | $ | 3,544,298 |   |
|                  |   |                                                     |   |   |   |                                                  |   |   |   |  |   |   |   |  |   |
| Module of Battery     |   | 274,636                                             |   |   |   | 72,604                                           |   |   |   | 390,358 |   |   |   | 166,944 |   |
|                  |   |                                                     |   |   |   |                                                  |   |   |   |  |   |   |   |  |   |
| Patch of Battery      |   | 293,340                                             |   |   |   | 488,200                                          |   |   |   | 1,345,925 |   |   |   | 938,631 |   |
|                  |   |                                                     |   |   |   |                                                  |   |   |   |  |   |   |   |  |   |
| Electronic MV         |   | 267,378                                             |   |   |   | 91,318                                           |   |   |   | 818,820 |   |   |   | 91,318 |   |
|                  |   |                                                     |   |   |   |                                                  |   |   |   |  |   |   |   |  |   |
| Power                 |   | 373,444                                             |   |   |   | -                                                |   |   |   | 373,444 |   |   |   | - |   |
|                  |   |                                                     |   |   |   |                                                  |   |   |   |  |   |   |   |  |   |
| Charger               |   | 9,297                                               |   |   |   | -                                                |   |   |   | 9,297 |   |   |   | - |   |
|                  |   |                                                     |   |   |   |                                                  |   |   |   |  |   |   |   |  |   |
| **Totals**            | **$**  | **3,505,473**                                       | ****   | ****   | **$**  | **2,345,587**                                    | ****   | **** | **$** | **7,707,041** | **** | **** | **$** | **4,741,191** |   |
|                  |   |                                                |   |   |   |                                             |   |   |   |   |   |   |   |   |   |

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**Table of Contents**

|                  |   | **For the three months ended         December 31,** |   |   |   | **For the six months ended        December 31,** |   |
|-----------------------|--------|-----------------------------------------------------|--------|--------|--------|--------------------------------------------------|--------|
|                  |   | **2009**                                            |   |   |   | **2008**                                         |   |   |   | **2009** |   |   |   | **2008** |   |
| Battery Safety System | $      | 567,926                                             |   |   | $      | 458,291                                          |   |   | $ | 1,280,825 |   |   | $ | 968,958 |   |
|                  |   |                                                     |   |   |   |                                                  |   |   |   |  |   |   |   |  |   |
| Module of Battery     |   | 79,067                                              |   |   |   | 11,781                                           |   |   |   | 129,653 |   |   |   | 28,812 |   |
|                  |   |                                                     |   |   |   |                                                  |   |   |   |  |   |   |   |  |   |
| Patch of Battery      |   | 47,670                                              |   |   |   | 16,684                                           |   |   |   | 53,017 |   |   |   | 34,168 |   |
|                  |   |                                                     |   |   |   |                                                  |   |   |   |  |   |   |   |  |   |
| Electronic MV         |   | 22,059                                              |   |   |   | 8,827                                            |   |   |   | 77,341 |   |   |   | 9,030 |   |
|                  |   |                                                     |   |   |   |                                                  |   |   |   |  |   |   |   |  |   |
| Power                 |   | 182,975                                             |   |   |   | -                                                |   |   |   | 190,193 |   |   |   | - |   |
|                  |   |                                                     |   |   |   |                                                  |   |   |   |  |   |   |   |  |   |
| Charger               |   | 4,568                                               |   |   |   | -                                                |   |   |   | 4,748 |   |   |   | - |   |
|                  |   |                                                     |   |   |   |                                                  |   |   |   |  |   |   |   |  |   |
| **Totals**            | **$**  | **904,264**                                         |   |   | **$**  | **495,583**                                      |   |   | **$** | **1,735,777** |   |   | **$** | **1,040,968** |   |
|                  |   |                                                |   |   |   |                                             |   |   |   |   |   |   |   |   |   |

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**Table of Contents**

| **Customer Name**                  | **Amount in USD** |      | **Percentage** |   |   |
|------------------------------------|-------------------|-----------|----------------|--------|--------|
| Yangguang Sanwei Ltd               | $                 | 253,923   |           |   | 5.93%  |   |   |
| Beijing Renyuxin Trading Ltd       |              | 413,386   |           |   | 9.66%  |   |   |
| Hebei Aoguan Power Ltd             |              | 247,278   |           |   | 5.78%  |   |   |
| Tianjin Ruiqi Tech Ltd             |              | 299,341   |           |   | 6.99%  |   |   |
| Beijing Fuerxuan Tech Ltd          |              | 218,759   |           |   | 5.11%  |   |   |
| Beijing Jiruiyuda Electronic Ltd   |              | 348,192   |           |   | 8.13%  |   |   |
| Guangzhou Chuangxin Power      Ltd |              | 414,413   |           |   | 9.68%  |   |   |
|                               | $                 | 2,195,292 |           |   | 51.28% |   |   |
|                               |              |      |           |   |   |   |   |

| **Vendor Name**                             | **Amount in USD** |      | **Percentage** |   |   |
|---------------------------------------------|-------------------|-----------|----------------|--------|--------|
| Heilongjiang Zhongqiang      Power Tech Ltd |              | 1,871,745 |           |   | 96.40% |   |   |

| **Customer Name**                       | **Amount in USD** |      | **Percentage** |   |   |
|-----------------------------------------|-------------------|-----------|----------------|--------|--------|
| Guangzhou Chuangxin Power      Tech Ltd |              | 354,127   |           |   | 10.10% |   |   |
| Yangguang Sanwei Ltd                    |              | 305,312   |           |   | 8.71%  |   |   |
| Beijing Jiruiyueda Electronic      Ltd  |              | 297,540   |           |   | 8.49%  |   |   |
| Henan Xinge Motor Ltd                   |              | 291,279   |           |   | 8.31%  |   |   |
| Hebei Aoguan Power Ltd                  |              | 256,557   |           |   | 7.32%  |   |   |
| Henan Huanyu Power Ltd                  |              | 246,218   |           |   | 7.02%  |   |   |
| Tianjin East Weier Tech Ltd             |              | 197,277   |           |   | 5.63%  |   |   |
| Beijing Fuerxuan Tech Ltd               |              | 186,935   |           |   | 5.33%  |   |   |
| Tianjin Ruiqi Tech Ltd                  |              | 180,580   |           |   | 5.15%  |   |   |
|                                    |              | 2,315,825 |           |   | 66.06% |   |   |

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**Table of Contents**

| **Vendor Name**                             | **Purchase         amount in USD** |      | **Percentage** |   |   |
|---------------------------------------------|------------------------------------|-----------|----------------|--------|--------|
| Heilongjiang Zhongqiang Power      Tech Ltd |                               | 1,566,736 |           |   | 89.80% |   |   |
| Guangzhou Fanyu Electronic Ltd              |                               | 109,167   |           |   | 6.26%  |   |   |
|                                        |                               | 1,675,903 |           |   | 96.05% |   |   |
|                                        |                               |      |           |   |   |   |   |

|   | Year Ending December 31, |   |   |    |   |
|--------|--------------------------|--------|--------|---------|--------|
|   |                     | 2010   | $      | 135,000 |   |   |
|   |                     | 2011   |   | 124,000 |   |   |
|   |                     | 2012   |   | 119,000 |   |   |
|   |                     | 2013   |   | 61,000  |   |   |
|   |                     | 2014   |   | 44,000  |   |   |
|   |                     |   | $      | 483,000 |   |   |
|   |                     |   |   |    |   |   |

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**Table of Contents**

|                                   | **PAGE**    |   |
|----------------------------------------|-------------|--------|
| **CONSOLIDATED BALANCE      SHEET**    | ***77-78*** |   |
| **STATEMENT OF INCOME**                | **79**      |   |
| **NOTES      TO FINANCIAL STATEMENTS** | **80**      |   |

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**Table of Contents**

|                                                                                                                                                                                                                                                       | **Historical December 31, 2009** |   |                               |   |                      |      |                                                              |   |   |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|----------------------------------|--------|------------------------------------|--------|---------------------------|-----------|-------------------------------------------------------------------|--------|--------|
|                                                                                                                                                                                                                                                  |                             |   |                               |   |                      |      |                                                              |   |   |   |   |   |   |   |   |
|                                                                                                                                                                                                                                                       | **PI SERVICES        INC**       |   | **SKY ACHIEVE        HOLDING LTD** |   | **Pro-Forma Adjustments** |      | **Unaudited         Pro Forma         December 31,         2009** |
|                                                                                                                                                                                                                                                  |                             |   |                               |   |                      |      |                                                              |   |   |   |   |   |   |   |   |
| ***ASSETS***                                                                                                                                                                                                                                          |                             |   |                               |   |                      |      |                                                              |   |   |   |   |   |   |   |   |
|                                                                                                                                                                                                                                                  |                             |   |                               |   |                      |      |                                                              |   |   |   |   |   |   |   |   |
| ***Current Assets:***                                                                                                                                                                                                                                 |                             |   |                               |   |                      |      |                                                              |   |   |   |   |   |   |   |   |
|             Cash      and Cash Equivalents                                                                                                                                                | $                                | 13     |                               |   | $                         | 896,012   |                                                              |   |   | - |   |   |   | 896,025 |   |
|             Accounts      Receivable                                                                                                                                                      |                             | -      |                               |   |                      | 4,220,786 |                                                              |   |   | - |   |   |   | 4,220,786 |   |
|             Other      Accounts Receivable                                                                                                                                                |                             | -      |                               |   |                      | 46,757    |                                                              |   |   | - |   |   |   | 46,757 |   |
|             Advanced      to Suppliers                                                                                                                                                    |                             | -      |                               |   |                      | 12,852    |                                                              |   |   | - |   |   |   | 12,852 |   |
|             Inventory                                                                                                                                                                     |                             | -      |                               |   |                      | 1,294,408 |                                                              |   |   | - |   |   |   | 1,294,408 |   |
|             Prepaid      Expenses                                                                                                                                                         |                             | -      |                               |   |                      | 73,210    |                                                              |   |   | - |   |   |   | 73,210 |   |
| **                                    Total      Current Assets** |                             | 13     |                               |   |                      | 6,544,025 |                                                              |   |   | - |   |   |   | 6,544,038 |   |
| ****                                                                                                                                                                                                                                                  |                             |        |                               |   |                      |           |                                                              |   |   |  |   |   |   |  |   |
| ****                                                                                                                                                                                                                                                  |                             |        |                               |   |                      |           |                                                              |   |   |  |   |   |   |  |   |
| ***Plant & Equipments,      net***                                                                                                                                                                                                                    |                             | -      |                               |   |                      | 265,492   |                                                              |   |   | - |   |   |   | 265,492 |   |
| ***Patent and Other Intangibles, net***                                                                                                                                                                                                               |                             | -      |                               |   |                      | 74,450    |                                                              |   |   | - |   |   |   | 74,450 |   |
| ****                                                                                                                                                                                                                                                  |                             |        |                               |   |                      |           |                                                              |   |   |  |   |   |   |  |   |
| **                                    Total      Assets**         |                             | 13     |                               |   |                      | 6,883,967 |                                                              |   |   | 0 |   |   |   | 6,883,980 |   |
|                                                                                                                                                                                                                                                  |                             |   |                               |   |                      |      |                                                              |   |   |   |   |   |   |   |   |

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**Table of Contents**

|                                                                                                                                                                                                                                                                                                                                     | **Historical December 31, 2009** |     |                               |   |                      |      |                                                              |   |   |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|----------------------------------|----------|------------------------------------|--------|---------------------------|-----------|-------------------------------------------------------------------|--------|--------|
|                                                                                                                                                                                                                                                                                                                                |                             |     |                               |   |                      |      |                                                              |   |   |   |   |   |   |   |   |
|                                                                                                                                                                                                                                                                                                                                     | **PI SERVICES        INC**       |     | **SKY ACHIEVE        HOLDING LTD** |   | **Pro-Forma Adjustments** |      | **Unaudited         Pro Forma         December 31,         2009** |
|                                                                                                                                                                                                                                                                                                                                |                             |     |                               |   |                      |      |                                                              |   |   |   |   |   |   |   |   |
| ***LIABILITIES      AND STOCKHOLDERS' EQUITY***                                                                                                                                                                                                                                                                                     |                             |     |                               |   |                      |      |                                                              |   |   |   |   |   |   |   |   |
|                                                                                                                                                                                                                                                                                                                                |                             |     |                               |   |                      |      |                                                              |   |   |   |   |   |   |   |   |
| ***Current liabilities:***                                                                                                                                                                                                                                                                                                          |                             |     |                               |   |                      |      |                                                              |   |   |   |   |   |   |   |   |
|             Accounts      Payable                                                                                                                                                                                                                                       |                             | 3,140    |                               |   |                      | 1,941,632 |                                                              |   |   | (99 | ) | C |   | 1,944,673 |   |
|             Advance      from Customers                                                                                                                                                                                                                                 |                             | -        |                               |   |                      | 3,316     |                                                              |   |   | - |   |   |   | 3,316 |   |
|             Payroll      Payable                                                                                                                                                                                                                                        |                             | -        |                               |   |                      | 52,915    |                                                              |   |   | - |   |   |   | 52,915 |   |
|             Tax      Payable                                                                                                                                                                                                                                            |                             | -        |                               |   |                      | 290,290   |                                                              |   |   | - |   |   |   | 290,290 |   |
|             Other      Accounts Payables                                                                                                                                                                                                                                |                             | -        |                               |   |                      | 5,656     |                                                              |   |   | - |   |   |   | 5,656 |   |
|             Interest      Payables                                                                                                                                                                                                                                      |                             | -        |                               |   |                      | -         |                                                              |   |   | - |   |   |   | 0 |   |
|             Accrued      Expenses                                                                                                                                                                                                                                       |                             | -        |                               |   |                      | 29,927    |                                                              |   |   | - |   |   |   | 29,927 |   |
|             Sales      Guarantee Accrual                                                                                                                                                                                                                                |                             | -        |                               |   |                      | 219,680   |                                                              |   |   | - |   |   |   | 219,680 |   |
|             Accounts      Payable -Related Party                                                                                                                                                                                                                        |                             | 33,071   |                               |   |                      | 0         |                                                              |   |   | (18,115 | ) | C |   | 14,956 |   |
|                                                                                                                                                                                                                                                                                                                                |                             |          |                               |   |                      |           |                                                              |   |   |  |   |   |   |  |   |
|                                                 **Total      Current Liabilities**  |                             | 36,211   |                               |   |                      | 2,543,416 |                                                              |   |   | (18,214 | ) |   |   | 2,561,413 |   |
|                                                                                                                                                                                                                                                                                                                                |                             |          |                               |   |                      |           |                                                              |   |   |  |   |   |   |  |   |
| ***Stockholders' Equity (Deficit):***                                                                                                                                                                                                                                                                                               |                             |          |                               |   |                      |           |                                                              |   |   |  |   |   |   |  |   |
|             Preferred      Stock, $.001 par value 20,000,000 shares authorized;                   No      shares issued and outstanding                                                                     |                             | -        |                               |   |                      | -         |                                                              |   |   | - |   |   |   | - |   |
|             Common      Stock, $.001 par value 780,000,000 shares authorized;                         44,351,600 shares issued and outstanding as December 31, 2009                                         |                             | 2,218    |                               |   |                      | -         |                                                              |   |   | 42,134 |   | B |   | 44,352 |   |
|             Paid      in Capital                                                                                                                                                                                                                                        |                             | -        |                               |   |                      | 129,340   |                                                              |   |   | (129,340 | ) | C |   | - |   |
|                                                                                                                                                                                                                                                                                                                                |                             |          |                               |   |                      |           |                                                              |   |   |  |   |   |   |  |   |
|             Additional      Paid in Capital                                                                                                                                                                                                                             |                             | 526,722  |                               |   |                      | 143,590   |                                                              |   |   | - |   | C |   | 757,518 |   |
|                                                                                                                                                                                                                                                                                                                                |                             |          |                               |   |                      |           |                                                              |   |   | 129,340 |   | C |   |  |   |
|                                                                                                                                                                                                                                                                                                                                |                             |          |                               |   |                      |           |                                                              |   |   | (42,134 | ) | B |   |  |   |
|             Reserve      Funds                                                                                                                                                                                                                                          |                             | -        |                               |   |                      | 467,186   |                                                              |   |   | - |   |   |   | 467,186 |   |
|             Accumulated      Other Comprehensive Income                                                                                                                                                                                                                 |                             | -        |                               |   |                      | 75,896    |                                                              |   |   | - |   |   |   | 75,896 |   |
|             Retained      Earnings                                                                                                                                                                                                                                      |                             | (565,138 | )                                  |   |                      | 3,524,539 |                                                              |   |   | 18,214 |   | A |   | 2,977,615 |   |
|                                                                                                                                                                                                                                                                                                                                |                             |     |                               |   |                      |      |                                                              |   |   | - |   | C |   |   |   |
|                                                 **Total      Stockholders' Equity** |                             | (36,198  | )                                  |   |                      | 4,340,551 |                                                              |   |   | 18,214 |   |   |   | 4,322,567 |   |
|                                                                                                                                                                                                                                                                                                                                |                             |          |                               |   |                      |           |                                                              |   |   |  |   |   |   |  |   |
|                         **Total      Liabilities and Stockholders' Equity**                                                                                                                                 | $                                | 13       |                               |   | $                         | 6,883,967 |                                                              |   | $      | - |   |   | $ | 6,883,980 |   |
|                                                                                                                                                                                                                                                                                                                                |                             |     |                               |   |                      |      |                                                              |   |   |   |   |   |   |   |   |

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**Table of Contents**

|                                                                                                                                                                                       | **Historical December 31, 2009** |    |                               |   |                      |       |                                                              |   |   |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|----------------------------------|---------|------------------------------------|--------|---------------------------|------------|-------------------------------------------------------------------|--------|--------|
|                                                                                                                                                                                  |                             |    |                               |   |                      |       |                                                              |   |   |   |   |   |   |   |   |
|                                                                                                                                                                                       | **PI SERVICES        INC**       |    | **SKY ACHIEVE        HOLDING LTD** |   | **Pro-Forma Adjustments** |       | **Unaudited         Pro Forma         December 31,         2009** |
| ***Revenues***                                                                                                                                                                        |                             |    |                               |   |                      |       |                                                              |   |   |   |   |   |   |   |   |
|             Battery      Safety System                                                                                    | $                                | -       |                               |   | $                         | 8,686,234  |                                                              |   | $      | - |   |   | $ | 8,686,234 |   |
|             Module      of Battery                                                                                        |                             | -       |                               |   |                      | 554,566    |                                                              |   |   | - |   |   |   | 554,566 |   |
|             Patch      of Battery Materials                                                                               |                             | -       |                               |   |                      | 2,682,151  |                                                              |   |   | - |   |   |   | 2,682,151 |   |
|             Electronic      MV                                                                                            |                             | -       |                               |   |                      | 1,623,615  |                                                              |   |   | - |   |   |   | 1,623,615 |   |
|             Power                                                                                                         |                             | -       |                               |   |                      | 373,444    |                                                              |   |   | - |   |   |   | 373,444 |   |
|             Charger                                                                                                       |                             | -       |                               |   |                      | 9,297      |                                                              |   |   | - |   |   |   | 9,297 |   |
| **Total Revenue**                                                                                                                                                                     |                             | -       |                               |   |                      | 13,929,307 |                                                              |   |   | - |   |   |   | 13,929,307 |   |
| Cost of Goods Sold                                                                                                                                                                    |                             | -       |                               |   |                      | 10,037,004 |                                                              |   |   | - |   |   |   | 10,037,004 |   |
|                                                                                                                                                                                  |                             |         |                               |   |                      |            |                                                              |   |   |  |   |   |   |  |   |
| **Gross Profit**                                                                                                                                                                      |                             | -       |                               |   |                      | 3,892,303  |                                                              |   |   | - |   |   |   | 3,892,303 |   |
|                                                                                                                                                                                  |                             |         |                               |   |                      |            |                                                              |   |   |  |   |   |   |  |   |
| **Operating Expenses:**                                                                                                                                                               |                             |         |                               |   |                      |            |                                                              |   |   |  |   |   |   |  |   |
|             Manufacturing      Expenses                                                                                   |                             | -       |                               |   |                      | 149,274    |                                                              |   |   | - |   |   |   | 149,274 |   |
|             R      & D Expenses                                                                                           |                             | -       |                               |   |                      | 69,388     |                                                              |   |   | - |   |   |   | 69,388 |   |
|             Sales      Expenses                                                                                           |                             | -       |                               |   |                      | 301,518    |                                                              |   |   | - |   |   |   | 301,518 |   |
|             General      and Administrative Expenses                                                                      |                             | 18,214  |                               |   |                      | 373,530    |                                                              |   |   | (18,214 | ) | C |   | 373,530 |   |
|                                                                                                                                                                                  |                             |         |                               |   |                      |            |                                                              |   |   |  |   |   |   |  |   |
|                         Total      Operating Expenses         |                             | 18,214  |                               |   |                      | 893,710    |                                                              |   |   | (18,214 | ) |   |   | 893,710 |   |
|                                                                                                                                                                                  |                             |         |                               |   |                      |            |                                                              |   |   |  |   |   |   |  |   |
| **Income from Operations      before Other Income and (Expenses)**                                                                                                                    |                             | (18,214 | )                                  |   |                      | 2,998,593  |                                                              |   |   | 18,214 |   |   |   | 2,998,593 |   |
| Other Expense and (Income):                                                                                                                                                           |                             |         |                               |   |                      |            |                                                              |   |   |  |   |   |   |  |   |
|             Financial      Expenses and (Income)                                                                          |                             | -       |                               |   |                      | -          |                                                              |   |   | - |   |   |   | - |   |
|             Other      Income                                                                                             |                             | -       |                               |   |                      | (1,470     | )                                                                 |   |   | - |   |   |   | (1,470 | ) |
|                         Total      Other Income and (Expense) |                             | -       |                               |   |                      | (1,470     | )                                                                 |   |   | - |   |   |   | (1,470 | ) |
|                                                                                                                                                                                  |                             |         |                               |   |                      |            |                                                              |   |   |  |   |   |   |  |   |
| **Income Before Income Taxes**                                                                                                                                                        |                             | (18,214 | )                                  |   |                      | 3,000,063  |                                                              |   |   | 18,214 |   |   |   | 3,000,063 |   |
|                                                                                                                                                                                  |                             |         |                               |   |                      |            |                                                              |   |   |  |   |   |   |  |   |
| Provision For Income Taxes                                                                                                                                                            |                             | -       |                               |   |                      | 750,654    |                                                              |   |   | - |   |   |   | 750,654 |   |
|                                                                                                                                                                                  |                             |         |                               |   |                      |            |                                                              |   |   |  |   |   |   |  |   |
| Income After Provision for      Income Taxes                                                                                                                                          | $                                | (18,214 | )                                  |   | $                         | 2,249,409  |                                                              |   | $      | 18,214 |   |   | $ | 2,249,409 |   |
|                                                                                                                                                                                  |                             |    |                               |   |                      |       |                                                              |   |   |   |   |   |   |   |   |

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**Table of Contents**

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**Table of Contents**

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

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

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**Table of Contents**

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

| *Name*        | *Age* | *Positions with the Company*     |   |
|---------------|-------|----------------------------------|--------|
|          |       |                             |   |
| Kun Liu       | 33    | Chairman, President              |   |
|          |       |                             |   |
| Xin Xu        | 54    | Chief Executive Officer          |   |
|          |       |                             |   |
| Chunping Fong | 53    | Chief Financial Officer          |   |
|          |       |                             |   |
| Fang Ai       | 29    | Chief Technology Officer         |   |
|          |       |                             |   |
| Jijun Zhang   | 30    | Vice President and      Director |   |
|          |       |                             |   |
| Qiang Fu      | 32    | Director                         |   |
|          |       |                             |   |
| Chengzhou Xu  | 60    | Chief Engineer                   |   |

| **Mr. Kun Liu**       | Chairman and President 33 Mr. Liu has a Master      of Engineering of Industry Engineering Department in Tsinghua University.      He 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. T                                |
|-----------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| ****                  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
| **Mr. Xin Xu**        | Chief Executive Officer 54. Mr. Xu holds a      Bachelor of Engneering graduated from Automation Department of Tsinghua      University. He has worked for Beijing Guoqiang since 2008. From 2001 to      2008, he was general manger of Beijing Ruibide Electromechanical New Technology      Company. From 1979 to 2000, he was the director of subsurface tool institute      of China Oil Exploration Scientific Institute a company engaged in Oil Exploration.                                                                                                                                                                           |
| ****                  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
| **Ms. ChunPing Fong** | Chief Financial Officer 53. She has a bachelor's      degree graduated from Beijing Technology and Business University majored      in accounting. 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. |

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**Table of Contents**

| **Mr. Fang Ai**      | Chief Technology Officer 29. Mr. Ai has a Master      of Engineering of Electronic Message Engineering System in Beijing Information      S&T University. He 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. JiJun Zhang**  | Vice President 30 Mr. Zhang has a Master's      degree graduated from Hebei University of Economics & Business in the major      of administration management. He 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. ChengZhou Xu** | Chief Engineer 60. Mr. Xu has a bachelor's      degree from Shanghai University of Technology in the major of communication      and electronic engineering. He 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. |
| ****                 |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |
| **Qiang Fu**         | Director, 32. Mr. Fu has been employed since      2003 as the President of Heilongjiang Beijing Guoqiang Science & Technology      Development Co., Ltd., which is located in the City of Harbin in The People's      Republic of China, and is engaged in the business of developing software      and information technology networks. In 1998 Fu Qiang earned a Bachelor's      Degree in Business Administration and in 1996 he earned a Bachelor's Degree      in Law from a university in China. 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.                                                                        |

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**Table of Contents**

| • | 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.                                                                                                                                                                                                                                                                                                                       |

| • | Honest and ethical conduct, including the ethical      handling of actual or apparent conflicts of interest between personal and      professional relationships; |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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**Table of Contents**

| • | 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** |
|--------------|----------------------------|

| 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       | 2007   | $17,647            | -                 | -                                | -                                 | -                                                                        | -                                                                           | -                                        | $17,647      |
|               | 2008   | $17,647            | -                 | -                                | -                                 | -                                                                        | -                                                                           | -                                        | $17,647           |
|               | 2009   | $17,647            | -                 | -                                | -                                 | -                                                                        | -                                                                           | -                                        | $17,647           |
|               |        |                    |                   |                                  |                                   |                                                                          |                                                                             |                                          |                   |
| Xin Xu             | 2008   | $14,700            | -                 | -                                | -                                 | -                                                                        | -                                                                           | -                                        | $14,700           |
|               | 2009   | $14,700            | -                 | -                                | -                                 | -                                                                        | -                                                                           | -                                        | $14,700           |
|               |   |               |                   |                                  |                                   |                                                                          |                                                                             |                                          |                   |
| Chunping Fong, CFO | 2008   | $14,700            | -                 | -                                | -                                 | -                                                                        | -                                                                           | -                                        | $14,700           |
|               | 2009   | $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)                                                |   | 38,364,134                                     |   | 86.5%                |   |
|                                                      |   |                                                |   |                      |   |
| Youhua Yu                                                 |   | 4,213,402                                      |   | 9.5%                 |   |
|                                                      |   |                                                |   |                      |   |
| Jijun Zhang                                               |   | 0                                              |   | 0%                   |   |
|                                                      |   |                                                |   |                      |   |
| Qiang Fu                                                  |   | 0                                              |   | 0%                   |   |
|                                                      |   |                                                |   |                      |        |
| All officers and directors      as a group (1 persons)(2) |   | 38,364,134                                     |   | 86.5%                |   |

| **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 have 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.                                                       |

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**Table of Contents**

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

|   | **Services      (US$'000)****** | ****   | ** ** | **2009** | ** ** | ****   | ** ** | **2008** |   |   |
|--------|---------------------------------|--------|------------|----------|------------|--------|------------|----------|--------|--------|
|   | Audit Fees                      |   | $          | 8,000    |       |   | $          | 12,000   |   |   |
|   |                            |   |       |          |       |   |       |          |   |   |
|   | Audit Related Fees              |   |       | -        |       |   |       | -        |   |   |
|   |                            |   |       |          |       |   |       |          |   |   |
|   | Tax Fees                        |   |       | -        |       |   |       | -        |   |   |
|   |                            |   |       |          |       |   |       |          |   |   |
|   | All Other Fees                  |   |       | -        |       |   |       | -        |   |   |
|   |                            |   |       |     |       |   |       |     |   |   |
|   | TOTAL                           |   | $          | 8,000    |       |   | $          | 12,000   |   |   |

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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 PI Services, 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)                                                                                     |
| 24            | Power      of Attorney                                                                                                                                                                                            |
| 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**

|                       | **PI SERVICES, INC.**                                                                                                                                                                                                                                                                                                                           |
|-----------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                  |                                                                                                                                                                                                                                                                                                                                            |
|                  |                                                                                                                                                                                                                                                                                                                                            |
|                  |    /s/ Kun Liu                                                    |
| Dated: April 14, 2010 | Kun Liu, President and Chairman       (Principal executive officer)                                                                                                                                                                                                                                                                             |
|                  |                                                                                                                                                                                                                                                                                                                                            |
|                  |                                                                                                                                                                                                                                                                                                                                            |
|                  |    /s/ Chunping Fong                                                                                                               |
| Dated: April 14, 2010 | Chunping Fong, Chief Financial Officer       (Principal financial officer and principal       accounting officer)                                                                                                                                                                                                                               |
|                  |                                                                                                                                                                                                                                                                                                                                            |
|                  |                                                                                                                                                                                                                                                                                                                                            |

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