**SECURITIES
      AND EXCHANGE COMMISSION**


Washington,
      D.C. 20549





**FORM
      10-QSB**




x Quarterly
      Report pursuant to Section 13 or 15(d) of the Securities Exchange Act
      of
      1934




For
      the
      quarterly period ended September 30, 2007




o Transition
      Report pursuant to 13 or 15(d) of the Securities Exchange Act of 1934




For
      the
      transition period ___________ to ___________





*COMMISSION
      FILE NUMBER 333-64804*





**ASIA
      GLOBAL HOLDINGS CORP.**


(Exact
      name of small Business Issuer as specified in its charter)




Nevada
              (State
                or other jurisdiction of
              Incorporation
                or organization)
            75-3026459
              (IRS
                Employer Identification No.)




**1601-1604
      CRE Centre**


**889
      Cheung Sha Wan Road**


**Kowloon,
      Hong Kong**




(Address
      of principal executive offices)





(213)
      243-1503


(Issuer's
      telephone number, including area code)




Check
      whether the issuer: (1) filed all reports required to be filed by Section 13
      or
      15(d) of the Exchange Act during the past 12 months (or for such shorter period
      that the registrant was required to file such reports), and (2) has been subject
      to such filing requirements for the past 90 days. Yes x No o




Indicate
      by check mark whether the registrant is a large accelerated filer, an
      accelerated filer, or a non-accelerated filer. See definition of "accelerated
      filer and large accelerated filer" in Rule 12b-2 of the Exchange Act. (Check
      one):




Large
      accelerated filer o Accelerated
      filer o Non-accelerated
      filer x




Indicate
      by check mark whether the registrant is a shell company (as defined in Rule
      12b-2 of the Exchange) Yes o No x




The
      number of shares outstanding of each of the Registrant's classes of common
      stock, as of November 12, 2007 was 129,862,000 shares, all of one class of
      $0.001 par value Common Stock.










**TABLE
      OF CONTENTS**




**PAGE****PART
                I.****FINANCIAL
                INFORMATION**Item
                1. Condensed Consolidated Financial StatementsCondensed
                Consolidated Balance Sheet as at September 30, 2007
                (unaudited)
            
            
            4Condensed
                Consolidated Statements of Operations for the Three and Nine
                MonthsEnded
                September 30, 2007 and September 30, 2006 (unaudited)
            
            
            5Condensed
                Consolidated Statements of Cash Flows for the Three and Nine Months
                EndedSeptember
                30, 2007 and September 30, 2006 (unaudited)
            
            
            6Condensed
                Consolidated Statement of Statement of Stockholders’ Equity for the
              Nine
                Months Ended September 30, 2007 (unaudited)
            
            
            7Notes
                to Condensed Consolidated Financial Statements (unaudited)
            
            
            8Item
                2. Management’s Discussion and Analysis of Financial Condition or Plan of
                Operation
            
            
            20Item
                3. Controls and Procedures
            
            
            34**PART
                II. OTHER INFORMATION**Item
                1. Legal Proceedings
            
            
            34Item
                2. Unregistered Sales of Equity Securities and Use of
                Proceeds
            
            
            34Item
                3. Defaults Upon Senior Securities
            
            
            34Item
                4. Submission of Matters to a Vote of Security Holders
            
            
            34Item
                5. Other Information
            
            
            35Item.
                6. Exhibits and Reports on Form 8-K
            
            
            35**SIGNATURES**
            
            
            **36**





Page
          2




**SPECIAL
      NOTE ON FORWARD LOOKING STATEMENTS**




This
      Quarterly Report on Form 10-QSB, including "Management's Discussion and Analysis
      of Financial Condition and Results of Operations" in Item 2 of Part I of this
      report include forward-looking statements. These statements involve known and
      unknown risks, uncertainties and other factors that may cause our actual
      results, levels of activity, performance or achievements to be materially
      different from any future results, levels of activity, performance, or
      achievements expressed or implied by forward-looking statements.




In
      some
      cases, you can identify forward-looking statements by terminology such as "may,"
      "should," "expects," "plans," "anticipates," "believes," "estimates,"
      "predicts," "potential," "proposed," "intended," or "continue" or the negative
      of these terms or other comparable terminology. You should read statements
      that
      contain these words carefully, because they discuss our expectations about
      our
      future operating results or our future financial condition or state other
      "forward-looking" information. There may be events in the future that we are
      not
      able to accurately predict or control. Before you invest in our securities,
      you
      should be aware that the occurrence of any of the events described in this
      Annual Report could substantially harm our business, results of operations
      and
      financial condition, and that upon the occurrence of any of these events, the
      trading price of our securities could decline and you could lose all or part
      of
      your investment. Although we believe that the expectations reflected in the
      forward-looking statements are reasonable, we cannot guarantee future results,
      growth rates, levels of activity, performance or achievements. We are under
      no
      duty to update any of the forward-looking statements after the date of this
      Quarterly Report to conform these statements to actual results.





Page
          3




**PART
      1: FINANCIAL INFORMATION**





**ASIA
      GLOBAL HOLDINGS CORP.**


**CONDENSED
      CONSOLIDATED BALANCE SHEETS**


**AS
      OF SEPTEMBER 30, 2007 AND DECEMBER 31, 2006**


**(Currency
      expressed in United States Dollars (“US$”), except for number of
      shares)**




September
                30, 2007
            
            December
                31, 2006(unaudited)
            
            (audited)**Current
                assets:**Cash
                and cash equivalents
            
            $
            61,950
            
            $
            22,514Restricted
                cash
            
            
            683,736
            
            
            417,239Accounts
                receivable, net
            
            
            3,565,099
            
            
            2,391,503Inventories
            
            
            242,414
            
            
            -Amounts
                due from related parties
            
            
            1,976,145
            
            
            1,055,240Prepayments
                and other current assets
            
            
            182,060
            
            
            4,311Total
                current assets
            
            
            6,711,404
            
            
            3,890,807Property,
                plant and equipment, net
            
            
            921,441
            
            
            52,168Intangible
                assets, net
            
            
            313,565
            
            
            311,412Long-term
                prepayments
            
            
            1,045,428
            
            
            508,628**TOTAL
                ASSETS**
            
            $
            8,991,838
            
            $
            4,763,015**LIABILITIES
                AND STOCKHOLDERS’ EQUITY**Current
                liabilities:Bank
                overdraft, secured
            
            $
            117,545
            
            $
            25,578Secured
                bank loans - current portion
            
            
            194,358
            
            
            419,303Letters
                of credit
            
            
            706,282
            
            
            262,628Accounts
                payable and accrued liabilities
            
            
            2,047,373
            
            
            1,033,874Promissory
                note payable
            
            
            370,000
            
            
            -Income
                tax payable
            
            
            791,734
            
            
            340,143Amount
                due to related parties
            
            
            91,464
            
            
            17,173Total
                current liabilities
            
            
            4,318,756
            
            
            2,098,699Long-term
                liabilities:Secured
                bank loans
            
            
            16,026
            
            
            94,307Deferred
                tax liabilities
            
            
            59,704
            
            
            59,704Total
                long-term liabilities
            
            
            75,730
            
            
            154,011Total
                liabilities
            
            
            4,394,486
            
            
            2,252,710Minority
                interest
            
            
            538,662
            
            
            -Stockholders’
                equity:Series
                A, convertible preferred stock, $0.001 par value; 500,000 shares
                authorized; no issued and outstanding shares
            
            
            -
            
            
            -To
                be issued: 500,000 shares
            
            
            1,000,000
            
            
            1,000,000Common
                stock, $0.001 par value; 199,500,000 shares authorized; 106,362,000
                and
                54,862,000 shares issued and outstanding as of September 30, 2007
                and
                December 31, 2006
            
            
            106,362
            
            
            54,862To
                be issued: 1,726,028 shares and 739,726 shares as of September 30,
                2007
                and December 31, 2006
            
            
            414,000
            
            
            153,123Additional
                paid-in capital
            
            
            12,359,170
            
            
            7,428,345Accumulated
                other comprehensive income
            
            
            5,729
            
            
            3,517Accumulated
                deficit
            
            
            (9,826,571
            )
            
            (6,129,542
            )Total
                stockholders’ equity
            
            
            4,058,690
            
            
            2,510,305**TOTAL
                LIABILITIES AND STOCKHOLDERS’ EQUITY**
            
            $
            8,991,838
            
            $
            4,763,015




See
      accompanying notes to condensed consolidated financial statements.




Page
          4


**ASIA
      GLOBAL HOLDINGS CORP.**


**CONDENSED
      CONSOLIDATED STATEMENTS OF OPERATIONS**


**AND
      COMPREHENSIVE LOSS**


**FOR
      THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2007 AND
      2006**


**(Currency
      expressed in United States Dollars (“US$”), except for number of
      shares)**


**(Unaudited)**




Three
                months ended September 30,
            
            Nine
                months ended September 30,2007
            
            2006
            
            2007
            
            2006**Revenues,
                net**
            
            $
            3,843,695
            
            $
            2,017,736
            
            $
            6,861,823
            
            $
            3,602,564**Cost
                of revenue**
            
            
            1,404,809
            
            
            632,885
            
            
            2,428,720
            
            
            1,040,203**Gross
                profit**
            
            
            2,438,886
            
            
            1,384,851
            
            
            4,433,103
            
            
            2,562,361**OPERATING
                EXPENSES:**Sales
                and marketing
            
            
            379,838
            
            
            77,131
            
            
            922,683
            
            
            246,249Television
                program promotion
            
            
            16,888
            
            
            -
            
            
            199,872
            
            
            -Consulting
                and professional fee
            
            
            2,298,424
            
            
            1,643,750
            
            
            5,324,324
            
            
            1,819,250Stock-based
                compensation to an executive
            
            
            56,713
            
            
            1,049,907
            
            
            260,877
            
            
            1,049,907Depreciation
                and amortization
            
            
            48,928
            
            
            81,787
            
            
            123,765
            
            
            245,366General
                and administrative
            
            
            264,445
            
            
            271,882
            
            
            1,068,131
            
            
            579,612Total
                operating expenses
            
            
            3,065,236
            
            
            3,124,457
            
            
            7,899,652
            
            
            3,940,384**LOSS
                FROM OPERATIONS**
            
            
            (626,350
            )
            
            (1,739,606
            )
            
            (3,466,549
            )
            
            (1,378,023
            )**OTHER
                INCOME (EXPENSE):**Other
                income
            
            
            5,250
            
            
            6,981
            
            
            12,607
            
            
            20,475Interest
                expense
            
            
            (22,887
            )
            
            (10,925
            )
            
            (51,540
            )
            
            (27,648
            )Total
                other (expense) income
            
            
            (17,637
            )
            
            (3,944
            )
            
            (38,933
            )
            
            (7,173
            )**LOSS
                BEFORE INCOME TAXES AND MINORITY INTEREST**
            
            
            (643,987
            )
            
            (1,743,550
            )
            
            (3,505,482
            )
            
            (1,385,196
            )Income
                tax expenses
            
            
            (314,256
            )
            
            (181,410)
            )
            
            (472,885
            )
            
            (311,872
            )Minority
                interest
            
            
            (9,206
            )
            
            -
            
            
            281,338
            
            
            -**NET
                LOSS**
            
            $
            (967,449
            )
            $
            (1,924,960
            )
            $
            (3,697,029
            )
            $
            (1,697,068
            )Other
                comprehensive (loss) income:-
                Foreign currency translation (loss) gain
            
            
            (196
            )
            
            (61
            )
            
            2,212
            
            
            (145
            )**COMPREHENSIVE
                LOSS**
            
            $
            (967,645
            )
            $
            (1,925,021
            )
            $
            (3,694,817
            )
            $
            (1,697,213
            )Basic
                loss per share
            
            $
            (0.01
            )
            $
            (0.08
            )
            $
            (0.04
            )
            $
            (0.07
            )Diluted
                loss per share
            
            $
            (0.01
            )
            $
            (0.08
            )
            $
            (0.04
            )
            $
            (0.07
            )Basic
                weighted average number of shares outstanding during the
                period
            
            
            93,584,222
            
            
            25,225,043
            
            
            82,909,222
            
            
            22,893,934Diluted
                weighted average number of shares outstanding during the
                period
            
            
            93,584,222
            
            
            25,225,043
            
            
            82,909,222
            
            
            22,893,934




See
      accompanying notes to condensed consolidated financial statements.




Page
          5


**ASIA
      GLOBAL HOLDINGS CORP.**


**CONDENSED
      CONSOLIDATED STATEMENTS OF CASH FLOWS**


**FOR
      THE NINE MONTHS ENDED SEPTEMBER 30, 2007 AND 2006**


**(Currency
      expressed in United States Dollars (“US$”))**


**(Unaudited)**




Nine
                months ended September 30,2007
            
            2006**Cash
                flows from operating activities:**Net
                loss
            
            $
            (3,697,029
            )
            $
            (1,697,068
            )Adjustments
                to reconcile net (loss) income to net cash provided by (used in)
                operating
                activities:Minority
                interest in earnings of consolidated subsidiary
            
            
            (281,338
            )
            
            -Depreciation
                and amortization
            
            
            123,765
            
            
            245,366Stock-based
                compensation to an executive, non-cash
            
            
            260,877
            
            
            1,049,907Common
                stock issued for services, non-cash
            
            
            4,982,325
            
            
            1,819,250Change
                in operating assets and liabilities:Accounts
                receivable, trade
            
            
            (1,173,596
            )
            
            (2,373,077
            )Inventories
            
            
            (242,414
            )
            
            -Prepayments
                and other current assets
            
            
            (714,549
            )
            
            (289,730
            )Accounts
                payables and accrued liabilities
            
            
            1,013,499
            
            
            423,028Amount
                due to related parties
            
            
            74,291
            
            
            -Income
                tax payable
            
            
            451,591
            
            
            46,202Net
                cash provided by (used in) operating activities
            
            
            797,422
            
            
            (776,122
            )**Cash
                flows from investing activities:**(Repayments)
                advances (to) from related parties
            
            
            (100,905
            )
            
            347,004Increase
                in restricted cash
            
            
            (266,497
            )
            
            (135,529
            )Expenditure
                on intangible assets
            
            
            (81,574
            )
            
            -Purchase
                of property, plant and equipment
            
            
            (913,617
            )
            
            -Net
                cash (used in) provided by investing activities
            
            
            (1,362,593
            )
            
            211,475**Cash
                flows from financing activities:**Increase
                in bank overdraft
            
            
            91,967
            
            
            24,188Advances
                under letters of credit
            
            
            443,654
            
            
            153,013Issue
                of promissory note
            
            
            370,000
            
            
            -Drawdown
                of bank loan
            
            
            134,704
            
            
            714,093Repayments
                of bank loan
            
            
            (437,930
            )
            
            (345,042
            )Net
                cash provided by financing activities
            
            
            602,395
            
            
            546,252Foreign
                currency translation adjustment
            
            
            2,212
            
            
            (143
            )**NET
                CHANGE IN CASH AND CASH EQUIVALENTS**
            
            
            39,436
            
            
            (18,395
            )**CASH
                AND CASH EQUIVALENTS, BEGINNING OF PERIOD**
            
            
            22,540
            
            
            49,134**CASH
                AND CASH EQUIVALENTS, END OF PERIOD**
            
            $
            61,950
            
            $
            30,596**SUPPLEMENTAL
                DISCLOSURE OF CASH FLOW INFORMATION:**Cash
                paid for income taxes
            
            $
            21,294
            
            $
            -Cash
                paid for interest expenses
            
            $
            51,540
            
            $
            27,648**SUPPLEMENTAL
                DISCLOSURE OF NON-CASH TRANSACTIONS:**Amounts
                due from minority interest in relation to unsettled investment cost
                of a
                subsidiary
            
            $
            820,000
            
            $
            -





See
      accompanying notes to condensed consolidated financial statements.




Page
          6


**ASIA
      GLOBAL HOLDING CORP.**


**CONDENSED
      CONSOLDIATED STATEMENT OF STOCKHOLDERS’ EQUITY**


**FOR
      THE NINE MONTHS ENDED SEPTEMBER 30, 2007**


**(Currency
      expressed in United States Dollars (“US$”), except for number of
      shares)**


**(unaudited)**


Series
                  “A” Preferred Stock
                to
                  be issued
              
              Common
                  stock
              
              Common
                  stock to be issued
              
              Additional
              
              Accumulated otherNo.
                  of shares
              
              Amount
              
              No.
                  of shares
              
              Amount
              
              No.
                  of shares
              
              Amount
              
              paid-in
                  capital
              
              comprehensive
                income
              
              Accumulated deficits
              
              Total equityBalance
                  as of January 31, 2007
              
              
              500,000
              
              $
              1,000,000
              
              
              54,862,000
              
              $
              56,862
              
              
              739,726
              
              $
              153,123
              
              
              7,428,345
              
              $
              3,517
              
              $
              (6,129,542
              )
              $
              2,510,305Issue
                  of common stock for services rendered, non-cash
              
              
              -
              
              
              -
              
              
              51,500,000
              
              
              51,500
              
              
              -
              
              
              -
              
              
              4,930,825
              
              
              -
              
              
              -
              
              
              4,982,325Bonus
                  shares to be issued to an executive, non-cash
              
              
              -
              
              
              -
              
              
              -
              
              
              -
              
              
              1,726,028
              
              
              260,877
              
              
              -
              
              
              -
              
              
              -
              
              
              260,877Net
                  loss for the period
              
              
              -
              
              
              -
              
              
              -
              
              
              -
              
              
              -
              
              
              -
              
              
              -
              
              
              -
              
              
              (3,697,029
              )
              
              (3,697,029
              )Foreign
                  currency translation adjustment
              
              
              -
              
              
              -
              
              
              -
              
              
              -
              
              
              -
              
              
              -
              
              
              -
              
              
              2,212
              
              
              -
              
              
              2,212Balance
                  as of September 30, 2007
              
              
              500,000
              
              $
              1,000,000
              
              
              106,362,000
              
              $
              106,362
              
              
              2,465,754
              
              $
              414,000
              
              $
              12,359,170
              
              $
              5,729
              
              $
              (9,826,571
              )
              $
              4,058,690




See
      accompanying notes to condensed consolidated financial statements .




Page
          7


**ASIA
      GLOBAL HOLDINGS CORP.**


**NOTES
      TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS**


**FOR
      THE NINE MONTHS ENDED SEPTEMBER 30, 2007**


**(Currency
      expressed in United States Dollars (“US$”))**


**(Unaudited)**





**NOTE** **—** **1**  **BASIS
      OF PRESENTATION**





The
      accompanying unaudited condensed consolidated financial statements have been
      prepared in accordance with both generally accepted accounting principles for
      interim financial information, and the instructions to Form 10-QSB and Item
      310(b) of Regulation S-B. Accordingly, they do not include all of the
      information and footnotes required by generally accepted accounting principles
      for complete financial statements. The accompanying unaudited condensed
      consolidated financial statements reflect all adjustments (consisting of normal
      recurring accruals) that are, in the opinion of management, considered necessary
      for a fair presentation of the results for the interim periods presented.
      Interim results are not necessarily indicative of results for a full
      year.





The
      condensed consolidated financial statements and related disclosures have been
      prepared with the presumption that users of the interim financial information
      have read or have access to our annual audited condensed consolidated financial
      statements for the preceding fiscal year. Accordingly, these condensed
      consolidated financial statements should be read in conjunction with the
      consolidated financial statements and the related notes thereto contained in
      the
      Annual Report on Form 10-KSB for the year ended December 31, 2006.





**NOTE** **—** **2**  **ORGANIZATION
      AND BUSINESS BACKGROUND**





Asia
      Global Holdings Corp. (the “Company” or “AAGH”) was incorporated in the State of
      Nevada on February 1, 2002 as Longbow Mining Inc. On May 12, 2004, Longbow
      Mining Inc. changed its name to BonusAmerica Worldwide Corporation. On June
      6,
      2006, the Company changed its name to Asia Global Holdings Corp. AAGH is focused
      on building businesses in the People’s Republic of China (“PRC”) and other
      emerging regions and markets in Asia and worldwide. The Company has subsidiaries
      participating in media and advertising, marketing services and internet
      commerce. During 2007, AAGH entered the television entertainment market, where
      we plan to sell advertising slots that air during the broadcast of *Who
      Wants To Be A Millionaire?* TV show
      in the PRC. The head-quarters of AAGH are located in Hong Kong and the Company
      also has offices in the US and the PRC.





Page
          8




Details
      of the Company’s subsidiaries are described below:





Name
            
            Place
                of incorporation
              and
                kind of
              legal
                entity
            
            Principal
                activities
              and
                place ofoperation
            
            Particulars
                of issued/
              registered
                share
              capital
            
            Effective
                interest
              heldSino
                Trade - Intelligent Development Corp.(“Sino
                Trade”)
            
            Hong
                Kong, a limited liability company
            
            Publishing
                & information service and advertisement in Hong Kong
            
            5,000,000
                issued shares of HK$1 each
            
            100%Idea
                Asia Limited
              (“Idea
                Asia”)
            
            Hong
                Kong, a limited liability company
            
            Investment
                holding in Hong Kong in Hong Kong
            
            10,000
                issued shares of HK$1 each
            
            100%China
                Media Power Limited (“CMP”)
            
            Hong
                Kong, a limited liability company
            
            TV
                Entertainment in the PRC
            
            16,000,000
                issued share of HK$1 each
            
            60%Wah
                Mau Corporate Planning Development Co., Ltd (“Wah Mau”)
            
            PRC,
                a limited liability company
            
            Development
                of corporate images and business promotion in the PRC
            
            RMB1,000,000
            
            100%


The
      subsidiaries offer a range of advertising and media services and products that
      meet the needs of marketers and advertisers including Internet marketing, search
      engine marketing, email marketing, print advertising and TV advertising. The
      Company works closely with advertisers to implement integrated online and
      offline advertising and media solutions in Hong Kong and the PRC.





Asia
      Global Holdings Corp. and its subsidiaries are hereinafter referred to as (the
      “Company”).





**NOTE
      - 3**  **GOING
      CONCERN UNCERTAINTIES**





These
      condensed consolidated financial statements have been prepared assuming that
      Company will continue as a going concern, which contemplates the realization
      of
      assets and the discharge of liabilities in the normal course of business for
      the
      foreseeable future.





As
      of
      September 30, 2007, the Company had incurred a net loss of $3,697,029 and an
      accumulated deficit of $9,826,571. Additionally, the Company has incurred losses
      over the past several years. Management has taken certain action and continues
      to implement changes designed to improve the Company’s financial results and
      operating cash flows. The actions involve certain cost-saving initiatives and
      growing strategies, including (a) shift of operation from U.S. to China to
      reduce operating costs; and (b) launch of the broadcast of *Who
      Wants To Be A Millionaire?* TV show
      in the PRC. Management believes that these actions will enable the Company
      to
      improve future profitability and cash flow in its continuing operations through
      September 30, 2008. As a result, the financial statements do not include any
      adjustments to reflect the possible future effects on the recoverability and
      classification of assets or the amounts and classification of liabilities that
      may result from the outcome of the Company’s ability to continue as a going
      concern.





**NOTE** **—** **4**  **SUMMARY
      OF SIGNIFICANT ACCOUNTING POLICIES**




·  Basis
      of
      presentation





These
      accompanying condensed consolidated financial statements have been prepared
      in
      accordance with generally accepted accounting principles in the United States
      of
      America.





·  Use
      of
      estimates





In
      preparing these condensed consolidated financial statements, management makes
      estimates and assumptions that affect the reported amounts of assets and
      liabilities in the balance sheets and revenues and expenses during the period
      reported. Actual results may differ from these estimates.




Page
          9





·  Basis
      of
      consolidation





The
      condensed consolidated financial statements include the financial statements
      of
      AAGH and its subsidiaries.





All
      significant inter-company balances and transactions within the Company have
      been
      eliminated upon consolidation.





·  Cash
      and
      cash equivalents





Cash
      and
      cash equivalents are carried at cost and represent cash on hand, demand deposits
      placed with banks or other financial institutions and all highly liquid
      investments with an original maturity of three months or less as of the purchase
      date of such investments.





·  Accounts
      receivable





Accounts
      receivable are recorded at the invoiced amount and do not bear interest. The
      Company extends unsecured credit to its customers in the ordinary course of
      business but mitigates the associated risks by performing credit checks and
      actively pursuing past due accounts. An allowance for doubtful accounts is
      established and determined based on managements’ assessment of known
      requirements, aging of receivables, payment history, the customer’s current
      credit worthiness and the economic environment. As of September 30, 2007, the
      Company has determined that no allowance for doubtful accounts is
      required.





·  Inventories





Inventories
      include material, labor and direct overhead incurred in the production of
      television episodes and are stated at lower of cost or market value, cost being
      determined on a first-in-first-out method.





·  Property,
      plant and equipment, net





Property,
      plant and equipment are stated at historical cost less accumulated depreciation
      and accumulated impairment losses, if any. Depreciation is calculated on the
      straight-line basis over the following expected useful lives from the date
      on
      which they become fully operational, generally ranging from 3 to 7 years.
      Expenditure for maintenance and repairs is expensed as incurred.





Depreciation
      expense for the three months ended September 30, 2007 and 2006 were $22,260
      and
      $11,964, respectively.





Depreciation
      expense for the nine months ended September 30, 2007 and 2006 were $44,344
      and
      $35,896, respectively.





·  Intangible
      assets





Intangible
      assets consist of costs paid to acquire personal customer information for use
      in
      its advertising and database rental activities. As of September 30, 2007, the
      gross carrying value was $1,150,876, accumulated amortization was $837,312
      and
      the net carrying value was $313,565.





Amortization
      expense totaled $26,668 (2006: $69,823) and $79,421 (2006: $209,470) for the
      three and nine months ended September 30, 2007. The Company amortizes the cost
      of these assets over a period of three to five years. The estimated aggregate
      amortization expense for each of the five succeeding years follows: 2007:
      $106,000; 2008: $106,000; 2009: $90,000; 2010: $10,000; 2011: $nil.





Page
          10




·  Impairment
      of long-lived assets





In
      accordance with SFAS No. 144, *“Accounting
      for the Impairment or Disposal of Long-Lived Assets,”* the
      Company reviews its long-lived assets, including property, plant and equipment
      and intangible assets, for impairment whenever events or changes in
      circumstances indicate that the carrying amounts of the assets may not be fully
      recoverable. If the total of the expected undiscounted future net cash flows
      is
      less than the carrying amount of the asset, a loss is recognized for the
      difference between the fair value and carrying amount of the asset. There has
      been no impairment as of September 30, 2007.





·  Revenue
      recognition





The
      Company recognizes revenue from product sales and business to business wholesale
      transactions at the time of shipment. Revenues from database rentals are
      recorded at the time the services are provided so long as the services are
      defined and communicated in writing, the price is fixed and determinable, no
      other obligations of the Company exist to the customer and the amounts are
      collectible.





Revenues
      from media and advertising sales are recognized in the period the performance
      of
      media coverage and advertising events to be launched for the customer’s product
      promotion is provided.





·  Advertising
      costs





Advertising
      costs are expensed as incurred. Advertising expense totaled $16,888 and $199,872
      for the
      three
      and nine months ended September 30, 2007 .





·  Income
      taxes





The
      Company accounts for income taxes in interim periods as required by Accounting
      Principles Board Opinion No. 28, *“Interim
      Financial Reporting”* and as
      interpreted by FASB Interpretation No. 18, *“Accounting
      for Income Taxes in Interim Periods.”* The
      Company has determined an estimated annual effective tax rate. The rate will
      be
      revised, if necessary, as of the end of each successive interim period during
      the Company’s fiscal year to the Company’s best current estimate. The estimated
      annual effective tax rate is applied to the year-to-date ordinary income at
      the
      end of the interim period.





The
      Company accounts for income tax using SFAS No. 109 *“Accounting
      for Income Taxes”* ,
      which
      requires the asset and liability approach for financial accounting and reporting
      for income taxes. Under this approach, deferred income taxes are provided for
      the estimated future tax effects attributable to temporary differences between
      financial statement carrying amounts of assets and liabilities and their
      respective tax bases, and for the expected future tax benefits from loss
      carry-forwards and provisions, if any. Deferred tax assets and liabilities
      are
      measured using the enacted tax rates expected in the years of recovery or
      reversal and the effect from a change in tax rates is recognized in the
      consolidated statement of operations and comprehensive income in the period
      of
      enactment. A valuation allowance is provided to reduce the amount of deferred
      tax assets if it is considered more likely than not that some portion of, or
      all
      of the deferred tax assets will not be realized.





·  Net
      (loss) income per share





The
      Company calculates net (loss) income per share in accordance with SFAS
      No. 128, *“Earnings
      per Share.”* Basic
      (loss) income per share is computed by dividing the net (loss) income by the
      weighted-average number of common shares outstanding during the period. Diluted
      (loss) income per share is computed similar to basic (loss) income per share
      except that the denominator is increased to include the number of additional
      common shares that would have been outstanding if the potential common stock
      equivalents had been issued and if the additional common shares were
      dilutive.





·  Comprehensive
      (loss) income





SFAS
      No.
      130, *“Reporting
      Comprehensive Income”* ,
      establishes standards for reporting and display of comprehensive income, its
      components and accumulated balances. Comprehensive income as defined includes
      all changes in equity during a period from non-owner sources. Accumulated
      comprehensive income consists of changes in unrealized gains and losses on
      foreign currency translation. This comprehensive income is not included in
      the
      computation of income tax expense or benefit.





·  Foreign
      currencies translation





Transactions
      denominated in currencies other than the functional currency are translated
      into
      the functional currency at the exchange rates prevailing at the dates of the
      transaction. Monetary assets and liabilities denominated in currencies other
      than the functional currency are translated into the functional currency using
      the applicable exchange rates at the balance sheet dates. The resulting exchange
      differences are recorded in the condensed consolidated statement of
      operations.




Page
          11





The
      reporting currency of the Company is the United States dollar ("US dollars").
      The functional currency of the Company's subsidiary operating in Hong Kong
      is
      Hong Kong Dollars (“HKD”) and its financial records are maintained and its
      statutory financial statements are prepared in HKD. The functional currency
      of
      the Company's subsidiary established in the PRC is the Renminbi Yuan (“RMB”) and
      its financial records are maintained and its financial statements are prepared
      in RMB.





In
      general, for consolidation purposes, assets and liabilities of its
      subsidiaries whose functional currency is not the US dollars are
      translated into US dollars, in accordance with SFAS No 52, “ *Foreign
      Currency Translation”* ,
      using
      the exchange rate on the balance sheet date. Revenues and expenses are
      translated at average rates prevailing during the period. The gains and losses
      resulting from translation of financial statements of foreign subsidiaries
      are
      recorded as a separate component of accumulated other comprehensive income
      within the statement of stockholders’ equity.





·  Stock-based
      compensation





The
      Company adopts SFAS No. 123 (revised 2004), *“Stock-Based
      Payment”* (“SFAS
      No. 123R”) using the fair value method. Under
      SFAS No. 123R, stock-based compensation expense is measured at the
      grant date based on the value of the option or restricted stock and is
      recognized as expense, less expected forfeitures, over the requisite service
      period.





·  Related
      parties





Parties,
      which can be a corporation or individual, are considered to be related if the
      Company has the ability, directly or indirectly, to control the other party
      or
      exercise significant influence over the other party in making financial and
      operating decisions. Companies are also considered to be related if they are
      subject to common control or common significant influence.





·  Segment
      reporting





SFAS
      No.
      131 *“Disclosures
      about Segments of an Enterprise and Related Information”* establishes standards for reporting information about operating segments on
      a
      basis consistent with the Company’s internal organization structure as well as
      information about geographical areas, business segments and major customers
      in
      the financial statements. The Company operates two reportable segments in Media
      and advertising business and TV entertainment business,
      respectively.





·  Fair
      value of financial instruments





The
      Company values its financial instruments as required by Statement of Financial
      Accounting Standard (SFAS) No. 107, “ *Disclosures
      about Fair Value of Financial Instruments* ”.
      The
      estimated fair value amounts have been determined by the Company, using
      available market information and appropriate valuation methodologies. The
      estimates presented herein are not necessarily indicative of amounts that the
      Company could realize in a current market exchange.





The
      Company’s financial instruments primarily consist of cash and cash equivalents,
      restricted cash, accounts receivable, accounts payable and accrued liabilities,
      income tax payable and amounts due from / to related parties.





As
      of the
      balance sheet date, the estimated fair values of the financial instruments
      were
      not materially different from their carrying values as presented due to the
      short term maturities of these instruments and that the interest rates on the
      borrowings approximate those that would have been available for loans of similar
      remaining maturity and risk profile at respective year ends.





·  Recently
      issued accounting standards





The
      Company has reviewed all recently issued, but not yet effective, accounting
      pronouncements and do not believe the future adoption of any such pronouncements
      may be expected to cause a material impact on its financial condition or the
      results of its operations.




Page
          12





In
      June
      2006, the FASB issued Interpretation No. 48, *Accounting
      for Uncertainty in Income Taxes* (“FIN
      48”). FIN 48 clarifies the accounting for uncertainty in income taxes recognized
      in the Company’s financial statements in accordance with SFAS No. 109. FIN
      48 prescribes a recognition threshold and measurement attributes for the
      financial statement recognition and measurement of a tax position taken or
      expected to be taken in a tax return. The Company adopted FIN48 on
      January 1, 2007. The adoption of FIN 48 did not have an effect on the
      results of operations or financial condition. The Company did not have any
      unrecognized tax benefits as of September 30, 2007.





On
      February 15, 2007, the Financial Accounting Standards Board (“FASB”) issued
      Statement of Financial Accounting Standards No. 159, *“The
      Fair Value Option for Financial Assets and Financial Liabilities — Including an
      Amendment of FASB Statement No. 115”* (“SFAS
      159”). This standard permits an entity to measure financial instruments and
      certain other items at estimated fair value. Most of the provisions of SFAS
      No. 159 are elective; however, the amendment to FASB No. 115, *“Accounting
      for Certain Investments in Debt and Equity Securities,* ”
applies
      to all entities that own trading and available-for-sale securities. The fair
      value option created by SFAS 159 permits an entity to measure eligible items
      at
      fair value as of specified election dates. The fair value option (a) may
      generally be applied instrument by instrument, (b) is irrevocable unless a
      new election date occurs, and (c) must be applied to the entire instrument
      and not to only a portion of the instrument. SFAS 159 is effective as of the
      beginning of the first fiscal year that begins after November 15, 2007.
      Early adoption is permitted as of the beginning of the previous fiscal year
      provided that the entity (i) makes that choice in the first 120 days
      of that year, (ii) has not yet issued financial statements for any interim
      period of such year, and (iii) elects to apply the provisions of FASB 157.
      Management is currently evaluating the impact of SFAS 159, if any, on the
      Company’s financial statements.





**NOTE** **—** **5**  **RESTRICTED
      CASH**





The
      Company maintains a cash reserve in the amount of $20,000 with a bank, which
      is
      restricted as to use as a requirement of the Company's merchant (credit card)
      account.




AAGH’s
      wholly-owned subsidiary, Sino Trade, maintains pledged fixed deposits of
      $663,736, with interest bearing from 2.65% to 4.08% per annum as required per
      its bank financing agreements.





**NOTE** **—** **6**  **INVENTORIES**





Inventories
      represent the capitalized production costs to locally broadcast the licensed
      content of television program “ *Who
      Wants To Be A* Millionaire?”
      in the PRC. They mainly include the labor cost, prizes and gifts and the
      overhead of the production departments. The capitalized production costs are
      amortized to expense upon the release of episodes on a monthly basis, which
      will
      be released to the market in the next twelve months.





**NOTE** **—** **7**  **AMOUNT
      DUE FROM / TO RELATED PARTIES**





As
      of
      September 30, 2007, the amounts are temporary advances made to related parties,
      which are unsecured, interest free and repayable on demand and include the
      following: (i) amounts due from entities under common control by the Company’s
      President, who is also the Chief Executive Officer and the Chief Financial
      Officer of the Company totaling $1,155,632; (ii) amounts due to officers
      $91,464; and (iii) amounts due from minority shareholders of
      $820,513.





Page
          13




**NOTE** **—** **8**  **PREPAYMENTS
      AND OTHER CURRENT ASSETS**





Prepayments
      and other current assets consisted of the following:





September
                30, 2007
            
            December
                31, 2006(audited)Utility
                deposits
            
            $
            47,145
            
            $
            -Prepaid
                expenses
            
            
            131,354
            
            
            -Other
                prepayments and receivables
            
            
            3,561
            
            
            4,311$
            182,060
            
            $
            4,311





**NOTE** **—** **9**  **LONG-TERM
      PREPAYMENTS**





September
                30, 2007
            
            December
                31, 2006(audited)Prepaid
                license fee for television program broadcast right
            
            $
            536,800
            
            $
            508,628Prepaid
                broadcasting network fee
            
            
            508,628
            
            
            -$
            1,045,428
            
            $
            508,628





The
      prepaid license fee for television program broadcast right and broadcasting
      network fee are subject to the amortization over the terms of the license life
      in 2 years, on episode airing basis, upon the release of TV
      programs.





**NOTE** **—** **10**  **INDEBTEDNESS**





(a)  Letters
      of credit





The
      Company’s subsidiary operating in Hong Kong is committed under certain letters
      of credit and other trust receipt loans issued by DBS Bank (Hong Kong) Ltd
      and
      Public Bank (Hong Kong) Ltd totaling $706,282 expiring through October
      2007.





(b)  Bank
      loans





The
      Company’s subsidiary operating in Hong Kong is committed under certain secured
      bank term loans bearing interest at the rates ranging from 6.75% to 11.24%
      as of
      September 30, 2007, payable in monthly installments until paid in full. As
      of
      September 30, 2007, total amounts outstanding under bank loans were $210,384.





(c)  Convertible
      promissory note





The
      Company issued a convertible promissory note (the “Note”) to a third party,
      Sabana Investments LLC, for the amount of $370,000 and bearing interest at
      20%
      per annum. The term of the Note was for 90 days and matured on May 15, 2007.
      The
      Note allows for an option to convert any unpaid principal and interest into
      AAGH’s $0.001 par value common stock at a conversion price equal to the market
      price for such shares as of the date of the conversion.





On
      May
      15, 2007, the Company has reached a mutual agreement with Sabana Investments,
      LLC to extend the maturity date of the convertible promissory note of 90 days
      to
      August 15, 2007.





On
      August
      21, 2007, the Company has reached a mutual agreement with Sabana Investments,
      LLC to extend the maturity date of the convertible promissory note of 90 days
      to
      November 15, 2007.





Page
          14




**NOTE
      - 11**  **INCOME
      TAXES**





The
      components of income (loss) before income taxes and minority interest separating
      US, Hong Kong and PRC operations are as follows:





Nine
                months ended September 30,2007
            
            2006Loss
                subject to US operation
            
            $
            (5,405,263
            )
            $
            (3,177,490
            )Income
                subject to Hong Kong operation
            
            
            1,998,675
            
            
            1,770,422(Loss)
                income to PRC operation
            
            
            (98,894
            )
            
            21,872Income
                (loss) before income taxes and minority interest
            
            $
            (3,505,482
            )
            $
            (1,385,196
            )





*United
      States of America*





AAGH
      is
      registered in the State of Nevada and is
      subjected to United States of America tax law.





As
      of
      September 30, 2007, the U.S. operation had $14,004,470 net operating losses
      available for federal tax purposes, which are available to offset future taxable
      income. The net operating loss carry forwards begin to expire in 2027. The
      Company has provided for a full valuation allowance of $4,901,565 for future
      tax
      benefits from net operating loss carryforwards as the management believes it
      is
      more likely than not that these assets will not be realized in the
      future.





*Hong
      Kong*





For
      the
      nine months ended September 30, 2007, provision for income taxes represents
      Hong
      Kong profits tax of $472,885 (2006: $311,872) for AAGH’s subsidiaries operating
      in Hong Kong. Hong Kong profits tax rate is 17.5% on the subsidiaries’ estimated
      assessable profits arising in Hong Kong. A reconciliation of income before
      income taxes to the effective tax rate for the Hong Kong subsidiaries as
      follows:





Nine
                months ended September 30,2007
            
            2006Income
                before income taxes
            
            $
            1,998,675
            
            $
            1,770,422Tax
                at Hong Kong profits tax rate
            
            
            349,768
            
            
            309,824Tax
                losses from subsidiaries operating in Hong Kong
            
            
            123,140
            
            
            -Tax
                effect of non-assessable income and non-deductible
                expenses
            
            
            (23
            )
            
            2,048Tax
                charge for the period at the Company’s effective tax rate
            
            $
            472,885
            
            $
            311,872





Its
      effective income tax rates for the three and nine months ended September 30,
      2007 were 28.8% and 23.6%, respectively. Income taxes payable as of September
      30, 2007 consists of Hong Kong profits tax of $791,734.





*The
      PRC*





AAGH’s
      subsidiary operating in the PRC is subject to PRC Foreign Enterprise Income
      Tax
      at a rate of 15% on the subsidiary's assessable profits, based on existing
      PRC
      tax legislation, interpretations and practices in respect thereof. No provision
      for PRC Foreign Enterprise Income Tax has been made as the subsidiary did not
      have any assessable profits for the nine months ended September 30,
      2007.





As
      of
      September 30, 2007, the aggregate cumulative tax losses of $14,842,851 which
      can
      be carried forward indefinitely to offset future taxable income. The deferred
      tax assets as of September 30, 2007 consists mainly of tax losses from differing
      tax regimes and for which a full valuation allowance has been provided, as
      the
      management believes it is more likely than not that these assets will not be
      realized in the future.




Page
          15





The
      following table sets forth the significant components of the aggregate net
      deferred tax assets of the Company as of September 30, 2007:





September
                30, 2007Net
                operating loss carry forwards from:US
                operation
            
            $
            4,901,565Hong
                Kong operation
            
            
            124,757The
                PRC
            
            
            18,822Total
                deferred tax assets
            
            
            5,045,144Less:
                valuation allowance
            
            
            (5,045,144
            )Net
                deferred tax assets
            
            $
            -





**NOTE** **—** **12**  **STOCK-BASED
      COMPENSATION**





During
      the nine months ended September 30, 2007, the Company had made stock-based
      compensations for services received relating to management services, business
      advisory, and legal and professional services and as compensation to the
      Company’s President pursuant to the Employment Agreement. Details of the
      stock-based compensations made during the three and nine months ended September
      30, 2007 are as follows:





*Common
      stock issued and to be issued*





During
      the nine months ended September 30, 2007, the Company had entered into various
      stock-based compensation agreements for services received relating to management
      services, business advisory, and legal and professional services and as
      compensation to the Company’s President pursuant to the Employment Agreement.
      The shares of common stock issued or to be issued are as follows:





(i)
            26,500,000
                unrestricted shares of common stock were issued for services received
                relating to management services, business advisory, and legal and
                professional services valued at the fair market value on the dates
                of
                grant. The aggregate fair value of the 26,500,000 unrestricted shares
                of
                common stock granted was $2,757,325. The shares were issued under
                AAGH's
                Registration Statement on Form S-8 relating to the registration of
                the
                AAGH's 2007 Non-Qualified Incentive Stock Compensation Plan as filed
                with
                the SEC on January 31, 2007 ; and





(ii)
            Pursuant
                to an Employment Agreement dated August 18, 2006, 2,000,000 shares
                of
                restricted common stock were payable to the Company’s President as a
                signing bonus to be earned over one year as part of a compensation
                package
                upon the execution of the employment agreement (See Note 9). The
                fair
                value of the common stock signing bonus totaled $414,000 and will
                be
                recognized ratably over the one-year service period per the employment
                agreement. The fair value was based on the quoted market value of
                the
                Company’s common stock as at the date of the employment agreement. As of
                September 30, 2007, the shares earned had not been issued and accordingly,
                the common shares to be issued are presented in the stockholders’ equity
                section of the condensed consolidated balance sheet under the caption
                “Common stock to be issued”. Upon the issue of the 1,726,028 shares of
                restricted common stock, the par value of the 1,726,028 shares of
                restricted common stock totaling $1,726 will be transferred to common
                stock issued and outstanding. The excess of $355,561 will be recognized
                as
                an addition to the additional paid-in capital;
                and




(iii)
            25,000,000
                unrestricted shares of common stock were issued for services received
                relating to management services, business advisory, and legal and
                professional services valued at the fair market value on the dates
                of
                grant. The aggregate fair value of the 25,000,000 unrestricted shares
                of
                common stock granted was $2,225,000. The shares were issued under
                AAGH's
                Registration Statement on Form S-8 relating to the registration of
                the
                AAGH's 2007 Non-Qualified Incentive Stock Compensation Plan as filed
                with
                the SEC on August 27, 2007.




Page
          16




**NOTE** **—** **13**  **NET
      LOSS PER SHARE**





Basic
      EPS
      is computed as net earnings (loss) divided by the weighted average number of
      common shares outstanding for the period. Diluted EPS reflects the potential
      dilution that could occur from common shares issuable through stock options,
      warrants, and other convertible securities, such as convertible preferred stock.
      No potential common stock is considered in the diluted EPS calculation when
      the
      Company incurs loss from continuing operations since the effect would be
      anti-dilutive. The computation of diluted loss per share for the nine months
      ended September 30, 2007, did not assume the exercise of the potential dilution
      of 500,000 shares of Series A Convertible Preferred Stock to be issued as the
      exercise of such preferred stock is anti-dilutive.





**NOTE** **—** **14**  **SEGMENT
      INFORMATION**





(a)  Segment
      information





For
      the
      nine months ended September 30, 2007, the Company only operated in two segments,
      Media and Advertising Business and Television Broadcasting Business, as defined
      by SFAS 131, Disclosures about Segments of an Enterprise and Related Information
      ("SFAS 131").





Summarized
      financial information concerning the Company’s reportable segments is shown in
      the following table for the nine months ended September 30,
      2007:




Media
                and Advertising Business
            
            TV
              Entertainment
              Business
            
            Corporate
            
            TotalOperating
                revenues
            
            $
            6,861,823
            
            $
            -
            
            $
            -
            
            $
            6,861,823Cost
                of revenues
            
            
            (2,428,720
            )
            
            -
            
            
            -
            
            
            (2,428,720
            )Gross
                profit
            
            
            4,433,103
            
            
            -
            
            
            -
            
            
            4,433,103Depreciation
                and amortization
            
            
            112,686
            
            
            2,477
            
            
            8,602
            
            
            123,765Net
                income (loss)
            
            $
            2,130,242
            
            $
            (422,008
            )
            $
            (5,405,263
            )
            $
            (3,697,029
            )Long-lived
                assets
            
            $
            1,127,148
            
            $
            105,463
            
            $
            2,395
            
            $
            1,235,006





In
      October 2007, the Company commenced the TV entertainment business and launched
      the broadcast of “ *Who
      Wants To Be A Millionaire?* ”
      television program in the PRC.





Page
          17




(b)  Geographic
      information





The
      Company operates primarily in Hong Kong. The Company's geographic sales as
      a
      percent of total revenue are as follows:





Nine
                months ended September 30,2007
            
            2006United
                States
            
            $
            -
            
            $
            22,000Hong
                Kong
            
            
            6,861,823
            
            
            3,580,564$
            6,861,823
            
            $
            3,602,564





As
      of
      September 30, 2007, 9% of the Company’s long-lived assets were located in the
      PRC and 91% in Hong Kong.





**NOTE** **—** **15**  **CONCENTRATIONS
      OF RISK**





The
      Company is exposed to the followings concentrations of risk:





(a)  Major
      customers





As
      of
      September 30, 2007, the Company had six customers that each accounted for more
      than 10% of trade receivables and the Company had six customers each accounted
      for more than 10% of revenues for the period ended September 30, 2007. If the
      Company was unable to obtain other customers, the Company's business, operating
      results and financial condition would be materially adversely
      affected.





(b)  Major
      vendors





As
      of
      September 30, 2007, the Company had three vendors that each accounted for more
      than 10% of trade payables. If these vendors were unavailable to provide
      services in a timely manner and the Company was unable to find alternative
      vendors, the Company's business, operating results and financial condition
      could
      be materially adversely affected.





(c)  Credit
      risk





Financial
      instruments that potentially subject the Company to significant concentrations
      of credit risk consist principally of cash and trade accounts receivable. The
      Company performs ongoing credit evaluations of its customers’ financial
      condition, but does not require collateral to support such
      receivables.





(d)  Interest
      rate risk





As
      the
      Company has no significant interest-bearing assets, the Company’s income and
      operating cash flows are substantially independent of changes in market interest
      rates.





The
      Company’s interest-rate risk arises from long-term borrowings. Borrowings issued
      at variable rates expose the Company to cash flow interest-rate risk. Borrowings
      issued at fixed rates expose the Company to fair value interest-rate risk.
      Company policy is to maintain approximately all of its borrowings in fixed
      rate
      instruments. As of September 30, 2007, all of borrowings were at fixed
      rates.





**NOTE** **—** **16**  **COMMITMENT
      AND CONTINGENCIES**





(a)  Litigation




The
      Company is subject to a limited number of claims and actions that arise in
      the
      ordinary course of business. The litigation process is inherently uncertain,
      and
      it is possible that the resolution of the Company exists and future litigation
      may adversely affect the Company. Management is unaware of any matters that
      may
      have a material impact on the Company's financial position, results of
      operations, or cash flows.




Page
          18




(b)  Operating
      leases





The
      subsidiaries operating in Hong Kong and the PRC were committed under various
      non-cancelable operating leases with terms ranging from one to two years with
      fixed monthly rentals, due April 30, 2008 and June 30, 2008, respectively. The
      annual aggregate lease payment is $129,000. None
      of
      the leases included contingent rentals.





Total
      lease expenses for the nine months ended September 30, 2007 and 2006 was $52,452
      and $2,970.





(c)  Contractual
      obligations





The
      Company has incurred various contractual obligations and financial commitments
      in the normal course of the operating and financing activities. The following
      table illustrates the expected future contractual cash obligations as of
      September 30, 2007.




Payments
                due before September 30,2008
            
            2009
            
            TotalInterest
                charges
            
            $
            10,688
            
            $
            5,829
            
            $
            16,517Indebtedness
            
            
            155,727
            
            
            54,657
            
            
            210,384Total:
            
            $
            166,415
            
            $
            60,486
            
            $
            226,901





**NOTE** **—** **17**  **COMPARATIVE
      FIGURES**





Certain
      of the comparative figures have been reclassified to conform to the current
      period's presentation.





**NOTE** **—** **18**  **SUBSEQUENT
      EVENTS**





(a)  Conversion
      of 100,000 shares of Series A Preferred Stock





On
      October 9, 2007, the Company authorized the conversion of 100,000 shares of
      Series A, convertible preferred stock at a ratio of 1:200 into 20,000,000 144
      restricted shares of common stock to Mr Michael Mak, Chief Executive Officer
      pursuant to an Employment Agreement dated August 18, 2006 (the
“Agreeemnt”).





During
      2006, AAGH created a class of non-dilutable preferred stock, 500,000 shares
      of
      $0.001 par value preferred stock, designated as Series A Convertible Preferred
      Stock (“Series A Preferred Stock”) and Series A Preferred Stock was payable to
      the Company’s President as part of a compensation package upon the execution of
      the Agreement. AAGH also filed a “Certificate of Designation” with the State of
      Nevada to establish the voting powers, designations, preferences, limitations,
      restrictions and relative rights of the Preferred Stock. Holders of the Series
      A
      Preferred Stock shall be entitled to receive dividends or other distributions
      with the holders of common stock on an as converted basis when, as, and if
      declared by the directors of AAGH. Each Series A Preferred Stock stockholder
      who
      desires to convert into AAGH’s common stock must provide a ten (10) day written
      notice to AAGH of its intent to convert one or more shares of Series A Preferred
      Stock into common stock at a conversion rate of 200 common stock shares for
      every one (1) Series A Preferred Stock. AAGH may, in its sole discretion, waive
      the ten (10) day written notice requirement and allow for the immediate exercise
      to the right to convert. Holders of the Series A Preferred Stock shall have
      the
      right to vote upon any matter submitted to the stockholders for a vote pursuant
      to the Certificate of Designation of the Rights and Preferences of the Series
      A
      Preferred Stock.





Based
      on
      the Black-Scholes pricing model, the fair value of 500,000 shares of Series
      A
      Preferred Stock at the grant date was $1,000,000 or $2 per share and recorded
      as
      stock-based compensation for the year ended December 31, 2006. Upon the
      conversion of the 100,000 shares of Series A Preferred Stock, the par value
      of
      common stock totaling $20,000 will be recognized as common stock issued and
      outstanding. The excess of $180,000 will be recognized as an addition to the
      additional paid-in capital.





Page
          19




(b)  Repayment
      of promissory note payable





On
      October 15, 2007, the Company repaid in full amount of $370,000 in lieu of
      cash
      to Sabana Investment, LLC to settle with the promissory note
      payable.





**ITEM
      2. MANAGEMENTS DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF
      OPERATIONS OR PLAN OF OPERATION**




The
      following discussion should be read in conjunction with AAGH's unaudited
      condensed consolidated financial statements and notes included herein. The
      results described below are not necessarily indicative of the results to be
      expected in any future period. Certain statements in this discussion and
      analysis, including statements regarding our strategy, financial performance
      and
      revenue sources, are forward-looking statements based on current expectations
      and entail various risks and uncertainties that could cause actual results
      to
      differ materially from those expressed in the forward-looking statements.
      Readers are referred to AAGH's Annual Report on Form 10-KSB for the year ended
      December 31, 2006, as filed with the Securities and Exchange Commission on
      April
      17, 2007.




**Forward
      Looking Statements**




The
      information in this discussion contains forward-looking statements within the
      meaning of Section 27A of the Securities Act of 1933, as amended, and Section
      21E of the Securities Exchange Act of 1934, as amended. These forward-looking
      statements involve risks and uncertainties, including statements regarding
      our
      capital needs, business strategy and expectations. Any statements contained
      herein that are not statements of historical facts may be deemed to be
      forward-looking statements. In some cases, you can identify forward-looking
      statements by terminology such as "may", "will", "should", "expect", "plan",
      "intend", "anticipate", "believe", "estimate", "predict", "potential" or
      "continue", the negative of such terms or other comparable terminology. Actual
      events or results may differ materially. We disclaim any obligation to publicly
      update these statements, or disclose any difference between its actual results
      and those reflected in these statements. The information constitutes
      forward-looking statements within the meaning of the Private Securities
      Litigation Reform Act of 1995.





**Overview**





Asia
      Global Holdings Corp. (formerly known as BonusAmerica Worldwide Corporation)
      ("AAGH" "we" and the "Company") is focused on building businesses in China
      and
      other emerging regions and markets in Asia and worldwide. The Company has
      subsidiaries participating in media and advertising, TV entertainment, marketing
      services and Internet commerce. During 2007 we entered the television
      entertainment market, adding revenue streams from a) the sale of advertising
      slots and b) paid interactive viewer participation programs; that air during
      the
      broadcast of *Who
      Wants To Be A Millionaire?* TV show
      in China. We are headquartered in Hong Kong, and have offices in the US and
      mainland China.





Our
      direct and indirect subsidiaries include Sino Trade - Intelligent Development
      Corp. LTD. (also referred to as “Sino Trade”), Idea Asia Limited (also referred
      to as “Idea Asia”), China Media Power Limited (also referred to as “CMP”), and
      Wah Mau Corporate Planning Development Company (also referred to as “Wah Mau”).
      Sino Trade is a wholly-owned subsidiary of the Company. Idea Asia and Wah Mau
      are wholly owned subsidiaries of Sino Trade. CMP is a 60%-owned subsidiary
      of
      Idea Asia. Sino Trade, Idea Asia and CMP are all Hong Kong corporations. Wah
      Mau
      was formed under the laws of the Peoples Republic of China ("PRC").




Our
      subsidiaries offer a range of advertising and media services and products that
      meet the needs of marketers and advertisers including Internet marketing, search
      engine marketing, email marketing, print advertising and TV advertising. We
      work
      closely with advertisers to implement integrated online and offline advertising
      and media solutions.





Beginning
      in the third quarter of 2007 CMP entered into an agreement with 2waytraffic,
      the
      format owner of *“Who
      Want To Be A Millionaire?”* giving
      CMP the exclusive rights to all interactive programming related to the TV show
      in China. Given this we now also participate in the business of interactive
      entertainment.




We
      sell
      our advertising products and services worldwide from 4 sales locations in 3
      countries to a customer base in Asia, North America, Europe, and
      Canada.




Page
          20




**History**




We
      were
      incorporated in the state of Nevada on February 1, 2002 under the name Longbow
      Mining, Inc. Prior to March 1, 2004, we were engaged in acquisition and
      exploration of mineral properties and evacuation of minerals located in British
      Columbia, Canada.




On
      March
      1, 2004, we purchased BonusAmerica Corporation, a California corporation, or
      BAC, a wholly-owned subsidiary of Stanford International Holding Corporation,
      a
      California corporation, or Stanford. In connection with the transaction, we
      issued 5 million shares of restricted common stock and Archer Pacific
      Management, Inc., an affiliate of Ernest Cheung (one of our founders) and Fred
      Tse (or one of his affiliates) transferred 6.5 million shares of our restricted
      common stock held by them to Stanford for all of the issued and outstanding
      shares of BAC. As a result of this transaction, Stanford became the beneficial
      owner of 57.9% of our then issued and outstanding shares of common stock and
      BAC
      became our wholly-owned subsidiary. At the time of the transaction, Stanford
      was
      owned by Michael Mak, our current president (“President”), chief executive
      officer (“Chief Executive Officer”), interim chief financial officer (“interim
      Chief Financial Officer”) and director, Carson Kwong, a former director, and
      Steven Wong. A Form 13D was filed on June 28, 2004 denoting the beneficial
      ownership of Stanford. Furthermore, on April 16, 2005, Mr. Mak purchased 100%
      of
      the ownership of Stanford from Carson Kwong and Steven Wong. Michael Mak is
      also
      the Chief Executive Officer of Stanford and has the power to direct Stanford's
      votes. Our common stock is currently trading on the Over-the-Counter Bulletin
      Board under the symbol "AAGH."




Effective
      May 12, 2004, (i) Fred Tse resigned as our President and Chief Executive Officer
      and the Board of Directors appointed Michael Mak to serve as our President,
      Chief Executive Officer and director; and (ii) Carson Kwong was appointed to
      serve on our Board of Directors in connection with the acquisition. Effective
      October 13, 2004, Stephen Kenwood and Fred Tse resigned from their positions
      as
      our directors.




Effective
      October 26, 2004, John A. Leper was appointed to serve on our Board of Directors
      and to serve as Secretary as replacement for Ernest Cheung. Effective December
      29, 2004, Carson Kwong resigned from his position as a director and Kam Chuen
      Lau was appointed to fill the vacancy created by Mr. Kwong's departure. Mr.
      Kam
      C. Lau resigned his position as a director of the Company on November 15, 2005.
      Currently, our board of directors consists of Michael Mak, who is also our
      President and Chief Executive Officer and John A. Leper, who is also our
      Vice-President and Secretary. We are in the process of searching for qualified
      personnel to serve as our Chief Financial Officer. Until such time, Michael
      Mak
      is serving as our interim Chief Financial Officer.




Effective
      May 12, 2004, we changed our name from Longbow to BonusAmerica Worldwide
      Corporation and on June 9, 2006, we changed our name to Asia Global Holdings
      Corp. On July 6, 2006 the Company filed a request with the National Association
      of Securities Dealers (NASD) to change its name and symbol. The change of name
      and new symbol became effective on July 17, 2006.. The Company's new trading
      symbol is AAGH. As a result, the Company requested a new CUSIP from the CUSIP
      Service Bureau. The new CUSIP is 04518D 10 8, which became effective on July
      12,
      2006.





Effective
      July 17, 2006, the Company relocated its headquarters from 834 S. Broadway,
      5th
      Floor, Los Angeles, California to 1601-1604 CRE Centre 889 Cheung Sha Wan Road,
      Kowloon, Hong Kong.




During
      March 2004, we formed, a wholly-owned subsidiary, Sino Trade, under the laws
      of
      Hong Kong. The original purpose of Sino Trade was to provide additional support
      to our business-to-business trade operations in China and the United States.
      Today all of our media and advertising business is conducted through Sino Trade
      and its subsidiaries.





November
      10, 2006, we formed Idea Asia, which is a wholly-owned subsidiary of Sino Trade,
      under the laws of Hong Kong.. The purpose of Idea Asia is to acquire and or
      operate entertainment related businesses..




On
      November 27, 2006 we formed CMP, which is a sixty percent (60%) owned subsidiary
      of Idea Asia, under the laws of Hong Kong. The purpose of CMP is to acquire
      the
      rights to a specific entertainment property, namely the globally successful *Who
      Wants To Be A Millionaire?* TV show,
      and produce and broadcast the show in the PRC.





On
      September 29, 2007 China Media Power, subsidiary of Asia Global Holdings Corp,
      broadcast the first ever airing of the globally successful "Who Wants To Be
      A
      Millionaire".TV show produced specifically for mainland China.





Page
          21




**Currently**




Up
      until
      2006 the primary lines of business of the Company were direct marketing,
      Internet commerce and media. We engaged in business-to-consumer retail sales,
      business-to-business media and advertising services sales, and international
      business-to-business media and services sales.




In
      2006
      we shifted our focus away from the Internet consumer retail business to
      concentrate our resources on the growth of our media and advertising business
      in
      Asia - specifically China and Hong Kong. We moved our main operations and
      headquarters from our Los Angeles, California office to our Hong Kong office
      to
      facilitate the identification, evaluation and acquisition of opportunities
      in
      Asia ahead of the competition.




As
      we
      anticipated, the relocating of our headquarters to Hong Kong broadened our
      access to the marketplace resulting in the materialization of what we believe
      to
      be an exceptional opportunity to capitalize on the strongly emerging TV
      advertising media business in mainland China — specifically — the acquisition of
      the rights to produce and broadcast the global phenomenon *Who
      Wants To Be A Millionaire?* TV show
      in China and generate revenue from the sale of the advertising and the
      interactive viewer participation features that air during the show broadcasts.
      Having the exclusive interactive rights for the show in China we also are now
      capitalizing on the enormously popular interactive applications market in China.




In
      2007,
      continuing to advance our strategic focus on media and advertising, we changed
      our accounting segmentation to better reflect and analyze our business. Whereas
      our old segmentation divided our business into the categories of 1) Media &
Advertising and 2) Online Retailing, our new segmentation divides our business
      into the categories of 1) Media & Advertising, 2) TV Entertainment and 3)
      AAGH Corporate. A detailed breakout of the products and services comprising
      these two segments is given in the section titled “Our Products and Services”.





Further
      to more clearly reflect our business we have eliminated the geographic breakout
      comprising the US as we are not currently selling products or services in the
      US. We will maintain our US office in Los Angeles California for the purpose
      of
      seeking out, evaluating and acquiring investment opportunities in the United
      States and Europe.




Our
      revenues for the first nine months of 2007 were $6,861,823 with an increase
      of
      90.5%, $3,259,259 compared to revenues of $3,602,564 for the same period in
      2006.




While
      revenues have increased over the 12 month period, we have not yet been able
      to
      raise the additional capital required to execute many components of our overall
      business plan. As such, some of our plans will remain inactive while we focus
      the resources we have available on only the opportunities with the greatest
      potential for long-term success and benefit for shareholders.




**Our
      Products and Services**





**TV
      Entertainment**




Currently
      this segment includes all operations related to our production and distribution
      of the TV show *Who
      Wants To Be A Millionaire?* in
      China.. We currently have two revenue generating categories within this segment
      -1) TV advertising sales and 2) Interactive programming revenue.





**TV
      Advertising in China** :
      Companies who want to reach the vast and emerging consumer market in China
      can
      air TV ads during the broadcast of the phenomenally successful *Who
      Wants To Be A Millionaire?* The
      first show aired in China September 29, 2007. Asia Global Holdings subsidiary
      CMP will produce and broadcast a minimum of 104 episodes of the globally
      successful TV show in major markets in China with an option to produce another
      104 episodes. China has a population of 1.3 billion with a middle class of
      approximately 300 million and growing rapidly. Advertising during popular TV
      shows is the best way for major international brands to reach this audience
      which is quickly becoming the most important consumer market in the world.





**Interactive
      Programming:** Through
      an agreement between CMP and 2waytraffice (format owner of *Who
      Wants To Be A Millionaire?)* ,
      CMP
      holds the exclusive rights for all interactive programming related to *Who
      Wants To Be A Millionaire?* in
      China.. Currently two viewer participation features (Interactive Programming)
      are incorporated into each broadcast of the TV show 1) Play-Along-At-Home and
      2)
      Call-In-To-Be-A-Contestant The features generate additional
      revenue.





Play-Along
      at Home: Two viewers will each win 10,000 Yuan, about 1,333 US dollars, during
      each episode *Who
      Wants To Be A Millionaire?* in
      China. Here's how: Viewers are presented with two questions during the show.
      One
      at the beginning of the show and one at mid-show. In response to each question,
      home participants can send an SMS message indicating which answer they believe
      is correct. Those submitting a correct answer are eligible to win 10,000 Yuan
      during the show. The first winner is selected at mid-show and announced on
      the
      air. Then, after the first winner is announced, the second question is presented
      to viewers. At the end of the show, the episode's second winner is selected
      and
      announced on the air. Each SMS costs the sender 2 Yuan which is the equivalent
      of about 26 cents in US currency.




Page
          22





Call-in
      to be a Contestant: Want-to-be contestants call an automated interactive
      question and answer system. The caller is presented with 4 or 5 questions with
      a
      multiple choice of answers just like on the TV show. Caller must answer every
      question correctly to become eligible to be an on-air contestant on *Who
      Wants To Be A Millionaire?* .
      A
      computer then randomly selects contestants from all those submitting all correct
      answers. Each call costs the caller 1 Yuan per minute which is the equivalent
      of
      about 13 cents in US currency. Each call requires about 7 to 10
      minutes. ****


**Media
      & Advertising**





**Advertising:** Our
      advertising business includes two categories 1) *business-to-business* media
      and advertising services, and 2) *business-to-consumer* media
& advertising.




***Business-to-Business:*** In this
      category, we derive income from the sale of advertising products and services
      to
      companies who desire to promote their products or services to other businesses.
      Our offerings in this category include a) business directories and trade
      publications that we publish and distribute - we charge companies to place
      their
      advertisements in these publications; b) Internet direct marketing services
      wherein we help businesses promote their business via email and other forms
      of
      online advertising; and c) international trade portal and search engine
      marketing and advertising services which allow companies to locate buyers and/or
      suppliers - specifically we offer these services through an online portal we
      developed called TradeDragon. We charge companies who use TradeDragon to promote
      their business.




**TradeDragonTM** ,
      launched in 2004, is an online international Business-to-Business trade portal
      that connects businesses that desire to trade internationally particularly
      between China and the United States. Supplier members are charged a membership
      fee to participate in TradeDragon. TradeDragon members connect with each other
      through the TradeDragon.com website, which allows them to search for buyers
      and
      suppliers that match their specific requirements. Suppliers can exhibit their
      products and services online for buyers worldwide to view. Buyers can find
      suppliers by posting their needs for suppliers worldwide to view and respond
      to
      and by browsing/searching the database of supplier information online.
      TradeDragon members benefit from a proprietary technology called DragonDynamicsTM
which drives custom-tailored online business traffic to each individual member
      based on that member's specific requirements. DragonDynamicsTM was developed
      internally based on a combination of proprietary industry knowledge, and
      expertise in global direct marketing, ecommerce and China sourcing.




**Industry
      Publications.** Manufactures and suppliers can reach buyers through publications produced and
      distributed by Sino Trade such as (i) *China
      Enterprises,* which is
      a periodic trade magazine created for and distributed to companies seeking
      manufacturers and suppliers in China; (ii) Industry specific trade magazines;
      (iii) *China
      Exhibition Guide,* which
      includes detailed information and dates of trade shows in China and worldwide;
      and (iv) *China
      Supplier Guide,* a
      1000-plus page comprehensive yearly directory listing thousands of China
      manufacturers and suppliers across 20 different categories.




**Marketing
      Services.** Sino
      Trade provides manufacturers and suppliers located primarily in China and Hong
      Kong with marketing services designed to reach international buyers. Email
      marketing and traditional direct marketing services help introduce the products
      and services of manufacturers located in “the world’s factory” - China.




***Business-to-Consumer:*** In this
      category we seek to derive income from companies desiring to promote their
      products or services to consumers. Our consumer Internet portals at this time
      are currently inactive until management determines the Company is in a position
      to successfully execute the operation of each. If and when we scale-up our
      consumer Internet portals, we plan to derive income from advertisers utilizing
      our portals to promote their business to the consumers who visit the Internet
      portals/websites. We have developed but suspended the operations of three
      portals —www.More2Save.com, www.RateandSave.com and
      www.CouponsRewardsSavings.com. We intend to launch www.BonusChina.com, an online
      entertainment, information and services portal, in China when funding is
      available to do so.


**CouponsRewardSavings.com** (Inactive). Our CouponsRewardsSavings.com website was established in 2003 and
      was the original business in our media and advertising distribution network.
      This website attracted visitors with discounts, free gifts and other promotions.
      Revenues were generated by charging advertisers each time a visitor opted to
      receive information (usually an online coupon or special offer) from that
      advertiser. This method of online advertising is referred to as
      "co-registration." Past advertisers include the Professional Career Development
      Institute, GoToMyPC, Financial Cents News, USA Platinum, ClearCredit, JDate.com,
      Home Business Matchmaker and Reunion.com. This portal is indefinitely inactive
      and will remain so unless or until management determines that adequate resources
      are available to operate the portal profitably.




Page
          23




**More2Save.com** (Inactive). More2Save.com is an online coupon portal that offers shoppers
      coupons, rewards and savings. Revenues were generated by charging advertisers
      to
      post coupons on the website. To receive the coupons, shoppers sign up (free
      of
      charge) and complete a one-time demographic survey. Over 200 coupons were
      available to consumers at the initial launch of this website in October 2004.
      This portal is indefinitely inactive and will remain so unless or until
      management determines that adequate resources are available to operate the
      portal profitably.




**RateandSave.com** (Inactive). RateAndSave.com is a consumer-shopping portal that helps consumers
      find the best prices on products they are seeking. Revenues were generated
      from
      advertisers via a cost-per-click bidding model. Through this pay-for-placement
      bidding system, merchants entered bids for select advertising positions based
      on
      product category. When a consumer searched for an item, the merchant with the
      highest bid for that product category got top placement in the search result.
      RateandSave.com was launched in October 2004. This portal is indefinitely
      inactive and will remain so unless or until management determines that adequate
      resources are available to operate the portal profitably.




**BonusChina.com
      (Planned).** BonusChina will be an online portal and will provide entertainment, information
      and services to the consumer market in China.. We intend to generate revenue
      by
      selling advertising space and services to consumers and advertisers. We believe
      that our experience in direct marketing, our relationships with companies in
      China and the U.S., our understanding of the Chinese culture and our local
      presence in China will enable us to succeed in the China Internet market. This
      portal will remain in the planning stage until management determines that
      adequate resources are available to implement and operate the portal
      profitably.




**Infrastructure**




Our
      wholly-owned subsidiary, Sino Trade provides the infrastructure to operate
      our
      media and advertising business in Hong Kong and China. Through Sino Trade,
      we
      coordinate two offices in mainland China and one office in Hong Kong. Our
      offices in mainland China are located throughout the Guangdong Province, the
      manufacturing center responsible for conservatively 30% of China's total
      exports. Our office in Hong Kong serves as our China communications hub. Wah
      Mau, a wholly owned subsidiary of Sino Trade, provides support for our
      operations specifically in mainland China and helps generate sales of our media
      and advertising products and services. Through Sino Trade and Wah Mau we have
      established a network of advertising agency partners in China who sell our
      business-to-business media and advertising products and
      services.


To
      address the TV media opportunity in China, our Sino Trade subsidiary created
      the
      wholly-owned subsidiary Idea Asia to hold entertainment related businesses.
      Idea
      Asia created CMP of which Idea Asia owns 60%. On December 18, 2006, CMP entered
      into an agreement to acquire the rights from UK based Celador International
      Limited (now part of 2waytraffic) to broadcast in China the global quiz show
      phenomenon *Who
      Wants To Be A Millionaire?.* The
      remaining 40% of CMP is owned by Kolmanski International Limited and Region
      Giants Limited who will provide TV production, corporate development, and sales
      and marketing services to CMP. Broadcasting of the show in China began September
      29, 2007.





CMP
      entered into an agreement with China advertising media sales agency Zixunmedia
      on November 11, 2006. Pursuant to PRC regulations, only a licensed advertising
      agency can sell advertising and collect payments for advertising sales in China.
      Zixunmedia is licensed pursuant to PRC laws and will receive thirty percent
      (30%) of the revenues generated from advertising and twenty (20%) of income
      generated by the Play-Along-At-Home feature aired during the *Who
      Wants To Be A Millionaire?* TV
      program. Zixunmedia receives no portion (0%) of income generated by the
      Call-In-To-Be-A-Contestant interactive feature of *Who
      Wants to Be A Millionaire?* ..
      The
      show's format owner, 2Waytraffic gets 40% of income generated by the
      Play-Along-At-Home feature and receives no income from the
      Call-In-To-Be-A-Contestant feature.




**Sales
      and Marketing Plan**




**Media
      & Advertising**





Our
      business-to-business advertising products and services are sold through a
      combination of our small in-house sales staff and a network of outside
      advertising agencies located throughout China and Hong Kong.. We plan to
      continue to expand our network of outside agencies as it has proved to be very
      successful. The benefits are two-fold in that we are able to expand our reach
      and acquire more clients without the overhead risk associated with building
      a
      large in-house sales team. We are able to sell all of our business-to-business
      products and services through our agency network.




Page
          24




We
      supplement the efforts of our sales team and agency network with trade show
      exhibits. In 2007 we attended 30 trade shows. We plan to continue utilizing
      trade shows to generate new clients and improve our visibility in key markets.




At
      this
      time we have no marketing plans for our inactive consumer portals
      CouponsRewardsSavings.com, More2Save.com and RateAndSave.com as these businesses
      are inactive at this time.





**TV
      Entertainment**





*TV
      Advertising:* Building
      upon the aforementioned successful agency network strategy, we are leveraging
      our China based expertise through our partnership with Zixunmedia, an
      established advertising and media sales agency in mainland China. Zixunmedia
      sells the TV advertising slots that air during our CMP subsidiary’s broadcasts
      of *Who
      Wants To Be A Millionaire?* .
      Support
      is provided to the sales effort by promotional TV advertising for *Who
      Wants To Be A Millionaire?* aired
      on
      Guizhou TV, the initial satellite TV channel broadcasting the show. Beginning
      January 1, 2008 *Who
      Wants To Be A Millionaire?* will
      also be distributed through regional TV channels in mainland China of which
      there are hundreds.





In
      2007
      we are building the advertising base for *Who
      Wants To Be A Millionaire?* ..
      The
      show has demonstrated early viewership growth in line with expectations given
      the proven globally successful format and the high production value. As
      vieweship grows the advertising rates will increase. Management's focus is
      to
      leverage the combination of ratings growth, expanded distribution and on-air
      promotion to build a strong rate base for 2008. In 2007 we are expecting only
      very limited revenue from TV advertising sales as the full effect of the
      anticipated rate base build will not show up in advertising revenue until 2008.





*Who
      Wants To Be A Millionaire?* provides ** many
      advertising revenue vehicles such as:





*Advertising
      slots:* During
      each episode ten (10) minutes of advertising will air providing companies with
      the opportunity of running there ads in prime time on one the most exciting
      and
      globally-successful TV shows in broadcast history.





*Sponsorships:* Advertisers can get prime exposure for their brands, logos and slogans by
      sponsoring any of a number of internationally well-known features of *Who
      Wants To Be A Millionaire?* such as
      the $5,000 Safety Line, the $75,000 Safety Line, “The 50-50”, Call-A-Friend, Ask
      The Audience and Fast Finger. Other exciting brand building sponsorship
      opportunities include “The Check”, Play-Along-At-Home by SMS game, and the
      episode sponsorship *“Who
      Wants To Be A Millionaire?* is
      brought to you by ...”





*Product
      placement:* Each
      episode of *Who
      Wants To Be A Millionaire?* places
      many thousands of consumer eyeballs on ever-present elements of the show such
      as
      the contestant's “water bottle”, the show's computer and the host's wardrobe.
      Each of these elements (and many others) represent an exceptional opportunity
      for marketers to place their products and brand name in front of prime consumers
      in China.. Companies routinely pay fees to have their products placed on
      successful TV shows.





*Interactive
      Programming:* The
      viewer participation features (Interactive Programming) of the *Who
      Wants To Be A Millionaire?* ,
      Play-Along-At-Home and Call-To-Be-A-Contestant, are self-promoting and gain
      continued awareness with each broadcast of the show. These features also create
      significant word-of-mouth promotion from viewers, fueled by the appeal of
      possibly winning cash prizes and the excitement of watching others win. This
      word-of-mouth helps build viewership which increases advertising rates. Both
      of
      these features also provide a direct channel of revenue.




**Overview
      and Future Plan of Operations**


In
      the
      third quarter of 2007 our revenues were $3,843,695 an increase of 90.5% compared
      to revenues of $2,017,736 for the same period in 2006. We experienced a loss
      of
      $967,449 compared to a loss of $1,924,960 for same period in 2006. Our Media
      & Advertising business posted a profit of $1,453,178 on revenues of
      $3,843,695 for the period; our TV Entertainment business had no revenue; our
      corporate segment experienced a loss of $2,333,667.





Year
      to
      date we posted revenues of $6,861,823 and increase of 90.5% compared to revenues
      of $3,602,564 for the same period in 2006. We experienced a loss of $3,697,029
      compared to a loss of $1,697,068 for the same period in 2006. Our Media &
Advertising business posted a profit of $2,130,242 on revenues of $6,861,823
      for
      the period; our TV Entertainment business had no revenue and our corporate
      segment experienced a loss of 5,405,263.




Page
          25





We
      plan
      to continue to grow our Media & Advertising business by continuing to expand
      our sales force through agency partners as we have over the last few years.
      We
      also plan to expand our business scope through our newly developed TV
      entertainment business as explained herein.





*Expansion
      into TV entertainment in China*





Management
      sees the Company’s entry into TV entertainment as a synergistic expansion
      leveraging our expertise in China advertising sales. As mentioned, management
      believes this segment holds tremendous opportunity for growth. As such we are
      currently reviewing addition opportunities in TV entertainment and Interactive
      Programming.





Recently
      Nielsen Media Research reported that in 2006, the total revenue of china's
      advertisement market reached RMB386,600,000,000 - about US$51.7 billion , 81%.of
      which is from TV advertisement, which takes a lead, 17% is from newspaper
      advertisement and 2% is from magazine advertisement. It also announced that
      last
      year, the revenue of TV advertisement increased by 26% on a year-on-year basis.
      Further, *AdAgeChina* recently
      reported confirming information, quoting a leading China media industry expert
      based in Beijing stating that "Estimates
      on TV inflation next year vary but we predict 25%-30%."





To
      address this market opportunity Asia Global subsidiary Sino Trade created the
      wholly-owned subsidiary Idea Asia (a Hong Kong corporation) to hold
      entertainment related businesses. Idea Asia created CMP (a Hong Kong
      corporation) of which Idea Asia owns 60%. On December 18, 2006 CMP acquired
      the
      rights from UK based Celador International Limited (now part of 2waytraffic)
      to
      broadcast in China the global quiz show phenomenon *Who
      Wants To Be A Millionaire?.* The
      remaining 40% of CMP is owned by Kolmanski International Limited and Region
      Giants Limited who will provide TV production, corporate development, and sales
      and marketing services to CMP.


CMP
      entered into an agreement with China advertising media sales agency Zixunmedia
      on November 11, 2006. Pursuant to PRC regulations, only a licensed advertising
      agency can sell advertising and collect payments for advertising sales in the
      China television market. Zixunmedia is licensed pursuant to PRC laws and will
      receive thirty percent (30%) of the revenues generated from advertising during
      the *Who
      Wants To Be A Millionaire?* TV
      program. CMP will retain seventy percent (70%) of the revenues generated from
      the advertising.





CMP,
      under the terms of its agreement with Celador International/2waytraffic, will
      produce and broadcast a minimum of 104 episodes of “Who Wants To Be A
      Millionaire?” over a period of 12 months beginning third quarter 2007. The
      agreement includes a mutual option for production and broadcasting to continue
      for a second year thereafter.





China
      Media Power (CMP) and its China Advertising Agency ZixunMedia entered into
      an
      agreement on August 22, 2007 with satellite channel GuiZhou TV (GZTV1) to
      broadcast *Who
      Wants To Be A Millionaire?* in
      China.. The GZTV1 broadcasts give 517 million home TV viewers in China access
      to *Who
      Wants To Be A Millionaire?* .
      In
      2006, GZTV was rated 9th overall amongst all China TV
      broadcasters.


Through
      an agreement between CMP and 2waytraffice, CMP holds the exclusive rights for
      all interactive programming related to *Who
      Wants To Be A Millionaire?* in
      China.. Interactive services are provided to CMP by Linktone Ltd a leading
      provider of interactive entertainment products and services to consumers in
      China. The company is headquartered in Shanghai.





CMP's
      production of *Who
      Wants To Be A Millionaire?* for the
      China TV market aired for the first time on September 29. The groundbreaking
      event was the first ever broadcast of the globally successful TV quiz show
      produced exclusively for mainland China.




We
      believe we have the appropriate corporate leadership established to ensure
      future success in the TV industry, those being:





*
            Michael
                Mak, the Chief Executive Officer, interim Chief Financial Officer
                and
                Director of Asia Global Holdings Corp. will serve as the a sole director
                and officer of Idea Asia and will also serve as Chairman of CMP.


*
            John
                Leper, the Secretary and Director of Asia Global Holdings Corp. will
                serve
                as a Director of CMP.





*
            Hing
                Ng, the Director of Sino Trade, Asia Global Holdings Corp’s wholly-owned
                subsidiary, will serve as a Director of CMP.





Page
          26





*
            Mr.
                Peter Lai, aged 43, an advertising veteran and a co-founder of
                CMP, is overseeing the corporate development and the sales &
                marketing function of the
                Company.


*
            Mr.
                Claude Yuen, aged 52, a TV production specialist and a founding
                partner of CMP, is in charge of the Program's
                production as the Executive
                Producer.




**Results
      of Operations for the Three and Nine Months Ended September 30, 2007 and
      September 30, 2006**





During
      the three months ended September 30, 2007, we experienced a loss of $967,449
      on
      revenues of $3,843,695 compared to a loss of $1,924,960 on revenues of
      $2,017,736 in the same period the previous year. During the nine month period
      ended September 30, 2007 we experienced a loss of $3,697,029 on revenues of
      $6,861,823 compared to a loss of $1,697,068 on revenues of $3,602,564 in the
      same period the previous year. We expect to improve our income position over
      the
      next 12 months as we plan to continue growing our Media & Advertising
      business segment and we also expect to begin generating income from our CMP
      subsidiary in the fourth quarter of 2007. We also anticipate an increase in
      expenses from the operations of CMP.





During
      the three and nine months ended September 30, 2007, we generated 100% our
      revenue from our Media and Advertising division. Over the next twelve months,
      we
      plan to devote the majority of our resources to expanding and further developing
      both our Media & Advertising division and our TV Entertainment segment which
      includes our Idea Asia and CMP subsidiaries.




The
      following tables set forth our total revenues by each operational division
      for
      the three and nine month periods ended September 30, 2007 and 2006:





**Total
      Revenue Three Months Ended September 30**




2007
            
            2006
            
            VarianceMedia
                & Advertising
            
            $
            3,843,695
            
            $
            2,017,736
            
            $
            +1,825,959
            
            
            +90.5
            %TV
                Entertainment
            
            $
            0
            
            $
            0
            
            $
            0
            
            
            0Asia
                Global Corporate
            
            $
            0
            
            $
            0
            
            $
            0
            
            
            0
            %




**Total
      Revenue nine months Ended September 30**




2007
            
            2006
            
            VarianceMedia
                & Advertising
            
            $
            6,861,823
            
            $
            3,602,564
            
            $
            +3,259,259
            
            
            +90.5
            %TV
                Entertainment
            
            $
            0
            
            $
            0
            
            $
            0
            
            
            0Asia
                Global Corporate
            
            $
            0
            
            $
            0
            
            $
            0
            
            
            0
            %




**Media
      & Advertising Segment Revenue**





During
      the three and nine month periods ended September 30, 2007 we experienced 90.5%
      and 90.5% increases respectively from the comparable three and month periods
      ended September 30, 2006. The increases are attributable to expanding our sales
      force selling our basic non-broadcast media and advertising services through
      creating partnerships with established advertising agencies in China.





For
      the
      three month period ended September 30, 2007 we derived $3,843,695, all of our
      total revenue, from our Media & Advertising segment. 100% of this segment
      revenue was generated from Hong Kong & China region.





For
      the
      nine month period ended September 30, 2007 we derived $6,861,823, 100% of our
      total revenue, from our Media & Advertising segment. Around 100% sales came
      from the Hong Kong & China region.





Page
          27




**TV
      Entertainment Segment Revenue**





During
      the three and nine month periods ended September 30, 2007, we derived no revenue
      from our TV Entertainment segment because the broadcasting of our first TV
      entertainment program - the mainland China version of *Who
      wants To Be A Millionaire?* —
had
      not
      yet begun broadcasting. Revenues for this program are generated from the
      advertising and interactive viewer participation features that air during the
      show's broadcast. This is the first time we are including this segmentation
      in
      our financial reports. Previously we had included (development) operations
      related to *Who
      wants To Be A Millionaire?* In our
      Media & Advertising segment.





**Cost
      of Sales**





**Cost
      of Sales by Segment Three Months Ended September 30**




2007
            
            2006
            
            VarianceMedia
                & Advertising
            
            $
            1,404,809
            
            $
            632,885
            
            $
            +771,924
            
            
            +122
            %TV
                Entertainment
            
            $
            0
            
            $
            0
            
            $
            0
            
            
            0Asia
                Global Corporate
            
            $
            0
            
            $
            0
            
            $
            0
            
            
            0




**Cost
      of Sales by Segment nine months Ended September 30**




2007
            
            2006
            
            VarianceMedia
                & Advertising
            
            $
            2,428,720
            
            $
            1,040,203
            
            $
            +1,388,517
            
            
            +133.5
            %TV
                Entertainment
            
            $
            0
            
            $
            0
            
            $
            0
            
            
            0Asia
                Global Corporate
            
            $
            0
            
            $
            0
            
            $
            0
            
            
            0





Three
      month cost of sales were $1,404,809 representing 36.5% of our total revenue
      of
      $3,843,695 for the period ended September 30, 2007 as compared to $632,885,
      31.4% of total revenue of $2,017,736 for the three month period ended September
      30, 2006. The increase in cost of sales as a percentage of sales for the three
      month period ended September 30, 2007 is primarily attributable to increased
      printing and fulfillment costs related to our Media & Advertising
      business.





Nine
      month cost of sales were $2,428,720 representing 35.4% of our total revenue
      of
      $6,861,823 for the period ended September 30, 2007 as compared to $1,040,203,
      28.9% of total revenue of $3,602,564 for the nine month period ended September
      30, 2006. The increase in cost of sales as a percentage of sales for the nine
      month period ended September 30, 2007 is primarily attributable to increased
      printing and fulfillment costs related to our Media & Advertising
      business.





**Cost
      of Sales - Media and Advertising Segment**





All,
      100%
      of our cost of sales were attributable to our Media & Advertising segment.
      Hence the above paragraphs represent our cost of sales analysis for this
      segment.





**Cost
      of Sales - TV Entertainment Segment**





Three
      and
      nine month cost of sales for our TV Entertainment segment were $0 and $0,
      respectively. There were no cost of sales for this segment for the same periods
      ended September 30, 2006. We derived no revenue from this segment in the three
      and nines month periods ended September 30, 2007.





**Selling,
      General and Administrative Expenses**





**Selling,
      General and Administrative Expenses by Segment Three Months Ended September
      30**




2007
            
            2006
            
            VarianceMedia
                & Advertising
            
            $
            608,391
            
            $
            320,421
            
            $
            +287,970
            
            
            +89.9
            %TV
                Entertainment
            
            $
            76,394
            
            $
            0
            
            $
            +76,394
            
            
            +100
            %Asia
                Global Corporate
            
            $
            2,331,523
            
            $
            2,722,249
            
            $
            -390,726
            
            
            -14.4
            %




Page
          28





**Selling,
      General and Administrative Expenses by Segment nine months Ended September
      30**


2007
            
            2006
            
            VarianceMedia
                & Advertising
            
            $
            1,678,396
            
            $
            625,447
            
            $
            +1,052,949
            
            
            +168.3
            %TV
                Entertainment
            
            $
            700,869
            
            $
            0
            
            $
            +700,869
            
            
            +100
            %Asia
                Global Corporate
            
            $
            5,396,622
            
            $
            3,069,571
            
            $
            +2,327,051
            
            
            +75.8
            %





**Selling,
      General and Administrative Expenses - Media and
      Advertising**





The
      three
      month selling, general and administrative expenses increased by $287,970 to
      $608,391 for the period ended September 30, 2007 as compared to $320,421 for
      the
      three month period ended September 30, 2006. The increase in expenses during
      the
      three month period ended September 30, 200 7
      was
      primarily attributable increased spending for trade show exhibition and
      promotion.





The
      nine
      month selling, general and administrative expenses increased by $1,052,949
      to
      $1,678,396 for the period ended September 30, 2007 as compared to $625,447
      for
      the nine month period ended September 30, 2006. The increase in expenses during
      the nine month period ended September 30, 2007 was
      primarily attributable increased spending for trade show exhibition and
      promotion.





**Selling,
      General and Administrative Expenses - TV Entertainment**





The
      three
      month selling, general and administrative expenses increased by $76,394 for
      the
      period ended September 30, 2007 as compared to $0 for the three month period
      ended September 30, 2006. The increase in expenses during the three month period
      ended September 30, 200 7
      was
      primarily attributable to promotion for the *Who
      Wants To Be A Millionaire?* TV
      program.





The
      nine
      month selling, general and administrative expenses were $700,869 for the period
      ended September 30, 2007 as compared to $0 for the nine month period ended
      September 30, 2006. The
      increase in expenses during the three month period ended September 30, 2007
      was
      primarily attributable to promotion for the *Who
      Wants To Be A Millionaire?* TV
      program.





**Selling,
      General and Administrative Expenses - Asia Global Holdings Corporate**





The
      three
      month selling, general and administrative expenses increased to $2,331,523
      for
      the period ended September 30, 2007 as compared to $2,722,249 for the three
      month period ended September 30, 2006. The decrease in expenses during the
      three
      month period ended September 30, 200 7
      was
      primarily attributable to reduction in non-cash stock-based professional fees
      totaling $2,225,000 and $56,713 stock based compensation.





The
      nine
      month selling, general and administrative expenses increased to $5,396,622
      for
      the period ended September 30, 2007 as compared to $3,069,571 for the nine
      month
      period ended September 30, 2006. The increase in expenses during the three
      month
      period ended September 30, 2007 was primarily attributable to non-cash
      stock-based professional fees totaling $4,982,325 and $260,877 stock-based
      compensation.




**Depreciation
      and Amortization of Intangible Assets**




2007
            
            2006Depreciation
            
            $
            44,344
            
            $
            35,896Amortization
                of intangible assets
            
            $
            79,421
            
            $
            209,470





We
      experienced non-cash expenditures of $44,344 and $79,421 from depreciation
      of
      fixed assets and amortization of intangible assets, respectively, for the nine
      months period ended September 30, 2007. The depreciation policy adopted in
      2007
      was consistent with that adopted in 2006; the 23.5% increase in depreciation
      in
      2007 as compared with the depreciation of $35,896 in 2006 is attributable to
      addition of fixed assets in 2007. The policy of amortization of intangible
      assets adopted in 2007 was consistent with that adopted in 2006; the 62%
      decrease in amortization in 2007 as compared with the amortization of $209,470
      in 2006 is attributable to some intangible assets being fully amortized during
      the year of 2006.




Page
          29





**Other
      Income (Expense)**





Total
      other income for both periods presented was immaterial and consisted of the
      following:





2007
            
            2006Other
                incomeFixed
                asset rental income
            
            $
            0
            
            $
            13,050Interest
                income
            
            
            12,607
            
            
            7,413Miscellaneous
                other income
            
            
            0
            
            
            1212,607
            
            
            20,475Interest
                expense
            
            
            51,540
            
            
            27,648Total
                other expense
            
            $
            38,933
            
            $
            7,173





There
      was
      no fixed asset rental income in 2007 as the rental income was ceased from
      October 2006. The fixed assets rental income in 2006 represents assets leased
      to
      Stanford International Holding Corporation, a related party, based on a
      reasonable and agreed upon charge that approximated 36% of the depreciation
      expense in 2006. For the nine month period ended September 30, 2007, other
      income only includes interest income obtained in that period.





**Net
      Income (Loss)**





We
      experienced overall net losses of $967,449 and $3,697,029 respectively for
      the
      three and nine month periods ended September 30, 2007, compared to loses of
      $1,924,960 and $1,697,068 respectively for the same periods in the previous
      year. Our Media & Advertising segment posted net income for the three and
      nine month periods; our TV Entertainment segment posted net loss for the three
      and nine month periods; our Corporate segment experienced losses for the three
      and nine month periods. Segment analysis follows.





**Net
      Income (Loss) by Segment Three Months Ended September 30,
      2007**




2007
            
            2006
            
            VarianceMedia
                & Advertising
            
            $
            1,453,422
            
            $
            840,595
            
            $
            +612,827
            
            
            +72.9
            %TV
                Entertainment
            
            $
            (87,204
            )
            $
            0
            
            $
            -87,204
            
            
            -100
            %Asia
                Global Corporate
            
            $
            (2,333,667
            )
            $
            (2,765,555
            )
            $
            -431,888
            
            
            -15.6
            %




Page
          30


**Net
      Income (Loss) by Segment nine months Ended September 30,
      2007**





2007
            
            2006
            
            VarianceMedia
                & Advertising
            
            $
            2,130,242
            
            $
            1,480,422
            
            $
            +649,820
            
            
            +43.9
            %TV
                Entertainment
            
            $
            (422,008
            )
            $
            0
            
            $
            -422,008
            
            
            +100
            %Asia
                Global Corporate
            
            $
            (5,405,263
            )
            $
            (3,177,490
            )
            $
            +2,227,773
            
            
            +70.1
            %





**Net
      Income/Loss - Media & Advertising**





The
      three
      month net income from our Media and Advertising segment for the period ended
      September 30, 2007 was $1,453,422, a $612,827, 72.9% increase compared to net
      income of $840,595 for three month period ended September, 2006. The increase
      in
      net income for this period is primarily attributable to substantial increase
      in
      sales of media and advertising services primarily as a result of increased
      promotion.





The
      nine
      month net income from our Media and Advertising segment for the period ended
      September 30, 2007 was $2,130,242, a $649,820, 43.9% increase compared to net
      income of $1,480,422 for nine month period ended September, 2006. The increase
      in net income for this period is primarily attributable to substantial increase
      in sales of media and advertising services primarily as a result of increased
      promotion and expanded sales force through partner agencies.





**Net
      Income/Loss - TV Entertainment**




The
      three
      month net loss from our TV Entertainment segment for the period ended September
      30, 2007 was $87,204, a 100% increase compared to a net loss of $0 for three
      month period ended September, 2006. No TV Entertainment business was commenced
      in 2006 and loss is primarily represented the advertising and promotional cost
      incurred for the anticipated distribution of TV programs.





A
      nine
      month net loss of $422,008 was experienced from our TV Entertainment segment
      for
      the period ended September 30, 2007 compared to net income of $0 for nine month
      period ended September, 2006. Loss is primarily attributable to advertising
      and
      promotional costs for the *Who
      Wants To Be A Millionaire?* TV
      program.





For
      the
      nine months period ended September 30, 2007, the Company incurred expenses
      of
      $242,414 attributable to production of TV program. These costs are capitalized
      as current assets under the caption of “inventories” in the balance sheets and
      to be amortized on episode airing basis.





**Net
      Income/Loss - Asia Global Holdings Corporate**




For
      the
      three month period we experienced a net loss of $2,333,667 from our Asia Global
      Holdings corporate operations for the period ended September 30, 2007 compared
      to a net loss of $2,765,555
      for the three month period ended September, 2006. The reduction
      in losses were primarily attributable to reduction in non-cash stock-based
      professional fees totaling $2,225,000 and $56,713 stock based
      compensation.





For
      the
      nine month period we experienced a net loss of $5,405,263 from our Asia Global
      Holdings corporate operations for the period ended September 30, 2007 compared
      to a net loss of $3,177,490 for the nine month period ended September,
      2006. The increase in losses were primarily attributable to non-cash stock-based
      professional fees totaling $4,982,325 and $260,877.





**Trends,
      Events, and Uncertainties**





Demand
      for our services and products will be dependent on, among other things, market
      acceptance of our concept and general economic conditions, which are cyclical
      in
      nature. Our business operations may be adversely affected by our competitors
      and
      prolonged recessionary periods. We are in the process of seeking additional
      financing to forward our business plan. There is no assurance additional
      financing will be available, or if available, that it will be available on
      reasonable terms. Even if we do obtain such financing, there is no assurance
      that we will be able to generate profitable operations.





Page
          31




**Liquidity
      and Capital Resources**





*Cash
      flows from operating activities*





We
      experienced negative cash flows from operating activities in the amounts of
      $705,958 for the nine month period ended September 30, 2006, primarily resulting
      from a net loss offset by non-cash charges such as common stock issued for
      services, depreciation and amortization, and reversal of accrued expenses,
      and
      changes in operating activities accounts such as an increase in accounts
      receivable due to increased sales, and increase in income tax
      payable.




Cash
      flows from investing activities





Net
      cash
      flows used in investing activities for the nine month periods ended September
      30, 2007 were $1,271,147, primarily representing increase in restricted cash
      of
      $266,497, purchase of plant and equipment of $913,617, and increase of
      restricted cash required as part of our subsidiary's banking facility agreements
      of $266,497.




*Cash
      flows from financing activities*





Net
      cash
      flows provided by financing activities primarily represented net funds advanced
      under banking agreements. In addition, the net cash flows provided by financing
      activities for the nine months ended September 30, 2007 was contributed by
      the
      issuance of promissory note of $370,000, advances under letters of credit for
      $443,654 and drawdown of bank loan for $134,704, after deducting from both
      repayments of bank loan for $437,930.





*Liquidity*





Our
      growth plans require additional funding from outside sources. We intend to
      pursue discussions with existing shareholders, third party financing sources
      and
      potential lenders to ensure access to funds as required. Our future liquidity
      will depend on our revenue growth and our ability to sell our products and
      services at positive gross margins and control our operating expenses. Over
      the
      coming twelve months, we expect to spend approximately $2,500,000 for operating
      expenses assuming revenue growth and no significant change in marketing or
      product development strategies. We expect to meet these capital needs from
      sales
      revenues and, to the extent we do not have sufficient revenues, from our
      existing cash reserves or other external sources of financing.





The
      accompanying condensed consolidated financial statements contemplate
      continuation of the Company as a going concern. Due to the Company’s current
      period net loss of approximately $3,697,029, of which a sizable portion of
      that
      net loss is attributable to non-cash items such as stock issued for services
      rendered totaling approximately $5,243,202 and depreciation and amortization
      totaling approximately $123,765. However, substantial doubt to continue as
      a
      going concern is raised and realization of a major portion of the assets in
      the
      accompanying condensed consolidated balance sheet is dependent upon the
      continued operations of the Company, which in turn is dependent upon the
      Company's ability to meet its financing requirements and the success of its
      future operations.





Management
      believes the Company's ability to continue as a going concern is alleviated
      because current sources of liquidity as of September 30, 2007, included
      approximately $61,950 in cash and cash equivalents, and a $706,282 line of
      credit available for use under its current line of credit facility, are
      sufficient to satisfy its cash requirements over the next twelve months.
      Although there is no assurance that such financing will be available, or if
      available, that such financing will be available on reasonable terms, management
      believes it has the ability to borrow additional funds from third parties such
      as financial institutions or will be successful in a debt or equity financing
      that will be sufficient to fund its operations for the next twelve months.





Management
      has taken steps to reduce operating costs and moved a significant portion of
      its
      U.S. operations to China during 2006 to benefit from lower overhead costs and
      further capitalize on the growth potential and success. Management plans to
      continue reviewing all aspects of its business and making adjustments as needed
      to those considered unprofitable. Therefore, for at least the next twelve
      months, the Company can continue to operate as a going concern. The condensed
      consolidated financial statements do not include any adjustments relating to
      the
      recoverability and classification of recorded asset amounts or the amount and
      classification of liabilities or any other adjustment that might be necessary
      should the Company be unable to continue as a going concern.




Page
          32





On
      a
      long-term basis, our liquidity will be dependent on establishing profitable
      operations, receipt of revenues, additional infusions of capital and additional
      financing. If necessary, we may raise capital through an equity or debt
      offering. The funds raised from this offering will be used to develop and
      execute our business plan. However, there can be no assurance that we will
      be
      able to obtain additional equity or debt financing in the future, if at all.
      If
      we are unable to raise additional capital, our growth potential will be
      adversely affected. Additionally, we will have to significantly modify our
      plans.





*Critical
      Accounting Policies*





The
      financial statements are prepared in accordance with accounting principles
      generally accepted in the U.S., which requires us to make estimates and
      assumptions in certain circumstances that affect amounts reported in the
      accompanying financial statements and related footnotes. In preparing these
      financial statements, management has made its best estimates and judgments
      of
      certain amounts included in the financial statements, giving due consideration
      to materiality. We do not believe there is a great likelihood that materially
      different amounts would be reported related to the accounting policies described
      below. However, application of these accounting policies involves the exercise
      of judgment and use of assumptions as to future uncertainties and, as a result,
      actual results could differ from these estimates.




*Accounts
      receivable and provision for bad debts*





Accounts
      receivable, net of provision for bad debts, are presented at net realizable
      value. The Company periodically records a provision for bad debts based on
      management’s judgment resulting from an evaluation of the collectibility of
      accounts receivable by assessing, among other factors, our customer’s
      willingness or ability to pay, repayment history, general economic conditions,
      and the ongoing relationship with our customers. The total amount of this
      provision is determined by first identifying the receivables of customers that
      are considered to be a higher credit risk based on their current overdue
      accounts, difficulties in collecting from these customers in the past, and
      their
      overall financial condition. For each of these customers, the Company estimates
      the extent to which the customer will be able to meet its financial obligations
      and records a provision that reduces our trade receivable for that customer
      to
      the amount that is reasonably believed will be collected. Additional provisions
      may be required in the future if the financial condition of our customers or
      general economic conditions deteriorate, thereby reducing net
      earnings.




*Impairment
      of long-lived assets*





We
      review
      property, plant and equipment and purchased intangible assets for impairment
      whenever events or changes in circumstances indicate the carrying value of
      an
      asset may not be recoverable. Our asset impairment review assesses the fair
      value of the assets based on the future cash flows the assets are expected
      to
      generate. An impairment loss is recognized when estimated undiscounted future
      cash flows expected to result from the use of the asset plus net proceeds
      expected from disposition of the asset (if any) are less than the carrying
      value
      of the asset. When an impairment is identified, the carrying amount of the
      asset
      is reduced to its estimated fair value. Deterioration of our business in a
      geographic region or within a business segment in the future could also lead
      to
      impairment adjustments as such issues are identified. The accounting effect
      of
      an impairment loss would be a charge to earnings, thereby reducing our net
      earnings.





*Accounting
      for stock-based compensation*





The
      Company adopted SFAS No. 123 (revised 2004), "Share-Based Payment" ("SFAS
      123(R)"), on January 1, 2006, which requires the measurement and recognition
      of
      compensation expense for all share-based awards made to employees and directors,
      including employee stock options and shares issued through its employee stock
      purchase plan, based on estimated fair values. Prior to the adoption of SFAS
      123(R), the Company accounted for stock-based compensation using the intrinsic
      value method prescribed in Accounting Principles Board ("APB") Opinion No.25,
      "Accounting for Stock Issued to Employees." Under the intrinsic value method
      that was used to account for stock-based awards prior to January 1, 2006, which
      had been allowed under the original provisions of SFAS 123, compensation expense
      was recorded on the date of grant if the current market price of the underlying
      stock exceeded the exercise price. Any compensation expense was recorded on
      a
      straight-line basis over the vesting period of the grant. The adoption of this
      standard had a significant impact to the Company's accompanying consolidated
      financial statements since the Company entered into an employment agreement
      included stock-based compensation awards with its President, Michael Mak, who
      is
      also the Company’s Chief Executive Officer and interim Chief Financial Officer,
      on August 18, 2006. Except for the above, the adoption of this standard had
      no
      impact to the Company’s financial position, results of operations or cash flows
      as the Company's previous stock-based compensation awards expired prior to
      January 1, 2006, and there have been no grants during the current period. The
      accounting effect of recording compensation expense is a charge to earnings,
      thereby reducing our net earnings.




Page
          33





*Taxes
      on earnings*





We
      record
      a valuation allowance to reduce our deferred tax assets to the amount that
      is
      more likely than not to be realized. We have considered future market growth,
      forecasted earnings, future taxable income and the mix of earnings in the
      jurisdictions in which we operate in determining the need for a valuation
      allowance. In the event we determine that we would not be able to realize all
      or
      part of our net deferred tax assets in the future, an adjustment to the deferred
      tax assets would be charged to earnings in the period such determination is
      made. Likewise, if we later determine that it is more likely than not that
      the
      net deferred tax assets would be realized, the previously provided valuation
      allowance would be reversed.




**ITEM
      3. CONTROLS AND PROCEDURES.**




Evaluation
      of Disclosure Controls and Procedures





Based
      on
      an evaluation under the supervision and with the participation of management,
      our Chief Executive Officer and Chief Financial Officer have concluded that
      our
      disclosure controls and procedures as defined in Section 13a-15(e) and 15d-15(e)
      under the Securities Exchange Act of 1934, as amended ("Exchange Act") were
      effective as of September 30, 2007 to ensure that information required to be
      disclosed by us in reports that we file or submit under the Exchange Act is
      (i)
      recorded, processed, summarized and reported within the time periods specified
      in the Securities and Exchange Commission rules and forms and (ii) accumulated
      and communicated to our management, including our Chief Executive Officer and
      Chief Financial Officer, as appropriate to allow timely decisions regarding
      required disclosure.





Changes
      in Internal Control over Financial Reporting





There
      were no changes in our internal control over financial reporting during the
      quarter ended September 30, 2007, which were identified in connection with
      management's evaluation required by paragraph (d) of rules 13a-15 and 15d-15
      under the Exchange Act, that have materially affected, or are reasonably likely
      to materially affect, our internal control over financial
      reporting.





**PART
      II - OTHER INFORMATION**





**ITEM
      1. LEGAL PROCEEDINGS**




We
      are
      not involved in any material pending legal proceedings at this time, and
      management is not aware of any contemplated proceeding by any governmental
      authority.




**ITEM
      2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF
      PROCEEDS**




None.





**ITEM
      3. DEFAULTS UPON SENIOR SECURITIES**




None
      .





**ITEM
      4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS**




On
      August
      4, 2007, the Shareholders ratified the Board of Director's actions taken to
      file
      a new Non-Qualified Incentive Stock Compensation Plan 2007 (Form S-8 filed
      with
      the Commission on August 21, 2007) in the amount of 25,000,000
      shares.





Page
          34





**ITEM
      5. OTHER INFORMATION**




On
      July
      17, 2007, the Company filed with the Commission a Form 8-K stating that HLB
      Hodgson Impey Cheng had resigned as the Company’s independent auditors. Further,
      the Company
      engaged the accounting firm of Zhong Yi (Hong Kong) C.P.A. Company Limited
      as
      the Company’s independent registered public accounting firm as of July 26,
      2007.





On
      August
      21, 2007, the Company filed with the Commission a Form 8-K stating that it
      had
      reached a mutual agreement for a sixty (60) day extension to repay a loan from
      Sabana Investments, LLC, pursuant to Item 2.03 filed on Form 8-K with the
      Commission on March 12, 2007.





On
      October 5, 2007, the Company filed with the Commission a Form 8-K stating that
      it had filed an Amended Certificate of Designation with the Secretary of State
      of Nevada, amending the Series A Convertible Preferred Shares (“Series A
      Shares”) designation to allow each share of the Series A Shares to be voted on
      an “as-if converted” basis and shall vote with the Common Stock.





On
      October 10, 2007, the Company filed with the Commission a Form 8-K stating
      that
      it had authorized the issuance of 500,000 Series A Convertible Preferred Shares
      (“Series A Shares”) to Mr. Michael Mak. Further, the Form 8-K stated that the
      Company had authorized the conversion of 100,000 shares of the Series A Shares
      held by Mr. Michael Mak. The 100,000 shares of Series A Shares converted to
      20,000,000 144 Restricted Shares of the Company’s Common Stock.





On
      October 16, 2007, the Company filed with the Commission a Form 8-K stating
      that
      it had repaid $370,000 to Sabana Investments, LLC pursuant to a Convertible
      Promissory Note, which was filed on Form 8-K dated March 13, 2007.




**ITEM
      6. EXHIBITS AND REPORTS ON FORM 8-K**




(a)
      Exhibits





**INDEX
      TO EXHIBITS**


**OF**


**ASIA
      GLOBAL HOLDINGS CORP.**





31.1
            Rule
                13a-14(a)/15d-14(a) Certification of Chief Executive
                Officer





31.2
            Rule
                13a-14(a)/15d-14(a) Certification of Chief Financial
                Officer


32
              Section
                  1350 Certification




(b)
      None.




Page
          35





**SIGNATURES**




Pursuant
      to the requirements of Section 13 of 15(d) of the Securities and Exchange Act
      of
      1934, the Registrant has duly caused this report to be signed on its behalf
      by
      the undersigned, thereunto duly authorized.


**ASIA
                GLOBAL HOLDINGS CORP.**(Registrant)Date:
                November 13, 2007
            By:
            /s/
                Michael MakMichael
                Mak, President




Page
          36