UNITED STATES

| o | REGISTRATION      STATEMENT PURSUANT TO SECTION 12(b) OR (g) OF THE SECURITIES EXCHANGE      ACT OF 1934 |
|---|----------------------------------------------------------------------------------------------------------|

| o      | ANNUAL      REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF      1934 |
|--------|------------------------------------------------------------------------------------------------|
|   |                                                                                           |
|   | For      the fiscal year ended________________.                                                |

| o | TRANSITION      REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF      1934 |
|---|----------------------------------------------------------------------------------------------------|

| x      | SHELL      COMPANY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE      ACT OF 1934 |
|--------|-------------------------------------------------------------------------------------------------------|
|   | Date      of event requiring this shell company report: October 29,    2010                           |
|   | for      the transition period from __________ to  ___________                                        |

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|   | Title of Each Class |   | Name of each exchange on which      registered  |   |
|--------|---------------------|--------|------------------------------------------------------|--------|

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|   |        o      Yes  |        x      No |
|--------|------------------------------|-----------------------|

|   |        o      Yes  |        x      No |
|--------|------------------------------|-----------------------|

|   | xYes  | o       No |
|--------|------------|-----------------|

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

| x  US      GAAP | o       International Financial Reporting Standards as issued by the International      Accounting Standards Board | o       Other |
|----------------------|-------------------------------------------------------------------------------------------------------------------------|--------------------|

|   |        o Item      17  | o Item      18 |
|--------|----------------------------------|----------------|

|   |        o      Yes  |          o      No |
|--------|------------------------------|------------------------------|

|   |        o      Yes  |        o       No |
|--------|------------------------------|-----------------------------|

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|          |   |                                                           |   |        Page |
|---------------|--------|----------------------------------------------------------------|--------|------------------|
|          |   | PART I                                                         |   |             |
| Item      1.  |   | Identity      of Directors, Senior Management and Advisers     |   | 7                |
|          |   |                                                           |   |             |
| Item      2.  |   | Offer      Statistics and Expected Timetable                   |   | 8                |
|          |   |                                                           |   |             |
| Item      3.  |   | Key      Information                                           |   | 8                |
| A.            |   | Selected      Financial Data                                   |   | 8                |
| B.            |   | Capitalization      and Indebtedness                           |   | 10               |
| C.            |   | Reasons      for the Offer and Use of Proceeds                 |   | 11               |
| D.            |   | Risk      Factors                                              |   | 11               |
|          |   |                                                           |   |             |
| Item      4.  |   | Information      On The Company                                |   | 18               |
| A.            |   | History      and Development of the Company                    |   | 18               |
| B.            |   | Business      Overview                                         |   | 22               |
| C.            |   | Organizational      Structure                                  |   | 34               |
| D.            |   | Property,      Plants and Equipment                            |   | 34               |
|          |   |                                                           |   |             |
| Item      4A. |   | Unresolved      Staff Comments                                 |   | 35               |
|          |   |                                                           |   |             |
| Item      5.  |   | Operating      and Financial Review and Prospects              |   | 35               |
|          |   |                                                           |   |             |
| Item      6.  |   | Directors,      Senior Management and Employees                |   | 47               |
| A.            |   | Directors      and Senior Management                           |   | 47               |
| B.            |   | Compensation                                                   |   | 47               |
| C.            |   | Board      Practices                                           |   | 48               |
| D.            |   | Employees                                                      |   | 49               |
| E.            |   | Share      Ownership                                           |   | 50               |
|          |   |                                                           |   |             |
| Item      7.  |   | Major      Shareholders and Related Transactions               |   | 50               |
| A.            |   | Major      Shareholders                                        |   | 50               |
| B.            |   | Related      Party Transactions                                |   | 51               |
| C.            |   | Interests      of Experts and Counsel                          |   | 52               |
|          |   |                                                           |   |             |
| Item      8.  |   | Financial      Information                                     |   | 52               |
| A.            |   | Consolidated      Statements and Other Financial Information   |   | 52               |
| B.            |   | Significant      Changes                                       |   | 52               |
|          |   |                                                           |   |             |
| Item      9.  |   | The      Offer and Listing                                     |   | 52               |
|          |   |                                                           |   |             |
| Item      10. |   | Additional      Information                                    |   | 52               |
| A.            |   | Share      Capital                                             |   | 52               |
| B.            |   | Memorandum      and Articles of Association                    |   | 53               |
| C.            |   | Material      Contracts                                        |   | 57               |
| D.            |   | Exchange      Controls                                         |   | 57               |
| E.            |   | Taxation                                                       |   | 58               |
| F.            |   | Dividends      and Paying Agents                               |   | 59               |
| G.            |   | Statement      by Experts                                      |   | 59               |
| H.            |   | Documents      on Display                                      |   | 59               |
| I.            |   | Subsidiary      Information                                    |   | 60               |
|          |   |                                                           |   |             |
| Item      11. |   | Quantitative      and Qualitative Disclosure About Market Risk |   | 60               |
|          |   |                                                           |   |             |

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| Item      12. |   | Description      of Securities Other Than Equity Securities |   | 61     |
|---------------|--------|-------------------------------------------------------------|--------|--------|
|          |   |                                                        |   |   |
|          |   | PART      III                                               |   |   |
|          |   |                                                        |   |   |
| Item      17  |   | Financial      Statements                                   |   | 61     |
|          |   |                                                        |   |   |
| Item      18. |   | Financial      Statements                                   |   | 61     |
|          |   |                                                        |   |   |
| Item      19  |   | Exhibits                                                    |   | 62     |
|          |   |                                                        |   |   |
| Signatures    |   |                                                        |   | 63     |

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PARTI 

| A. | Directors and Senior      Management |
|----|--------------------------------------|

| Name(1)               |   | Age |   | Position      in China Dredging                    |
|-----------------------|--------|-----|--------|----------------------------------------------------|
| Mr.      Xinrong Zhuo |   | 46  |   | Chairman      of Board and Chief Executive Officer |
| Mr.      Fangjie Gu   |   | 32  |   | Chief      Operating Officer and Director          |
| Mr.      Bin Lin      |   | 52  |   | Senior      Vice President                         |
| Mr.      Kit Chan     |   | 63  |   | Director                                           |

|   | (1) | The      business address of each such person is the address of the Company, which      is Floor 18, Tower A, Zhongshan Building, No. 154, Hudong Road,      Gulou District, Fuzhou City, Fujian Province,  PRC. |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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| B. | Advisers |
|----|----------|

| C. | Auditors |
|----|----------|

 

| A. | Selected Financial      Data |
|----|------------------------------|

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|                            |   | Fujian      Service     |            |   | Group           |   |
|---------------------------------|--------|-------------------------|-----------------|--------|-----------------|--------|
|                            |   | Year Ended December 31, |            |   | Six      Months |   |
|                            |   |                    |            |   | Ended           |   |
|                            |   | 2008                    |            |   | 2009            |   |   | June      30, 2010 |   |
| (In      $)                     |   | (Audited)               |            |   | (Audited)       |   |   | (Unaudited) |   |
| Contract      Revenue           |   |                    | 54,480,271      |   |            |   | 80,333,891 |   |   |   | 45,981,433 |   |
| Cost      of contract revenue   |   |                    | 25,424,227      |   |            |   | 38,715,490 |   |   |   | 20,389,446 |   |
| Gross      Profit               |   |                    | 29,056,044      |   |            |   | 41,618,401 |   |   |   | 25,591,987 |   |
| G&A                         |   |                    | 2,152,      575 |   |            |   | 2,531,132 |   |   |   | 2,367,968 |   |
| Income      from operations     |   |                    | 26,903,469      |   |            |   | 39,087,269 |   |   |   | 23,224,019 |   |
| Other      income (expense)     |   |                    | (136,332        | )      |            |   | (726,020 | ) |   |   | (398,012 | ) |
| Income      before income taxes |   |                    | 26,767,137      |   |            |   | 38,361,249 |   |   |   | 22,826,007 |   |
| Income      tax expense         |   |                    | 6,696,745       |   |            |   | 9,596,651 |   |   |   | 5,784,341 |   |
| Net      Income                 |   |                    | 20,070,392      |   |            |   | 28,764,598 |   |   |   | 17,041,666 |   |

----

|                                      |   | Fujian      Service |       |   |                |   |
|-------------------------------------------|--------|---------------------|------------|--------|---------------------|--------|
|                                      |   | December      31,   |       |   |                |   |
|                                      |   |                |       |   |  June      30, |   |
|                                      |   | 2008                |       |   | 2009                |   |   | 2010 |   |
| (In      $)                               |   | Audited             |       |   | Audited             |   |   | Unaudited |   |
| Assets                                    |   |                |       |   |                |   |   |   |   |   |
| Total      current assets                 |   |                | 9,790,137  |   |                |   | 34,406,858 |   |   |   | 61,396,466 |   |
| Total      other assets                   |   |                | 48,497,870 |   |                |   | 45,708,395 |   |   |   | 43,901,875 |   |
| Total      assets                         |   |                | 58,288,007 |   |                |   | 80,115,253 |   |   |   | 105,298,341 |   |
|                                      |   |                |       |   |                |   |   |   |   |   |   |   |
| Liabilities      and owners' equity       |   |                |       |   |                |   |   |   |   |   |   |   |
| Total      current liabilities            |   |                | 22,068,848 |   |                |   | 9,282,633 |   |   |   | 11,251,233 |   |
| Total      non-current liabilities        |   |                | 6,962,257  |   |                |   | 3,295,738 |   |   |   | 7,962,957 |   |
| Total      liabilities                    |   |                | 29,031,105 |   |                |   | 12,578,371 |   |   |   | 19,214,190 |   |
| Owners'      equity                       |   |                |       |   |                |   |   |   |   |   |   |   |
| Total      owners' equity                 |   |                | 29,256,902 |   |                |   | 67,536,882 |   |   |   | 86,084,151 |   |
| Total      liabilities and owners' equity |   |                | 58,288,007 |   |                |   | 80,115,253 |   |   |   | 105,298,341 |   |

| B. | Capitalization and      Indebtedness |
|----|--------------------------------------|

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|                                                  |   |              |       |   |                                 |   |             |      |   |
|-------------------------------------------------------|--------|-------------------|------------|--------|--------------------------------------|--------|------------------|-----------|--------|
|                                                  |   | Actual(6/30/2010) |       |   | Pro      Forma Merger & Offering |   |
|                                                  |   | (unaudited)       |       |   | (Initial)                            |   |             | (Maximum) |   |
| Indebtedness-current                                  |   |              |       |   |                                 |   |             |      |   |
| Unsecured                                             |   | $                 | 6,827,368  |   |                                 | $      | 6,827,368        |      |   | $ | 6,827,368 |   |
| Secured                                               |   |              | 4,423,865  |   |                                 |   | 4,423,865        |      |   |   | 4,423,865 |   |
| Total      current indebtedness                       |   |              | 11,251,233 |   |                                 |   | 11,251,233       |      |   |   | 11,251,233 |   |
|                                                  |   |              |       |   |                                 |   |             |      |   |   |   |   |
| Indebtedness-      non-current                        |   |              |       |   |                                 |   |             |      |   |   |   |   |
| Secured                                               |   |              | 7,962,957  |   |                                 |   | 7,962,957        |      |   |   | 7,962,957 |   |
| Preferred      Stock subject to redemption            |   |              | -          |   |                                 |   | 21,855,000       |      |   |   | 75,000,000 |   |
| Total      non-current indebtedness                   |   |              | 7,962,957  |   |                                 |   | 29,817,957       |      |   |   | 82,962,957 |   |
| Total      indebtedness                               |   |              | 19,214,190 |   |                                 |   | 41,069,190       |      |   |   | 94,214,190 |   |
|                                                  |   |              |       |   |                                 |   |             |      |   |   |   |   |
| Shareholders’      Equity                       |   |              |       |   |                                 |   |             |      |   |   |   |   |
| Ordinary      Shares                                  |   |              | -          |   |                                 |   | -                |      |   |   |  - |   |
| Additional      paid-in capital                       |   |              | 80,205,592 |   |                                 |   |  78,173,182 |      |   |   | 74,357,107 |   |
| Retained      earnings and other comprehensive income |   |              | 990,541    |   |                                 |   | 990,541          |      |   |   | 990,541 |   |
| Statutory      reserves                               |   |              | 4,888,018  |   |                                 |   | 4,888,018        |      |   |   | 4,888,018 |   |
| Total      equity                                     |   |              | 86,084,151 |   |                                 |   | 84,051,741       |      |   |   | 80,235,666 |   |

| C. | Reasons for the Offer and Use of      Proceeds |
|----|------------------------------------------------|

 

| D. | Risk    Factors |
|----|-----------------|

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|  | · | In      some of the jurisdictions in which we operate, environmental and workers’      compensation liabilities may be assigned to us as a matter of law and may      not be limited throughcontracts; |
|--|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|  | · | Insurance      coverage may not be sufficient because it may not be possible to obtain      adequate insurance against some risks on commercially reasonable terms, or      at all. Insurance products, in particular, have become increasingly      expensive and sometimes very difficult to obtain. In this regard,      consistent with what it’s believed to be the customary practice in the      PRC, we do not carry any business interruption insurance.  While      we do have Ship Pollution Liability coverage for certain environmental      damage and third-party losses that arise from fuel or chemical leaks from      the three vessels that we own, there may be circumstances in which we      would not be fully covered or compensated for losses and liabilities      arising from interruptions to our operations, construction accidents,      defects in our work or other risks by insurance that we have maintained.      Our Ship Pollution Liability coverage is for up to RMB 5,000,000 ($      732,000) annually for Xinggangjun #66, RMB 2,500,000      ($366,000)  annually for Xinggangjun #3 and RMB 2,110,000 ($      309,000) annually for Xinggangjun#6. |
|--|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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| A. | History      and Development of the Company |
|----|---------------------------------------------|

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| Year |   | Adjusted Net Income target |       |
|------|--------|-------------------------------------------|------------|
| 2010 |   | $                                         | 48,142,735 |   |
| 2011 |   | $                                         | 87,043,678 |   |

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| B. | Business      Overview |
|----|------------------------|

|   | · | navigation, |
|--------|--------|-------------|

|   | · | reclamation,      and |
|--------|--------|-----------------------|

|   | · | environmental      protection. |
|--------|--------|--------------------------------|

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|   | · | project      schedule (consistent with the project conditions and payment      schedule); |
|--------|--------|-------------------------------------------------------------------------------------------|

|   | · | labor      deployment (consistent with the skill level and the estimated number of      workers for each type of work); |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------|

|   | · | provision      of temporary office and public utilities, for example, water, electricity      and telephone; and |
|--------|--------|------------------------------------------------------------------------------------------------------------------|

|   | · | work      plans/instructions detailed for each phase of the  project. |
|--------|--------|-----------------------------------------------------------------------|

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|                                                                | 2008   | 2009   |
|---------------------------------------------------------------------|--------|--------|
| China      Communications Guangzhou Dredging Co., Ltd (State-Owned) | 48.28% | 32.16% |
| Shenzhen      Guoyuan Engineering Co., Ltd                          | 21.18% | 10.96% |
| Shenzhen      Guangjun Engineering Co., Ltd                         | 23.91% | -      |
| Shenzhen      Shekou Merchants Harbor Engineering Co., Ltd          | 6.63%  | -      |
| China      Communications Shanghai Dredging Co., Ltd (State-Owned)  | -      | 16.62% |
| Changjiang      Wuhan Waterway Engineering Company (State-Owned)    | -      | 40.26% |

|   | · | Construction      Revenue is recognized under the percentage-of-completion      method |
|--------|--------|----------------------------------------------------------------------------------------|

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| Trailer      SuctionHopper Dredgers |   |   | Capacity            |   | Ownership |   | Purchase/LeaseDate |   | YearBuilt |
|-------------------------------------|--------|--------|---------------------|--------|-----------|--------|--------------------|--------|-----------|
|                                |   |   |                |   |      |   |               |   |      |
| Hengshengjun      #88               |   |   | 3500      m3/h |   | Leased    |   | January      2008  |   | 1983      |
|                                |   |   |                |   |      |   |               |   |      |
| Liya      #10                       |   |   | 6500      m3/h |   | Leased    |   | June      2010     |   | 1990      |
|                                |   |   |                |   |      |   |               |   |      |
| Honglinjun      #9                  |   |   | 7000      m3/h |   | Leased    |   | June      2010     |   | 2010      |
|                                |   |   |                |   |      |   |               |   |      |

| Non      Self-Propelling      CutterSuction Dredgers |   |   | Capacity |   | Ownership |   | Purchase/LeaseDate |   | YearBuilt |
|------------------------------------------------------|--------|--------|----------|--------|-----------|--------|--------------------|--------|-----------|

| Xinggangjun      #3  |   |   | 2000      m3/h |   | Self-owned |   | May      2008   |   | 2008   |
|----------------------|--------|--------|---------------------|--------|------------|--------|-----------------|--------|--------|
|                 |   |   |                |   |       |   |            |   |   |
| Xinggangjun      #66 |   |   | 3500      m3/h |   | Self-owned |   | March      2008 |   | 2008   |
|                 |   |   |                |   |       |   |            |   |   |
| Xinggangjun      #6  |   |   | 2500      m3/h |   | Self-owned |   | May      2008   |   | 2008   |
|                 |   |   |                |   |       |   |            |   |   |
| Xinggangjun      #9  |   |   | 2500      m3/h |   | Leased     |   | June      2008  |   | 2008   |
|                 |   |   |                |   |       |   |            |   |   |
| Xiechang      #18    |   |   | 2500      m3/h |   | Leased     |   | June      2010  |   | 2009   |
|                 |   |   |                |   |       |   |            |   |   |
| Honglinjun      #18  |   |   | 3800      m3/h |   | Leased     |   | June      2010  |   | 2009   |

| Trailer      Suction Hopper Dredgers are typically self-propelled and have the general      appearance of an ocean-going vessel. The dredger has hollow hulls, or      ‘‘hoppers’’, into which material is suctioned hydraulically and deposited.      Once the hoppers are filled, the dredger sails to the designated disposal      site and either bottom-dumps the material or pumps the material from the      hoppers through a pipeline to a designated location. Hopper dredgers can      operate in rough waters, and are less likely to interfere with ship      traffic than other types of dredgers. They can also move quickly from one      project to another. |  |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--|

| Cutter      Suction Dredgers remove material using a revolving cutter head which cuts      and churns the sediment on the ocean floor and hydraulically pumps the      material by pipe to the disposal location. These dredgers are very      powerful and can dredge some types of rock. Certain materials can be      directly pumped as far as seven miles with the aid of booster pumps.      Cutter suction dredgers work with an assortment of support equipment that      assists with the positioning and movement of the dredger, handling of the      pipelines, and the placement of the dredged material. |  |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--|

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| Rank |   | Supplier                                                           |   | Vessel Component List                                                              |   | PurchaseAmount in2008($ inmillions) |   |   | PurchaseAmountin 2009($ inmillions) |   |
|------|--------|--------------------------------------------------------------------|--------|----------------------------------------------------------------------------------------------|--------|-----------------------------------------------|--------|--------|-----------------------------------------------|--------|
| 1    |   | Dalian      Locomotive and Rolling Stock Co., Ltd. CNR Group       |   | mud      tube, steel tube, floating body, anchors floating, rubber hose,      etc.           |   |                                          | 11.7   |   |                                          |   | 19.5 |   |
| 2    |   | Tianjin      Puyou Mech. & Elec. Equipment MFG. Co., Ltd.      |   | anchor,      pump, solenoid valve, governor rotating components, pressure sensors,      etc. |   |                                          | 6.2    |   |                                          |   | 9.2 |   |
| 3    |   | Taizhou      Haiguang Mechanical Manufacturing Industrial Co., Ltd |   | steel      plate, angle iron, one-piece compound plate, etc.                                 |   |                                          | 1.1    |   |                                          |   | 1.5 |   |

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|   | · | A      main contractor is permitted to contract for the overall work entailed in      a project. A main contractor can perform all works that are contracted for      itself, or subcontract non-core construction works or labor services to      qualified professional services contractors or qualified labor services      sub-contractors. |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|   | · | A      qualified professional service contractor may enter into a contract to      provide professional services subcontracted out by a main contractor, or      by the Ministry of Construction under relevant provisions. Under such      contracts, a professional services contractor may undertake all of the      contracted work by itself, or subcontract out the labor services to      qualified labor servicessub-contractors. |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | A      qualified labor services sub-contractor may enter into a contract to      provide labor services contracted out by a main contractor or a      professional services contractor. |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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| C. | Organizational      Structure |
|----|-------------------------------|

| Subsidiary Name                                |   | Country ofRegistration |   | Economic and Voting Interest |
|-----------------------------------------------------|--------|-----------------------------|--------|---------------------------------------------|
|                                                |   |                        |   |                                        |
| China      Dredging (HK) Co. Ltd.                   |   | Hong      Kong              |   | 100%      direct                            |
| Fujian      WangGang Dredging Construction Co. Ltd. |   | P.R.C.                      |   | 100%      direct                            |
| Fujian      Xing Gang Port Service Co. Ltd.         |   | P.R.C.                      |   | 100%      (50% direct and 50% as VIE)       |
| Wonder      Dredging Engineering LLC                |   | P.R.C.                      |   | 100%      (asVIE)                           |

| D. | Property,      Plant and Equipment |
|----|------------------------------------|

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| Backlog At        |   | Amount ($ millions) |   |
|------------------------|--------|-------------------------------|--------|
|                   |   |                          |   |
| December      31, 2009 |   | $                             | 8.1    |   |
| June      30, 2010     |   | $                             | 135.5  |   |

|                                         |   | Six Months Ended June 30, |           |   | Increase /   |   |        | Percent  |   |
|----------------------------------------------|--------|-----------------------------------------------|----------------|--------|-------------------|--------|-------------|----------|--------|
| (In $)                                  |   | 2009 (Fujian Service)               |           |   | 2010 (Group) |   |        | Decrease |   |   | Change |   |
| Contract      revenue                        |   | $                                             | 40,825,253     |   |              |   | 100.00      | %        |   | $ | 45,981,433 |   |   |   | 100.00 | % |   | $ | 5,156,180 |   |   |   | 12.63 | % |
| Cost      of contract revenue                |   |                                          | (18,830,015    | )      |              |   | (46.12      | )%       |   |   | (20,389,446 | ) |   |   | (44.34 | )% |   |   | 1,559,431 |   |   |   | 8.28 | % |
| Gross      profit                            |   |                                          | 21,995,238     |   |              |   | 53.88       | %        |   |   | 25,591,987 |   |   |   | 55.66 | % |   |   | 3,596,749 |   |   |   | 16.35 | % |
| General      and administrative expenses     |   |                                          | (1,224,771     | )      |              |   | (3.00       | )%       |   |   | (2,367,968 | ) |   |   | (5.15 | )% |   |   | 1,143,197 |   |   |   | 93.34 | % |
| Income      from operations                  |   |                                          | 20,770,467     |   |              |   | 50.88       | %        |   |   | 23,224,019 |   |   |   | 50.51 | % |   |   | 2,453,552 |   |   |   | 11.81 | % |
| Other      income (expense):                 |   |                                          |           |   |              |   |        |     |   |   |   |   |   |   |   |   |   |   | - |   |   |   | - |   |
| Interest      income                         |   |                                          | 12,638         |   |              |   | 0.03        | %        |   |   | 44,727 |   |   |   | 0.10 | % |   |   | 32,089 |   |   |   | 253.91 | % |
| Interest      expenses                       |   |                                          | (395,337       | )      |              |   | (0.97       | )%       |   |   | (442,827 | ) |   |   | (0.96 | )% |   |   | 47,490 |   |   |   | 12.01 | % |
| Sundry      income                           |   |                                          | -              |   |              |   | -           |     |   |   | 88 |   |   |   | - |   |   |   | - |   |   |   | - |   |
| Total other      income (expense)  |   |                                          |  (382,699 | )      |              |   |  (0.94 | )%       |   |   |  (398,012 | ) |   |   |  (0.87 | )% |   |   |  15,313 |   |   |   |  4.00 | % |
| Income      before income taxes              |   |                                          | 20,387,768     |   |              |   | 49.94       | %        |   |   | 22,826,007 |   |   |   | 49.64 | % |   |   | 2,438,239 |   |   |   | 11.96 | % |
| Income tax expense                           |   |                                          | (5,100,233     | )      |              |   | (12.49      | )%       |   |   | (5,784,341 | ) |   |   | (12.58 | )% |   |   | 684,108 |   |   |   | 13.41 | % |
| Net income                                   |   | $                                             | 15,287,535     |   |              |   | 37.45       | %        |   | $ | 17,041,666 |   |   |   | 37.06 | % |   | $ | 1,754,131 |   |   |   | 11.47 | % |

----

| Backlog balance at December 31,      2009                                         |   | $      | 8,139,422   |   |
|-----------------------------------------------------------------------------------|--------|--------|-------------|--------|
| New      contracts entered during the six months ended June 30,2010               |   |   | 173,105,868 |   |
| Add:      Adjustment of contracts due to change orders during the    period       |   |   | 231,945     |   |
| Adjusted      contract amount at June 30, 2010                                    |   |   | 181,477,235 |   |
| Less:      Contract revenue earned during the six months ended June 30,      2010 |   |   | (45,981,433 | )      |
| Backlog balance at June 30, 2010                                                  |   | $      | 135,495,802 |   |

----

|                                     |   | Years Ended December 31, |        |   |   |   |
|------------------------------------------|--------|-----------------------------------------|-------------|--------|----------|--------|
| (In $)                              |   | 2008                                    |        |   | 2009     |   |   | Increase /Decrease |   |   | PercentChange |   |
| Contract      revenue                    |   | $                                       | 54,480,271  |   |     |   | 100.00 | % |   | $ | 80,333,891 |   |   |   | 100.00 | % |   | $ | 25,853,620 |   |   |   | 47.46 | % |
| Cost      of Contract Revenue            |   |                                    | (25,424,227 | )      |     |   | (46.47 | )% |   |   | (38,715,490 | ) |   |   | (45.19 | )% |   |   | 13,291,263 |   |   |   | 52.28 | % |
| Gross      profit                        |   |                                    | 29,056,044  |   |     |   | 53.33 | % |   |   | 41,618,401 |   |   |   | 51.81 | % |   |   | 12,562,357 |   |   |   | 43.23 | % |
| General      and administrative expenses |   |                                    | (2,152,575  | )      |     |   | (3.95 | )% |   |   | (2,531,132 | ) |   |   | (3.15 | )% |   |   | (378,557 | ) |   |   | 17.59 | % |
| Income      from operations              |   |                                    | 26,903,469  |   |     |   | 49.38 | % |   |   | 39,087,269 |   |   |   | 48.66 | % |   |   | 12,183,800 |   |   |   | 45.29 | % |
| Other      income (expense):             |   |                                    |        |   |     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    Interest      income   |   |                                    | 43,172      |   |     |   | 0.08 | % |   |   | 29,833 |   |   |   | 0.04 | % |   |   | (13,339 | ) |   |   | (30.90 | )% |
|    Interest      expenses |   |                                    | (179,504    | )      |     |   | (0.33 | )% |   |   | (755,853 | ) |   |   | (0.94 | )% |   |   | (576,349 | ) |   |   | 321.08 | % |
| Total      other income (expense)        |   |                                    | (136,332    | )      |     |   | (0.25 | )% |   |   | (726,020 | ) |   |   | (0.90 | )% |   |   | (589,688 | ) |   |   | 432.54 | % |
| Income      before income taxes          |   |                                    | 26,767,137  |   |     |   | 49.13 | % |   |   | 38,361,249 |   |   |   | 47.75 | % |   |   | 11,594,112 |   |   |   | 43.31 | % |
| Income      tax expense                  |   |                                    | (6,696,745  | )      |     |   | (12.29 | )% |   |   | (9,596,651 | ) |   |   | (11.95 | )% |   |   | (2,899,906 | ) |   |   | 43.30 | % |
| Net income                               |   | $                                       | 20,070,392  |   |     |   | 36.84 | % |   | $ | 28,764,598 |   |   |   | 35.81 | % |   | $ | 8,694,206 |   |   |   | 43.32 | % |

| Backlog balance as of December 31, 2008 |   | $      | -           |   |
|-----------------------------------------------------------------------|--------|--------|-------------|--------|
| Add:      new contracts during the year                               |   |   | 89,946,562  |   |
| Less:      Adjustment of contacts due to change orders during theyear |   |   | (1,473,249  | )      |
| Less:      contract revenue earned during the year                    |   |   | (80,333,891 | )      |
| Backlog balance as of December 31,      2009                          |   | $      | 8,139,422   |   |

----

|                       |   | 2008            |       |   | 2009                   |   |
|----------------------------|--------|-----------------|------------|--------|------------------------|--------|
|                       |   | Amount ($) |       |   | Percent ofRevenue |   |   | Amount ($) |   |   | Percent ofRevenue |   |
| Direct      Labor          |   |            | 1,110,149  |   |                   |   | 2.04 | % |   |   | 1,457,329 |   |   |   | 1.81 | % |
| Leasing      Fees          |   |            | 1,273,713  |   |                   |   | 2.34 | % |   |   | 1,720,275 |   |   |   | 2.15 | % |
| Wages                      |   |            | 596,694    |   |                   |   | 1.09 | % |   |   | 861,861 |   |   |   | 1.07 | % |
| Consumable      Components |   |            | 18,757,168 |   |                   |   | 34.43 | % |   |   | 29,724,508 |   |   |   | 37.00 | % |
| Depreciation               |   |            | 3,686,503  |   |                   |   | 6.77 | % |   |   | 4,951,517 |   |   |   | 6.16 | % |
| Cost of Contract Revenue   |   |            | 25,424,227 |   |                   |   | 46.67 | % |   |   | 38,715,490 |   |   |   | 48.19 | % |

|                             |   | 2008            |      |   | 2009                  |   |
|----------------------------------|--------|-----------------|-----------|--------|-----------------------|--------|
|                             |   | Amountin $ |      |   | % ofTotalG&A |   |   | % ofTotalRevenue |   |   | Amountin $ |   |   | % ofTotalG&A |   |   | % ofTotalRevenue |   |
| Revenue-linked      Tax Expenses |   |            | 1,833,873 |   |                  |   | 85.20 | % |   |   | 3.37 | % |   |   | 2,112,416 |   |   |   | 83.46 | % |   |   | 2.63 | % |
| Salary      and Benefits         |   |            | 140,014   |   |                  |   | 6.50 | % |   |   | 0.25 | % |   |   | 159,808 |   |   |   | 6.31 | % |   |   | 0.20 | % |
| Operating      Insurance         |   |            | 103,056   |   |                  |   | 4.79 | % |   |   | 0.19 | % |   |   | 187,575 |   |   |   | 7.41 | % |   |   | 0.23 | % |
| Daily Operation Expenses         |   |            | 75,632    |   |                  |   | 3.51 | % |   |   | 0.14 | % |   |   | 71,333 |   |   |   | 2.82 | % |   |   | 0.09 | % |
| Total      G&A               |   |            | 2,152,575 |   |                  |   | 100.00 | % |   |   | 3.95 | % |   |   | 2,531,132 |   |   |   | 100.00 | % |   |   | 3.15 | % |

----

|                           |   | Year Ended December 31, |        |   |  Six Months Ended June 30, |   |
|--------------------------------|--------|----------------------------------------|-------------|--------|-----------------------------------------------------|--------|
|                           |   | Fujian Service2008                |        |   | Fujian Service2009                             |   |   | Fujian Service2009 |   |   | GroupPro Forma2010 |   |
| Operating      cash flow       |   |                                   | 26,096,112  |   |                                                |   | 30,952,939 |   |   |   | 18,053,632 |   |   |   | 15,052,990 |   |
| Investing      cash flow       |   |                                   | (42,059,354 | )      |                                                |   | (2,196,096 | ) |   |   | (20,029,229 | ) |   |   | (17,716,478 | ) |
| Financing      cash flow       |   |                                   | 17,303,282  |   |                                                |   | (6,785,017 | ) |   |   | 3,366,411 |   |   |   | 4,184,152 |   |
| Net increase in cash           |   |                                   | 1,340,040   |   |                                                |   | 21,971,826 |   |   |   | 1,390,814 |   |   |   | 1,520,664 |   |
| Cash      at beginning of year |   |                                   | -           |   |                                                |   | 1,362,142 |   |   |   | 1,362,142 |   |   |   | 23,343,469 |   |
| Cash at end of year            |   | $                                      | 1,362,142   |   |                                                | $      | 23,343,469 |   |   | $ | 2,751,593 |   |   | $ | 25,388,638 |   |

----

|                                                                               |   | Six Months Ended June 30, |       |
|--------------------------------------------------------------------------------------|--------|-----------------------------------------------|------------|
|                                                                               |   | 2009                                          |       |   | Group ProForma 2010 |   |
| Net income                                                                           |   | $                                             | 15,287,535 |   |   | $ | 17,041,666 |   |
| Adjustments      to reconcile net income to net                                      |   |                                          |       |   |   |   |   |   |
|   Add      depreciation of property, plant and equipment                   |   |                                          | 2,475,429  |   |   |   | 2,497,401 |   |
| Changes      in operating assets and liabilities:                                    |   |                                          |       |   |   |   |   |   |
| Cost      and estimated earnings in excess of billings on uncompleted      contracts |   |                                          | (439,238   | ) |   |   | (6,582,645 | ) |
| Other      receivables                                                               |   |                                          | (329       | ) |   |   | (883 | ) |
| Inventories                                                                          |   |                                          | (92,464    | ) |   |   | (756,912 | ) |
| Accounts      payable                                                                |   |                                          | -          |   |   |   | 784,746 |   |
| Income      taxes payable                                                            |   |                                          | 422,462    |   |   |   | 1,355,304 |   |
| Accrued      liabilities and other payables                                          |   |                                          | 400,237    |   |   |   | 714,313 |   |
| Net cash provided by operating      activities                                       |   | $                                             | 18,053,632 |   |   | $ | 15,052,990 |   |

----

|                                                                               |   | Twelve Months Ended onDecember 31 |       |
|--------------------------------------------------------------------------------------|--------|-------------------------------------------------------|------------|
|                                                                                 |   | 2008                                                  |       |   | 2009 |   |
| Net income                                                                           |   | $                                                     | 20,070,392 |   |   | $ | 28,764,598 |   |
| Adjustments      to reconcile net income to net                                      |   |
| Add      depreciation of property, plant and equipment                               |   |                                                  | 3,686,744  |   |   |   | 4,952,236 |   |
| Changes      in operating assets and liabilities:                                    |   |
| cost      and estimated earnings in excess of billings on uncompleted      contracts |   |                                                  | -          |   |   |   | (2,210,343 | ) |
| note      receivables                                                                |   |                                                  | -          |   |   |   | - |   |
| other      receivables                                                               |   |                                                  | -          |   |   |   | (311 | ) |
| inventories                                                                          |   |                                                  | -          |   |   |   | (429,018 | ) |
| income      tax payable                                                              |   |                                                  | 2,186,909  |   |   |   | (179,402 | ) |
| Accrued liabilities and other      payables                                          |   |                                                  | 152,067    |   |   |   | 55,179 |   |
| Net      cash provided by operating activities                                       |   |                                                  | 26,096,112 |   |   |   | 30,952,939 |   |

----

|                                                       |   | Twelve months Ended on December 31 |        |
|------------------------------------------------------------|--------|-------------------------------------------------------------|-------------|
|                                                       |   | 2008                                                        |        |   | 2009 |   |
| Deposit      paid for dredgers                             |   |                                                        | -           |   |   |   | (2,196,096 | ) |
| Changes      in restricted cash                            |   |                                                        | (8,291,156  | ) |   |   | - |   |
| Payment      of purchases of property, plant and equipment |   |                                                        | (33,768,198 | ) |   |   | - |   |
| Investing Cash Flow                                        |   |                                                        | (42,059,354 | ) |   |   | (2,196,096 | ) |

|                                   |   | Twelve Months Ended on December 31 |       |
|----------------------------------------|--------|-------------------------------------------------------------|------------|
| (In $)                            |   | 2008                                                        |       |   | 2009 |   |
| Proceeds      from short-term loan     |   |                                                        | -          |   |   |   | 3,367,348 |   |
| Repayment      of short-term loan      |   |                                                        | -          |   |   |   | - |   |
| Proceeds      from long-term loan      |   |                                                        | 8,651,641  |   |   |   | - |   |
| Payment      of dredger payable        |   |                                                        | -          |   |   |   | (17,838,704 | ) |
| Repayment      of long-term loan       |   |                                                        | -          |   |   |   | (1,830,080 | ) |
| Capital      contributions from owners |   |                                                        | 8,651,641  |   |   |   | 9,516,419 |   |
| Investing cash flow                    |   |                                                        | 17,303,282 |   |   |   | (6,785,017 | ) |

----

----

|                                                                                               |   | Payments due by period |        |
|----------------------------------------------------------------------------------------------------|--------|---------------------------------------|-------------|
| Contractual Obligations (1)                                                              |   | Total ($) (2)               |        |   | < 1 year ($) |   |   | 1-3 years ($) |   |   | 3-5 years ($) |   |   | > 5 years ($) |   |
| Long-Term      Debt Obligations                                                                    |   |                                  | 12,386,822  |   |   |   | 4,423,865 |   |   |   | 7,962,957 |   |   |   |   |   |   |   |
| Capital      (Finance) Lease Obligations                                                           |   |                                  |        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Operating      Lease Obligations                                                                   |   |                                  | 53,095,734  |   |   |   | 22,589,149 |   |   |   | 22,846,040 |   |   |   | 5,612,050 |   |   |   | 2,048,495 |   |
| Purchase      Obligations                                                                          |   |                                  | 107,062,863 |   |   |   | 26,897,100 |   |   |   | 80,165,763 |   |   |   |   |   |   |   |   |   |
| Other      Long-Term Liabilities Reflected on the Company’s Balance Sheet under US      GAAP |   |                                  |        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total                                                                                              |   |                                  | 172,545,419 |   |   |   | 53,910,114 |   |   |   | 110,974,760 |   |   |   | 5,612,050 |   |   |   | 2,048,495 |   |

----

| A. | Directors      and Senior Management |
|----|--------------------------------------|

| B. | Compensation |
|----|--------------|

| Name and Principal Position (1) |   | Salary ($) |   |   | Bonus ($) |   |   | Total ($) |   |
|-----------------------------------------------------|--------|-----------------|--------|--------|----------------|--------|--------|----------------|--------|
|                                                |   |            |   |   |           |   |   |           |   |   |   |   |
| All      Directors and Officers as a Group          |   |            | 0      |   |           |   | 0      |           |   |   | 0 |   |

----

| C. | Board      Practices  |
|----|----------------------------|

|  | • | retaining      and terminating our independent auditors and pre-approving all auditing      and non-auditing services permitted to be performed by the independent      auditors; |
|--|---------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | • | discussing      the annual audited financial statements with management and the      independent auditors; |
|--|---------|------------------------------------------------------------------------------------------------------------|

|  | • | annually      reviewing and reassessing the adequacy of our audit committee      charter; |
|--|---------|-------------------------------------------------------------------------------------------|

|  | •  | such      other matters that are specifically delegated to our audit committee by      our board of directors after the business combination from time to      time; |
|--|---------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | •  | meeting      separately, periodically, with management, the internal auditors and the      independent auditors; and |
|--|---------------|----------------------------------------------------------------------------------------------------------------------|

|  | •  | reporting      regularly to the board ofdirectors. |
|--|---------------|----------------------------------------------------|

|  | •  | reviewing      and making recommendations to the board regarding our compensation      policies and forms of compensation provided to our directors and      officers; |
|--|---------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | •  | reviewing      and making recommendations to the board regarding bonuses for our officers      and other employees; |
|--|---------------|---------------------------------------------------------------------------------------------------------------------|

|  | •  | reviewing      and making recommendations to the board regarding share-based compensation      for our directors and officers; |
|--|---------------|--------------------------------------------------------------------------------------------------------------------------------|

|  | •  | administering      our share option plans in accordance with the terms thereof;      and |
|--|---------------|------------------------------------------------------------------------------------------|

|  | •  | such      other matters that are specifically delegated to the compensation      committee by our board of directors after the business combination from      time to time. |
|--|---------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | •  | overseeing      the process by which individuals may be nominated to our board of      directors after the businesscombination; |
|--|---------------|---------------------------------------------------------------------------------------------------------------------------------|

|  | •  | identifying      potential directors and making recommendations as to the size, functions      and composition of our board of directors after the business combination      and its committees; |
|--|---------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | •  | considering      nominees proposed by ourshareholders; |
|--|---------------|--------------------------------------------------------|

|  | •  | establishing      and periodically assessing the criteria for the selection of potential      directors; and |
|--|---------------|--------------------------------------------------------------------------------------------------------------|

----

|  | • | making      recommendations to the board of directors on new candidates for board      membership. |
|--|---------|----------------------------------------------------------------------------------------------------|

| D. | Employees |
|----|-----------|

| Dredger               |   | Quarterly Payment (US$) |    | Expiration Time |
|-----------------------|--------|-----------------------------------|---------|----------------------|
| Hengshengjun      #88 |   |                              | 131,986 |                 | January      9, 2016 |
| Xinggangjun      #9   |   |                              | 131,986 |                 | May      31, 2016 |
| Honglinjun      #9    |   |                              | 149,584 |                 | June      19, 2013 |
| Honglinjun      #18   |   |                              | 136,386 |                 | June      18, 2013 |
| Xiechang      #18     |   |                              | 140,785 |                 | June      24, 2013 |
| Liya      #10         |   |                              | 136,386 |                 | June      14, 2013 |
| TOTAL                 |   |                              | 827,113 |                 |   |

----

| E. | Share      Ownership  |
|----|----------------------------|

| A. | Major      Shareholders |
|----|-------------------------|

----

| Name and Address of Beneficial Owner     |   | Number of Ordinary SharesBeneficially Owned |   |   | Percentage ofOutstanding OrdinaryShares |    |
|-------------------------------------------------------------------|--------|-----------------------------------------------------------------|--------|--------|---------------------------------------------------|---------|
|                                                              |   |                                                            |   |   |                                              |
| Xinrong      Zhuo (1)                                             |   | 46,055,880                                                      |   |   | 87.43                                             | %  |
|                                                              |   |                                                            |   |   |                                              |    |
| Kit      Chan (2)                                                 |   | 2,608,866                                                       |   |   | 4.95                                              | %  |
|                                                              |   |                                                            |   |   |                                              |    |
| Fangjie      Gu                                                   |   | 0                                                               |   |   | 0                                                 |    |
|                                                              |   |                                                            |   |   |                                              |    |
| Bin      Lin (3)                                                  |   | 2,608,866                                                       |   |   | 4.95                                              | %  |
|                                                              |   |                                                            |   |   |                                              |    |
| Mars      Harvest Co. Ltd. (1)                                    |   | 46,055,880                                                      |   |   | 87.43                                             | %  |
|                                                              |   |                                                            |   |   |                                              |    |
| All      Directors and Executive Officers, as a group (4 persons) |   | 51,273,612                                                      |   |   | 97.34                                             | %  |

----

| B. | Related      Party Transactions |
|----|---------------------------------|

----

| C. | Interests      of Experts and Counsel |
|----|---------------------------------------|

| A. | Consolidated      Statements and Other FinancialInformation. |
|----|--------------------------------------------------------------|

| B. | Significant      Changes |
|----|--------------------------|

| A. | Share      Capital |
|----|--------------------|

----

| B. | Memorandum      and Articles of Association |
|----|---------------------------------------------|

| Action                                                       |   | BVI Law                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   | Our Memorandum & Articles of Association |
|--------------------------------------------------------------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-----------------------------------------------------------------------|
|                                                         |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |                                                                  |
| Amendment      to the Memorandum and Articles of Association |   | Under      BVI law, the board of directors is permitted to have broad authority to      amend the memorandum of association, however, the directors shall not have      the power to amend the memorandum and articles of association (i) to      restrict the rights or powers of the members to amend the memorandum and      articles of association, (ii) to change the percentage of members required      to pass a resolution to amend the memorandum and articles of association      or (c) in circumstances where the memorandum or articles cannot be amended      by the shareholders. |   | Our      Memorandum of Association follows the BVIlaw.                |

----

| Notice      of the Annual Meeting |         | BVI      law provides that subject to the requirement in the memorandum and      articles of association to give longer notice, not less than seven days      notice of a meeting should be given.                                                                                                            |         | Our      Articles of Association require notice not less than 10 days prior to a      meeting of shareholders.                                                                                                                                                               |
|-----------------------------------|--------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                              |         |                                                                                                                                                                                                                                                                                                          |         |                                                                                                                                                                                                                                                                         |
| Alternate      Directors          |         | BVI      law allows a director to appoint an alternate who has the authority to      vote in place of the appointed director at a meeting of      directors.                                                                                                                                                  |         | Our      Memorandum and Articles are silent on this point. Consequently, the BVI      law position applies.                                                                                                                                                                  |
|                              |         |                                                                                                                                                                                                                                                                                                          |         |                                                                                                                                                                                                                                                                         |
| Written      Consent of Directors |         | In      the BVI, directors’ consents need only a majority of directors signing to      take effect, removing the need for a formal meeting.                                                                                                                                                             |         | Our      Articles of Association provides  for written consents of      directors by a simple majority.                                                                                                                                                            |
|                              |         |                                                                                                                                                                                                                                                                                                          |         |                                                                                                                                                                                                                                                                         |
| Sale      of Assets               |         | In      the BVI, shareholder approval is required when more than 50% (by value) of      a company’s assets are being sold outside of the company’s usual course of      business.                                                                                                                 |         | Our      Memorandum and Articles are silent on this point. Consequently, the BVI      law position applies.                                                                                                                                                                  |
|                              |         |                                                                                                                                                                                                                                                                                                          |         |                                                                                                                                                                                                                                                                         |
| Removal      of Directors         |    | Under      BVI law, a director may, subject to the memorandum and articles of      association of a company, be removed by a resolution of shareholders.      Where permitted by the memorandum and articles of association of the      company, a director may be removed by a resolution of      directors. |    | Our      Memorandum and Articles do not permit shareholders to remove a sitting      director upon a written resolution of a majority of the members, whereas      our Memorandum and Articles do permit the removal of a sitting director by      a resolution ofdirectors. |

----

----

----

| C. | Material      Contracts |
|----|-------------------------|

| D. | Exchange      Controls |
|----|------------------------|

----

|  | (i) | The      Sino-foreign Equity Joint Venture Law (1979), as amended, and the      Regulations for the Implementation of the Sino-foreign Equity Joint      Venture Law (1983), as amended; |
|--|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | (ii) | The      Sino-foreign Cooperative Enterprise Law (1988), as amended, and the      Detailed Rules for the Implementation of the Sino-foreign Cooperative      Enterprise Law (1995), as amended; |
|--|------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | (iii) | The      Foreign Investment Enterprise Law (1986), as amended, and the Regulations      of Implementation of the Foreign Investment Enterprise Law (1990), as      amended. |
|--|-------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| E. | Taxation |
|----|----------|

----

| F. | Dividends      and Paying Agents |
|----|----------------------------------|

| G. | Statement      by Experts |
|----|---------------------------|

| H. | Documents      on Display |
|----|---------------------------|

----

| I. | Subsidiary      Information |
|----|-----------------------------|

----

|  | (a) | Financial      Statements of the Company |
|--|-----|------------------------------------------|

|  | (b) | Financial      Statements of Predecessor Company |
|--|-----|--------------------------------------------------|

----

|  | (c) | Financial      Statements of Business Acquired |
|--|-----|------------------------------------------------|

|  | (d) | Pro      Forma Financial Information |
|--|-----|--------------------------------------|

| Exhibit      No.  |   | Description                                                                                                                                                                                                                                        |
|------------------------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 1.1                    |   | Amended      and Restated Memorandum of Association of China Dredging Group Co.,      Ltd.                                                                                                                                                         |
| 1.2                    |   | Articles      of Association of China Dredging Group Co., Ltd.                                                                                                                                                                                     |
| 4.1                    |   | Employment      Agreement of Xinrong Zhuo                                                                                                                                                                                                          |
| 4.2                    |   | Employment      Agreement of Bin Lin                                                                                                                                                                                                               |
| 4.3                    |   | Employment      Agreement of Fangjie Gu                                                                                                                                                                                                            |
| 4.4                    |   | Agreement      and Plan of Merger by and among Chardan Acquisition Corp., Shareholders of      Chardan Acquisition Corp., China Dredging Group Co., Ltd. and Shareholders      Of China Dredging Group Co., Ltd. dated October 27,2010             |
| 4.5                    |   | Securities      Purchase Agreement by and among China Dredging Group Co., Ltd. and the      Purchasers Listed on Exhibit A thereto, dated October 29,    2010                                                                                      |
| 4.6                    |   | Registration      Rights Agreement dated October 29, 2010                                                                                                                                                                                          |
| 4.7                    |   | Securities      Escrow Agreement dated October 29, 2010                                                                                                                                                                                            |
| 4.8                    |   | Contracted      Management Agreement by and among Fujian WangGang Dredging Construction      Co., Ltd., Wonder Dredging LLC and  Fujian Xing Gang Port      Service Ltd., dated June 30, 2010.                                           |
| 4.9                    |   | Equity      Interest Pledge Agreement by and among Qing Lin, Panxing Zhuo, Fujian      WangGang Dredging Construction Co., Ltd. and Wonder Dredging LLC, dated      June 30, 2010.                                                                 |
| 4.10                   |   | Contract      Relating to the Exclusive Purchase Right of Equity Interest by and among      Fujian WangGang Dredging Construction Co., Ltd., Wonder Dredging LLC      and  Fujian Xing Gang Port Service Ltd., dated June 30,      2010. |
| 4.11                   |   | Power      of Attorney by and among Qing Lin, Panxing Zhuo and Fujian WangGang      Dredging Construction Co., Ltd., dated June 30, 2010.                                                                                                          |
| 4.12                   |   | Power      of Attorney by and between Wonder Dredging LLC and Fujian WangGang      Dredging Construction Co., Ltd., dated June 30, 2010.                                                                                                           |
| 4.13                   |   | Engineering      Boat Purchase and Sale Contract for Xinggangjun #3 by and between Yiyang      Zhonghai Boats and Ships Limited Liability Company and Fujian Xing Gang      Shipping Service Co., Ltd., January 13, 2008                           |
| 4.14                   |   | "Hongtaihai"      Engineering Boat Purchase and Sale Contract for Xinggangjun #66 by and      between Taizhou Hongtaihai Port Engineering Co., Ltd. and Fujian Xing Gang      Shipping Service Co., Ltd., March 23, 2008.                          |
| 4.15                   |   | Engineering      Boat Purchase and Sale Contract for Xinggangjun #6 by and between Yiyang      Zhonghai Boats and Ships Limited Liability Company and Fujian Xing Gang      Shipping Service Co., Ltd., dated January 18, 2008.                    |
| 4.16              |   | Engineering      Boat Purchase and Sale Contract by and between Yiyang Zhonghai Boats and      Ships Limited Liability Company and Fujian Xing Gang Shipping Service Co.,      Ltd., dated May 20, 2009.                                      |
| 4.17                   |   | Crewmen      Dispatch Contract for Xinggangjun #3 by and between Fujian Haiyi      International Shipping Service Agency Co., Ltd. and Fujian Xing Gang      Shipping Service Co., Ltd., April 21, 2008.                                           |
| 4.18                   |   | Crewmen      Dispatch Contract for Xinggangjun #66 by and between Fujian Haiyi      International Shipping Service Agency Co., Ltd. and Fujian Xing Gang      Shipping Service Co., Ltd., February 21, 2008.                                       |
| 4.19                   |   | Crewmen      Dispatch Contract for Xinggangjun #6 by and between Fujian Haiyi      International Shipping Service Agency Co., Ltd. and Fujian Xinggang      Shipping Service Co., Ltd., dated April 21, 2008.                                      |
| 4.20                   |   | Ship      Lease Contract for Hengshengjun #88 by and between Lianyungang Hengrong      Shipping Service Co., Ltd. and Fujian Xing Gang Shipping Service Co.,      Ltd., dated January 8, 2008.                                                     |
| 4.21                   |   | Crewmen      Assignment Agreement for for Hengshengjun #88 by and between Lianyungang      Hengrong Shipping Service Co., Ltd. and Fujian Xing Gang Shipping Service      Co., Ltd., dated January 8, 2008.                                        |
| 4.22                   |   | Ship      Lease Supplemental Agreement for Hengshengjun #88 by and between      Lianyungang Hengrong Shipping Service Co., Ltd. and Fujian Xing Gang      Shipping Service Co., Ltd., dated April 13, 2010.                                        |
| 4.23                   |   | Crewmen      Assignment Supplemental Agreement for Hengshengjun #88 by and between      Lianyungang Hengrong Shipping Service Co., Ltd. and Fujian Xing Gang      Shipping Service Co., Ltd., dated May 21, 2010.                                  |
| 4.24                   |   | Ship      Lease Contract for Xinggangjun #9 by and between Fujian Lutong Highway      Engineering Construction Co., Ltd. and Fujian Xing Gang Shipping Service      Co., Ltd., dated May 20, 2008.                                                 |
| 4.25                   |   | Crewmen      Assignment Agreement for Xinggangjun #9 by and between between Fujian      Lutong Highway Engineering Construction Co., Ltd. and Fujian Xing Gang      Shipping Service Co., Ltd., dated May 20, 2008.                                |
| 4.26                   |   | Ship      Lease Supplemental Agreement Contract for Xinggangjun #9 by and between      Fujian Lutong Highway Engineering Construction Co., Ltd. and Fujian Xing      Gang Shipping Service Co., Ltd., dated April 11, 2010.                        |
| 4.27                   |   | Crewmen      Assignment Supplemental Agreement for Xinggangjun #9 by and between Fujian      Lutong Highway Engineering Construction Co., Ltd. and Fujian Xing Gang      Shipping Service Co., Ltd., dated May 21, 2010.                           |
| 4.28                   |   | Ship      Lease Contract for Liya #10 by and between Beihai Shunda Liya Shipping      Service Co., Ltd. and Fujian Xing Gang Port Service Co., Ltd., dated June      14, 2010.                                                                     |
| 4.29                   |   | Crewmen      Assignment Agreement for Liya #10 by and between Beihai Shunda Liya      Shipping Service Co., Ltd. and Fujian Xing Gang Port Service Co., Ltd.,      dated June 14, 2010.                                                            |
| 4.30                   |   | Ship      Leasing Contract for Honglinjun #9 by and between Zhejiang Honglin Ship      Engineering Co., Ltd. and Fujian Xing Gang Port Service Co., Ltd., dated      June 19, 2010.                                                                |
| 4.31                   |   | Crewmen      Assignment Agreement for Honglinjun #9 by and between Zhejiang Honglin      Ship Engineering Co., Ltd. and Fujian Xing Gang Port Service Co., Ltd.,      dated June 19, 2010.                                                         |
| 4.32                   |   | Ship      Lease Contract for Honglinjun #18 by and between Zhejiang Honglin Ship      Engineering Co., Ltd. and Fujian Xing Gang Port Service Co., Ltd., dated      June 18, 2010.                                                                 |
| 4.33                   |   | Crewmen      Assignment Agreement for Honglinjun #18 by and between Zhejiang Honglin      Ship Engineering Co., Ltd. and Fujian Xing Gang Port Service Co., Ltd.,      dated June 18, 2010.                                                        |
| 4.34                   |   | Ship      Lease Contract for Xiechang #18 by and between Zhonghai Engineering      Construction General Bureau Dalian Engineering Construction Bureau and      Fujian Xing Gang Port Service Co., Ltd., dated June 24,    2010.                    |
| 4.35                   |   | Crewmen      Assignment Agreement for Xiechang #18 by and between Zhonghai Engineering      Construction General Bureau Dalian Engineering Construction Bureau and      Fujian Xing Gang Port Service Co., Ltd., dated June 24,    2010.           |
| 4.36                   |   | Office      Lease Agreement by and between LIN Ping and Fujian Xing Gang Shipping      Service Co., Ltd., dated January 1, 2008.                                                                                                                   |
| 4.37                   |   | Office      Lease Agreement by and between LIN Ping and Fujian Xing Gang Port Service      Co., Ltd., dated January 1, 2010.                                                                                                                       |
| 4.38                   |   | Office      Lease Supplemental Agreement by and between LIN Ping and Fujian Xing Gang      Port Service Co., Ltd., dated March 30, 2010.                                                                                                           |
| 8.1                    |   | List      of Subsidiaries                                                                                                                                                                                                                          |

----

| CHINA      DREDGING GROUP CO., LTD. |
|-------------------------------------|
|                                |
| By:                                 | /s/ Xinrong Zhuo |   |
|                                |   |
| Name:      Xinrong Zhuo             |   |
| Title:      Chief Executive Officer |   |
| Date:      November 2, 2010         |   |

----

| Exhibit      No.  |   | Description                                                                                                                                                                                                                                        |
|------------------------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 1.1                    |   | Amended      and Restated Memorandum of Association of China Dredging Group Co.,      Ltd.                                                                                                                                                         |
| 1.2                    |   | Articles      of Association of China Dredging Group Co., Ltd.                                                                                                                                                                                     |
| 4.1                    |   | Employment      Agreement of Xinrong Zhuo                                                                                                                                                                                                          |
| 4.2                    |   | Employment      Agreement of Bin Lin                                                                                                                                                                                                               |
| 4.3                    |   | Employment      Agreement of Fangjie Gu                                                                                                                                                                                                            |
| 4.4                    |   | Agreement      and Plan of Merger by and among Chardan Acquisition Corp., Shareholders of      Chardan Acquisition Corp., China Dredging Group Co., Ltd. and Shareholders      Of China Dredging Group Co., Ltd. dated October 27,2010             |
| 4.5                    |   | Securities      Purchase Agreement by and among China Dredging Group Co., Ltd. and the      Purchasers Listed on Exhibit A thereto, dated October 29,    2010                                                                                      |
| 4.6                    |   | Registration      Rights Agreement dated October 29, 2010                                                                                                                                                                                          |
| 4.7                    |   | Securities      Escrow Agreement dated October 29, 2010                                                                                                                                                                                            |
| 4.8                    |   | Contracted      Management Agreement by and among Fujian WangGang Dredging Construction      Co., Ltd., Wonder Dredging LLC and  Fujian Xing Gang Port      Service Ltd., dated June 30, 2010.                                           |
| 4.9                    |   | Equity      Interest Pledge Agreement by and among Qing Lin, Panxing Zhuo, Fujian      WangGang Dredging Construction Co., Ltd. and Wonder Dredging LLC, dated      June 30, 2010.                                                                 |
| 4.10                   |   | Contract      Relating to the Exclusive Purchase Right of Equity Interest by and among      Fujian WangGang Dredging Construction Co., Ltd., Wonder Dredging LLC      and  Fujian Xing Gang Port Service Ltd., dated June 30,      2010. |
| 4.11                   |   | Power      of Attorney by and among Qing Lin, Panxing Zhuo and Fujian WangGang      Dredging Construction Co., Ltd., dated June 30, 2010.                                                                                                          |
| 4.12                   |   | Power      of Attorney by and between Wonder Dredging LLC and Fujian WangGang      Dredging Construction Co., Ltd., dated June 30, 2010.                                                                                                           |
| 4.13                   |   | Engineering      Boat Purchase and Sale Contract for Xinggangjun #3 by and between Yiyang      Zhonghai Boats and Ships Limited Liability Company and Fujian Xing Gang      Shipping Service Co., Ltd., January 13, 2008                           |
| 4.14                   |   | "Hongtaihai"      Engineering Boat Purchase and Sale Contract for Xinggangjun #66 by and      between Taizhou Hongtaihai Port Engineering Co., Ltd. and Fujian Xing Gang      Shipping Service Co., Ltd., March 23, 2008.                          |
| 4.15                   |   | Engineering      Boat Purchase and Sale Contract for Xinggangjun #6 by and between Yiyang      Zhonghai Boats and Ships Limited Liability Company and Fujian Xing Gang      Shipping Service Co., Ltd., dated January 18, 2008.                    |
| 4.16              |   | Engineering      Boat Purchase and Sale Contract by and between Yiyang Zhonghai Boats and      Ships Limited Liability Company and Fujian Xing Gang Shipping Service Co.,      Ltd., dated May 20, 2009.                                      |
| 4.17                   |   | Crewmen      Dispatch Contract for Xinggangjun #3 by and between Fujian Haiyi      International Shipping Service Agency Co., Ltd. and Fujian Xing Gang      Shipping Service Co., Ltd., April 21, 2008.                                           |
| 4.18                   |   | Crewmen      Dispatch Contract for Xinggangjun #66 by and between Fujian Haiyi      International Shipping Service Agency Co., Ltd. and Fujian Xing Gang      Shipping Service Co., Ltd., February 21, 2008.                                       |
| 4.19                   |   | Crewmen      Dispatch Contract for Xinggangjun #6 by and between Fujian Haiyi      International Shipping Service Agency Co., Ltd. and Fujian Xinggang      Shipping Service Co., Ltd., dated April 21, 2008.                                      |
| 4.20                   |   | Ship      Lease Contract for Hengshengjun #88 by and between Lianyungang Hengrong      Shipping Service Co., Ltd. and Fujian Xing Gang Shipping Service Co.,      Ltd., dated January 8, 2008.                                                     |
| 4.21                   |   | Crewmen      Assignment Agreement for for Hengshengjun #88 by and between Lianyungang      Hengrong Shipping Service Co., Ltd. and Fujian Xing Gang Shipping Service      Co., Ltd., dated January 8, 2008.                                        |
| 4.22                   |   | Ship      Lease Supplemental Agreement for Hengshengjun #88 by and between      Lianyungang Hengrong Shipping Service Co., Ltd. and Fujian Xing Gang      Shipping Service Co., Ltd., dated April 13, 2010.                                        |
| 4.23                   |   | Crewmen      Assignment Supplemental Agreement for Hengshengjun #88 by and between      Lianyungang Hengrong Shipping Service Co., Ltd. and Fujian Xing Gang      Shipping Service Co., Ltd., dated May 21, 2010.                                  |
| 4.24                   |   | Ship      Lease Contract for Xinggangjun #9 by and between Fujian Lutong Highway      Engineering Construction Co., Ltd. and Fujian Xing Gang Shipping Service      Co., Ltd., dated May 20, 2008.                                                 |
| 4.25                   |   | Crewmen      Assignment Agreement for Xinggangjun #9 by and between between Fujian      Lutong Highway Engineering Construction Co., Ltd. and Fujian Xing Gang      Shipping Service Co., Ltd., dated May 20, 2008.                                |
| 4.26                   |   | Ship      Lease Supplemental Agreement Contract for Xinggangjun #9 by and between      Fujian Lutong Highway Engineering Construction Co., Ltd. and Fujian Xing      Gang Shipping Service Co., Ltd., dated April 11, 2010.                        |
| 4.27                   |   | Crewmen      Assignment Supplemental Agreement for Xinggangjun #9 by and between Fujian      Lutong Highway Engineering Construction Co., Ltd. and Fujian Xing Gang      Shipping Service Co., Ltd., dated May 21, 2010.                           |
| 4.28                   |   | Ship      Lease Contract for Liya #10 by and between Beihai Shunda Liya Shipping      Service Co., Ltd. and Fujian Xing Gang Port Service Co., Ltd., dated June      14, 2010.                                                                     |
| 4.29                   |   | Crewmen      Assignment Agreement for Liya #10 by and between Beihai Shunda Liya      Shipping Service Co., Ltd. and Fujian Xing Gang Port Service Co., Ltd.,      dated June 14, 2010.                                                            |
| 4.30                   |   | Ship      Leasing Contract for Honglinjun #9 by and between Zhejiang Honglin Ship      Engineering Co., Ltd. and Fujian Xing Gang Port Service Co., Ltd., dated      June 19, 2010.                                                                |
| 4.31                   |   | Crewmen      Assignment Agreement for Honglinjun #9 by and between Zhejiang Honglin      Ship Engineering Co., Ltd. and Fujian Xing Gang Port Service Co., Ltd.,      dated June 19, 2010.                                                         |
| 4.32                   |   | Ship      Lease Contract for Honglinjun #18 by and between Zhejiang Honglin Ship      Engineering Co., Ltd. and Fujian Xing Gang Port Service Co., Ltd., dated      June 18, 2010.                                                                 |
| 4.33                   |   | Crewmen      Assignment Agreement for Honglinjun #18 by and between Zhejiang Honglin      Ship Engineering Co., Ltd. and Fujian Xing Gang Port Service Co., Ltd.,      dated June 18, 2010.                                                        |
| 4.34                   |   | Ship      Lease Contract for Xiechang #18 by and between Zhonghai Engineering      Construction General Bureau Dalian Engineering Construction Bureau and      Fujian Xing Gang Port Service Co., Ltd., dated June 24,    2010.                    |
| 4.35                   |   | Crewmen      Assignment Agreement for Xiechang #18 by and between Zhonghai Engineering      Construction General Bureau Dalian Engineering Construction Bureau and      Fujian Xing Gang Port Service Co., Ltd., dated June 24,    2010.           |
| 4.36                   |   | Office      Lease Agreement by and between LIN Ping and Fujian Xing Gang Shipping      Service Co., Ltd., dated January 1, 2008.                                                                                                                   |
| 4.37                   |   | Office      Lease Agreement by and between LIN Ping and Fujian Xing Gang Port Service      Co., Ltd., dated January 1, 2010.                                                                                                                       |
| 4.38                   |   | Office      Lease Supplemental Agreement by and between LIN Ping and Fujian Xing Gang      Port Service Co., Ltd., dated March 30, 2010.                                                                                                           |
| 8.1                    |   | List      of Subsidiaries                                                                                                                                                                                                                          |

----

|                                                                                                                                                                                                                                 |         |   |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------------|--------|
|                                                                                                                                                                                                                                 |    | Page   |
| Pro      Forma Consolidated Financial Statements of China Dredging Group Co., Ltd.                                                                                                                                                   |    | F-1    |
| Introduction      to Unaudited Pro Forma Financial Statements                                                                                                                                                                        |    | F-1    |
| Unaudited      Pro Forma Consolidated Balance Sheet, June 30, 2010                                                                                                                                                                   |    | F-4    |
| Unaudited      Pro Forma Consolidated Statement of Income, for the Six Months Ended June      30. 2010                                                                                                                               |    | F-6    |
| Unaudited      Pro Forma Consolidated Statement of Income, for the Year Ended December      31, 2009                                                                                                                                 |    | F-8    |
|                                                                                                                                                                                                                                 |         |
| Consolidated Financial Statements      of China Dredging Group Co., Ltd and Subsidiaries      (Unaudited)                                                                                                                            |    | F-10   |
| Consolidated      Balance Sheet at June 30, 2010 (Unaudited)                                                                                                                                                                         |    | F-10   |
| Consolidated      Statement of Operations for the Period from April 14, 2010 (Date of      Inception) to June 30, 2010 (Unaudited)                                                                                                   |    | F-11   |
| Consolidated      Statement of Changes in Stockholders’ Equity for the Period from April 14,      2010 (Date of Inception) to June 30, 2010 (Unaudited)                                                                        |    | F-12   |
| Consolidated      Statement of Cash Flows for the Period from April 14, 2010 (Date of      Inception) to June 30, 2010 (Unaudited)                                                                                                   |    | F-13   |
| Notes      to the Consolidated Financial Statements (Unaudited)                                                                                                                                                                      |    | F-14   |
|                                                                                                                                                                                                                                 |         |   |
| Consolidated      Financial Statements of FuJian Xing Gang Port Service Co.,      Ltd. (Unaudited)                                                                                                                              |    | F-38   |
| Balance      Sheets at June 30, 2010 (Unaudited) and December 31, 2009                                                                                                                                                               |    | F-38   |
| Statements      of Income for the Three and Six Months Ended June 30, 2010 and 2009      (Unaudited)                                                                                                                                 |    | F-39   |
| Statement      of Changes in Owners’ Equity for the Six Months Ended June 30, 2010      (Unaudited)                                                                                                                            |    | F-40   |
| Statements      of Cash Flows for the Six Months Ended June 30, 2010 and 2009      (Unaudited)                                                                                                                                       |    | F-41   |
| Notes      to the Financial Statements (Unaudited)                                                                                                                                                                                   |    | F-42   |
|                                                                                                                                                                                                                                 |         |   |
| Consolidated      Financial Statements of FuJian Xing Gang Port Service Co.,      Ltd.                                                                                                                                     |    | F-63   |
| Report      of Independent Registered Public Accounting Firm                                                                                                                                                                         |    | F-63   |
| Balance      Sheets at December 31, 2009 and 2008                                                                                                                                                                                    |         | F-64   |
| Statements      of Income for the Years Ended December 31, 2009 and 2008                                                                                                                                                             |    | F-65   |
| Statement      of Changes in Owners’ Equity for the Years Ended December 31, 2009 and      2008                                                                                                                                |    | F-66   |
| Statements      of Cash Flows for the Years Ended December 31, 2009 and    2008                                                                                                                                                      |    | F-67   |
| Notes      to the Financial Statements                                                                                                                                                                                               |    | F-68   |
|                                                                                                                                                                                                                                 |    |   |
| Condensed      Financial Statements of Chardan Acquisition Corp. (A Development Stage      Company) for the Nine Months Ended June 30, 2010 and for the Period from      September 26, 2008 (Inception) to June 30, 2010(Unaudited)  |    | F-84   |
| Condensed      Balance Sheets as of June 30, 2010 (Unaudited) and as of September 30,      2009                                                                                                                                      |         | F-84   |
| Condensed      Statements of Operations for the Nine Months Ended June 30, 2010 and June      30, 2009 and for the Period from September 26, 2008 (Inception) to June      30, 2010 (Unaudited)                                      |    | F-85   |
| Condensed      Statements of Changes in Stockholders’ Deficiency for the Period from      September 26, 2008 (Inception) to June 30, 2010(Unaudited)                                                                           |         | F-86   |
| Condensed      Statements of Cash Flows for the Nine Months Ended June 30, 2010 and for      the Period from September 26, 2008 (Inception) to June 30, 2010      (Unaudited)                                                        |    | F-87   |
| Notes      to Condensed Financial Statements (Unaudited)                                                                                                                                                                             |    | F-88   |
|                                                                                                                                                                                                                                 |         |   |
| Consolidated      Financial Statements of Chardan Acquisition Corp. (A Development Stage      Company) for the Years Ended September 30, 2009 and 2008                                                                               |    | F-93   |
| Report      of Independent Registered Public Accounting Firm                                                                                                                                                                         |    | F-93   |
| Balance      Sheets as of September 30, 2009 and as of September 30,    2008                                                                                                                                                         |         | F-94   |
| Statements      of Operations for the Year Ended September 30, 2009, for the Period from      September 26, 2008 (Inception) to September 30, 2008 and for the Period      from September 26, 2008 (Inception) to September 30, 2009 |    | F-95   |
| Statements      of Changes in Stockholders’ Deficiency for the Period from September 26,      2008 (Inception) to September 30, 2009                                                                                           |         | F-96   |
| Statements      of Cash Flows for the Year Ended September 30, 2009, for the Period from      September 26, 2008 (Inception) to September 30, 2008 and for the Period      from September 26, 2008 (Inception) to September 30, 2009 |    | F-97   |
| Notes      to the Financial statements                                                                                                                                                                                               |    | F-98   |

----

|   | - | the      unaudited consolidated historical financial statements and related notes      of the Company at June 30, 2010 and for the period from April 14, 2010      (inception) through June 30, 2010 |
|--------|---|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | - | the      audited financial statements of CAC at and for the year ended September      30, 2009, and at September 30, 2008 and for the period from September 26,      2008 (inception), together with the  unaudited financial      statements of CAC at and for the nine months ended June 30,      2010; |
|--------|---|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | - | the      audited financial statements of Fujian Xing Gang Port Service Co. Ltd.      (“Fujian Service”) at and for the year ended December 31, 2009 and at      December 31, 2008 and for the period from January 8, 2008 (date of      inception) through December 31, 2008 and the unaudited audited financial      statements of Fujian Service at June 30, 2010 and for the six months then      ended. |
|--------|---|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|  | (a) | to      contribute shareholders loans and advances into equity in connection with      reverse merger. |
|--|-----|--------------------------------------------------------------------------------------------------------|

|  | (b) | to      record the issuance of 500,000 shares of the Company common stock (no par      value) to CAC shareholders upon consummation of the Merger, and to      eliminate CAC’s equity in connection with the reverse    merger; |
|--|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | (c) | to      record the issuance of 15,000,000 (maximum offering) Class A Preferred      shares and the receipt of gross proceeds and to record payment of      contingent fees to the placement agent equal to 7% of the Offering      amount; |
|--|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | (d) | to      record the issuance of 4,371,000 (minimum offering) Class A Preferred      shares and the receipt of gross proceeds and to record payment of      contingent fees to the placement agent equal to 7% of the Offering      amount; |
|--|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | (e) | to      reclassify the retained earnings of CAC in connection with reverse      acquisition as the Company will be the continuing entity for accounting      purposes; |
|--|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | (f) | to      record estimated expenses related in connection with      transactions; |
|--|-----|---------------------------------------------------------------------------------|

|  | (g) | the      pro forma consolidated net income per share was calculated by dividing pro      forma combined net income by the pro forma weighted average number of      shares outstanding asfollows: |
|--|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|                                                                                                              |   | Six      months ended                                 |       |   | Year      ended                                      |   |
|-------------------------------------------------------------------------------------------------------------------|--------|-------------------------------------------------------|------------|--------|------------------------------------------------------|--------|
|                                                                                                              |   | June 30, 2010                                         |       |   | December 31, 2009                                    |   |
|                                                                                                              |   | Assuming MaximumProceeds from Offering |       |   | Assuming InitialProceeds frm Offering |   |   | Assuming      MaximumProceeds      from Offering |   |   | Assuming      InitialProceeds      from Offering |   |
|                                                                                                              |   | ($75.0 million)                                       |       |   | ($21.9 million)                                      |   |   | ($75.0 million) |   |   | ($21.9 million) |   |
| Company      shares                                                                                               |   |                                                  | 43,829,748 |   |                                                 |   | 43,829,748 |   |   |   | 43,829,748 |   |   |   | 43,829,748 |   |
| Shares      issued in the Merger to CAC shareholders                                                              |   |                                                  | 500,000    |   |                                                 |   | 500,000 |   |   |   | 500,000 |   |   |   | 500,000 |   |
| Weighted      average shares outstanding - Basic:  (+)                                                  |   |                                                  | 44,329,748 |   |                                                 |   | 44,329,748 |   |   |   | 44,329,748 |   |   |   | 44,329,748 |   |
| Incremental      Company shares issuable upon conversion of Class A Preferred Shares issued      in the Offering: |   |                                                  | 15,000,000 |   |                                                 |   | 4,371,000 |   |   |   | 15,000,000 |   |   |   | 4,371,000 |   |
| Weighted      average shares - Fully  Diluted                                                           |   |                                                  | 59,329,748 |   |                                                 |   | 48,700,748 |   |   |   | 59,329,748 |   |   |   | 48,700,748 |   |

|   | (+)  Company      weighted average shares outstanding are calculated giving effect from the      date shown of  the Company share redesignation (to 52,177,323      ordinary shares having no par value) and the  issuance to the      CAC shareholders upon closing in exchange for their CAC common      shares  (500,000  ordinary  shares). |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | The      pro forma statements of income from operations for the six months ending      June 30, 2010 and for the year ending December 31, 2009 is for the Group      (as defined above in the introduction to this section under the heading      “Unaudited Pro Forma Combined Financial Statements”)), and thus they      include the results of the statements of operations of Fujian Service for      the six months ending June 30, 2010 and for the year ending December 31,      2009, respectively.  Refer to the unaudited financial statements      of Fujian Service as of and for the six months ending June 30, 2010 and to      the audited financial statements of Fujian Service for the year ending      December 31, 2009 as well as to Note 2 of the unaudited financial      statements of the Company for the source of the figures contained in the      pro forma statements of income from operations for the      Company. |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | The      “income per share amounts – basic” in the pro forma statements of income      from operations for the year ending December 31, 2009 and for the six      months ending June30, 2010 assume that none of the Class A Preferred      shares issued or issuable by the Company in the Offering are converted to      ordinary shares. |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | The      “income per share amounts – diluted” in the pro forma statements of income      from operations for the year ending December 31, 2009 and for the six      months ending June30, 2010 assume that all of the Class A Preferred shares      issued or issuable by the Company in the Offering are converted to      ordinary shares. |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|                                                                                |   | China      DredgingGroup      Co., Ltd.and Subsidiaries(BVI) |        |   | ChardanAcquisition      Corp.(BVI) |   |    | Pro      FormaAdjustments |   |   |       | Pro      FormaConsolidated |   |
|-------------------------------------------------------------------------------------|--------|--------------------------------------------------------------|-------------|--------|------------------------------------|--------|---------|---------------------------|--------|--------|------------|----------------------------|--------|
|                                                                                |   |                                                         |        |   |                               |   |    |                      |   |   |       |                       |   |
| ASSETS                                                                              |   |                                                         |        |   |                               |   |    |                      |   |   |       |                       |   |
| Current      Assets:                                                                |   |                                                         |        |   |                               |   |    |                      |   |   |       |                       |   |
| Cash      and cash equivalents                                                      |   | $                                                            | 25,388,638  |   |                               | $      | -       |                      |   | $      | 75,000,000 |                       | (c)    |   | $ | 94,538,638 |   |
|                                                                                |   |                                                         | -           |   |                               |   | -       |                      |   |   | (5,250,000 | )                          | (c)    |   |   | - |   |
|                                                                                |   |                                                         | -           |   |                               |   | -       |                      |   |   | (600,000   | )                          | (f)    |   |   | - |   |
| Restricted      cash                                                                |   |                                                         | 25,968,089  |   |                               |   | -       |                      |   |   | -          |                       |   |   |   | 25,968,089 |   |
| Cost      and estimated earnings in excess of billings on uncompleted      projects |   |                                                         | 8,845,328   |   |                               |   | -       |                      |   |   | -          |                       |   |   |   | 8,845,328 |   |
| Acrrued      Transaction Expenses                                                   |   |                                                         | -           |   |                               |   | -       |                      |   |   | -          |                       |   |   |   | - |   |
| Prepaid      Expense                                                                |   |                                                         | -           |   |                               |   | 1,515   |                      |   |   | -          |                       |   |   |   | 1,515 |   |
| Other      receivables                                                              |   |                                                         | 1,201       |   |                               |   | -       |                      |   |   | -          |                       |   |   |   | 1,201 |   |
| Inventories                                                                         |   |                                                         | 1,193,210   |   |                               |   | -       |                      |   |   | -          |                       |   |   |   | 1,193,210 |   |
| Total      current assets                                                           |   |                                                         | 61,396,466  |   |                               |   | 1,515   |                      |   |   | 69,150,000 |                       |   |   |   | 130,547,981 |   |
| Non-current      Assets:                                                            |   |                                                         |        |   |                               |   |    |                      |   |   |       |                       |   |   |   |   |   |
| Prepaid      dredger deposit                                                        |   |                                                         | 2,211,932   |   |                               |   | -       |                      |   |   | -          |                       |   |   |   | 2,211,932 |   |
| Property      and equipment, net                                                    |   |                                                         | 41,689,943  |   |                               |   | -       |                      |   |   | -          |                       |   |   |   | 41,689,943 |   |
| Total      non-current assets                                                       |   |                                                         | 43,901,875  |   |                               |   | -       |                      |   |   | -          |                       |   |   |   | 43,901,875 |   |
| Total      assets                                                                   |   | $                                                            | 105,298,341 |   |                               | $      | 1,515   |                      |   | $      | 69,150,000 |                       |   |   | $ | 174,449,856 |   |
|                                                                                |   |                                                         |        |   |                               |   |    |                      |   |   |       |                       |   |   |   |   |   |
| LIABILITIES      AND STOCKHOLDERS' EQUITY/(DEFICIENCY)                              |   |                                                         |        |   |                               |   |    |                      |   |   |       |                       |   |   |   |   |   |
| Current      Liabilities:                                                           |   |                                                         |        |   |                               |   |    |                      |   |   |       |                       |   |   |   |   |   |
| Accounts      payable                                                               |   | $                                                            | 789,086     |   |                               | $      | 750     |                      |   | $      | (750       | )                          | (a)    |   | $ | 789,086 |   |
| Term      loan                                                                      |   |                                                         | 4,423,865   |   |                               |   | 33,688  |                      |   |   | (33,688    | )                          | (a)    |   |   | 4,423,865 |   |
| Income      tax payable                                                             |   |                                                         | 3,418,577   |   |                               |   | -       |                      |   |   | -          |                       |   |   |   | 3,418,577 |   |
| Accrued      liabilities and other payables                                         |   |                                                         | 928,484     |   |                               |   | -       |                      |   |   | -          |                       |   |   |   | 928,484 |   |
| Due      to a stockholder                                                           |   |                                                         | 1,691,221   |   |                               |   | -       |                      |   |   | -          |                       |   |   |   | 1,691,221 |   |
| Total      current liabilities                                                      |   |                                                         | 11,251,233  |   |                               |   | 34,438  |                      |   |   | (34,438    | )                          |   |   |   | 11,251,233 |   |
| Non-current      Liabilities                                                        |   |                                                         |        |   |                               |   |    |                      |   |   |       |                       |   |   |   |   |   |
| Term      loan, net of current portion                                              |   |                                                         | 7,962,957   |   |                               |   | -       |                      |   |   | -          |                       |   |   |   | 7,962,957 |   |
| Convertible      preferred stock subject to redemption                              |   |                                                         | -           |   |                               |   | -       |                      |   |   | 75,000,000 |                       |   |   |   | 75,000,000 |   |
| Total      non-current liabilities                                                  |   |                                                         | 7,962,957   |   |                               |   | -       |                      |   |   | 75,000,000 |                       |   |   |   | 82,962,957 |   |
| Total      liabilities                                                              |   |                                                         | 19,214,190  |   |                               |   | 34,438  |                      |   |   | 74,965,562 |                       |   |   |   | 94,214,190 |   |
| Stockholders'      equity/(deficiency):                                             |   |                                                         |        |   |                               |   |    |                      |   |   |       |                       |   |   |   |   |   |
| Common      stock, no par value                                                     |   |                                                         | -           |   |                               |   | 31,499  |                      |   |   | (31,499    | )                          | (b)    |   |   | - |   |
|                                                                                |   |                                                         |        |   |                               |   |    |                      |   |   |       |                       |   |   |   |   |   |
| Additional      paid-in capital                                                     |   |                                                         | 80,205,592  |   |                               |   | -       |                      |   |   | -          |                       |   |   |   | 74,357,107 |   |
|                                                                                |   |                                                         | -           |   |                               |   | -       |                      |   |   | 31,499     |                       | (b)    |   |   | - |   |
|                                                                                |   |                                                         | -           |   |                               |   | -       |                      |   |   | (64,422    | )                          | (e)    |   |   | - |   |
|                                                                                |   |                                                         |        |   |                               |   |    |                      |   |   | 34,438     |                       | (a)    |   |   |   |   |
|                                                                                |   |                                                         | -           |   |                               |   | -       |                      |   |   | (5,250,000 | )                          | (c)    |   |   | - |   |
|                                                                                |   |                                                         | -           |   |                               |   | -       |                      |   |   | (600,000   | )                          | (f)    |   |   | - |   |
| Statutory      reserves                                                             |   |                                                         | 4,888,018   |   |                               |   | -       |                      |   |   | -          |                       |   |   |   | 4,888,018 |   |
| Accumulated      deficit                                                            |   |                                                         | (318,442    | )      |                               |   | (64,422 | )                         |   |   | 64,422     |                       | (e)    |   |   | (318,442 | ) |
| Accumulated      and other comprehensive income                                     |   |                                                         | 1,308,983   |   |                               |   | -       |                      |   |   | -          |                       |   |   |   | 1,308,983 |   |
| Total      stockholders' equity/(deficiency)                                        |   |                                                         | 86,084,151  |   |                               |   | (32,923 | )                         |   |   | (5,815,562 | )                          |   |   |   | 80,235,666 |   |
| Total      liabilities and stockholders' equity/(deficiency)                        |   | $                                                            | 105,298,341 |   |                               | $      | 1,515   |                      |   | $      | 69,150,000 |                       |   |   | $ | 174,449,856 |   |

----

|                                                                                |   | China      DredgingGroup      Co., Ltd.and Subsidiaries(BVI) |        |   | ChardanAcquisition      Corp.(BVI) |   |    | Pro      FormaAdjustments |   |   |       | Pro      FormaConsolidated |   |
|-------------------------------------------------------------------------------------|--------|--------------------------------------------------------------|-------------|--------|------------------------------------|--------|---------|---------------------------|--------|--------|------------|----------------------------|--------|
|                                                                                |   |                                                         |        |   |                               |   |    |                      |   |   |       |                       |   |
| ASSETS                                                                              |   |                                                         |        |   |                               |   |    |                      |   |   |       |                       |   |
| Current      Assets:                                                                |   |                                                         |        |   |                               |   |    |                      |   |   |       |                       |   |
| Cash      and cash equivalents                                                      |   | $                                                            | 25,388,638  |   |                               | $      | -       |                      |   | $      | 21,855,000 |                       | (d)    |   | $ | 45,209,713 |   |
|                                                                                |   |                                                         | -           |   |                               |   | -       |                      |   |   | (1,479,850 | )                          | (d)    |   |   | - |   |
|                                                                                |   |                                                         | -           |   |                               |   | -       |                      |   |   | (554,075   | )                          | (f)    |   |   | - |   |
| Restricted      cash                                                                |   |                                                         | 25,968,089  |   |                               |   | -       |                      |   |   | -          |                       |   |   |   | 25,968,089 |   |
| Cost      and estimated earnings in excess of billings on uncompleted      projects |   |                                                         | 8,845,328   |   |                               |   | -       |                      |   |   | -          |                       |   |   |   | 8,845,328 |   |
| Acrrued      Transaction Expenses                                                   |   |                                                         | -           |   |                               |   | -       |                      |   |   | -          |                       |   |   |   | - |   |
| Prepaid      Expense                                                                |   |                                                         | -           |   |                               |   | 1,515   |                      |   |   | -          |                       |   |   |   | 1,515 |   |
| Other      receivables                                                              |   |                                                         | 1,201       |   |                               |   | -       |                      |   |   | -          |                       |   |   |   | 1,201 |   |
| Inventories                                                                         |   |                                                         | 1,193,210   |   |                               |   | -       |                      |   |   | -          |                       |   |   |   | 1,193,210 |   |
| Total      current assets                                                           |   |                                                         | 61,396,466  |   |                               |   | 1,515   |                      |   |   | 19,821,075 |                       |   |   |   | 81,219,056 |   |
| Non-current      Assets:                                                            |   |                                                         |        |   |                               |   |    |                      |   |   |       |                       |   |   |   |   |   |
| Prepaid      dredger deposit                                                        |   |                                                         | 2,211,932   |   |                               |   | -       |                      |   |   | -          |                       |   |   |   | 2,211,932 |   |
| Property      and equipment, net                                                    |   |                                                         | 41,689,943  |   |                               |   | -       |                      |   |   | -          |                       |   |   |   | 41,689,943 |   |
| Total      non-current assets                                                       |   |                                                         | 43,901,875  |   |                               |   | -       |                      |   |   | -          |                       |   |   |   | 43,901,875 |   |
| Total      assets                                                                   |   | $                                                            | 105,298,341 |   |                               | $      | 1,515   |                      |   | $      | 19,821,075 |                       |   |   | $ | 125,120,931 |   |
|                                                                                |   |                                                         |        |   |                               |   |    |                      |   |   |       |                       |   |   |   |   |   |
| LIABILITIES      AND STOCKHOLDERS' EQUITY/(DEFICIENCY)                              |   |                                                         |        |   |                               |   |    |                      |   |   |       |                       |   |   |   |   |   |
| Current      Liabilities:                                                           |   |                                                         |        |   |                               |   |    |                      |   |   |       |                       |   |   |   |   |   |
| Accounts      payable                                                               |   | $                                                            | 789,086     |   |                               | $      | 750     |                      |   | $      | (750       | )                          | (a)    |   | $ | 789,086 |   |
| Term      loan                                                                      |   |                                                         | 4,423,865   |   |                               |   | 33,688  |                      |   |   | (33,688    | )                          | (a)    |   |   | 4,423,865 |   |
| Income      tax payable                                                             |   |                                                         | 3,418,577   |   |                               |   | -       |                      |   |   | -          |                       |   |   |   | 3,418,577 |   |
| Accrued      liabilities and other payables                                         |   |                                                         | 928,484     |   |                               |   | -       |                      |   |   | -          |                       |   |   |   | 928,484 |   |
| Due      to a stockholder                                                           |   |                                                         | 1,691,221   |   |                               |   | -       |                      |   |   | -          |                       |   |   |   | 1,691,221 |   |
| Total      current liabilities                                                      |   |                                                         | 11,251,233  |   |                               |   | 34,438  |                      |   |   | (34,438    | )                          |   |   |   | 11,251,233 |   |
| Non-current      Liabilities                                                        |   |                                                         |        |   |                               |   |    |                      |   |   |       |                       |   |   |   |   |   |
| Term      loan, net of current portion                                              |   |                                                         | 7,962,957   |   |                               |   | -       |                      |   |   | -          |                       |   |   |   | 7,962,957 |   |
| Convertible      preferred stock subject to redemption                              |   |                                                         | -           |   |                               |   | -       |                      |   |   | 21,855,000 |                       |   |   |   | 21,855,000 |   |
| Total      non-current liabilities                                                  |   |                                                         | 7,962,957   |   |                               |   | -       |                      |   |   | 21,855,000 |                       |   |   |   | 29,817,957 |   |
| Total      liabilities                                                              |   |                                                         | 19,214,190  |   |                               |   | 34,438  |                      |   |   | 21,820,562 |                       |   |   |   | 41,069,190 |   |
| Stockholders'      equity/(deficiency):                                             |   |                                                         |        |   |                               |   |    |                      |   |   |       |                       |   |   |   |   |   |
| Common      stock, no par value                                                     |   |                                                         | -           |   |                               |   | 31,499  |                      |   |   | (31,499    | )                          | (b)    |   |   | - |   |
|                                                                                |   |                                                         | -           |   |                               |   | -       |                      |   |   |       |                       |   |   |   | - |   |
| Additional      paid-in capital                                                     |   |                                                         | 80,205,592  |   |                               |   | -       |                      |   |   | 31,499     |                       | (b)    |   |   | 78,173,182 |   |
|                                                                                |   |                                                         | -           |   |                               |   | -       |                      |   |   | 34,438     |                       | (a)    |   |   | - |   |
|                                                                                |   |                                                         | -           |   |                               |   | -       |                      |   |   | (64,422    | )                          | (e)    |   |   | - |   |
|                                                                                |   |                                                         | -           |   |                               |   | -       |                      |   |   | (1,479,850 | )                          | (d)    |   |   | - |   |
|                                                                                |   |                                                         | -           |   |                               |   | -       |                      |   |   | (554,075   | )                          | (f)    |   |   | - |   |
| Statutory      reserves                                                             |   |                                                         | 4,888,018   |   |                               |   | -       |                      |   |   | -          |                       |   |   |   | 4,888,018 |   |
| Accumulated      deficit                                                            |   |                                                         | (318,442    | )      |                               |   | (64,422 | )                         |   |   | 64,422     |                       | (e)    |   |   | (318,442 | ) |
| Accumulated      and other comprehensive income                                     |   |                                                         | 1,308,983   |   |                               |   | -       |                      |   |   | -          |                       |   |   |   | 1,308,983 |   |
| Total      stockholders' equity/(deficiency)                                        |   |                                                         | 86,084,151  |   |                               |   | (32,923 | )                         |   |   | (1,999,487 | )                          |   |   |   | 84,051,741 |   |
| Total      liabilities and stockholders' equity/(deficiency)                        |   | $                                                            | 105,298,341 |   |                               | $      | 1,515   |                      |   | $      | 19,821,075 |                       |   |   | $ | 125,120,931 |   |

----

|                                                                            |   | Group  |       |   | Chardan AcquisitionCorp. (BVI) |   |    | Pro FormaAdjustment |   |   | Pro Forma Combined |   |
|---------------------------------------------------------------------------------|--------|--------|------------|--------|------------------------------------------|--------|---------|--------------------------|--------|--------|-------------------------|--------|
|                                                                            |   |   |       |   |                                     |   |    |                     |   |   |                    |   |
| Contract      revenue                                                           |   | $      | 45,981,433 |   |                                     | $      | -       |                     |   | $      | -                       |   |   | $ | 45,981,433 |   |
| Cost      of revenue                                                            |   |   | 20,389,446 |   |                                     |   | 17,219  |                     |   |   | -                       |   |   |   | 20,406,665 |   |
| Gross      Profit                                                               |   |   | 25,591,987 |   |                                     |   | (17,219 | )                        |   |   | -                       |   |   |   | 25,574,768 |   |
| Operating      expenses                                                         |   |   |       |   |                                     |   |    |                     |   |   |                    |   |   |   |   |   |
| General      and administrative                                                 |   |   | 2,367,968  |   |                                     |   | 7,903   |                     |   |   | -                       |   |   |   | 2,375,871 |   |
| Total      operating expenses                                                   |   |   | 2,367,968  |   |                                     |   | 7,903   |                     |   |   | -                       |   |   |   | 2,375,871 |   |
|                                                                            |   |   |       |   |                                     |   |    |                     |   |   |                    |   |   |   |   |   |
| Income      (loss) from operations                                              |   |   | 23,224,019 |   |                                     |   | (25,122 | )                        |   |   | -                       |   |   |   | 23,198,897 |   |
|                                                                            |   |   |       |   |                                     |   |    |                     |   |   |                    |   |   |   |   |   |
| Other      income (expense):                                                    |   |   |       |   |                                     |   |    |                     |   |   |                    |   |   |   |   |   |
|                                                                            |   |   |       |   |                                     |   |    |                     |   |   |                    |   |   |   |   |   |
| Other      income                                                               |   |   |       |   |                                     |   |    |                     |   |   |                    |   |   |   |   |   |
| Interest      income                                                            |   |   | 44,727     |   |                                     |   | -       |                     |   |   | -                       |   |   |   | 44,727 |   |
| Interest      expense                                                           |   |   | (442,827   | )      |                                     |   | (689    | )                        |   |   | -                       |   |   |   | (442,827 | ) |
| Sundry      income                                                              |   |   | 88         |   |                                     |   | -       |                     |   |   | -                       |   |   |   | 88 |   |
|                                                                            |   |   |       |   |                                     |   |    |                     |   |   |                    |   |   |   |   |   |
| Income      (loss) before income taxes                                          |   |   | 22,826,007 |   |                                     |   | (25,811 | )                        |   |   | -                       |   |   |   | 22,800,196 |   |
|                                                                            |   |   |       |   |                                     |   |    |                     |   |   |                    |   |   |   |   |   |
| Income      taxes                                                               |   |   | 5,784,341  |   |                                     |   | -       |                     |   |   | -                       |   |   |   | 5,784,341 |   |
|                                                                            |   |   |       |   |                                     |   |    |                     |   |   |                    |   |   |   |   |   |
| Net      income/(loss)                                                          |   | $      | 17,041,666 |   |                                     | $      | (25,811 | )                        |   | $      | -                       |   |   | $ | 17,015,855 |   |
|                                                                            |   |   |       |   |                                     |   |    |                     |   |   |                    |   |   |   |   |   |
| Net      income (loss) per share - basic                                        |   | $      | 0.39       |   |                                     | $      | (0.05   | )                        |   |   |                    |   |   | $ | 0.38 |   |
| Net      income (loss) per share - diluted                                      |   | $      | 0.39       |   |                                     | $      | (0.05   | )                        |   |   |                    |   |   | $ | 0.28 |   |
|                                                                            |   |   |       |   |                                     |   |    |                     |   |   |                    |   |   |   |   |   |
| Weighted      average number of shares outstanding during the period -    basic |   |   | 43,829,748 |   |                                     |   | 500,000 |                     |   |   |                    |   |   |   | 44,329,748 |   |
|                                                                            |   |   |       |   |                                     |   |    |                     |   |   |                    |   |   |   |   |   |
| Weighted      average number of shares outstanding during the period -    basic |   |   | 59,329,748 |   |                                     |   | 500,000 |                     |   |   |                    |   |   |   | 59,829,748 |   |

----

|                                                                            |   | Group  |       |   | Chardan AcquisitionCorp. (BVI) |   |    | Pro FormaAdjustment |   |   | Pro Forma Combined |   |
|---------------------------------------------------------------------------------|--------|--------|------------|--------|--------------------------------|--------|---------|---------------------|--------|--------|-------------------------|--------|
|                                                                            |   |   |       |   |                           |   |    |                |   |   |                    |   |
| Contract      revenue                                                           |   | $      | 45,981,433 |   |                           | $      | -       |                |   | $      | -                       |   |   | $ | 45,981,433 |   |
| Cost      of revenue                                                            |   |   | 20,389,446 |   |                           |   | 17,219  |                |   |   | -                       |   |   |   | 20,406,665 |   |
| Gross      Profit                                                               |   |   | 25,591,987 |   |                           |   | (17,219 | )                   |   |   | -                       |   |   |   | 25,574,768 |   |
| Operating      expenses                                                         |   |   |       |   |                           |   |    |                |   |   |                    |   |   |   |   |   |
| General      and administrative                                                 |   |   | 2,367,968  |   |                           |   | 7,903   |                |   |   | -                       |   |   |   | 2,375,871 |   |
| Total      operating expenses                                                   |   |   | 2,367,968  |   |                           |   | 7,903   |                |   |   | -                       |   |   |   | 2,375,871 |   |
|                                                                            |   |   |       |   |                           |   |    |                |   |   |                    |   |   |   |   |   |
| Income      (loss) from operations                                              |   |   | 23,224,019 |   |                           |   | (25,122 | )                   |   |   | -                       |   |   |   | 23,198,897 |   |
|                                                                            |   |   |       |   |                           |   |    |                |   |   |                    |   |   |   |   |   |
| Other      income (expense):                                                    |   |   |       |   |                           |   |    |                |   |   |                    |   |   |   |   |   |
|                                                                            |   |   |       |   |                           |   |    |                |   |   |                    |   |   |   |   |   |
| Other      income                                                               |   |   |       |   |                           |   |    |                |   |   |                    |   |   |   |   |   |
| Interest      income                                                            |   |   | 44,727     |   |                           |   | -       |                |   |   | -                       |   |   |   | 44,727 |   |
| Interest      expense                                                           |   |   | (442,827   | )      |                           |   | (689    | )                   |   |   | -                       |   |   |   | (442,827 | ) |
| Sundry      income                                                              |   |   | 88         |   |                           |   | -       |                |   |   | -                       |   |   |   | 88 |   |
|                                                                            |   |   |       |   |                           |   |    |                |   |   |                    |   |   |   |   |   |
| Income      (loss) before income taxes                                          |   |   | 22,826,007 |   |                           |   | (25,811 | )                   |   |   | -                       |   |   |   | 22,800,196 |   |
|                                                                            |   |   |       |   |                           |   |    |                |   |   |                    |   |   |   |   |   |
| Income      taxes                                                               |   |   | 5,784,341  |   |                           |   | -       |                |   |   | -                       |   |   |   | 5,784,341 |   |
|                                                                            |   |   |       |   |                           |   |    |                |   |   |                    |   |   |   |   |   |
| Net      income/(loss)                                                          |   | $      | 17,041,666 |   |                           | $      | (25,811 | )                   |   | $      | -                       |   |   | $ | 17,015,855 |   |
|                                                                            |   |   |       |   |                           |   |    |                |   |   |                    |   |   |   |   |   |
| Net      income (loss) per share - basic                                        |   | $      | 0.39       |   |                           | $      | (0.05   | )                   |   |   |                    |   |   | $ | 0.38 |   |
| Net      income (loss) per share - diluted                                      |   | $      | 0.39       |   |                           | $      | (0.05   | )                   |   |   |                    |   |   | $ | 0.35 |   |
|                                                                            |   |   |       |   |                           |   |    |                |   |   |                    |   |   |   |   |   |
| Weighted      average number of shares outstanding during the period -    basic |   |   | 43,829,748 |   |                           |   | 500,000 |                |   |   |                    |   |   |   | 44,329,748 |   |
|                                                                            |   |   |       |   |                           |   |    |                |   |   |                    |   |   |   |   |   |
| Weighted      average number of shares outstanding during the period -    basic |   |   | 48,700,748 |   |                           |   | 500,000 |                |   |   |                    |   |   |   | 49,200,748 |   |

----

|                                                                            |   | Group  |       |   | Chardan      AcquisitionCorp.      (BVI) |   |    | Pro      FormaAdjustment |   |   | Pro      Forma Combined |   |
|---------------------------------------------------------------------------------|--------|--------|------------|--------|------------------------------------------|--------|---------|--------------------------|--------|--------|-------------------------|--------|
|                                                                            |   |   |       |   |                                     |   |    |                     |   |   |                    |   |
| Contract      revenue                                                           |   | $      | 80,333,891 |   |                                     | $      | -       |                     |   | $      | -                       |   |   | $ | 80,333,891 |   |
| Cost      of revenue                                                            |   |   | 38,715,490 |   |                                     |   | 9,335   |                     |   |   | -                       |   |   |   | 38,724,825 |   |
| Gross      Profit                                                               |   |   | 41,618,401 |   |                                     |   | (9,335  | )                        |   |   | -                       |   |   |   | 41,609,066 |   |
| Operating      expenses                                                         |   |   |       |   |                                     |   |    |                     |   |   |                    |   |   |   |   |   |
| General      and administrative                                                 |   |   | 2,531,132  |   |                                     |   | 11,579  |                     |   |   | -                       |   |   |   | 2,542,711 |   |
| Total      operating expenses                                                   |   |   | 2,531,132  |   |                                     |   | 11,579  |                     |   |   | -                       |   |   |   | 2,542,711 |   |
|                                                                            |   |   |       |   |                                     |   |    |                     |   |   |                    |   |   |   |   |   |
| Income      (loss) from operations                                              |   |   | 39,087,269 |   |                                     |   | (20,914 | )                        |   |   | -                       |   |   |   | 39,066,355 |   |
|                                                                            |   |   |       |   |                                     |   |    |                     |   |   |                    |   |   |   |   |   |
| Other      income (expense):                                                    |   |   |       |   |                                     |   |    |                     |   |   |                    |   |   |   |   |   |
|                                                                            |   |   |       |   |                                     |   |    |                     |   |   |                    |   |   |   |   |   |
| Other      income                                                               |   |   |       |   |                                     |   |    |                     |   |   |                    |   |   |   |   |   |
| Interest      income                                                            |   |   | 29,833     |   |                                     |   | -       |                     |   |   | -                       |   |   |   | 29,833 |   |
| Interest      expense                                                           |   |   | (755,853   | )      |                                     |   | -       |                     |   |   | -                       |   |   |   | (755,853 | ) |
| Sundry      income                                                              |   |   | -          |   |                                     |   | -       |                     |   |   | -                       |   |   |   | - |   |
|                                                                            |   |   |       |   |                                     |   |    |                     |   |   |                    |   |   |   |   |   |
| Income      (loss) before income taxes                                          |   |   | 38,361,249 |   |                                     |   | (20,914 | )                        |   |   | -                       |   |   |   | 38,340,335 |   |
|                                                                            |   |   |       |   |                                     |   |    |                     |   |   |                    |   |   |   |   |   |
| Income      taxes                                                               |   |   | 9,596,651  |   |                                     |   | -       |                     |   |   | -                       |   |   |   | 9,596,651 |   |
|                                                                            |   |   |       |   |                                     |   |    |                     |   |   |                    |   |   |   |   |   |
| Net      income/(loss)                                                          |   | $      | 28,764,598 |   |                                     | $      | (20,914 | )                        |   | $      | -                       |   |   | $ | 28,743,684 |   |
|                                                                            |   |   |       |   |                                     |   |    |                     |   |   |                    |   |   |   |   |   |
| Net      income (loss) per share - basic                                        |   | $      | 0.66       |   |                                     | $      | (0.04   | )                        |   |   |                    |   |   | $ | 0.65 |   |
| Net      income (loss) per share - diluted                                      |   | $      | 0.66       |   |                                     | $      | (0.04   | )                        |   |   |                    |   |   | $ | 0.48 |   |
|                                                                            |   |   |       |   |                                     |   |    |                     |   |   |                    |   |   |   |   |   |
| Weighted      average number of shares outstanding during the period -    basic |   |   | 43,829,748 |   |                                     |   | 500,000 |                     |   |   |                    |   |   |   | 44,329,748 |   |
|                                                                            |   |   |       |   |                                     |   |    |                     |   |   |                    |   |   |   |   |   |
| Weighted      average number of shares outstanding during the period -    basic |   |   | 59,329,748 |   |                                     |   | 500,000 |                     |   |   |                    |   |   |   | 59,829,748 |   |

----

|                                                                            |   | Group  |       |   | Chardan      AcquisitionCorp.      (BVI) |   |    | Pro      FormaAdjustment |   |   | Pro      Forma Combined |   |
|---------------------------------------------------------------------------------|--------|--------|------------|--------|------------------------------------------|--------|---------|--------------------------|--------|--------|-------------------------|--------|
|                                                                            |   |   |       |   |                                     |   |    |                     |   |   |                    |   |
| Contract      revenue                                                           |   | $      | 80,333,891 |   |                                     | $      | -       |                     |   | $      | -                       |   |   | $ | 80,333,891 |   |
| Cost      of revenue                                                            |   |   | 38,715,490 |   |                                     |   | 9,335   |                     |   |   | -                       |   |   |   | 38,724,825 |   |
| Gross      Profit                                                               |   |   | 41,618,401 |   |                                     |   | (9,335  | )                        |   |   | -                       |   |   |   | 41,609,066 |   |
| Operating      expenses                                                         |   |   |       |   |                                     |   |    |                     |   |   |                    |   |   |   |   |   |
| General      and administrative                                                 |   |   | 2,531,132  |   |                                     |   | 11,579  |                     |   |   | -                       |   |   |   | 2,542,711 |   |
| Total      operating expenses                                                   |   |   | 2,531,132  |   |                                     |   | 11,579  |                     |   |   | -                       |   |   |   | 2,542,711 |   |
|                                                                            |   |   |       |   |                                     |   |    |                     |   |   |                    |   |   |   |   |   |
| Income      (loss) from operations                                              |   |   | 39,087,269 |   |                                     |   | (20,914 | )                        |   |   | -                       |   |   |   | 39,066,355 |   |
|                                                                            |   |   |       |   |                                     |   |    |                     |   |   |                    |   |   |   |   |   |
| Other      income (expense):                                                    |   |   |       |   |                                     |   |    |                     |   |   |                    |   |   |   |   |   |
|                                                                            |   |   |       |   |                                     |   |    |                     |   |   |                    |   |   |   |   |   |
| Other      income                                                               |   |   |       |   |                                     |   |    |                     |   |   |                    |   |   |   |   |   |
| Interest      income                                                            |   |   | 29,833     |   |                                     |   | -       |                     |   |   | -                       |   |   |   | 29,833 |   |
| Interest      expense                                                           |   |   | (755,853   | )      |                                     |   | -       |                     |   |   | -                       |   |   |   | (755,853 | ) |
| Sundry      income                                                              |   |   | -          |   |                                     |   | -       |                     |   |   | -                       |   |   |   | - |   |
|                                                                            |   |   |       |   |                                     |   |    |                     |   |   |                    |   |   |   |   |   |
| Income      (loss) before income taxes                                          |   |   | 38,361,249 |   |                                     |   | (20,914 | )                        |   |   | -                       |   |   |   | 38,340,335 |   |
|                                                                            |   |   |       |   |                                     |   |    |                     |   |   |                    |   |   |   |   |   |
| Income      taxes                                                               |   |   | 9,596,651  |   |                                     |   | -       |                     |   |   | -                       |   |   |   | 9,596,651 |   |
|                                                                            |   |   |       |   |                                     |   |    |                     |   |   |                    |   |   |   |   |   |
| Net      income/(loss)                                                          |   | $      | 28,764,598 |   |                                     | $      | (20,914 | )                        |   | $      | -                       |   |   | $ | 28,743,684 |   |
|                                                                            |   |   |       |   |                                     |   |    |                     |   |   |                    |   |   |   |   |   |
| Net      income (loss) per share - basic                                        |   | $      | 0.66       |   |                                     | $      | (0.04   | )                        |   |   |                    |   |   | $ | 0.65 |   |
| Net      income (loss) per share - diluted                                      |   | $      | 0.66       |   |                                     | $      | (0.04   | )                        |   |   |                    |   |   | $ | 0.58 |   |
|                                                                            |   |   |       |   |                                     |   |    |                     |   |   |                    |   |   |   |   |   |
| Weighted      average number of shares outstanding during the period -    basic |   |   | 43,829,748 |   |                                     |   | 500,000 |                     |   |   |                    |   |   |   | 44,329,748 |   |
|                                                                            |   |   |       |   |                                     |   |    |                     |   |   |                    |   |   |   |   |   |
| Weighted      average number of shares outstanding during the period -    basic |   |   | 48,700,748 |   |                                     |   | 500,000 |                     |   |   |                    |   |   |   | 49,200,748 |   |

----

CHINA DREDGING GROUP CO., LTD ANDSUBSIDIARIES

|                                                                                      |   | (Unaudited)         |        |
|-------------------------------------------------------------------------------------------|--------|---------------------|-------------|
|                                                                                      |   | June 30,       |        |
|                                                                                      |   | 2010                |        |
| Assets                                                                                    |   |                |        |
| Current      assets                                                                       |   |                |        |
| Cash                                                                                      |   | $                   | 25,388,638  |   |
| Restricted      cash                                                                      |   |                | 25,968,089  |   |
| Cost      and estimated earnings in excess of billings on contracts in      progress      |   |                | 8,845,328   |   |
| Other      receivables                                                                    |   |                | 1,201       |   |
| Inventories                                                                               |   |                | 1,193,210   |   |
| Total      current assets                                                                 |   |                | 61,396,466  |   |
|                                                                                      |   |                |        |   |
| Other      assets                                                                         |   |                |        |   |
| Prepaid      dredger deposit                                                              |   |                | 2,211,932   |   |
| Property,      plant and equipment, net                                                   |   |                | 41,689,943  |   |
| Total      other assets                                                                   |   |                | 43,901,875  |   |
| Total      assets                                                                         |   | $    | 105,298,341 |   |
|                                                                                      |   |                |        |   |
| Liabilities      and stockholders' equity                                                 |   |                |        |   |
| Current      liabilities                                                                  |   |                |        |   |
| Term      loan                                                                            |   | $                   | 4,423,865   |   |
| Accounts      payable                                                                     |   |                | 789,086     |   |
| Income      tax payable                                                                   |   |                | 3,418,577   |   |
| Accrued      liabilities and other payables                                               |   |                | 928,484     |   |
| Due      to a shareholder                                                                 |   |                | 1,691,221   |   |
| Total      current liabilities                                                            |   |                | 11,251,233  |   |
| Non-current      liabilities                                                              |   |                |        |   |
| Term      loan, net of current portion                                                    |   |                | 7,962,957   |   |
| Total      non-current liabilities                                                        |   |                | 7,962,957   |   |
| Total      liabilities                                                                    |   |                | 19,214,190  |   |
| Stockholders'      equity                                                                 |   |                |        |   |
| Common      stock, 225,000,000 shares authorized with no par value;                       |   |                |        |   |
| 52,177,323      shares issued and outstanding                                             |   |                | -           |   |
| Preferred      stock, no par value: 25,000,000 shares authorized with no      outstanding |   |                | -           |   |
| Statutory      reserves                                                                   |   |                | 4,888,018   |   |
| Additional      paid-in capital                                                           |   |                | 80,205,592  |   |
| Accumulated      deficit                                                                  |   |                | (318,442    | ) |
| Accumulated      other comprehensive income                                               |   |                | 1,308,983   |   |
| Total      stockholders' equity                                                           |   |                | 86,084,151  |   |
| Total      liabilities and stockholders' equity                                           |   | $                   | 105,298,341 |   |

----

|                                     |   | For the period from    |     |
|------------------------------------------|--------|---------------------------------------|----------|
|                                     |   | April 14, 2010              |     |
|                                     |   | (Date of Inception) to |     |
|                                     |   | June 30, 2010               |     |
|                                     |   |                                  |     |
| Contract      revenue                    |   | $                                     | -        |   |
|                                     |   |                                  |     |   |
| Cost      of contract revenue            |   |                                  | -        |   |
|                                     |   |                                  |     |   |
| Gross      profit                        |   |                                  | -        |   |
|                                     |   |                                  |     |   |
| General      and administrative expenses |   |                                  | (318,584 | ) |
|                                     |   |                                  |     |   |
| Loss      from operations                |   |                                  | (318,584 | ) |
|                                     |   |                                  |     |   |
| Interest      income                     |   |                                  | 142      |   |
|                                     |   |                                  |     |   |
| Loss      before income taxes            |   |                                  | (318,442 | ) |
|                                     |   |                                  |     |   |
| Income      tax expense                  |   |                                  | -        |   |
|                                     |   |                                  |     |   |
| Net      loss                            |   | $                                     | (318,442 | ) |

----

CHINA DREDGING GROUP CO., LTD ANDSUBSIDIARIES

|                                                                                                                                                           |   | Common      Stock, with no ParValue |       |   |   |   |   | Additional        |   |   |           |   |   | Accumulatedother   |       |   |                |   |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-------------------------------------|------------|--------|--------|--------|--------|-------------------|--------|--------|----------------|--------|--------|--------------------|------------|--------|---------------------|--------|
|                                                                                                                                                           |   | Number      ofShares                |       |   | Amount |   |   | Statutoryreserves |   |   | paid-incapital |   |   | Accumulateddeficit |       |   | Comprehensiveincome |   |   | Total |   |
|                                                                                                                                                           |   |                                |       |   |   |   |   |              |   |   |           |   |   |               |       |   |                |   |   |   |   |
| Shares      issued:                                                                                                                                            |   |                                |       |   |   |   |   |              |   |   |           |   |   |               |       |   |                |   |   |   |   |
| April      14, 2010 (inception)                                                                                                                                |   |                                | 104,355    |   |   |   | -      |              |   | $      | -              |   |   | $                  | -          |   |                | $      | - |   |   | $ | - |   |   | $ | - |   |
|                                                                                                                                                           |   |                                |       |   |   |   |   |              |   |   |           |   |   |               |       |   |                |   |   |   |   |   |   |   |   |   |   |   |
| May      26, 2010 (recapitalization)                                                                                                                           |   |                                | 52,072,968 |   |   |   | -      |              |   |   | -              |   |   |               | -          |   |                |   | - |   |   |   | - |   |   |   | - |   |
|                                                                                                                                                           |   |                                |       |   |   |   |   |              |   |   |           |   |   |               |       |   |                |   |   |   |   |   |   |   |   |   |   |   |
| Contribution      of dividends from Wonder Dredging's shareholders generated by      Fujian Service through June 30, 2010                                      |   |                                | -          |   |   |   | -      |              |   |   | -              |   |   |               | 61,307,080 |   |                |   | - |   |   |   | - |   |   |   | 61,307,080 |   |
|                                                                                                                                                           |   |                                |       |   |   |   |   |              |   |   |           |   |   |               |       |   |                |   |   |   |   |   |   |   |   |   |   |   |
| Contribution      of shareholders' loans and net assets into statutory reserves      and equity upon acquisition of interest in Wonder      Dredging |   |                                | -          |   |   |   | -      |              |   |   | 4,888,018      |   |   |               | 18,898,512 |   |                |   | - |   |   |   | - |   |   |   | 23,786,530 |   |
|                                                                                                                                                           |   |                                |       |   |   |   |   |              |   |   |           |   |   |               |       |   |                |   |   |   |   |   |   |   |   |   |   |   |
| Net      loss                                                                                                                                                  |   |                                | -          |   |   |   | -      |              |   |   | -              |   |   |               | -          |   |                |   | (318,442 | ) |   |   | - |   |   |   | (318,442 | ) |
|                                                                                                                                                           |   |                                |       |   |   |   |   |              |   |   |           |   |   |               |       |   |                |   |   |   |   |   |   |   |   |   |   |   |
| Foreign      currency translation gain                                                                                                                         |   |                                | -          |   |   |   | -      |              |   |   | -              |   |   |               | -          |   |                |   | - |   |   |   | 1,308,983 |   |   |   | 1,308,983 |   |
|                                                                                                                                                           |   |                                |       |   |   |   |   |              |   |   |           |   |   |               |       |   |                |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                                                           |   |                                |       |   |   |   |   |              |   |   |           |   |   |               |       |   |                |   |   |   |   |   |   |   |   |   |   |   |
|   Balances      as of June 30, 2010                                                                                                                  |   |                                | 52,177,323 |   |   | $      | -      |              |   | $      | 4,888,018      |   |   | $                  | 80,205,592 |   |                | $      | (318,442 | ) |   | $ | 1,308,983 |   |   | $ | 86,084,151 |   |

----

CHINA DREDGING GROUP CO., LTD ANDSUBSIDIARIES

|                                                                                                                                                  |   | For      the period from    |             |
|-------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-----------------------------|------------------|
|                                                                                                                                                  |   | April      14, 2010         |             |
|                                                                                                                                                  |   | (Date      of Inception) to |             |
|                                                                                                                                                  |   | June 30, 2010               |             |
|                                                                                                                                                  |   |                        |             |
| Cash      flows from operating activities:                                                                                                            |   |                        |             |
| Net      loss                                                                                                                                         |   | $                           | (318,442         | ) |
| Adjustments      to reconcile net loss to net cash used for operating      activities:                                                                |   |                        |             |   |
|                                                                                                                                                  |   |                        |             |   |
| Changes      in operating assets and liabilities:                                                                                                     |   |                        |             |   |
| Other      receivables                                                                                                                                |   |                        | (122             | ) |
| Accrued      liabilities and other payables                                                                                                           |   |                        | 156,998          |   |
| Net      cash used for operating activities                                                                                                           |   |                        | (161,566         | ) |
|                                                                                                                                                  |   |                        |             |   |
| Cash      flows from investing activities:                                                                                                            |   |                        |             |   |
| Net      assets acquired in Wonder Dredging                                                                                                           |   |                        | 23,602,460       |   |
| Net      cash provided by investing activities                                                                                                        |   |                        | 23,602,460       |   |
|                                                                                                                                                  |   |                        |             |   |
| Cash      flows from financing activities:                                                                                                            |   |                        |             |   |
| Amount      due to a shareholder                                                                                                                      |   |                        | 1,691,221        |   |
| Net      cash provided by financing activities                                                                                                        |   |                        | 1,691,221        |   |
|                                                                                                                                                  |   |                        |             |   |
| Net      increase in cash                                                                                                                             |   |                        | 25,132,115       |   |
|                                                                                                                                                  |   |                        |             |   |
| Effect      of exchange rate changes on cash                                                                                                          |   |                        | 256,523          |   |
| Cash      at end of period                                                                                                                            |   | $                           |  25,388,638 |   |
|                                                                                                                                                  |   |                        |             |   |
| Supplemental      disclosures of non-cash transactions:                                                                                               |   |                        |             |   |
|                                                                                                                                                  |   |                        |             |   |
| Contribution      of dividends into equity from Wonder Dredging's shareholders from      inception of Fujian Service through June 30, 2010            |   | $                           | 61,307,080       |   |
|                                                                                                                                                  |   |                        |             |   |
| Contribution      of shareholders' loans and net assets into statutory reserves and equity      upon acquisition of a 50% interest in Wonder Dredging |   | $                           | 23,786,530       |   |

----

| 1. | DESCRIPTION      OF BUSINESS AND ORGANIZATION |
|----|-----------------------------------------------|

| Name                                      |   | No. of ordinary shares |       |   | %      |                                                                                       |
|-------------------------------------------|--------|---------------------------------------|------------|--------|--------|--------------------------------------------------------------------------------------------|
|                                      |   |                                  |       |   |   |                                                                                       |
| Venus      Seed Co., Ltd.                 |   |                                  | 2,608,866  |   |   |                                                                                       | 5.00 | % |
| Mars      Harvest Co., Ltd.               |   |                                  | 46,055,880 |   |   |                                                                                       | 88.27 | % |
| Saturn      Glory Co., Ltd.               |   |                                  | 2,608,866  |   |   |                                                                                       | 5.00 | % |
| Regent      Fill Investment Group Limited |   |                                  | 271,322    |   |   |                                                                                       | 0.52 | % |
| Poying      Holdings Limited              |   |                                  | 271,322    |   |   |                                                                                       | 0.52 | % |
| Jianliang      Yu                         |   |                                  | 135,661    |   |   |                                                                                       | 0.26 | % |
| Nan      Ding                             |   |                                  | 225,406    |   |   |                                                                                       | 0.43 | % |
|                                      |   |                                  | 52,177,323 |   |   |                 | 100 | % |

----

| 1. | DESCRIPTION      OF BUSINESS AND ORGANIZATION(.../Cont’d) |
|----|---------------------------------------------------------------------|

----

| 1. | DESCRIPTION      OF BUSINESS AND ORGANIZATION(.../Cont’d) |
|----|---------------------------------------------------------------------|

----

| 2. | ACQUISITION      OF FUJIAN SERVICE |
|----|------------------------------------|

| Cash                                                   |   | $      | 22,894,565  |   |
|--------------------------------------------------------|--------|--------|-------------|--------|
| Restricted      cash                                   |   |   | 25,968,089  |   |
| Cost      and estimated billings in excess of billings |   |   | 8,845,328   |   |
| Other      receivable                                  |   |   | 1,079       |   |
| Inventories                                            |   |   | 1,193,210   |   |
| Prepaid      dredger deposit                           |   |   | 2,211,932   |   |
| Property,      plant and equipment                     |   |   | 41,689,943  |   |
| TOTAL      ASSETS                                      |   |   | 102,804,146 |   |
|                                                   |   |   |        |   |
| Term      loans                                        |   |   | (12,386,822 | )      |
| Accounts      payable                                  |   |   | (789,086    | )      |
| Income      tax payable                                |   |   | (3,418,577  | )      |
| Accrued      liabilities and other payables            |   |   | (771,486    | )      |
| TOTAL      LIABILITIES                                 |   |   | (17,365,971 | )      |
|                                                   |   |   |        |   |
| NET      ASSETS ACQUIRED                               |   | $      | 85,438,175  |   |
| Less:      Cash committed by Company                   |   |   | (23,602,460 | )      |
| Less:      Contributed capital by Wonder Dredging      |   |   | (61,307,080 | )      |
| Effect      of exchange rate changes                   |   |   | (528,635    | )      |
|                                                   |   | $      | -           |   |

----

| 2. | ACQUISITION      OF FUJIAN SERVICE (.../Cont’d) |
|----|-----------------------------------------------------------|

|                                    |   | China    |     |   | HongKong |   |   | Fujian   |   |   | Wonder   |   |   | Fujian  |   |   | Consolidated |   |
|-----------------------------------------|--------|----------|----------|--------|----------|--------|--------|----------|--------|--------|----------|--------|--------|---------|--------|--------|--------------|--------|
|                                    |   | Dredging |     |   | Dredging |   |   | Dredging |   |   | Dredging |   |   | Service |   |   | Balances     |   |
|                                    |   |     |     |   |     |   |   |     |   |   |     |   |   |    |   |   |         |   |
| Contract      revenue                   |   | $        | -        |   |     | $      | -      |     |   | $      | -        |   |   | $       | -      |   |         | $      | 45,981,433 |   |   | $ | 45,981,433 |   |
|                                    |   |     |     |   |     |   |   |     |   |   |     |   |   |    |   |   |         |   |   |   |   |   |   |   |
| Cost      of revenue                    |   |     | -        |   |     |   | -      |     |   |   | -        |   |   |    | -      |   |         |   | (20,389,446 | ) |   |   | (20,389,446 | ) |
|                                    |   |     |     |   |     |   |   |     |   |   |     |   |   |    |   |   |         |   |   |   |   |   |   |   |
| Gross      profit                       |   |     | -        |   |     |   | -      |     |   |   | -        |   |   |    | -      |   |         |   | 25,591,987 |   |   |   | 25,591,987 |   |
|                                    |   |     |     |   |     |   |   |     |   |   |     |   |   |    |   |   |         |   |   |   |   |   |   |   |
| General      and administrative expense |   |     | (312,384 | )      |     |   | (4,174 | )        |   |   | (528     | )      |   |    | (1,498 | )      |         |   | (2,049,384 | ) |   |   | (2,367,968 | ) |
|                                    |   |     |     |   |     |   |   |     |   |   |     |   |   |    |   |   |         |   |   |   |   |   |   |   |
| Operating      income                   |   |     | (312,384 | )      |     |   | (4,174 | )        |   |   | (528     | )      |   |    | (1,498 | )      |         |   | 23,542,603 |   |   |   | 23,224,019 |   |
|                                    |   |     |     |   |     |   |   |     |   |   |     |   |   |    |   |   |         |   |   |   |   |   |   |   |
| Other      income (expense):            |   |     |     |   |     |   |   |     |   |   |     |   |   |    |   |   |         |   |   |   |   |   |   |   |
| Interest      income                    |   |     | -        |   |     |   | 1      |     |   |   | -        |   |   |    | 141    |   |         |   | 44,585 |   |   |   | 44,727 |   |
| Interest      expense                   |   |     | -        |   |     |   | -      |     |   |   | -        |   |   |    | -      |   |         |   | (442,827 | ) |   |   | (442,827 | ) |
| Sundry      income                      |   |     | -        |   |     |   | -      |     |   |   | -        |   |   |    | -      |   |         |   | 88 |   |   |   | 88 |   |
|                                    |   |     |     |   |     |   |   |     |   |   |     |   |   |    |   |   |         |   |   |   |   |   |   |   |
| (Loss)/income      before income taxes  |   |     | (312,384 | )      |     |   | (4,173 | )        |   |   | (528     | )      |   |    | (1,357 | )      |         |   | 23,144,449 |   |   |   | 22,826,007 |   |
|                                    |   |     |     |   |     |   |   |     |   |   |     |   |   |    |   |   |         |   |   |   |   |   |   |   |
| Income      tax expense                 |   |     | -        |   |     |   | -      |     |   |   | -        |   |   |    | -      |   |         |   | (5,784,341 | ) |   |   | (5,784,341 | ) |
|                                    |   |     |     |   |     |   |   |     |   |   |     |   |   |    |   |   |         |   |   |   |   |   |   |   |
| Net      (loss)/income                  |   | $        | (312,384 | )      |     | $      | (4,173 | )        |   | $      | (528     | )      |   | $       | (1,357 | )      |         | $      | 17,360,108 |   |   | $ | 17,041,666 |   |

----

| 3. | SUMMARY      OF SIGNIFICANT ACCOUNTING POLICIES |
|----|-------------------------------------------------|

|   | (a) | Basis      of presentation |
|--------|-----|----------------------------|

|   | (b) | Use      of estimates |
|--------|-----|-----------------------|

----

| 3. | SUMMARY      OF SIGNIFICANT ACCOUNTING POLICIES(.../Cont’d) |
|----|-----------------------------------------------------------------------|

|   | (c) | Foreign      currency translation |
|--------|-----|-----------------------------------|

|   | (d) | Cash |
|--------|-----|------|

|   | (e) | Cost      and estimated earnings in excess of billings on uncompleted      contracts |
|--------|-----|--------------------------------------------------------------------------------------|

|   | (f) | Inventories |
|--------|-----|-------------|

----

| 3. | SUMMARY      OF SIGNIFICANT ACCOUNTING POLICIES(.../Cont’d) |
|----|-----------------------------------------------------------------------|

|   | (g) | Property,      plant and equipment |
|--------|-----|------------------------------------|

|                  | Estimated lives |
|-----------------------|----------------------|
| Dredgers              | 10                   |
| Machinery             | 5                    |
| Office      equipment | 5                    |

|   | (h) | Impairment      of long-lived assets |
|--------|-----|--------------------------------------|

----

| 3. | SUMMARY      OF SIGNIFICANT ACCOUNTING POLICIES(.../Cont’d) |
|----|-----------------------------------------------------------------------|

|   | (i) | Fair      value measurements |
|--------|-----|------------------------------|

|   | (j) | Revenue      recognition |
|--------|-----|--------------------------|

----

| 3. | SUMMARY      OF SIGNIFICANT ACCOUNTING POLICIES(.../Cont’d) |
|----|-----------------------------------------------------------------------|

|   | (k) | Income      taxes |
|--------|-----|-------------------|

|   | (l) | Other      comprehensive income |
|--------|-----|---------------------------------|

| Net      loss                                   |   | $      | (318,442  | )      |
|-------------------------------------------------|--------|--------|-----------|--------|
| Other      comprehensive income                 |   |   |      |   |
| -      Foreign currency translation adjustments |   |   | 1,308,983 |   |
| Total      comprehensive income                 |   | $      | 990,541   |   |

|   | (m) | Commitments      and contingencies |
|--------|-----|------------------------------------|

----

| 3. | SUMMARY      OF SIGNIFICANT ACCOUNTING POLICIES(.../Cont’d) |
|----|-----------------------------------------------------------------------|

|   | (n) | Economic      and political risks |
|--------|-----|-----------------------------------|

|   | (o) | Pension      and employee benefits |
|--------|-----|------------------------------------|

|   | (p) | Segment      information |
|--------|-----|--------------------------|

|   | (q) | Recently      issued accounting standards |
|--------|-----|-------------------------------------------|

----

| 3. | SUMMARY      OF SIGNIFICANT ACCOUNTING POLICIES(.../Cont’d) |
|----|-----------------------------------------------------------------------|

|   | (q) | Recently      issued accounting standards(.../Cont’d) |
|--------|-----|-----------------------------------------------------------------|

----

| 3. | SUMMARY      OF SIGNIFICANT ACCOUNTING POLICIES(.../Cont’d) |
|----|-----------------------------------------------------------------------|

|   | (q) | Recently      issued accounting standards(.../Cont’d) |
|--------|-----|-----------------------------------------------------------------|

| 4. | CASH |
|----|------|

| 5. | RESTRICTED      CASH |
|----|----------------------|

----

| 6. | COST      AND ESTIMATED EARNINGS IN EXCESS OF BILLINGS ON CONTRACTS      IN-PROGRESS |
|----|--------------------------------------------------------------------------------------|

| June 30, 2010                                                     |   |                |        |   |               |   |       |            |   |   |                         |   |   |                |      |
|-----------------------------------------------------------------------------|--------|---------------------|-------------|--------|--------------------|--------|------------|-----------------|--------|--------|------------------------------|--------|--------|---------------------|-----------|
|                                                                        |   |                |        |   |               |   |       |            |   |   | Cost and estimated |   |   | Status of      |      |
| Name of contract                                                  |   | Estimated           |        |   | Total revenue |   |       | Amount          |   |   | earnings in excess |   |   | contract            |      |
| (Contract period)                                                      |   | contract value |        |   | recognized         |   |       | received/billed |   |   | of billings             |   |   | (Completion %) |      |
|                                                                        |   |                |        |   |               |   |       |            |   |   |                         |   |   |                |      |
| 1.      Tangshan Caofeidian Dredging                                        |   |                |        |   |               |   |       |            |   |   |                         |   |   |                |      |
| and      Reclamation I                                                      |   | $                   | 9,236,094   |   |               | $      | 9,268,977  |            |   | $      | 9,268,977                    |   |   | $                   | -         |   |   |   | 100 | % |
|                                                                        |   |                |        |   |               |   |       |            |   |   |                         |   |   |                |      |   |   |   |   |   |
| 2.      Tangshan Caofeidian Dredging                                        |   |                |        |   |               |   |       |            |   |   |                         |   |   |                |      |   |   |   |   |   |
| and      Reclamation II                                                     |   |                | 11,028,172  |   |               |   | 11,014,980 |            |   |   | 11,014,980                   |   |   |                | -         |   |   |   | 100 | % |
|                                                                        |   |                |        |   |               |   |       |            |   |   |                         |   |   |                |      |   |   |   |   |   |
| 3.      Tangshan Caofeidian Dredging                                        |   |                |        |   |               |   |       |            |   |   |                         |   |   |                |      |   |   |   |   |   |
| and      Reclamation III                                                    |   |                | 10,019,505  |   |               |   | 4,982,377  |            |   |   | 4,002,413                    |   |   |                | 979,964   |   |   |   | 50 | % |
|                                                                        |   |                |        |   |               |   |       |            |   |   |                         |   |   |                |      |   |   |   |   |   |
| 4.      Tangshan Caofeidian Dredging                                        |   |                |        |   |               |   |       |            |   |   |                         |   |   |                |      |   |   |   |   |   |
| and      Reclamation IV                                                     |   |                | 8,830,750   |   |               |   | 3,876,915  |            |   |   | 3,530,395                    |   |   |                | 346,520   |   |   |   | 44 | % |
|                                                                        |   |                |        |   |               |   |       |            |   |   |                         |   |   |                |      |   |   |   |   |   |
| 5.      Tangshan Caofeidian Dredging                                        |   |                |        |   |               |   |       |            |   |   |                         |   |   |                |      |   |   |   |   |   |
| and      Reclamation V                                                      |   |                | 7,896,728   |   |               |   | 3,520,228  |            |   |   | 3,156,692                    |   |   |                | 363,536   |   |   |   | 45 | % |
|                                                                        |   |                |        |   |               |   |       |            |   |   |                         |   |   |                |      |   |   |   |   |   |
| 6.      Oujiang Port Liantian Dredging I                                    |   |                | 7,127,249   |   |               |   | 7,131,619  |            |   |   | 7,131,619                    |   |   |                | -         |   |   |   | 100 | % |
|                                                                        |   |                |        |   |               |   |       |            |   |   |                         |   |   |                |      |   |   |   |   |   |
| 7.      Oujiang Port Liantian Dredging II                                   |   |                | 4,197,158   |   |               |   | 4,245,908  |            |   |   | 4,245,908                    |   |   |                | -         |   |   |   | 100 | % |
|                                                                        |   |                |        |   |               |   |       |            |   |   |                         |   |   |                |      |   |   |   |   |   |
| 8.      Zhuhai Gaolan Port Dredging I                                       |   |                | 1,671,824   |   |               |   | 1,701,669  |            |   |   | 1,701,669                    |   |   |                | -         |   |   |   | 100 | % |
|                                                                        |   |                |        |   |               |   |       |            |   |   |                         |   |   |                |      |   |   |   |   |   |
| 9.      Zhuhai Gaolan Port Dredging II                                      |   |                | 2,089,780   |   |               |   | 2,104,910  |            |   |   | 2,104,910                    |   |   |                | -         |   |   |   | 100 | % |
|                                                                        |   |                |        |   |               |   |       |            |   |   |                         |   |   |                |      |   |   |   |   |   |
| 10.      Zhuhai Gaolan Port Dredging III                                    |   |                | 2,867,031   |   |               |   | 2,524,234  |            |   |   | 1,907,965                    |   |   |                | 616,269   |   |   |   | 88 | % |
|                                                                        |   |                |        |   |               |   |       |            |   |   |                         |   |   |                |      |   |   |   |   |   |
| 11.      Zhanjiang Industrial Centre Dredging and Reclamation               |   |                | 13,588,702  |   |               |   | 13,648,547 |            |   |   | 9,955,834                    |   |   |                | 3,692,713 |   |   |   | 100 | % |
|                                                                        |   |                |        |   |               |   |       |            |   |   |                         |   |   |                |      |   |   |   |   |   |
| 12.      Qinzhou Port Channel Dredging                                      |   |                | 1,343,325   |   |               |   | 1,007,495  |            |   |   | -                            |   |   |                | 1,013,065 |   |   |   | 75 | % |
|                                                                        |   |                |        |   |               |   |       |            |   |   |                         |   |   |                |      |   |   |   |   |   |
| 13.      Tianjin South Port Industrial Zone      Dredging & Reclamation |   |                | 6,371,937   |   |               |   | 884,991    |            |   |   | -                            |   |   |                | 889,885   |   |   |   | 14 | % |
|                                                                        |   |                |        |   |               |   |       |            |   |   |                         |   |   |                |      |   |   |   |   |   |
| 14.      Jingtang Port Channel Dredging                                     |   |                | 4,730,382   |   |               |   | 656,997    |            |   |   | -                            |   |   |                | 660,631   |   |   |   | 14 | % |
|                                                                        |   |                |        |   |               |   |       |            |   |   |                         |   |   |                |      |   |   |   |   |   |
| 15.      Panjin Vessels Industrial Base Project                             |   |                | 10,628,987  |   |               |   | 281,190    |            |   |   | -                            |   |   |                | 282,745   |   |   |   | 3 | % |
|                                                                        |   |                |        |   |               |   |       |            |   |   |                         |   |   |                |      |   |   |   |   |   |
|                                                                        |   | $                   | 101,627,624 |   |               | $      | 66,851,037 |            |   | $      | 58,021,362                   |   |   | $                   | 8,845,328 |   |   |   |          |   |

----

| 6. | COST      AND ESTIMATED EARNINGS IN EXCESS OF BILLINGS ON CONTRACTS IN-PROGRESS      (.../Cont'd) |
|----|-------------------------------------------------------------------------------------------------------|

| Backlog      balance at December 31, 2009                                         |   | $                                     | 8,139,422   |   |
|-----------------------------------------------------------------------------------|--------|---------------------------------------|-------------|--------|
| New      contracts entered during the six months ended June 30,2010               |   |                                  | 173,105,868 |   |
| Add:      Adjustment of contracts due to change orders during the    period       |   |                                  | 231,945     |   |
| Adjusted      contract amount at June 30, 2010                                    |   |                                  | 181,477,235 |   |
| Less:      Contract revenue earned during the six months ended June 30,      2010 |   |                                  | (45,981,433 | )      |
|                                                                              |   |                                  |        |   |
| Backlog      balance at June 30, 2010                                             |   | $       | 135,495,802 |   |

| 7. | INVENTORIES |
|----|-------------|

| 8. | OTHER      RECEIVABLES |
|----|------------------------|

| Social      insurance prepaid for staff |   | $                                     | 1,079 |   |
|-----------------------------------------|--------|---------------------------------------|-------|--------|
| Others                                  |   |                                  | 122   |   |
|                                    |   | $       | 1,201 |   |

| 9. | PREPAID      DREDGER DEPOSIT |
|----|------------------------------|

| Prepaid      dredger deposit |   | $       | 2,211,932 |   |
|------------------------------|--------|---------------------------------------|-----------|--------|

----

| 10. | PROPERTY,      PLANT AND EQUIPMENT |
|-----|------------------------------------|

| Dredgers                            |   | $                   | 52,784,632  |   |
|-------------------------------------|--------|---------------------|-------------|--------|
| Machinery                           |   |                | 37,883      |   |
| Office      equipment               |   |                | 3,808       |   |
|                                |   |                | 52,826,323  |   |
| Less:      Accumulated depreciation |   |                | (11,136,380 | )      |
|                                |   | $    | 41,689,943  |   |

----

| 11. | ACCRUED      EXPENSES AND OTHER PAYABLES |
|-----|------------------------------------------|

| Accrued      interest           |   | $                   | 24,741  |   |
|---------------------------------|--------|---------------------|---------|--------|
| Accrued      salaries and wages |   |                | 74,372  |   |
| Accrued      staff benefits     |   |                | 129,853 |   |
| Other      payables             |   |                | 562,053 |   |
| Other      tax payables         |   |                | 137,465 |   |
|                            |   | $    | 928,484 |   |

| 12. | DUE      TO SHAREHOLDER |
|-----|-------------------------|

| 13. | TERM      LOANS |
|-----|-----------------|

| Fujian      Haixia Bank Co., Ltd            |   | $    | 4,423,865 |    |
|---------------------------------------------|--------|---------------------|-----------|---------|
|                                        |   |                |      |    |
| Range      of monthly interest rate         |   |                | 5.974     | ‰ |
| Weighted      average monthly interest rate |   |                | 5.358     | ‰ |

| Term loan, net of current      portion                                        |   |                |                      |
|-------------------------------------------------------------------------------|--------|---------------------|---------------------------|
| Fujian      Haixia Bank Co., Ltd                                              |   | $    | 6,635,798                 |   |
| Fuzhou      City Rural Credit Cooperative                                     |   |                | 1,327,159                 |   |
|                                                                          |   | $                   | 7,962,957                 |   |
|                                                                          |   |                |                      |   |
| Maximum      balance outstanding during the six-months ended June 30,    2010 |   | $                   | 14,451,293                |   |
| Range      of monthly interest rate                                           |   |                | 5.40‰      - 7.8975 | ‰ |
| Weighted      average monthly interest rate                                   |   |                | 5.358                     | ‰ |

| 2011   |   | $                                                             | 1,474,622 |   |
|--------|--------|---------------------------------------------------------------|-----------|--------|
| 2012   |   |                                                          | 3,539,092 |   |
| 2013   |   |                                                          | 2,949,243 |   |
|   |   | $           | 7,962,957 |   |

----

| 14. | STOCKHOLDERS'      EQUITY AND RETAINED EARNINGS |
|-----|-------------------------------------------------|

|   | (a) | Contributed      capital |
|--------|-----|--------------------------|

----

| 14. | STOCKHOLDERS'      EQUITY AND RETAINED EARNINGS(.../Cont’d) |
|-----|-----------------------------------------------------------------------|

|   | (b) | Retained      earnings and statutory reserves |
|--------|-----|-----------------------------------------------|

| Retained      earnings  |   | $                         | (318,442  | )      |
|-------------------------|--------|---------------------------|-----------|--------|
|                    |   |                      |      |   |
| Statutory      reserves |   | $     | 4,888,018 |   |

----

| 15. | INCOME      TAXES |
|-----|-------------------|

| Fujian      Service's Income before tax                           |   | $                   | 23,144,449 |   |
|-------------------------------------------------------------------|--------|---------------------|------------|--------|
|                                                              |   |                |       |   |
| Expected      PRC income tax expense at statutory tax rate of 25% |   | $                   | 5,786,112  |   |
| Effect      on exchange rate                                      |   |                | (1,771     | )      |
| Actual      income tax expense                                    |   | $    | 5,784,341  |   |

----

| 16. | RELATED      PARTY TRANSACTIONS |
|-----|---------------------------------|

|   | (a) | Operating      lease commitments |
|--------|-----|----------------------------------|

|                        |   | Name      of related party             |   |                |    |
|-----------------------------|--------|----------------------------------------|--------|---------------------|---------|
| Office      rental          |   | Ping      Lin                          |   | $                   | 11,553  |   |
| Hire      charge of dredger |   | Fujian      Lutong Highway Engineering |   |                |    |   |
|                        |   | Construction      Co., Ltd             |   |                | 513,279 |   |
| Hire      charge of crew    |   | Fujian      Lutong Highway Engineering |   |                |    |   |
|                        |   | Construction      Co., Ltd             |   |                | 263,972 |   |
|                        |   |                                   |   | $    | 788,804 |   |

|   | (b) | Financial      Guarantee |
|--------|-----|--------------------------|

| Guarantees      given to the bank to secure the bank loan granted to related      party |   | $    | 7,850,960 |   |
|-----------------------------------------------------------------------------------------|--------|---------------------|-----------|--------|

----

| 17. | CERTAIN      RISKS AND CONCENTRATIONS |
|-----|---------------------------------------|

|   | (a) | Credit      risk |
|--------|-----|------------------|

|   | (b) | Major      customers |
|--------|-----|----------------------|

| Customer      A |   |                                       | 42.0 | % |
|-----------------|--------|--------------------------------------------|------|---|
| Customer      B |   |                                       | 29.7 | % |
| Customer      C |   |                                       | 11.2 | % |
| Customer      D |   |                                       | 11.0 | % |
|            |   |         | 93.9 | % |

|   | (c) | Major      suppliers |
|--------|-----|----------------------|

| Supplier      A |   |                                       | 31.3 | % |
|-----------------|--------|--------------------------------------------|------|---|
| Supplier      B |   |                                       | 29.8 | % |
| Supplier      C |   |                                       | 29.6 | % |
|            |   |         | 90.7 | % |

----

| 18. | OPERATING      LEASE COMMITMENTS |
|-----|----------------------------------|

|                               |   | Hire charge |       |   | Hire charge |   |       | Consumable         |   |   |               |   |   |   |   |
|------------------------------------|--------|------------------|------------|--------|------------------|--------|------------|--------------------|--------|--------|--------------------|--------|--------|--------|--------|
|                               |   | of dredgers |       |   | of crew     |   |       | stores supply |   |   | Office rental |   |   | Total  |   |
| For      the period ended June 30, |   |             |       |   |             |   |       |               |   |   |               |   |   |   |   |
| 2011                               |   | $                | 18,936,396 |   |             | $      | 3,641,136  |               |   | $      | 26,897,100         |   |   | $      | 11,617 |   |   | $ | 49,486,249 |   |
| 2012                               |   |             | 8,228,389  |   |             |   | 3,326,746  |               |   |   | 26,897,100         |   |   |   | 11,617 |   |   |   | 38,463,852 |   |
| 2013                               |   |             | 8,017,703  |   |             |   | 3,249,968  |               |   |   | 25,988,160         |   |   |   | 11,617 |   |   |   | 37,267,448 |   |
| 2014                               |   |             | 1,732,681  |   |             |   | 1,061,727  |               |   |   | -                  |   |   |   | 11,617 |   |   |   | 2,806,025 |   |
| 2015                               |   |             | 1,732,681  |   |             |   | 1,061,727  |               |   |   | -                  |   |   |   | 11,617 |   |   |   | 2,806,025 |   |
| Thereafter                         |   |             | 1,296,438  |   |             |   | 752,057    |               |   |   | -                  |   |   |   | -      |   |   |   | 2,048,495 |   |
|                               |   | $                | 39,944,288 |   |             | $      | 13,093,361 |               |   | $      | 79,782,360         |   |   | $      | 58,085 |   |   | $ | 132,878,094 |   |

|                                  |   | Hire charge |       |   | Hire charge |   |       | Consumable         |   |   |               |   |   |   |   |
|---------------------------------------|--------|------------------|------------|--------|------------------|--------|------------|--------------------|--------|--------|--------------------|--------|--------|--------|--------|
|                                  |   | of dredgers |       |   | of crew     |   |       | stores supply |   |   | Office rental |   |   | Total  |   |
|                                  |   |             |       |   |             |   |       |               |   |   |               |   |   |   |   |
| Related      parties transactions     |   | $                | 6,107,391  |   |             | $      | 3,140,945  |               |   | $      | -                  |   |   | $      | 58,085 |   |   | $ | 9,306,421 |   |
| Non-related      parties transactions |   |             | 33,836,893 |   |             |   | 9,952,419  |               |   |   | 79,782,361         |   |   |   | -      |   |   |   | 123,571,673 |   |
|                                  |   | $                | 39,944,284 |   |             | $      | 13,093,364 |               |   | $      | 79,782,361         |   |   | $      | 58,085 |   |   | $ | 132,878,094 |   |

| 19. | CAPITAL      COMMITMENT |
|-----|-------------------------|

| Contracted,      but not provided for:-          |   |                |       |
|--------------------------------------------------|--------|---------------------|------------|
| Acquisition      of dredger, net of deposit paid |   | $    | 27,280,503 |   |

| Payment Due Date                            |   |                                                          |      |
|-------------------------------------------------------|--------|---------------------------------------------------------------|-----------|
| (end of month following delivery) |   | Payment Amount                                           |      |
|                                                  |   |                                                          |      |
| 3rd      month                                        |   | $           | 8,184,151 |   |
| 6th      month                                        |   | $                                                             | 6,820,126 |   |
| 9th      month                                        |   | $                                                             | 6,820,126 |   |
| 12th      month                                       |   | $                                                             | 5,456,100 |   |

----

| 20. | SUBSEQUENT      EVENT |
|-----|-----------------------|

----

|                                                                                 |   | (Unaudited)   |        |   |              |   |
|--------------------------------------------------------------------------------------|--------|---------------|-------------|--------|-------------------|--------|
|                                                                                 |   | June      30, |        |   | December      31, |   |
|                                                                                 |   | 2010          |        |   | 2009              |   |
| Assets                                                                               |   |          |        |   |              |   |
| Current      assets                                                                  |   |          |        |   |              |   |
| Cash                                                                                 |   | $             | 22,894,565  |   |              | $      | 23,343,469 |   |
| Restricted      cash                                                                 |   |          | 25,968,089  |   |              |   | 8,422,440 |   |
| Cost      and estimated earnings in excess of billings on uncompleted      contracts |   |          | 8,845,328   |   |              |   | 2,211,411 |   |
| Other      receivables                                                               |   |          | 1,079       |   |              |   | 312 |   |
| Due      from related companies                                                      |   |          | 12,693,456  |   |              |   | - |   |
| Inventories                                                                          |   |          | 1,193,210   |   |              |   | 429,226 |   |
| Total      current assets                                                            |   |          | 71,595,727  |   |              |   | 34,406,858 |   |
|                                                                                 |   |          |        |   |              |   |   |   |
| Other      assets                                                                    |   |          |        |   |              |   |   |   |
| Prepaid      dredger deposit                                                         |   |          | 2,211,932   |   |              |   | 2,197,158 |   |
| Property,      plant and equipment, net                                              |   |          | 41,689,943  |   |              |   | 43,511,237 |   |
| Total      other assets                                                              |   |          | 43,901,875  |   |              |   | 45,708,395 |   |
| Total      assets                                                                    |   | $             | 115,497,602 |   |              | $      | 80,115,253 |   |
|                                                                                 |   |          |        |   |              |   |   |   |
| Liabilities      and owners' equity                                                  |   |          |        |   |              |   |   |   |
| Current      liabilities                                                             |   |          |        |   |              |   |   |   |
| Term      loans                                                                      |   | $             | 4,423,865   |   |              | $      | 7,030,906 |   |
| Accounts      payable                                                                |   |          | 789,086     |   |              |   | - |   |
| Income      tax payable                                                              |   |          | 3,418,577   |   |              |   | 2,042,047 |   |
| Accrued      liabilities and other payables                                          |   |          | 771,486     |   |              |   | 209,680 |   |
| Dividend      payable                                                                |   |          | 51,087,387  |   |              |   | - |   |
| Total      current liabilities                                                       |   |          | 60,490,401  |   |              |   | 9,282,633 |   |
|                                                                                 |   |          |        |   |              |   |   |   |
| Non-current      liabilities                                                         |   |          |        |   |              |   |   |   |
| Long-term      loans                                                                 |   |          | 7,962,957   |   |              |   | 3,295,738 |   |
| Total      non-current liabilities                                                   |   |          | 7,962,957   |   |              |   | 3,295,738 |   |
| Total      liabilities                                                               |   |          | 68,453,358  |   |              |   | 12,578,371 |   |
|                                                                                 |   |          |        |   |              |   |   |   |
| Owners'      equity                                                                  |   |          |        |   |              |   |   |   |
| Registered      capital                                                              |   |          | 29,002,371  |   |              |   | 29,002,371 |   |
| Statutory      reserves                                                              |   |          | 4,888,018   |   |              |   | 4,888,018 |   |
| Additional      paid-in capital                                                      |   |          | 12,619,725  |   |              |   | - |   |
| Retained      earnings                                                               |   |          | 10,219,693  |   |              |   | 43,946,972 |   |
| Accumulated      other comprehensive income                                          |   |          | 1,297,172   |   |              |   | 682,256 |   |
| Subscription      receivable                                                         |   |          | (10,982,735 | )      |              |   | (10,982,735 | ) |
| Total      owners' equity                                                            |   |          | 47,044,244  |   |              |   | 67,536,882 |   |
|                                                                                 |   |          |        |   |              |   |   |   |
| Total      liabilities and owners' equity                                            |   | $             | 115,497,602 |   |              | $      | 80,115,253 |   |

----

|                                                                                                                                                                                                                                                         |   | For      the Three Months |        |   | For      the Six Months |   |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|---------------------------|-------------|--------|-------------------------|--------|
|                                                                                                                                                                                                                                                         |   | Ended June 30,            |        |   | Ended June 30,          |   |
|                                                                                                                                                                                                                                                         |   | 2010                      |        |   | 2009                    |   |   | 2010 |   |   | 2009 |   |
|                                                                                                                                                                                                                                                         |   |                      |        |   |                    |   |   |   |   |   |   |   |
| Contract      revenue                                                                                                                                                                                                                                        |   | $                         | 25,955,955  |   |                    | $      | 22,723,011 |   |   | $ | 45,981,433 |   |   | $ | 40,825,253 |   |
|                                                                                                                                                                                                                                                         |   |                      |        |   |                    |   |   |   |   |   |   |   |   |   |   |   |
| Cost      of contract revenue, includes depreciation of $1,249,866 and $1,500,647      for the three months ended June 30, 2010 and 2009, respectively and      $2,497,042 and $2,475,070 for the six months ended June 30, 2010 and 2009,      respectively |   |                      | (10,882,457 | )      |                    |   | (10,332,609 | ) |   |   | (20,389,446 | ) |   |   | (18,830,015 | ) |
|                                                                                                                                                                                                                                                         |   |                      |        |   |                    |   |   |   |   |   |   |   |   |   |   |   |
| Gross      profit                                                                                                                                                                                                                                            |   |                      | 15,073,498  |   |                    |   | 12,390,402 |   |   |   | 25,591,987 |   |   |   | 21,995,238 |   |
|                                                                                                                                                                                                                                                         |   |                      |        |   |                    |   |   |   |   |   |   |   |   |   |   |   |
| General      and administrative expenses                                                                                                                                                                                                                     |   |                      | (1,237,460  | )      |                    |   | (849,048 | ) |   |   | (2,049,384 | ) |   |   | (1,224,771 | ) |
|                                                                                                                                                                                                                                                         |   |                      |        |   |                    |   |   |   |   |   |   |   |   |   |   |   |
| Income      from operations                                                                                                                                                                                                                                  |   |                      | 13,836,038  |   |                    |   | 11,541,354 |   |   |   | 23,542,603 |   |   |   | 20,770,467 |   |
|                                                                                                                                                                                                                                                         |   |                      |        |   |                    |   |   |   |   |   |   |   |   |   |   |   |
| Other      income (expense):                                                                                                                                                                                                                                 |   |                      |        |   |                    |   |   |   |   |   |   |   |   |   |   |   |
| Interest      income                                                                                                                                                                                                                                         |   |                      | 27,258      |   |                    |   | 7,202 |   |   |   | 44,585 |   |   |   | 12,638 |   |
| Interest      expenses                                                                                                                                                                                                                                       |   |                      | (241,275    | )      |                    |   | (216,368 | ) |   |   | (442,827 | ) |   |   | (395,337 | ) |
| Sundry      income                                                                                                                                                                                                                                           |   |                      | -           |   |                    |   | - |   |   |   | 88 |   |   |   | - |   |
| Total      other expenses                                                                                                                                                                                                                                    |   |                      | (214,017    | )      |                    |   | (209,166 | ) |   |   | (398,154 | ) |   |   | (382,699 | ) |
|                                                                                                                                                                                                                                                         |   |                      |        |   |                    |   |   |   |   |   |   |   |   |   |   |   |
| Income      before income taxes                                                                                                                                                                                                                              |   |                      | 13,622,021  |   |                    |   | 11,332,188 |   |   |   | 23,144,449 |   |   |   | 20,387,768 |   |
|                                                                                                                                                                                                                                                         |   |                      |        |   |                    |   |   |   |   |   |   |   |   |   |   |   |
| Income      tax expense                                                                                                                                                                                                                                      |   |                      | (3,402,328  | )      |                    |   | (2,834,991 | ) |   |   | (5,784,341 | ) |   |   | (5,100,233 | ) |
|                                                                                                                                                                                                                                                         |   |                      |        |   |                    |   |   |   |   |   |   |   |   |   |   |   |
| Net      income                                                                                                                                                                                                                                              |   | $                         | 10,219,693  |   |                    | $      | 8,497,197 |   |   | $ | 17,360,108 |   |   | $ | 15,287,535 |   |

----

|                                                                             |   |       |       |   |      |   |      |                 |   |   |         |   |   |     |        |   | Accumulated   |   |        |    |   |
|----------------------------------------------------------------------------------|--------|------------|------------|--------|-----------|--------|-----------|----------------------|--------|--------|--------------|--------|--------|----------|-------------|--------|---------------|--------|-------------|---------|--------|
|                                                                             |   |       |       |   |      |   |      |                 |   |   |         |   |   |     |        |   | other         |   |        |    |   |
|                                                                             |   | Registered |       |   | Statutory |   |      | Additional           |   |   | Subscription |   |   | Retained |        |   | comprehensive |   |        |    |   |
|                                                                             |   | Capital    |       |   | reserves  |   |      | paid-in      capital |   |   | receivable   |   |   | earnings |        |   | income        |   |        | Total   |   |
| Balance      as of December 31, 2009                                             |   | $          | 29,002,371 |   |      | $      | 4,888,018 |                 |   |   | -            |   |   | $        | (10,982,735 | )      |          | $      | 43,946,972  |    |   | $ | 682,256 |   |   | $ | 67,536,882 |   |
|                                                                             |   |       |       |   |      |   |      |                 |   |   |         |   |   |     |        |   |          |   |        |    |   |   |   |   |   |   |   |   |
| Capital      contributed by Fujian WangGang Dredging Construction Co.,      Ltd. |   |       | -          |   |      |   | -         |                 |   |   | 12,619,725   |   |   |     | -           |   |          |   | -           |    |   |   | - |   |   |   | 12,619,725 |   |
| Net      income                                                                  |   |       | -          |   |      |   | -         |                 |   |   | -            |   |   |     | -           |   |          |   | 17,360,108  |    |   |   | - |   |   |   | 17,360,108 |   |
| Dividend                                                                         |   |       | -          |   |      |   | -         |                 |   |   | -            |   |   |     |        |   |          |   | (51,087,387 | )  |   |   | - |   |   |   | (51,087,387 | )  |
| Foreign      currency translation gain                                           |   |       | -          |   |      |   | -         |                 |   |   | -            |   |   |     | -           |   |          |   | -           |    |   |   | 614,916 |   |   |   | 614,916 |   |
|                                                                             |   |       |       |   |      |   |      |                 |   |   |         |   |   |     |        |   |          |   |        |    |   |   |   |   |   |   |   |   |
| Balance      as of June 30, 2010                                                 |   | $          | 29,002,371 |   |      | $      | 4,888,018 |                 |   | $      | 12,619,725   |   |   | $        | (10,982,735 | )      |          | $      | 10,219,693  |    |   | $ | 1,297,172 |   |   | $ | 47,044,244 |   |

----

|                                                                                        |   | For      the Six Months Ended |        |
|---------------------------------------------------------------------------------------------|--------|-------------------------------|-------------|
|                                                                                        |   | June      30,                 |        |
|                                                                                        |   | 2010                          |        |   | 2009 |   |
| Cash      flows from operating activities:                                                  |   |                          |        |   |   |   |
| Net      income                                                                             |   | $                             | 17,360,108  |   |   | $ | 15,287,535 |   |
| Adjustments      to reconcile net income to net cash provided by operating      activities: |   |                          |        |   |   |   |   |   |
| Depreciation      of property, plant and equipment                                          |   |                          | 2,497,401   |   |   |   | 2,475,429 |   |
| Changes      in operating assets and liabilities:                                           |   |                          |        |   |   |   |   |   |
| Cost      and estimated earnings in excess of billings on uncompleted      contracts        |   |                          | (6,582,645  | ) |   |   | (439,238 | ) |
| Other      receivables                                                                      |   |                          | (761        | ) |   |   | (329 | ) |
| Inventories                                                                                 |   |                          | (756,912    | ) |   |   | (92,464 | ) |
| Accounts      payable                                                                       |   |                          | 784,746     |   |   |   | - |   |
| Income      tax payable                                                                     |   |                          | 1,355,304   |   |   |   | 422,462 |   |
| Due      from related companies                                                             |   |                          | -           |   |   |   | - |   |
| -      Accrued liabilities and other payables                                               |   |                          | 557,315     |   |   |   | 400,237 |   |
| Net      cash provided by operating activities                                              |   |                          | 15,214,556  |   |   |   | 18,053,632 |   |
| Cash      flows from investing activities:                                                  |   |                          |        |   |   |   |   |   |
| Deposit      paid for dredgers                                                              |   |                          | -           |   |   |   | (20,029,229 | ) |
| Changes      in restricted cash                                                             |   |                          | (17,392,834 | ) |   |   | - |   |
| Payment      of purchases of property, plant and equipment                                  |   |                          | (323,644    | ) |   |   | - |   |
| Net      cash used in investing activities                                                  |   |                          | (17,716,478 | ) |   |   | (20,029,229 | ) |
| Cash      flows from financing activities:                                                  |   |                          |        |   |   |   |   |   |
| Proceeds      from short-term loans                                                         |   |                          | -           |   |   |   | 3,366,411 |   |
| Repayment      of short-term loans                                                          |   |                          | (3,372,978  | ) |   |   | - |   |
| Proceeds      from long-term loans                                                          |   |                          | 9,239,026   |   |   |   | - |   |
| Repayment      of long-term loans                                                           |   |                          | (3,886,257  | ) |   |   | - |   |
| Advance      to related companies                                                           |   |                          | (12,693,456 | ) |   |   | - |   |
| Capital      contributions from Fujian WangGang Dredging Construction Co.,      Ltd.        |   |                          | 12,619,725  |   |   |   | - |   |
| Net      cash provided by financing activities                                              |   |                          | 1,906,060   |   |   |   | 3,366,411 |   |
|                                                                                        |   |                          |        |   |   |   |   |   |
| Net      (decrease)/increase in cash                                                        |   |                          | (595,862    | ) |   |   | 1,390,814 |   |
| Effect      of exchange rate changes on cash                                                |   |                          | 146,958     |   |   |   | (1,363 | ) |
| Cash      at beginning of period                                                            |   |                          | 23,343,469  |   |   |   | 1,362,142 |   |
| Cash      at end of period                                                                  |   | $                             | 22,894,565  |   |   | $ | 2,751,593 |   |
| Non-cash      investing and financing transactions:                                         |   |                          |        |   |   |   |   |   |
| Purchases      of property, plant and equipment with issuance of debt                       |   | $                             | -           |   |   | $ | 11,048,959 |   |
|                                                                                        |   |                          |        |   |   |   |   |   |
| Supplemental      information:                                                              |   |                          |        |   |   |   |   |   |
| Cash      paid for income tax                                                               |   | $                             | 4,429,037   |   |   | $ | 4,677,770 |   |
| Cash      paid for interest                                                                 |   | $                             | 445,781     |   |   | $ | 390,945 |   |

----

| 1. | DESCRIPTION      OF BUSINESS AND ORGANIZATION |
|----|-----------------------------------------------|

----

| 2. | SUMMARY      OF SIGNIFICANT ACCOUNTING POLICIES |
|----|-------------------------------------------------|

|  | (a) | Basis      of presentation |
|--|-----|----------------------------|

|  | (b) | Use      of estimates |
|--|-----|-----------------------|

|  | (c) | Foreign      currency translation |
|--|-----|-----------------------------------|

|  | (d) | Cash |
|--|-----|------|

----

| 2. | SUMMARY      OF SIGNIFICANT ACCOUNTING POLICIES(.../Cont'd) |
|----|-----------------------------------------------------------------|

|  | (e) | Cost      and estimated earnings in excess of billings on uncompleted      contracts |
|--|-----|--------------------------------------------------------------------------------------|

|  | (f) | Inventories |
|--|-----|-------------|

|  | (g) | Property,      plant and equipment |
|--|-----|------------------------------------|

|                  |   | Estimated lives |   |
|-----------------------|--------|-----------------|--------|
| Dredgers              |   | 10              |   |
| Machinery             |   | 5               |   |
| Office      equipment |   | 5               |   |

----

| 2. | SUMMARY OF SIGNIFICANT      ACCOUNTING POLICIES(.../Cont'd) |
|----|-----------------------------------------------------------------|

|  | (h) | Impairment      of long-lived assets |
|--|-----|--------------------------------------|

|   | (i) | Fair      value measurements |
|--------|-----|------------------------------|

----

| 2. | BASIS      OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES      (.../Cont'd) |
|----|---------------------------------------------------------------------------------------------|

|  | (j) | Revenue      recognition |
|--|-----|--------------------------|

|  | (k) | Income      taxes |
|--|-----|-------------------|

----

| 2. | BASIS      OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES      (.../Cont'd) |
|----|---------------------------------------------------------------------------------------------|

|   | (l) | Other      comprehensive income |
|--------|-----|---------------------------------|

|                                            |   | For      the Three Months |       |   | For      the Six Months |   |
|-------------------------------------------------|--------|---------------------------|------------|--------|-------------------------|--------|
|                                            |   | Ended June 30,            |       |   | Ended June 30,          |   |
|                                            |   | 2010                      |       |   | 2009                    |   |   | 2010 |   |   | 2009 |   |
|                                            |   |                      |       |   |                    |   |   |   |   |   |   |   |
| Net      income                                 |   | $                         | 10,219,693 |   |                    | $      | 8,497,197 |   |   | $ | 17,360,108 |   |   | $ | 15,287,535 |   |
| Other      comprehensive income                 |   |                      |       |   |                    |   |   |   |   |   |   |   |   |   |   |   |
| -      Foreign currency translation adjustments |   |                      | 602,366    |   |                    |   | 15,366 |   |   |   | 614,916 |   |   |   | (35,681 | ) |
| Total      comprehensive income                 |   | $                         | 10,822,059 |   |                    | $      | 8,512,563 |   |   | $ | 17,975,024 |   |   | $ | 15,251,854 |   |

|  | (m) | Commitments      and contingencies |
|--|-----|------------------------------------|

|  | (n) | Economic      and political risks |
|--|-----|-----------------------------------|

----

| 2. | BASIS      OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES      (.../Cont'd) |
|----|---------------------------------------------------------------------------------------------|

|  | (o) | Pension      and employee benefits |
|--|-----|------------------------------------|

|  | (p) | Segment      information |
|--|-----|--------------------------|

|  | (q) | Recently      issued accounting standards |
|--|-----|-------------------------------------------|

----

| 2. | BASIS      OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES      (.../Cont'd) |
|----|---------------------------------------------------------------------------------------------|

|  | (q) | Recently      issued accounting standards(.../Cont'd) |
|--|-----|-----------------------------------------------------------|

----

| 2. | CASH |
|----|------|

| 3. | RESTRICTED      CASH |
|----|----------------------|

----

| 4. | COST      AND ESTIMATED EARNINGS IN EXCESS OF BILLINGS ON UNCOMPLETED      CONTRACTS |
|----|--------------------------------------------------------------------------------------|

| June 30, 2010                                                             |   |           |        |   |               |   |       |            |   |   |                    |   |   |                    |      |
|---------------------------------------------------------------------------|--------|----------------|-------------|--------|--------------------|--------|------------|-----------------|--------|--------|-------------------------|--------|--------|-------------------------|-----------|
|                                                                      |   |           |        |   |               |   |       |            |   |   | Cost      and estimated |   |   |                    |      |
| Name      of contract                                                     |   | Estimated      |        |   | Total      revenue |   |       | Amount          |   |   | earnings      in excess |   |   | Status      of contract |      |
| (Contract period)                                                         |   | contract value |        |   | recognized         |   |       | received/billed |   |   | of billings             |   |   | (Completion %)          |      |
|                                                                      |   |           |        |   |               |   |       |            |   |   |                    |   |   |                    |      |   |   |   |   |   |
| 1.      Tangshan Caofeidian Dredging and Reclamation I                    |   | $              | 9,236,094   |   |               | $      | 9,268,977  |            |   | $      | 9,268,977               |   |   | $                       | -         |   |   |   | 100 | % |
|                                                                      |   |           |        |   |               |   |       |            |   |   |                    |   |   |                    |      |   |   |   |   |   |
| 2.      Tangshan Caofeidian Dredging and Reclamation II                   |   |           | 11,028,172  |   |               |   | 11,014,980 |            |   |   | 11,014,980              |   |   |                    | -         |   |   |   | 100 | % |
|                                                                      |   |           |        |   |               |   |       |            |   |   |                    |   |   |                    |      |   |   |   |   |   |
| 3.      Tangshan Caofeidian Dredging and Reclamation III                  |   |           | 10,019,505  |   |               |   | 4,982,377  |            |   |   | 4,002,413               |   |   |                    | 979,964   |   |   |   | 50 | % |
|                                                                      |   |           |        |   |               |   |       |            |   |   |                    |   |   |                    |      |   |   |   |   |   |
| 4.      Tangshan Caofeidian Dredging and Reclamation IV                   |   |           | 8,830,750   |   |               |   | 3,876,915  |            |   |   | 3,530,395               |   |   |                    | 346,520   |   |   |   | 44 | % |
|                                                                      |   |           |        |   |               |   |       |            |   |   |                    |   |   |                    |      |   |   |   |   |   |
| 5.      Tangshan Caofeidian Dredging and Reclamation V                    |   |           | 7,896,728   |   |               |   | 3,520,228  |            |   |   | 3,156,692               |   |   |                    | 363,536   |   |   |   | 45 | % |
|                                                                      |   |           |        |   |               |   |       |            |   |   |                    |   |   |                    |      |   |   |   |   |   |
| 6.      Oujiang Port Liantian Dredging I                                  |   |           | 7,127,249   |   |               |   | 7,131,619  |            |   |   | 7,131,619               |   |   |                    | -         |   |   |   | 100 | % |
|                                                                      |   |           |        |   |               |   |       |            |   |   |                    |   |   |                    |      |   |   |   |   |   |
| 7.      Oujiang Port Liantian Dredging II                                 |   |           | 4,197,158   |   |               |   | 4,245,908  |            |   |   | 4,245,908               |   |   |                    | -         |   |   |   | 100 | % |
|                                                                      |   |           |        |   |               |   |       |            |   |   |                    |   |   |                    |      |   |   |   |   |   |
| 8.      Zhuhai Gaolan Port Dredging I                                     |   |           | 1,671,824   |   |               |   | 1,701,669  |            |   |   | 1,701,669               |   |   |                    | -         |   |   |   | 100 | % |
|                                                                      |   |           |        |   |               |   |       |            |   |   |                    |   |   |                    |      |   |   |   |   |   |
| 9.      Zhuhai Gaolan Port Dredging II                                    |   |           | 2,089,780   |   |               |   | 2,104,910  |            |   |   | 2,104,910               |   |   |                    | -         |   |   |   | 100 | % |
|                                                                      |   |           |        |   |               |   |       |            |   |   |                    |   |   |                    |      |   |   |   |   |   |
| 10.      Zhuhai Gaolan Port Dredging III                                  |   |           | 2,867,031   |   |               |   | 2,524,234  |            |   |   | 1,907,965               |   |   |                    | 616,269   |   |   |   | 88 | % |
|                                                                      |   |           |        |   |               |   |       |            |   |   |                    |   |   |                    |      |   |   |   |   |   |
| 11.      Zhanjiang Industrial Centre Dredging and Reclamation             |   |           | 13,588,702  |   |               |   | 13,648,547 |            |   |   | 9,955,834               |   |   |                    | 3,692,713 |   |   |   | 100 | % |
|                                                                      |   |           |        |   |               |   |       |            |   |   |                    |   |   |                    |      |   |   |   |   |   |
| 12.      Qinzhou Port Channel Dredging                                    |   |           | 1,343,325   |   |               |   | 1,007,495  |            |   |   | -                       |   |   |                    | 1,013,065 |   |   |   | 75 | % |
|                                                                      |   |           |        |   |               |   |       |            |   |   |                    |   |   |                    |      |   |   |   |   |   |
| 13.      Tianjin South Port Industrial Zone Dredging &    Reclamation |   |           | 6,371,937   |   |               |   | 884,991    |            |   |   | -                       |   |   |                    | 889,885   |   |   |   | 14 | % |
|                                                                      |   |           |        |   |               |   |       |            |   |   |                    |   |   |                    |      |   |   |   |   |   |
| 14.      Jingtang Port Channel Dredging                                   |   |           | 4,730,382   |   |               |   | 656,997    |            |   |   | -                       |   |   |                    | 660,631   |   |   |   | 14 | % |
|                                                                      |   |           |        |   |               |   |       |            |   |   |                    |   |   |                    |      |   |   |   |   |   |
| 15.      Panjin Vessels Industrial Base Project                           |   |           | 10,628,987  |   |               |   | 281,190    |            |   |   | -                       |   |   |                    | 282,745   |   |   |   | 3 | % |
|                                                                      |   |           |        |   |               |   |       |            |   |   |                    |   |   |                    |      |   |   |   |   |   |
|                                                                      |   | $              | 101,627,624 |   |               | $      | 66,851,037 |            |   | $      | 58,021,362              |   |   | $                       | 8,845,328 |   |   |   |   |   |

----

| 5. | COST      AND ESTIMATED EARNINGS IN EXCESS OF BILLINGS ON UNCOMPLETED      CONTRACTS |
|----|--------------------------------------------------------------------------------------|

| December 31, 2009                                       |   |           |       |   |               |   |       |            |   |   |                    |   |   |                    |      |
|---------------------------------------------------------|--------|----------------|------------|--------|--------------------|--------|------------|-----------------|--------|--------|-------------------------|--------|--------|-------------------------|-----------|
|                                                    |   |           |       |   |               |   |       |            |   |   | Cost      and estimated |   |   |                    |      |
| Name      of contract                                   |   | Estimated      |       |   | Total      revenue |   |       | Amount          |   |   | earnings      in excess |   |   | Status      of contract |      |
| (Contract period)                                       |   | contract value |       |   | recognized         |   |       | received/billed |   |   | of billings             |   |   | (Completion %)          |      |
|                                                    |   |           |       |   |               |   |       |            |   |   |                    |   |   |                    |      |
| 1.      Tangshan Caofeidian Dredging and Reclamation I  |   | $              | 9,220,678  |   |               | $      | 6,028,905  |            |   | $      | 5,532,167               |   |   | $                       | 496,738   |   |   |   | 65 | % |
|                                                    |   |           |       |   |               |   |       |            |   |   |                    |   |   |                    |      |   |   |   |   |   |
| 2.      Tangshan Caofeidian Dredging and Reclamation II |   |           | 11,009,765 |   |               |   | 7,325,728  |            |   |   | 6,605,511               |   |   |                    | 720,217   |   |   |   | 67 | % |
|                                                    |   |           |       |   |               |   |       |            |   |   |                    |   |   |                    |      |   |   |   |   |   |
| 3.      Oujiang Port Liantian Dredging II               |   |           | 7,115,354  |   |               |   | 6,336,300  |            |   |   | 5,691,971               |   |   |                    | 644,329   |   |   |   | 89 | % |
|                                                    |   |           |       |   |               |   |       |            |   |   |                    |   |   |                    |      |   |   |   |   |   |
| 4.      Zhuhai Gaolan Port Dredging III                 |   |           | 1,669,034  |   |               |   | 1,184,474  |            |   |   | 834,347                 |   |   |                    | 350,127   |   |   |   | 71 | % |
|                                                    |   |           |       |   |               |   |       |            |   |   |                    |   |   |                    |      |   |   |   |   |   |
|                                                    |   | $              | 29,014,831 |   |               | $      | 20,875,407 |            |   | $      | 18,663,996              |   |   | $                       | 2,211,411 |   |   |   |   |   |

| Backlog      balance at December 31, 2009                                         |   | $      | 8,139,422   |   |
|-----------------------------------------------------------------------------------|--------|--------|-------------|--------|
| New      contracts entered during the six months ended June 30,2010               |   |   | 173,105,868 |   |
| Add:      Adjustment of contracts due to change orders during the    period       |   |   | 231,945     |   |
| Adjusted      contract amount at June 30, 2010                                    |   |   | 181,477,235 |   |
| Less:      Contract revenue earned during the six months ended June 30,      2010 |   |   | (45,981,433 | )      |
| Backlog      balance at June 30, 2010                                             |   | $      | 135,495,802 |   |

----

| 6. | INVENTORIES |
|----|-------------|

| 7. | OTHER      RECEIVABLES |
|----|------------------------|

|                                    |   | June 30, 2010 |   |   | December 31, 2009 |   |
|-----------------------------------------|--------|---------------|--------|--------|-------------------|--------|
|                                    |   |          |   |   |              |   |
| Social      insurance prepaid for staff |   | $             | 1,079  |   |              | $      | 312 |   |

| 8. | DUE      FROM RELATED COMPANIES |
|----|---------------------------------|

|                                                 |   | June 30, 2010 |       |   | December 31, 2009 |   |
|------------------------------------------------------|--------|---------------|------------|--------|-------------------|--------|
|                                                 |   |          |       |   |              |   |
| China      Dredging Group Co., Ltd.                  |   | $             | 73,731     |   |              | $      | - |   |
| Fujian      WangGang Dredging Construction Co., Ltd. |   |          | 12,619,725 |   |              |   | - |   |
|                                                 |   | $             | 12,693,456 |   |              | $      | - |   |

----

| 9. | PREPAID      DREDGER DEPOSIT |
|----|------------------------------|

|                         |   | June 30, 2010 |      |   | December 31, 2009 |   |
|------------------------------|--------|---------------|-----------|--------|-------------------|--------|
|                         |   |          |      |   |              |   |
| Prepaid      dredger deposit |   | $             | 2,211,932 |   |              | $      | 2,197,158 |   |

| 10. | PROPERTY,      PLANT AND EQUIPMENT |
|-----|------------------------------------|

|                                |   | June 30, 2010 |        |   | December 31, 2009 |   |
|-------------------------------------|--------|---------------|-------------|--------|-------------------|--------|
|                                |   |          |        |   |              |   |
| Dredgers                            |   | $             | 52,784,632  |   |              | $      | 52,146,433 |   |
| Machinery                           |   |          | 37,883      |   |              |   | - |   |
| Office      equipment               |   |          | 3,808       |   |              |   | 3,783 |   |
|                                |   |          | 52,826,323  |   |              |   | 52,150,216 |   |
| Less:      Accumulated depreciation |   |          | (11,136,380 | )      |              |   | (8,638,979 | ) |
|                                |   | $             | 41,689,943  |   |              | $      | 43,511,237 |   |

----

| 11. | TERM      LOANS |
|-----|-----------------|

|                                                   |   | June      30, 2010 |      |    | December      31, 2009 |   |
|--------------------------------------------------------|--------|--------------------|-----------|---------|------------------------|--------|
|                                                   |   |               |      |    |                   |   |
| Fuzhou      City Rural Credit Cooperative              |   | $                  | -         |    |                   | $      | 3,368,976 |   |
| Fujian      Haixia Bank Co., Ltd (see Note 13)         |   |               | 4,423,865 |    |                   |   | 3,661,930 |   |
|                                                   |   | $                  | 4,423,865 |    |                   | $      | 7,030,906 |   |
|                                                   |   |               |      |    |                   |   |   |   |
| Interest      expenses incurred during the period/year |   | $                  | 34,890    |    |                   | $      | 209,212 |   |
| Range      of monthly interest rate                    |   |               | 5.974     | %  |                   |   | 5.974 | %  |
| Weighted      average monthly interest rate            |   |               | 5.358     | %  |                   |   | 5.974 | %  |

| 12. | ACCRUED      EXPENSES AND OTHER PAYABLES |
|-----|------------------------------------------|

|                            |   | June 30, 2010 |    |   | December 31, 2009 |   |
|---------------------------------|--------|---------------|---------|--------|-------------------|--------|
|                            |   |          |    |   |              |   |
| Accrued      interest           |   | $             | 24,741  |   |              | $      | 27,527 |   |
| Accrued      salaries and wages |   |          | 74,372  |   |              |   | 69,405 |   |
| Accrued      staff benefits     |   |          | 129,853 |   |              |   | 103,671 |   |
| Other      payables             |   |          | 405,055 |   |              |   | - |   |
| Other      tax payables         |   |          | 137,465 |   |              |   | 9,077 |   |
|                            |   | $             | 771,486 |   |              | $      | 209,680 |   |

----

| 13. | LONG-TERM      LOANS |
|-----|----------------------|

|                                                    |   | June      30, 2010 |                      |          | December      31, 2009 |   |
|---------------------------------------------------------|--------|--------------------|---------------------------|---------------|------------------------|--------|
|                                                    |   |               |                      |          |                   |   |
| Term      loans, net of current portion                 |   |               |                      |          |                   |   |
| Fujian      Haixia Bank Co., Ltd                        |   | $                  | 6,635,798                 |          |                   | $      | 3,295,738 |   |
| Fuzhou      City Rural Credit Cooperative               |   |               | 1,327,159                 |          |                   |   | - |   |
|                                                    |   | $                  | 7,962,957                 |          |                   | $      | 3,295,738 |   |
|                                                    |   |               |                      |          |                   |   |   |   |
| Maximum      balance outstanding during the period/year |   | $                  | 14,451,293                |          |                   | $      | 8,788,633 |   |
| Interest      expenses incurred during the period/year  |   |               | 407,937                   |          |                   |   | 546,641 |   |
| Range      of monthly interest rate                     |   |               | 5.40‰      - 7.8975 | ‰  |                   |   | 5.400      - 5.850 | ‰  |
| Weighted      average monthly interest rate             |   |               | 5.358                     | ‰  |                   |   | 5.71 | ‰  |

|   |   | Note   |   |   |   |       |
|--------|--------|--------|--------|--------|--------|------------|
| 2011   |   | 11     |   |   | $      | 4,423,865  |   |
| 2012   |   |   |   |   |   | 5,013,714  |   |
| 2013   |   |   |   |   |   | 2,949,243  |   |
|   |   |   |   |   | $      | 12,386,822 |   |

----

| 14. | OWNERS'      EQUITY AND RETAINED EARNINGS |
|-----|-------------------------------------------|

|   | (a) | Registered      capital |
|--------|-----|-------------------------|

|   | (b) | Retained      earnings and statutory reserves |
|--------|-----|-----------------------------------------------|

|                    |   | June 30, 2010                           |       |   | December 31, 2009 |   |
|-------------------------|--------|---------------------------------------------------|------------|--------|-----------------------------|--------|
|                    |   |                                              |       |   |                        |   |
| Retained      earnings  |   | $         | 10,219,693 |   |                        | $      | 43,946,972 |   |
|                    |   |                                              |       |   |                        |   |   |   |
| Statutory      reserves |   | $                                                 | 4,888,018  |   |                        | $      | 4,888,018 |   |

----

| 14. | OWNERS'      EQUITY AND RETAINED EARNINGS(.../Cont'd) |
|-----|-----------------------------------------------------------|

|   | (b) | Retained      earnings and statutory  reserves  (.../Cont'd) |
|--------|-----|----------------------------------------------------------------------------|

| 15. | INCOME      TAXES |
|-----|-------------------|

|                            |   | For the Three Months Ended |      |   | For the Six Months Ended |   |
|---------------------------------|--------|------------------------------------------------|-----------|--------|----------------------------------------------|--------|
|                            |   | June 30,                                  |      |   | June 30,                                |   |
|                            |   | 2010                                           |      |   | 2009                                         |   |   | 2010 |   |   | 2009 |   |
|                            |   |                                           |      |   |                                         |   |   |   |   |   |   |   |
| Current      income tax expense |   | $                                              | 3,402,328 |   |                                         | $      | 2,834,991 |   |   | $ | 5,784,341 |   |   | $ | 5,100,233 |   |

|                                 |   | For the Three Months Ended |       |   | For the Six Months Ended |   |
|--------------------------------------|--------|------------------------------------------------|------------|--------|----------------------------------------------|--------|
|                                 |   | June 30,                                  |       |   | June 30,                                |   |
|                                 |   | 2010                                           |       |   | 2009                                         |   |   | 2010 |   |   | 2009 |   |
| Income      before tax               |   | $                                              | 13,622,021 |   |                                         | $      | 11,332,188 |   |   | $ | 23,144,449 |   |   | $ | 20,387,768 |   |
|                                 |   |                                           |       |   |                                         |   |   |   |   |   |   |   |   |   |   |   |
| Expected      PRC income tax expense |   |                                           |       |   |                                         |   |   |   |   |   |   |   |   |   |   |   |
| at      statutory tax rate of 25%    |   | $                                              | 3,405,505  |   |                                         | $      | 2,833,047 |   |   | $ | 5,786,112 |   |   | $ | 5,096,942 |   |
| Effect      on exchange rate         |   |                                           | (3,177     | )      |                                         |   | 1,944 |   |   |   | (1,771 | ) |   |   | 3,291 |   |
| Actual      income tax expense       |   | $                                              | 3,402,328  |   |                                         | $      | 2,834,991 |   |   | $ | 5,784,341 |   |   | $ | 5,100,233 |   |

----

| 15. | INCOME      TAXES (.../Cont’d) |
|-----|------------------------------------------|

| 16. | RELATED      PARTY TRANSACTIONS |
|-----|---------------------------------|

|   | (a) | Operating      lease commitments |
|--------|-----|----------------------------------|

|                        |   |                                   |   | For the Six Months Ended |    |
|-----------------------------|--------|----------------------------------------|--------|----------------------------------------------|---------|
|                        |   |                                   |   | June 30,                                |    |
|                        |   | Name of related party   |   | 2010                                         |    |   | 2009 |   |
|                        |   |                                   |   |                                         |    |   |   |   |
| Office      rental          |   | Lin      Ping                          |   | $                                            | 11,553  |   |   | $ | 8,870 |   |
| Hire      charge of dredger |   | Fujian      Lutong Highway Engineering |   |                                         |    |   |   |   |   |   |
|                        |   | Construction      Co., Ltd             |   |                                         | 513,279 |   |   |   | 512,280 |   |
| Hire      charge of crew    |   | Fujian      Lutong Highway Engineering |   |                                         |    |   |   |   |   |   |
|                        |   | Construction      Co., Ltd             |   |                                         | 263,972 |   |   |   | 263,458 |   |
|                        |   |                                   |   | $                                            | 788,804 |   |   | $ | 784,608 |   |

----

| 16. | RELATED      PARTY TRANSACTIONS (.../Cont’d) |
|-----|--------------------------------------------------------|

|   | (b) | Financial      Guarantee |
|--------|-----|--------------------------|

| Guarantees      given to the bank to secure the bank loan granted to related      party |   | $     | 7,850,960 |   |
|-----------------------------------------------------------------------------------------|--------|---------------------------|-----------|--------|

|   | (c) | Long-term      loans |
|--------|-----|----------------------|

| 17. | CERTAIN      RISKS AND CONCENTRATIONS |
|-----|---------------------------------------|

|   | (a) | Credit      risk |
|--------|-----|------------------|

|   | (b) | Major      customers |
|--------|-----|----------------------|

|            |   | For the Six Months Ended     |   |
|-----------------|--------|--------------------------------------------------|--------|
|            |   | June 30,                                    |   |
|            |   | 2010                                             |   |   | 2009 |   |
|            |   |                                             |   |   |   |   |
| Customer      A |   |                                             | 42.0   | % |   |   | - |   |
| Customer      B |   |                                             | 29.7   | % |   |   | 24.5 | % |
| Customer      C |   |                                             | 11.2   | % |   |   | 18.6 | % |
| Customer      D |   |                                             | 11.0   | % |   |   | 56.9 | % |
|            |   |          | 93.9   | % |   |          | 100.0 | % |

----

| 17. | CERTAIN      RISKS AND CONCENTRATIONS (.../Cont'd) |
|-----|--------------------------------------------------------|

|   | (c) | Major      suppliers |
|--------|-----|----------------------|

|            |   | For the Six Months Ended     |   |
|-----------------|--------|--------------------------------------------------|--------|
|            |   | June 30,                                    |   |
|            |   | 2010                                             |   |   | 2009 |   |
|            |   |                                             |   |   |   |   |
| Supplier      A |   |                                             | 31.3   | % |   |   | 64.6 | % |
| Supplier      B |   |                                             | 29.8   | % |   |   | - |   |
| Supplier      C |   |                                             | 29.6   | % |   |   | - |   |
| Supplier      D |   |                                             | -      |   |   |   | 30.1 | % |
|            |   |          | 90.7   | % |   |          | 94.7 | % |

| 18. | OPERATING      LEASE COMMITMENTS |
|-----|----------------------------------|

|                               |   | Hire charge |       |   | Hire charge |   |       | Consumable         |   |   |               |   |   |   |   |
|------------------------------------|--------|------------------|------------|--------|------------------|--------|------------|--------------------|--------|--------|--------------------|--------|--------|--------|--------|
|                               |   | of dredgers |       |   | of crew     |   |       | stores supply |   |   | Office rental |   |   | Total  |   |
| For      the period ended June 30, |   |             |       |   |             |   |       |               |   |   |               |   |   |   |   |
| 2011                               |   | $                | 18,936,396 |   |             | $      | 3,641,136  |               |   | $      | 26,897,100         |   |   | $      | 11,617 |   |   | $ | 49,486,249 |   |
| 2012                               |   |             | 8,228,389  |   |             |   | 3,326,746  |               |   |   | 26,897,100         |   |   |   | 11,617 |   |   |   | 38,463,852 |   |
| 2013                               |   |             | 8,017,703  |   |             |   | 3,249,968  |               |   |   | 25,988,160         |   |   |   | 11,617 |   |   |   | 37,267,448 |   |
| 2014                               |   |             | 1,732,681  |   |             |   | 1,061,727  |               |   |   | -                  |   |   |   | 11,617 |   |   |   | 2,806,025 |   |
| 2015                               |   |             | 1,732,681  |   |             |   | 1,061,727  |               |   |   | -                  |   |   |   | 11,617 |   |   |   | 2,806,025 |   |
| Thereafter                         |   |             | 1,296,438  |   |             |   | 752,057    |               |   |   | -                  |   |   |   | -      |   |   |   | 2,048,495 |   |
|                               |   | $                | 39,944,288 |   |             | $      | 13,093,361 |               |   | $      | 79,782,360         |   |   | $      | 58,085 |   |   | $ | 132,878,094 |   |

----

| 18. | OPERATING      LEASE COMMITMENTS (.../Cont’d) |
|-----|---------------------------------------------------------|

|                                  |   | Hire charge |       |   | Hire charge |   |       | Consumable         |   |   | Office     |   |   |   |   |
|---------------------------------------|--------|------------------|------------|--------|------------------|--------|------------|--------------------|--------|--------|------------|--------|--------|--------|--------|
|                                  |   | of dredgers |       |   | of crew     |   |       | stores supply |   |   | rental     |   |   | Total  |   |
|                                  |   |             |       |   |             |   |       |               |   |   |       |   |   |   |   |
| Related      parties transactions     |   | $                | 6,107,391  |   |             | $      | 3,140,945  |               |   | $      |  -    |   |   | $      | 58,085 |   |   | $ | 9,306,421 |   |
| Non-related      parties transactions |   |             | 33,836,893 |   |             |   | 9,952,419  |               |   |   | 79,782,361 |   |   |   | -      |   |   |   | 123,571,673 |   |
|                                  |   | $                | 39,944,284 |   |             | $      | 13,093,364 |               |   | $      | 79,782,361 |   |   | $      | 58,085 |   |   | $ | 132,878,094 |   |

| 19. | CAPITAL      COMMITMENT |
|-----|-------------------------|

| Contracted,      but not provided for:-          |   |                |       |
|--------------------------------------------------|--------|---------------------|------------|
| Acquisition      of dredger, net of deposit paid |   | $    | 27,280,503 |   |

----

----

FUJIAN XING GANG PORT SERVICE CO., LTD.

|                                                                                 |   | December 31, |             |
|--------------------------------------------------------------------------------------|--------|-------------------|------------------|
|                                                                                 |   | 2009              |             |   | 2008 |   |
| Assets                                                                               |   |              |             |   |   |   |
| Current      assets                                                                  |   |              |             |   |   |   |
| Cash                                                                                 |   | $                 | 23,343,469       |   |   | $ | 1,362,142 |   |
| Restricted      cash                                                                 |   |              | 8,422,440        |   |   |   | 8,427,995 |   |
| Cost      and estimated earnings in excess of billings on uncompleted      contracts |   |              | 2,211,411        |   |   |   | - |   |
| Other      receivables                                                               |   |              | 312              |   |   |   | - |   |
| Inventories                                                                          |   |              | 429,226          |   |   |   | - |   |
| Total      current assets                                                            |   |              | 34,406,858       |   |   |   | 9,790,137 |   |
|                                                                                 |   |              |             |   |   |   |   |   |
| Other      assets                                                                    |   |              |             |   |   |   |   |   |
| Prepaid      dredger deposit                                                         |   |              | 2,197,158        |   |   |   | - |   |
| Property,      plant and equipment, net                                              |   |              | 43,511,237       |   |   |   | 48,497,870 |   |
| Total      other assets                                                              |   |              | 45,708,395       |   |   |   | 48,497,870 |   |
| Total      assets                                                                    |   | $                 |  80,115,253 |   |   | $ |  58,288,007 |   |
|                                                                                 |   |              |             |   |   |   |   |   |
| Liabilities      and owners' equity                                                  |   |              |             |   |   |   |   |   |
| Current      liabilities                                                             |   |              |             |   |   |   |   |   |
| Term      loans                                                                      |   | $                 | 7,030,906        |   |   | $ | 1,832,173 |   |
| Dredgers      payable                                                                |   |              | -                |   |   |   | 17,859,098 |   |
| Income      tax payable                                                              |   |              | 2,042,047        |   |   |   | 2,223,002 |   |
| Accrued      liabilities and other payables                                          |   |              | 209,680          |   |   |   | 154,575 |   |
| Total      current liabilities                                                       |   |              | 9,282,633        |   |   |   | 22,068,848 |   |
|                                                                                 |   |              |             |   |   |   |   |   |
| Non-current      liabilities                                                         |   |              |             |   |   |   |   |   |
| Term      loans, net of current portion                                              |   |              | 3,295,738        |   |   |   | 6,962,257 |   |
| Total      non-current liabilities                                                   |   |              | 3,295,738        |   |   |   | 6,962,257 |   |
| Total      liabilities                                                               |   |              | 12,578,371       |   |   |   | 29,031,105 |   |
|                                                                                 |   |              |             |   |   |   |   |   |
| Owners'      equity                                                                  |   |              |             |   |   |   |   |   |
| Registered      capital                                                              |   |              | 29,002,371       |   |   |   | 8,501,266 |   |
| Statutory      reserves                                                              |   |              | 4,888,018        |   |   |   | 2,009,023 |   |
| Retained      earnings                                                               |   |              | 43,946,972       |   |   |   | 18,061,369 |   |
| Accumulated      other comprehensive income                                          |   |              | 682,256          |   |   |   | 685,244 |   |
| Subscription      receivable                                                         |   |              | (10,982,735      | ) |   |   | - |   |
| Total      owners' equity                                                            |   |              | 67,536,882       |   |   |   | 29,256,902 |   |
|                                                                                 |   |              |             |   |   |   |   |   |
| Total      liabilities and owners' equity                                            |   | $                 | 80,115,253       |   |   | $ | 58,288,007 |   |

----

FUJIAN XING GANG PORT SERVICE CO., LTD.

|                                                                                                                                                            |   | For the year ended December 31, |        |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|----------------------------------------------------------|-------------|
|                                                                                                                                                            |   | 2009                                                     |        |   | 2008 |   |
|                                                                                                                                                            |   |                                                     |        |   |   |   |
| Contract      revenue                                                                                                                                           |   | $                                                        | 80,333,891  |   |   | $ | 54,480,271 |   |
|                                                                                                                                                            |   |                                                     |        |   |   |   |   |   |
| Cost      of contract revenue, includes depreciation expense of $4,951,518 and      $3,686,503 for the year ended December 31, 2009 and 2008,      respectively |   |                                                     | (38,715,490 | ) |   |   | (25,424,227 | ) |
|                                                                                                                                                            |   |                                                     |        |   |   |   |   |   |
| Gross      profit                                                                                                                                               |   |                                                     | 41,618,401  |   |   |   | 29,056,044 |   |
|                                                                                                                                                            |   |                                                     |        |   |   |   |   |   |
| General      and administrative expenses                                                                                                                        |   |                                                     | (2,531,132  | ) |   |   | (2,152,575 | ) |
|                                                                                                                                                            |   |                                                     |        |   |   |   |   |   |
| Income      from operations                                                                                                                                     |   |                                                     | 39,087,269  |   |   |   | 26,903,469 |   |
|                                                                                                                                                            |   |                                                     |        |   |   |   |   |   |
| Other      income (expense):                                                                                                                                    |   |                                                     |        |   |   |   |   |   |
| Interest      income                                                                                                                                            |   |                                                     | 29,833      |   |   |   | 43,172 |   |
| Interest      expenses                                                                                                                                          |   |                                                     | (755,853    | ) |   |   | (179,504 | ) |
| Total      other income (expense)                                                                                                                               |   |                                                     | (726,020    | ) |   |   |  (136,332 | ) |
| Income      before income taxes                                                                                                                                 |   |                                                     | 38,361,249  |   |   |   | 26,767,137 |   |
|                                                                                                                                                            |   |                                                     |        |   |   |   |   |   |
| Income      tax expense                                                                                                                                         |   |                                                     | (9,596,651  | ) |   |   | (6,696,745 | ) |
|                                                                                                                                                            |   |                                                     |        |   |   |   |   |   |
| Net      income                                                                                                                                                 |   | $                                                        | 28,764,598  |   |   | $ | 20,070,392 |   |

----

FUJIAN XING GANG PORT SERVICE CO., LTD.

|                                     |   |       |       |   |      |   |      | Accumulated |   |   |          |   |   |         |    |
|------------------------------------------|--------|------------|------------|--------|-----------|--------|-----------|-------------|--------|--------|---------------|--------|--------|--------------|---------|
|                                     |   |       |       |   |      |   |      | other       |   |   |          |   |   |         |    |
|                                     |   | Registered |       |   | Statutory |   |      | Retained    |   |   | comprehensive |   |   | Subscription |    |   |   |   |
|                                     |   | Capital    |       |   | reserves  |   |      | earnings    |   |   | income        |   |   | receivable   |    |   | Total |   |
|                                     |   |       |       |   |      |   |      |        |   |   |          |   |   |         |    |   |   |   |
| Balance      as of January 8, 2008       |   | $          | -          |   |      | $      | -         |        |   | $      | -             |   |   | $            | -       |   |   | $ | - |   |   | $ | - |   |
|                                     |   |       |       |   |      |   |      |        |   |   |          |   |   |         |    |   |   |   |   |   |   |   |   |   |
| Capital      contributed by owners       |   |       | 8,501,266  |   |      |   | -         |        |   |   | -             |   |   |         | -       |   |   |   | - |   |   |   | 8,501,266 |   |
|                                     |   |       |       |   |      |   |      |        |   |   |          |   |   |         |    |   |   |   |   |   |   |   |   |   |
| Net      income                          |   |       | -          |   |      |   | -         |        |   |   | 20,070,392    |   |   |         | -       |   |   |   | - |   |   |   | 20,070,392 |   |
|                                     |   |       |       |   |      |   |      |        |   |   |          |   |   |         |    |   |   |   |   |   |   |   |   |   |
| Appropriation      to statutory reserves |   |       | -          |   |      |   | 2,009,023 |        |   |   | (2,009,023    | )      |   |         | -       |   |   |   | - |   |   |   | - |   |
| Foreign      currency translation gain   |   |       | -          |   |      |   | -         |        |   |   | -             |   |   |         | 685,244 |   |   |   | - |   |   |   | 685,244 |   |
|                                     |   |       |       |   |      |   |      |        |   |   |          |   |   |         |    |   |   |   |   |   |   |   |   |   |
| Balance      as of December 31, 2008     |   |       | 8,501,266  |   |      |   | 2,009,023 |        |   |   | 18,061,369    |   |   |         | 685,244 |   |   |   | - |   |   |   | 29,256,902 |   |
|                                     |   |       |       |   |      |   |      |        |   |   |          |   |   |         |    |   |   |   |   |   |   |   |   |   |
| Capital      contributed by owners       |   |       | 20,501,105 |   |      |   | -         |        |   |   | -             |   |   |         | -       |   |   |   | - |   |   |   | 20,501,105 |   |
| Subscription      receivable             |   |       | -          |   |      |   | -         |        |   |   | -             |   |   |         | -       |   |   |   | (10,982,735 | ) |   |   | (10,982,735 | ) |
|                                     |   |       |       |   |      |   |      |        |   |   |          |   |   |         |    |   |   |   |   |   |   |   |   |   |
| Net      income                          |   |       | -          |   |      |   | -         |        |   |   | 28,764,598    |   |   |         | -       |   |   |   | - |   |   |   | 28,764,598 |   |
|                                     |   |       |       |   |      |   |      |        |   |   |          |   |   |         |    |   |   |   |   |   |   |   |   |   |
| Appropriation      to statutory reserves |   |       | -          |   |      |   | 2,878,995 |        |   |   | (2,878,995    | )      |   |         | -       |   |   |   | - |   |   |   | - |   |
|                                     |   |       |       |   |      |   |      |        |   |   |          |   |   |         |    |   |   |   |   |   |   |   |   |   |
| Foreign      currency translation loss   |   |       | -          |   |      |   | -         |        |   |   | -             |   |   |         | (2,988  | ) |   |   | - |   |   |   | (2,988 | ) |
|                                     |   |       |       |   |      |   |      |        |   |   |          |   |   |         |    |   |   |   |   |   |   |   |   |   |
| Balance      as of December 31, 2009     |   | $          | 29,002,371 |   |      | $      | 4,888,018 |        |   | $      | 43,946,972    |   |   | $            | 682,256 |   |   | $ | (10,982,735 | ) |   | $ | 67,536,882 |   |

----

FUJIAN XING GANG PORT SERVICE CO., LTD

|                                                                                        |   | For the year ended December 31, |        |
|---------------------------------------------------------------------------------------------|--------|----------------------------------------------------------|-------------|
|                                                                                        |   | 2009                                                     |        |   | 2008 |   |
|                                                                                        |   |                                                     |        |   |   |   |
| Cash      flows from operating activities:                                                  |   |                                                     |        |   |   |   |
| Net      income                                                                             |   | $                                                        | 28,764,598  |   |   | $ | 20,070,392 |   |
| Adjustments      to reconcile net income to net cash provided by operating      activities: |   |                                                     |        |   |   |   |   |   |
| Depreciation      of property, plant and equipment                                          |   |                                                     | 4,952,236   |   |   |   | 3,686,744 |   |
|                                                                                        |   |                                                     |        |   |   |   |   |   |
| Changes      in operating assets and liabilities:                                           |   |                                                     |        |   |   |   |   |   |
| Cost      and estimated earnings in excess of billings on uncompleted      contracts        |   |                                                     | (2,210,343  | ) |   |   | - |   |
| Other      receivables                                                                      |   |                                                     | (311        | ) |   |   | - |   |
| Inventories                                                                                 |   |                                                     | (429,018    | ) |   |   | - |   |
| Income      tax payable                                                                     |   |                                                     | (179,402    | ) |   |   | 2,186,909 |   |
| Accrued      liabilities and other payables                                                 |   |                                                     | 55,179      |   |   |   | 152,067 |   |
| Net      cash provided by operating activities                                              |   |                                                     | 30,952,939  |   |   |   | 26,096,112 |   |
|                                                                                        |   |                                                     |        |   |   |   |   |   |
| Cash      flows from investing activities:                                                  |   |                                                     |        |   |   |   |   |   |
| Deposit      paid for dredgers                                                              |   |                                                     | (2,196,096  | ) |   |   | - |   |
| Changes      in restricted cash                                                             |   |                                                     | -           |   |   |   | (8,291,156 | ) |
| Payment      of purchases of property, plant and equipment                                  |   |                                                     | -           |   |   |   | (33,768,198 | ) |
| Net      cash used in investing activities                                                  |   |                                                     | (2,196,096  | ) |   |   | (42,059,354 | ) |
|                                                                                        |   |                                                     |        |   |   |   |   |   |
| Cash      flows from financing activities:                                                  |   |                                                     |        |   |   |   |   |   |
| Proceeds      from short-term loans                                                         |   |                                                     | 3,367,348   |   |   |   | - |   |
| Proceeds      from long-term loan                                                           |   |                                                     | -           |   |   |   | 8,651,641 |   |
| Payment      of dredger payable                                                             |   |                                                     | (17,838,704 | ) |   |   | - |   |
| Repayment      of long-term loans                                                           |   |                                                     | (1,830,080  | ) |   |   | - |   |
| Capital      contributions from owners                                                      |   |                                                     | 9,516,419   |   |   |   | 8,651,641 |   |
| Net      cash (used in)/provided by financing activities                                    |   |                                                     | (6,785,017  | ) |   |   | 17,303,282 |   |
|                                                                                        |   |                                                     |        |   |   |   |   |   |
| Net      increase in cash                                                                   |   |                                                     | 21,971,826  |   |   |   | 1,340,040 |   |
| Effect      of exchange rate changes on cash                                                |   |                                                     | 9,501       |   |   |   | 22,102 |   |
| Cash      at beginning of year                                                              |   |                                                     | 1,362,142   |   |   |   | - |   |
| Cash      at end of year                                                                    |   | $                                                        | 23,343,469  |   |   | $ | 1,362,142 |   |
|                                                                                        |   |                                                     |        |   |   |   |   |   |
| Non-cash investing      and financing transactions:                                    |   |                                                     |        |   |   |   |   |   |
| Purchases      of property, plant and equipment with issuance of debt                       |   | $                                                        |  -     |   |   | $ | 17,569,133 |   |
|                                                                                        |   |                                                     |        |   |   |   |   |   |
| Supplemental      information:                                                              |   |                                                     |        |   |   |   |   |   |
| Cash      paid for income tax                                                               |   | $                                                        | 9,596,651   |   |   | $ | 6,696,745 |   |
| Cash      paid for interest                                                                 |   | $                                                        | 755,853     |   |   | $ | 179,504 |   |

----

| 1. | DESCRIPTION      OF BUSINESS AND ORGANIZATION |
|----|-----------------------------------------------|

| 2. | SUMMARY      OF SIGNIFICANT ACCOUNTING POLICIES |
|----|-------------------------------------------------|

|   | (a) | Basis      of presentation |
|--------|-----|----------------------------|

|   | (b) | Use      of estimates |
|--------|-----|-----------------------|

----

| 2. | BASIS      OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES      (.../Cont’d) |
|----|---------------------------------------------------------------------------------------------------|

|   | (c) | Foreign      currency translation |
|--------|-----|-----------------------------------|

|   | (d) | Cash |
|--------|-----|------|

|   | (e) | Cost      and estimated earnings in excess of billings on uncompleted      contracts |
|--------|-----|--------------------------------------------------------------------------------------|

|   | (f) | Inventories |
|--------|-----|-------------|

|   | (g) | Property,      plant and equipment |
|--------|-----|------------------------------------|

|                  | Estimated lives |
|-----------------------|----------------------|
| Dredgers              | 10                   |
| Office      equipment | 5                    |

----

| 2. | BASIS      OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES      (.../Cont’d) |
|----|---------------------------------------------------------------------------------------------------|

|   | (h) | Impairment      of long-lived assets |
|--------|-----|--------------------------------------|

|   | (i) | Fair      value measurements |
|--------|-----|------------------------------|

|   | (j) | Revenue      recognition |
|--------|-----|--------------------------|

----

| 2. | BASIS      OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES      (.../Cont’d) |
|----|---------------------------------------------------------------------------------------------------|

|   | (k) | Income      taxes |
|--------|-----|-------------------|

|   | (l) | Other      comprehensive income |
|--------|-----|---------------------------------|

|                                            |   | 2009   |       |   | 2008   |   |
|-------------------------------------------------|--------|--------|------------|--------|--------|--------|
|                                            |   |   |       |   |   |   |
| Net      income                                 |   | $      | 28,764,598 |   |   | $      | 20,070,392 |   |
| Other      comprehensive income                 |   |   |       |   |   |   |   |   |
| -      Foreign currency translation adjustments |   |   | (2,988     | )      |   |   | 685,244 |   |
| Total      comprehensive income                 |   | $      | 28,761,610 |   |   | $      | 20,755,636 |   |

|   | (m) | Commitments      and contingencies |
|--------|-----|------------------------------------|

----

| 2. | BASIS      OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES      (.../Cont’d) |
|----|---------------------------------------------------------------------------------------------------|

|  | (n) | Economic      and political risks |
|--|-----|-----------------------------------|

|  | (o) | Pension      and employee benefits |
|--|-----|------------------------------------|

|  | (p) | Segment      information |
|--|-----|--------------------------|

|  | (q) | Recently      issued accounting standards |
|--|-----|-------------------------------------------|

----

| 2. | BASIS      OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES      (.../Cont’d) |
|----|---------------------------------------------------------------------------------------------------|

|  | (q) | Recently      issued accounting standards(.../Cont’d) |
|--|-----|-----------------------------------------------------------------|

| 3. | CASH |
|----|------|

| 4. | RESTRICTED      CASH |
|----|----------------------|

----

| 5. | COST      AND ESTIMATED EARNINGS IN EXCESS OF BILLINGS ON UNCOMPLETED      CONTRACTS |
|----|--------------------------------------------------------------------------------------|

|                                                    |   |                |       |   |               |   |       |            |   |   | Cost andestimated |   |   |                   |      |
|---------------------------------------------------------|--------|---------------------|------------|--------|--------------------|--------|------------|-----------------|--------|--------|------------------------|--------|--------|------------------------|-----------|
| Name of contract                              |   | Estimated           |       |   | Total revenue |   |       | Amount          |   |   | earnings inexcess |   |   | Status ofcontract |      |
| (Contract period)                                  |   | contract value |       |   | recognized         |   |       | received/billed |   |   | of billings       |   |   | (Completion %)    |      |
|                                                    |   |                |       |   |               |   |       |            |   |   |                   |   |   |                   |      |
| 1.      Tangshan Caofeidian Dredging and Reclamation I  |   | $                   | 9,220,678  |   |               | $      | 6,028,905  |            |   | $      | 5,532,167              |   |   | $                      | 496,738   |   |   |   | 65 | % |
|                                                    |   |                |       |   |               |   |       |            |   |   |                   |   |   |                   |      |   |   |   |   |   |
| 2.      Tangshan Caofeidian Dredging and Reclamation II |   |                | 11,009,765 |   |               |   | 7,325,728  |            |   |   | 6,605,511              |   |   |                   | 720,217   |   |   |   | 67 | % |
|                                                    |   |                |       |   |               |   |       |            |   |   |                   |   |   |                   |      |   |   |   |   |   |
| 3.      Oujiang Port Liantian Dredging II               |   |                | 7,115,354  |   |               |   | 6,336,300  |            |   |   | 5,691,971              |   |   |                   | 644,329   |   |   |   | 89 | % |
|                                                    |   |                |       |   |               |   |       |            |   |   |                   |   |   |                   |      |   |   |   |   |   |
| 4.      Zhuhai Gaolan Port Dredging III                 |   |                | 1,669,034  |   |               |   | 1,184,474  |            |   |   | 834,347                |   |   |                   | 350,127   |   |   |   | 71 | % |
|                                                    |   | $                   | 29,014,831 |   |               | $      | 20,875,407 |            |   | $      | 18,663,996             |   |   | $                      | 2,211,411 |   |   |   |   |   |

| Backlog      balance at December 31, 2008                                  |   | $      | -                |   |
|----------------------------------------------------------------------------|--------|--------|------------------|--------|
| New      contracts during the year                                         |   |   | 89,946,562       |   |
| Less:      Adjustment of contracts due to change orders during the    year |   |   |  (1,473,249 | )      |
| Adjusted      contract amount at December 31, 2009                         |   |   | 88,473,313       |   |
| Less:      Contract revenue earned during the year                         |   |   | (80,333,891      | )      |
| Backlog      balance at December 31, 2009                                  |   | $      | 8,139,422        |   |

----

| 6. | INVENTORIES |
|----|-------------|

| 7. | OTHER      RECEIVABLES |
|----|------------------------|

|                                    |   | 2009   |   |   | 2008   |   |
|-----------------------------------------|--------|--------|--------|--------|--------|--------|
|                                    |   |   |   |   |   |   |
| Social      insurance prepaid for staff |   | $      | 312    |   |   | $      | - |   |

| 8. | PREPAID      DREDGER DEPOSIT |
|----|------------------------------|

|                         |   | 2009   |      |   | 2008   |   |
|------------------------------|--------|--------|-----------|--------|--------|--------|
|                         |   |   |      |   |   |   |
| Prepaid      dredger deposit |   | $      | 2,197,158 |   |   | $      | - |   |

| 9. | PROPERTY,      PLANT AND EQUIPMENT |
|----|------------------------------------|

|                                |   | 2009   |       |   | 2008   |   |
|-------------------------------------|--------|--------|------------|--------|--------|--------|
|                                |   |   |       |   |   |   |
| Dredgers                            |   | $      | 52,146,433 |   |   | $      | 52,180,828 |   |
| Office      equipment               |   |   | 3,784      |   |   |   | 3,786 |   |
|                                |   |   | 52,150,217 |   |   |   | 52,184,614 |   |
| Less:      Accumulated depreciation |   |   | (8,638,980 | )      |   |   | (3,686,744 | ) |
|                                |   | $      | 43,511,237 |   |   | $      | 48,497,870 |   |

----

| 10. | SHORT-TERM      LOANS |
|-----|-----------------------|

|                                            |   | 2009   |         |   | 2008   |   |
|-------------------------------------------------|--------|--------|--------------|--------|--------|--------|
|                                            |   |   |         |   |   |   |
| Short-term loan                                 |   |   |         |   |   |   |
| Fuzhou      City Rural Credit Cooperative       |   | $      | 3,368,976    |   |   | $      | - |   |
|                                            |   |   |         |   |   |   |   |   |
| Long-term      loan, current portion       |   |   |         |   |   |   |   |   |
| Fujian      Haixia Bank Co., Ltd                |   |   | 3,661,930    |   |   |   | 1,832,173 |   |
|                                            |   | $      | 7,030,906    |   |   | $      | 1,832,173 |   |
|                                            |   |   |         |   |   |   |   |   |
| Short-term loan                                 |   |   |         |   |   |   |   |   |
| Interest      expenses incurred during the year |   | $      | 209,212      |   |   | $      | - |   |
| Range      of monthly interest rate             |   |   | 5.974‰ |   |   |   | N/A |   |
| Weighted      average monthly interest rate     |   |   | 5.974‰ |   |   |   | N/A |   |

| 11. | ACCRUED      EXPENSES AND OTHER PAYABLES |
|-----|------------------------------------------|

|                            |   | 2009   |    |   | 2008   |   |
|---------------------------------|--------|--------|---------|--------|--------|--------|
|                            |   |   |    |   |   |   |
| Accrued      interest           |   | $      | 27,527  |   |   | $      | 25,466 |   |
| Accrued      salaries and wages |   |   | 69,405  |   |   |   | 66,145 |   |
| Accrued      staff benefits     |   |   | 103,671 |   |   |   | 44,909 |   |
| Other      tax payables         |   |   | 9,077   |   |   |   | 18,055 |   |
|                            |   | $      | 209,680 |   |   | $      | 154,575 |   |

| 12. | DREDGERS      PAYABLE |
|-----|-----------------------|

----

| 13. | LONG-TERM      LOANS |
|-----|----------------------|

|                                             |   | 2009   |               |          | 2008   |   |
|--------------------------------------------------|--------|--------|--------------------|---------------|--------|--------|
|                                             |   |   |               |          |   |   |
| Long-term loan, net of current      portion      |   |   |               |          |   |   |
| Fujian      Haixia Bank Co., Ltd.                |   | $      | 3,295,738          |          |   | $      | 6,962,257 |   |
|                                             |   |   |               |          |   |   |   |   |
| Long-term loan,                                  |   |   |               |          |   |   |   |   |
| Maximum      balance outstanding during the year |   | $      | 8,788,633          |          |   | $      | 8,794,430 |   |
| Interest      expenses incurred during the year  |   |   | 546,641            |          |   |   | 179,504 |   |
| Range      of monthly interest rate              |   |   | 5.400      - 5.850 | ‰       |   |   | 5.850 -7.6055 | ‰ |
| Weighted      average monthly interest rate      |   |   | 5.717              | ‰  |   |   | 6.7276 | ‰  |

|   |   | Note   |   |   |   |      |
|--------|--------|--------|--------|--------|--------|-----------|
| 2010   |   | 10     |   |   | $      | 3,661,930 |   |
| 2011   |   |   |   |   |   | 3,295,738 |   |
|   |   |   |   |   | $      | 6,957,668 |   |

----

| 14. | OWNERS'      EQUITY AND RETAINED EARNINGS |
|-----|-------------------------------------------|

|  | (a) | Registered      capital |
|--|-----|-------------------------|

|  | (b) | Retained      earnings and statutory reserves |
|--|-----|-----------------------------------------------|

|                    |   | 2009   |       |   | 2008   |   |
|-------------------------|--------|--------|------------|--------|--------|--------|
|                    |   |   |       |   |   |   |
| Retained      earnings  |   | $      | 43,946,972 |   |   | $      | 18,061,369 |   |
|                    |   |   |       |   |   |   |   |   |
| Statutory      reserves |   | $      | 4,888,018  |   |   | $      | 2,009,023 |   |

----

| 15. | INCOME      TAXES |
|-----|-------------------|

|                            |   | 2009   |      |   | 2008   |   |
|---------------------------------|--------|--------|-----------|--------|--------|--------|
|                            |   |   |      |   |   |   |
| Current      income tax expense |   | $      | 9,596,651 |   |   | $      | 6,696,745 |   |

|                                                              |   | 2009   |            |   | 2008   |   |
|-------------------------------------------------------------------|--------|--------|-----------------|--------|--------|--------|
|                                                              |   |   |            |   |   |   |
| Income      before tax                                            |   | $      | 38,361,249      |   |   | $      | 26,767,137 |   |
|                                                              |   |   |            |   |   |   |   |   |
| Expected      PRC income tax expense at statutory tax rate of 25% |   | $      | 9,590,312       |   |   | $      | 6,691,784 |   |
| Effect      on exchange rate                                      |   |   | 6,339           |   |   |   | 4,961 |   |
| Actual      income tax expense                                    |   | $      |  9,596,651 |   |   | $      | 6,696,745 |   |

----

| 16. | RELATED      PARTY TRANSACTIONS |
|-----|---------------------------------|

|  | (a) | Operating      lease commitments |
|--|-----|----------------------------------|

|                        |   | Name of related party   |   | 2009   |      |   | 2008   |   |
|-----------------------------|--------|----------------------------------------|--------|--------|-----------|--------|--------|--------|
|                        |   |                                   |   |   |      |   |   |   |
| Office      rental          |   | Lin      Ping                          |   | $      | 8,872     |   |   | $      | 8,738 |   |
| Hire      charge of dredger |   | Fujian      Lutong Highway Engineering |   |   |      |   |   |   |   |   |
|                        |   |        Construction Co., Ltd      |   |   | 1,024,845 |   |   |   | 588,792 |   |
| Hire      charge of crew    |   | Fujian      Lutong Highway Engineering |   |   |      |   |   |   |   |   |
|                        |   |        Construction Co., Ltd      |   |   | 527,063   |   |   |   | 302,807 |   |
|                        |   |                                   |   | $      | 1,560,780 |   |   | $      | 900,337 |   |

|  | (b) | Financial      Guarantee |
|--|-----|--------------------------|

| Guarantees      given to the bank to secure the bank loan granted to related      party |   | $ | 7,909,770 |   |
|-----------------------------------------------------------------------------------------|--------|---|-----------|--------|

|   | (c) | Long-term      loans |
|--------|-----|----------------------|

|  | 17. | CERTAIN      RISKS AND CONCENTRATIONS |
|--|-----|---------------------------------------|

|  | (a) | Credit      risk |
|--|-----|------------------|

----

| 17. | CERTAIN      RISKS AND CONCENTRATIONS (.../Cont'd) |
|-----|--------------------------------------------------------|

|  | (b) | Major      customers |
|--|-----|----------------------|

|            |   | For the year ended December 31, |   |
|-----------------|--------|----------------------------------------------------------|--------|
|            |   | 2009                                                     |   |   | 2008 |   |
|            |   |                                                     |   |   |   |   |
| Customer      A |   |                                                     | 40     | % |   |   | 0 | % |
| Customer      B |   |                                                     | 32     | % |   |   | 48 | % |
| Customer      C |   |                                                     | 17     | % |   |   | 0 | % |
| Customer      D |   |                                                     | 11     | % |   |   | 21 | % |
| Customer      E |   |                                                     | 0      | % |   |   | 24 | % |
|            |   |                                                     | 100    | % |   |   | 93 | % |

|  | (c) | Major      suppliers |
|--|-----|----------------------|

|            |   | For the year ended December 31, |   |
|-----------------|--------|----------------------------------------------------------|--------|
|            |   | 2009                                                     |   |   | 2008 |   |
|            |   |                                                     |   |   |   |   |
| Supplier      A |   |                                                     | 65     | % |   |   | 62 | % |
| Supplier      B |   |                                                     | 30     | % |   |   | 32 | % |
|            |   |                                                     | 95     | % |   |   | 94 | % |

----

| 18. | OPERATING      LEASE COMMITMENTS |
|-----|----------------------------------|

|                                  |   | Hire charge |       |   | Hire charge |   |      |               |   |   |   |   |
|---------------------------------------|--------|------------------|------------|--------|------------------|--------|-----------|--------------------|--------|--------|--------|--------|
|                                  |   | of dredger  |       |   | of crew     |   |      | Office rental |   |   | Total  |   |
| For      the years ended December 31, |   |             |       |   |             |   |      |               |   |   |   |   |
|  2010                            |   | $                | 1,721,107  |   |             | $      | 1,458,034 |               |   | $      | 11,539 |   |   | $ | 3,190,680 |   |
|  2011                            |   |             | 1,721,107  |   |             |   | 1,165,226 |               |   |   | 11,539 |   |   |   | 2,897,872 |   |
|  2012                            |   |             | 1,721,107  |   |             |   | 1,054,636 |               |   |   | 11,539 |   |   |   | 2,787,282 |   |
|  2013                            |   |             | 1,721,107  |   |             |   | 1,054,636 |               |   |   | 11,539 |   |   |   | 2,787,282 |   |
|  2014                            |   |             | 1,721,107  |   |             |   | 1,054,636 |               |   |   | 11,539 |   |   |   | 2,787,282 |   |
| Thereafter                            |   |             | 2,148,333  |   |             |   | 1,274,352 |               |   |   | 11,539 |   |   |   | 3,434,224 |   |
|                                  |   | $                | 10,753,868 |   |             | $      | 7,061,520 |               |   | $      | 69,234 |   |   | $ | 17,884,622 |   |

| 19. | CAPITAL      COMMITMENT |
|-----|-------------------------|

| Contracted,      but not provided for:-          |   |   |       |
|--------------------------------------------------|--------|--------|------------|
| Acquisition      of dredger, net of deposit paid |   | $      | 27,098,286 |   |

----

| 20. | SUBSEQUENT      EVENTS |
|-----|------------------------|

|  | (a) | Long-term      Loans |
|--|-----|----------------------|

| Fujian      Haixia Bank Co., Ltd          |   | $      | 5,859,088 |   |
|-------------------------------------------|--------|--------|-----------|--------|
| Fuzhou      City Rural Credit Cooperative |   |   | 3,368,976 |   |
|                                      |   | $      | 9,228,064 |   |

|  | (b) | Dividend      payable |
|--|-----|-----------------------|

|  | (c) | Capital      Transactions |
|--|-----|---------------------------|

----

|                                                                                                                          |               | June      30,2010  |               |               | September30,2009   |               |
|-------------------------------------------------------------------------------------------------------------------------------|--------------------|--------------------|--------------------|--------------------|--------------------|--------------------|
|                                                                                                                          |               | (Unaudited)        |               |               |               |               |
| ASSETS                                                                                                                   |               |               |               |               |               |               |
|                                                                                                                          |               |               |               |               |               |               |
| Current      Assets                                                                                                           |               |               |               |               |               |               |
| Prepaid      Expense                                                                                                          |               | $                  | 1,515              |               |               | $                  | - |   |
| Total  Assets                                                                                                       |               | $                  | 1,515              |               |               | $                  | - |   |
|                                                                                                                          |               |               |               |               |               |               |   |   |
| LIABILITIES      AND STOCKHOLDERS' DEFICIENCY                                                                                 |               |               |               |               |               |               |   |   |
| Current      Liabilities                                                                                                      |               |               |               |               |               |               |   |   |
| Accounts      payable                                                                                                         |               | $                  | 750                |               |               | $                  | 8,411 |   |
| Note      payable - related party                                                                                             |               |               | 33,688             |               |               |               | 4,065 |   |
| Total  Liabilities                                                                                                  |               |               | 34,438             |               |               |               | 12,476 |   |
|                                                                                                                          |               |               |               |               |               |               |   |   |
| Commitments      and Contingencies                                                                                            |               |               |               |               |               |               |   |   |
|                                                                                                                          |               |               |               |               |               |               |   |   |
| Stockholders'      Deficiency                                                                                                 |               |               |               |               |               |               |   |   |
| Common      stock, no par value; 50,000 shares authorized, 50,000 and 50,000 shares      issued and outstanding, respectively |          |          |        31,499 |          |          |          |        23,010 |          |
| Deficit      accumulated during the development stage                                                                         |               |               | (64,422            | )                  |               |               | (35,486 | ) |
| Total      Stockholders' Deficiency                                                                                           |               |               | (32,923            | )                  |               |               | (12,476 | ) |
|                                                                                                                          |               |               |               |               |               |               |   |   |
| Total      Liabilities and Stockholders' Deficiency                                                                           |               | $                  | 1,515              |               |               | $                  | - |   |

----

|                                                                                          |   | For      theNine MonthsEndedJune      30, |    |   | For      the PeriodFromSeptember      26,2008      (Inception) toJune      30, 2010 |   |
|-----------------------------------------------------------------------------------------------|--------|------------------------------------------------|---------|--------|-------------------------------------------------------------------------------------|--------|
| Operating      Expenses                                                                       |   | 2010                                           |    |   | 2009                                                                                |   |   |   |   |   |
| Professional      fees                                                                        |   | $                                              | 17,669  |   |                                                                                | $      | 18,794 |   |   | $ | 41,073 |   |
| General      and administrative                                                               |   |                                           | 10,578  |   |                                                                                |   |  9,472 |   |   |   | 22,660 |   |
| Total      Operating Expenses                                                                 |   |                                           | 28,247  |   |                                                                                |   | 28,266 |   |   |   | 63,733 |   |
|                                                                                          |   |                                           |    |   |                                                                                |   |   |   |   |   |   |   |
| Loss      from Operations                                                                     |   |                                           | (28,247 | )      |                                                                                |   | (28,266 | ) |   |   | (63,733 | ) |
|                                                                                          |   |                                           |    |   |                                                                                |   |   |   |   |   |   |   |
| Other      Expenses                                                                           |   |                                           |    |   |                                                                                |   |   |   |   |   |   |   |
| Interest      Expense                                                                         |   |                                           | (689    | )      |                                                                                |   | - |   |   |   | (689 | ) |
|                                                                                          |   |                                           |    |   |                                                                                |   |   |   |   |   |   |   |
| LOSS FROM OPERATIONS      BEFORE INCOME TAXES                                                 |   |                                           | (28,936 | )      |                                                                                |   | (28,266 | ) |   |   | (64,422 | ) |
|                                                                                          |   |                                           |    |   |                                                                                |   |   |   |   |   |   |   |
| Provision      for Income Taxes                                                               |   |                                           | -       |   |                                                                                |   | - |   |   |   | - |   |
|                                                                                          |   |                                           |    |   |                                                                                |   |   |   |   |   |   |   |
| NET      LOSS                                                                                 |   | $                                              | (28,936 | )      |                                                                                | $      | (28,266 | ) |   | $ | (64,422 | ) |
|                                                                                          |   |                                           |    |   |                                                                                |   |   |   |   |   |   |   |
| Net      Loss Per Share  - Basic and Diluted                                        |   | $                                              | (0.58   | )      |                                                                                | $      | (0.02 | ) |   |   |   |   |
|                                                                                          |   |                                           |    |   |                                                                                |   |   |   |   |   |   |   |
| Weighted      average number of shares outstanding during the period - Basic and      Diluted |   |                                           | 50,000  |   |                                                                                |   | 1,202,500 |   |   |   |   |   |

----

|                                                                                   |   |               |   |   |              |   |   | Deficit       |   |   |       |   |
|----------------------------------------------------------------------------------------|--------|--------------------|--------|--------|-------------------|--------|--------|---------------|--------|--------|------------|--------|
|                                                                                   |   |               |   |   | accumulatedduring |   |   | Total         |   |
|                                                                                   |   | Common stock  |   |   | development       |   |   | Stockholders' |   |
|                                                                                   |   | Shares             |   |   | Amount            |   |   | stage         |   |   | Deficiency |   |
|                                                                                   |   |               |   |   |              |   |   |          |   |   |       |   |
| Balance,      September 26, 2008 (Inception)                                           |   |               | -      |   |              | $      | -      |          |   | $      | -          |   |   | $ | - |   |
|                                                                                   |   |               |   |   |              |   |   |          |   |   |       |   |   |   |   |   |
| Common      stock issued for services to founder ($0.0027/Sh)                          |   |               | 3,676  |   |              |   | 10     |          |   |   | -          |   |   |   | 10 |   |
|                                                                                   |   |               |   |   |              |   |   |          |   |   |       |   |   |   |   |   |
| Net      loss for the period September 26, 2008 (inception) to September 30,      2008 |   |               | -      |   |              |   | -      |          |   |   | (1,510     | )      |   |   | (1,510 | ) |
|                                                                                   |   |               |   |   |              |   |   |          |   |   |       |   |   |   |   |   |
| Balance,      September 30, 2008                                                       |   |               | 3,676  |   |              |   | 10     |          |   |   | (1,510     | )      |   |   | (1,500 | ) |
|                                                                                   |   |               |   |   |              |   |   |          |   |   |       |   |   |   |   |   |
| Common      stock issued for cash ($0.27/Sh)                                           |   |               | 46,324 |   |              |   | 12,600 |          |   |   | -          |   |   |   | 12,600 |   |
|                                                                                   |   |               |   |   |              |   |   |          |   |   |       |   |   |   |   |   |
| In-kind      contribution of services                                                  |   |               | -      |   |              |   | 10,400 |          |   |   | -          |   |   |   | 10,400 |   |
|                                                                                   |   |               |   |   |              |   |   |          |   |   |       |   |   |   |   |   |
| Net      loss for the period ended September 30, 2009                                  |   |               | -      |   |              |   | -      |          |   |   | (33,976    | )      |   |   | (33,976 | ) |
|                                                                                   |   |               |   |   |              |   |   |          |   |   |       |   |   |   |   |   |
| Balance,      September 30, 2009                                                       |   |               | 50,000 |   |              |   | 23,010 |          |   |   | (35,486    | )      |   |   | (12,476 | ) |
|                                                                                   |   |               |   |   |              |   |   |          |   |   |       |   |   |   |   |   |
| In-kind      contribution of services                                                  |   |               | -      |   |              |   | 7,800  |          |   |   | -          |   |   |   | 7,800 |   |
|                                                                                   |   |               |   |   |              |   |   |          |   |   |       |   |   |   |   |   |
| In-kind      contribution of interest                                                  |   |               | -      |   |              |   | 689    |          |   |   | -          |   |   |   | 689 |   |
|                                                                                   |   |               |   |   |              |   |   |          |   |   |       |   |   |   |   |   |
| Net      loss for the nine months ended June 30, 2010                                  |   |               | -      |   |              |   | -      |          |   |   | (28,936    | )      |   |   | (28,936 | ) |
|                                                                                   |   |               |   |   |              |   |   |          |   |   |       |   |   |   |   |   |
| Balance,      June 30, 2010                                                            |   |               | 50,000 |   |              | $      | 31,499 |          |   | $      | (64,422    | )      |   | $ | (32,923 | ) |

----

|                                                                  |   | For      the Nine      Months      Ended      June      30, 2010 |    |   | For      the Period From      September      26, 2008      (Inception) to      June      30, 2010 |   |
|-----------------------------------------------------------------------|--------|------------------------------------------------------------------|---------|--------|---------------------------------------------------------------------------------------------------|--------|
|                                                                  |   |                                                             |    |   |                                                                                              |   |
| Cash      Flows Used In Operating Activities:                         |   |                                                             |    |   |                                                                                              |   |
| Net      Loss                                                         |   | $                                                                | (28,936 | )      |                                                                                              | $      | (64,422 | ) |
| Adjustments      to reconcile net loss to net cash used in operations |   |                                                             |    |   |                                                                                              |   |   |   |
| Common      stock issued for services                                 |   |                                                             | -       |   |                                                                                              |   | 10 |   |
| In-kind      contribution of interest                                 |   |                                                             | 689     |   |                                                                                              |   | 689 |   |
| In-kind      contribution of services                                 |   |                                                             | 7,800   |   |                                                                                              |   | 18,200 |   |
| Changes      in operating assets and liabilities:                     |   |                                                             |    |   |                                                                                              |   |   |   |
| Increase      in preapid expenses                                     |   |                                                             | (1,515  | )      |                                                                                              |   | (1,515 | ) |
| Increase      in accounts payable                                     |   |                                                             | (7,661  | )      |                                                                                              |   | 750 |   |
| Net      Cash Used In Operating Activities                            |   |                                                             | (29,623 | )      |                                                                                              |   | (46,288 | ) |
|                                                                  |   |                                                             |    |   |                                                                                              |   |   |   |
| Cash      Flows From Financing Activities:                            |   |                                                             |    |   |                                                                                              |   |   |   |
| Proceeds      from loan payable- related party                        |   |                                                             | 29,623  |   |                                                                                              |   | 33,688 |   |
| Proceeds      from issuance of common stock                           |   |                                                             | -       |   |                                                                                              |   | 12,600 |   |
| Net      Cash Provided by Financing Activities                        |   |                                                             | 29,623  |   |                                                                                              |   | 46,288 |   |
|                                                                  |   |                                                             |    |   |                                                                                              |   |   |   |
| Net      Increase in Cash                                             |   |                                                             | -       |   |                                                                                              |   | - |   |
|                                                                  |   |                                                             |    |   |                                                                                              |   |   |   |
| Cash      at Beginning of Period                                      |   |                                                             | -       |   |                                                                                              |   | - |   |
|                                                                  |   |                                                             |    |   |                                                                                              |   |   |   |
| Cash      at End of Period                                            |   | $                                                                | -       |   |                                                                                              | $      | - |   |
|                                                                  |   |                                                             |    |   |                                                                                              |   |   |   |
| Supplemental disclosure of cash flow      information:                |   |                                                             |    |   |                                                                                              |   |   |   |
|                                                                  |   |                                                             |    |   |                                                                                              |   |   |   |
| Cash      paid for interest                                           |   | $                                                                | -       |   |                                                                                              | $      | - |   |
| Cash      paid for taxes                                              |   | $                                                                | -       |   |                                                                                              | $      | - |   |

----

----

----

----

----

----

|                                                                 | Webb      & Company, P.A. |
|-----------------------------------------------------------------|-------------------------------|
| Certified      Public Accountants      |

----

|                                                                                                                                             |   | September 30, 2009 |    |   | September 30, 2008 |   |
|--------------------------------------------------------------------------------------------------------------------------------------------------|--------|-------------------------|---------|--------|-------------------------|--------|
| ASSETS                                                                                                                                           |   |                    |    |   |                    |   |
|                                                                                                                                             |   |                    |    |   |                    |   |
| Total  Assets                                                                                                                          |   | $                       | -       |   |                    | $      | - |   |
|                                                                                                                                             |   |                    |    |   |                    |   |   |   |
| LIABILITIES AND STOCKHOLDERS'      DEFICIENCY                                                                                                    |   |                    |    |   |                    |   |   |   |
|                                                                                                                                             |   |                    |    |   |                    |   |   |   |
| Current      Liabilities                                                                                                                         |   |                    |    |   |                    |   |   |   |
| Accounts      payable                                                                                                                            |   | $                       | 8,411   |   |                    | $      | 1,500 |   |
| Loan      payable - related party                                                                                                                |   |                    | 4,065   |   |                    |   | - |   |
| Total  Liabilities                                                                                                                     |   |                    | 12,476  |   |                    |   | 1,500 |   |
|                                                                                                                                             |   |                    |    |   |                    |   |   |   |
| Commitments      and Contingencies                                                                                                               |   |                    |    |   |                    |   |   |   |
|                                                                                                                                             |   |                    |    |   |                    |   |   |   |
| Stockholders'      Deficiency                                                                                                                    |   |                    |    |   |                    |   |   |   |
| Preferred      stock, $0.0001 par value; 10,000,000 shares authorized, none issued and      outstanding                                          |   |                    | -       |   |                    |   | - |   |
| Common      stock, $0.0001 par value; 100,000,000 shares authorized, 1,360,000      shares and 100,000 issued and outstanding, respectively |   |                    | 136     |   |                    |   | 10 |   |
| Additional      paid-in capital                                                                                                                  |   |                    | 22,874  |   |                    |   | - |   |
| Deficit      accumulated during the development stage                                                                                            |   |                    | (35,486 | )      |                    |   | (1,510 | ) |
|                                                                                                                                             |   |                    |    |   |                    |   |   |   |
| Total      Stockholders' Deficiency                                                                                                              |   |                    | (12,476 | )      |                    |   | (1,500 | ) |
|                                                                                                                                             |   |                    |    |   |                    |   |   |   |
| Total      Liabilities and Stockholders' Deficiency                                                                                              |   | $                       | -       |   |                    | $      | - |   |

----

|                                                                                          |   | For      the                          |      |   | For      the Period from      September      26,      2008 |   |    | For      the Period from      September      26,      2008 |   |
|-----------------------------------------------------------------------------------------------|--------|---------------------------------------|-----------|--------|-----------------------------------------------------------------|--------|---------|-----------------------------------------------------------------|--------|
|                                                                                          |   | YearEndedSeptember      30,      2009 |      |   | (Inception)      to      September      30,      2008           |   |    | (Inception)      to      September      30,      2009           |   |
|                                                                                          |   |                                  |      |   |                                                            |   |    |                                                            |   |
| Operating      Expenses                                                                       |   |                                  |      |   |                                                            |   |    |                                                            |   |
| Professional      fees                                                                        |   | $                                     | 21,904    |   |                                                            | $      | 1,500   |                                                            |   | $ | 23,404 |   |
| General      and administrative                                                               |   |                                  | 12,072    |   |                                                            |   | 10      |                                                            |   |   | 12,082 |   |
| Total      Operating Expenses                                                                 |   |                                  | 33,976    |   |                                                            |   | 1,510   |                                                            |   |   | 35,486 |   |
|                                                                                          |   |                                  |      |   |                                                            |   |    |                                                            |   |   |   |   |
| Loss      from Operations                                                                     |   |                                  | (33,976   | )      |                                                            |   | (1,510  | )                                                               |   |   | (35,486 | ) |
|                                                                                          |   |                                  |      |   |                                                            |   |    |                                                            |   |   |   |   |
| LOSS      FROM OPERATIONS BEFORE INCOME TAXES                                                 |   |                                  | (33,976   | )      |                                                            |   | (1,510  | )                                                               |   |   | (35,486 | ) |
|                                                                                          |   |                                  |      |   |                                                            |   |    |                                                            |   |   |   |   |
| Provision      for Income Taxes                                                               |   |                                  | -         |   |                                                            |   | -       |                                                            |   |   | - |   |
|                                                                                          |   |                                  |      |   |                                                            |   |    |                                                            |   |   |   |   |
| NET      LOSS                                                                                 |   | $                                     | (33,976   | )      |                                                            | $      | (1,510  | )                                                               |   | $ | (35,486 | ) |
|                                                                                          |   |                                  |      |   |                                                            |   |    |                                                            |   |   |   |   |
| Net      Loss Per Share  - Basic and Diluted                                        |   | $                                     | (0.03     | )      |                                                            | $      | (0.02   | )                                                               |   |   |   |   |
|                                                                                          |   |                                  |      |   |                                                            |   |    |                                                            |   |   |   |   |
| Weighted      average number of shares outstanding during the period - Basic and      Diluted |   |                                  | 1,242,308 |   |                                                            |   | 100,000 |                                                            |   |   |   |   |

----

|                                                                                   |   |                 |   |   |              |   |   |       |   |   |                    |   |   |    |   |   | Deficit     |   |   |          |   |
|----------------------------------------------------------------------------------------|--------|----------------------|--------|--------|-------------------|--------|--------|------------|--------|--------|-------------------------|--------|--------|---------|--------|--------|-------------|--------|--------|---------------|--------|
|                                                                                   |   | Preferred stock |   |   | Common stock |   |   | Additional |   |   | accumulated      during |   |   | Total   |   |
|                                                                                   |   |                 |   |   |              |   |   |       |   |   |                    |   |   | paid-in |   |   | development |   |   | Stockholder's |   |
|                                                                                   |   | Shares               |   |   | Amount            |   |   | Shares     |   |   | Amount                  |   |   | capital |   |   | stage       |   |   | Deficiency    |   |
|                                                                                   |   |                 |   |   |              |   |   |       |   |   |                    |   |   |    |   |   |        |   |   |          |   |
| Balance,      September 26, 2008 (inception)                                           |   |                 | -      |   |              | $      | -      |       |   |   | -                       |   |   | $       | -      |   |        | $      | -      |          |   | $ | - |   |   | $ | - |   |
|                                                                                   |   |                 |   |   |              |   |   |       |   |   |                    |   |   |    |   |   |        |   |   |          |   |   |   |   |   |   |   |   |
| Common      stock issued for services to founder ($0.0001/Sh)                          |   |                 | -      |   |              |   | -      |       |   |   | 100,000                 |   |   |    | 10     |   |        |   | -      |          |   |   | - |   |   |   | 10 |   |
|                                                                                   |   |                 |   |   |              |   |   |       |   |   |                    |   |   |    |   |   |        |   |   |          |   |   |   |   |   |   |   |   |
| Net      loss for the period September 26, 2008 (inception) to September 30,      2008 |   |                 | -      |   |              |   | -      |       |   |   | -                       |   |   |    | -      |   |        |   | -      |          |   |   | (1,510 | ) |   |   | (1,510 | ) |
|                                                                                   |   |                 |   |   |              |   |   |       |   |   |                    |   |   |    |   |   |        |   |   |          |   |   |   |   |   |   |   |   |
| Balance,      September 30, 2008                                                       |   |                 | -      |   |              |   | -      |       |   |   | 100,000                 |   |   |    | 10     |   |        |   | -      |          |   |   | (1,510 | ) |   |   | (1,500 | ) |
|                                                                                   |   |                 |   |   |              |   |   |       |   |   |                    |   |   |    |   |   |        |   |   |          |   |   |   |   |   |   |   |   |
| Common      stock issued for cash ($0.01/sh)                                           |   |                 | -      |   |              |   | -      |       |   |   | 1,260,000               |   |   |    | 126    |   |        |   | 12,474 |          |   |   | - |   |   |   | 12,600 |   |
|                                                                                   |   |                 |   |   |              |   |   |       |   |   |                    |   |   |    |   |   |        |   |   |          |   |   |   |   |   |   |   |   |
| In      kind contribution of services                                                  |   |                 | -      |   |              |   | -      |       |   |   | -                       |   |   |    | -      |   |        |   | 10,400 |          |   |   | - |   |   |   | 10,400 |   |
|                                                                                   |   |                 |   |   |              |   |   |       |   |   |                    |   |   |    |   |   |        |   |   |          |   |   |   |   |   |   |   |   |
| Net      loss for the year ended September 30, 2009                                    |   |                 | -      |   |              |   | -      |       |   |   | -                       |   |   |    | -      |   |        |   | -      |          |   |   | (33,976 | ) |   |   | (33,976 | ) |
|                                                                                   |   |                 |   |   |              |   |   |       |   |   |                    |   |   |    |   |   |        |   |   |          |   |   |   |   |   |   |   |   |
| Balance,      September 30, 2009                                                       |   |                 | -      |   |              | $      | -      |       |   |   | 1,360,000               |   |   | $       | 136    |   |        | $      | 22,874 |          |   | $ | (35,486 | ) |   | $ | (12,476 | ) |

----

|                                                                  |         |                              |         |         | For the Period from |    |    | For the Period from |    |
|-----------------------------------------------------------------------|--------------|-----------------------------------|--------------|--------------|------------------------------------|--------------|--------------|------------------------------------|--------------|
|                                                             |    |                              |    |    | September 26, 2008       |    |    | September 26, 2008       |    |
|                                                             |    | For the Year Ended |    |    | (inception) to                |    |    | (inception) to                |    |
|                                                             |    | September 30, 2009      |    |    | September 30, 2008       |    |    | September 30, 2009       |         |
| Cash      Flows Used In Operating Activities:                         |         |                              |         |         |                               |         |         |                               |         |
| Net      Loss                                                         |         | $                                 | (33,976      | )            |                               | $            | (1,510       | )                                  |         | $ | (35,486 | ) |
| Adjustments      to reconcile net loss to net cash used in operations |         |                              |         |         |                               |         |         |                               |         |   |   |   |
| Common      stock issued for services                                 |         |                              | -            |         |                               |         | 10           |                               |         |   | 10 |   |
| In-kind      contribution of services                                 |         |                              | 10,400       |         |                               |         | -            |                               |         |   | 10,400 |   |
| Changes      in operating assets and liabilities:                     |         |                              |         |         |                               |         |         |                               |         |   |   |   |
| Increase      in accounts payable                                     |         |                              | 6,911        |         |                               |         | 1,500        |                               |         |   | 8,411 |   |
| Net      Cash Used In Operating Activities                            |         |                              | (16,665      | )            |                               |         | -            |                               |         |   | (16,665 | ) |
|                                                                  |         |                              |         |         |                               |         |         |                               |         |   |   |   |
| Cash      Flows From Financing Activities:                            |         |                              |         |         |                               |         |         |                               |         |   |   |   |
| Proceeds      from loan payable- related party                        |         |                              | 4,065        |         |                               |         |         |                               |         |   | 4,065 |   |
| Proceeds      from issuance of common stock                           |         |                              | 12,600       |         |                               |         | -            |                               |         |   | 12,600 |   |
| Net      Cash Provided by Financing Activities                        |         |                              | 16,665       |         |                               |         | -            |                               |         |   | 16,665 |   |
|                                                                  |         |                              |         |         |                               |         |         |                               |         |   |   |   |
| Net      Increase in Cash                                             |         |                              | -            |         |                               |         | -            |                               |         |   | - |   |
|                                                                  |         |                              |         |         |                               |         |         |                               |         |   |   |   |
| Cash      at Beginning of Period                                      |         |                              | -            |         |                               |         | -            |                               |         |   | - |   |
|                                                                  |         |                              |         |         |                               |         |         |                               |         |   |   |   |
| Cash      at End of Period                                            |         | $                                 | -            |         |                               | $            | -            |                               |         | $ | - |   |
|                                                                  |         |                              |         |         |                               |         |         |                               |         |   |   |   |
| Supplemental      disclosure of cash flow information:                |         |                              |         |         |                               |         |         |                               |         |   |   |   |
|                                                                  |         |                              |         |         |                               |         |         |                               |         |   |   |   |
| Cash      paid for interest                                           |         | $                                 | -            |         |                               | $            | -            |                               |         | $ | - |   |
| Cash      paid for taxes                                              |         | $                                 | -            |         |                               | $            | -            |                               |         | $ | - |   |

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