|  Nevada                                                        |  13-3140715                                                  |
|---------------------------------------------------------------------|-------------------------------------------------------------------|
|  (State or other jurisdiction of incorporation ororganization) |  (I.R.S. Employer Identification No.)    |

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----

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|                                                                                                                                                                                          |   | June 30, |        |   | December 31, |   |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|---------------|-------------|--------|-------------------|--------|
|                                                                                                                                                                                          |   | 2010          |        |   | 2009              |   |
|                                                                                                                                                                                          |   | Unaudited     |        |   |              |   |
| ASSETS                                                                                                                                                                                        |   |          |        |   |              |   |
| CURRENT ASSETS:                                                                                                                                                                               |   |          |        |   |              |   |
| Cash                                                                                                                                                                                          |   | $             | 73,787,555  |   |              | $      | 60,597,849 |   |
| Accounts receivable, trade, net of allowance of bad debt of $ 1,031,398 and $1,024,684as of June 30, 2010 and December 31, 2009, respectively                                                 |   |          | 64,058,653  |   |              |   | 67,284,600 |   |
| Inventories                                                                                                                                                                                   |   |          | 22,547,129  |   |              |   | 10,875,782 |   |
| Notes receivables                                                                                                                                                                             |   |          | 184,658     |   |              |   | 122,972 |   |
| Other receivables and prepaid expenses                                                                                                                                                        |   |          | 685,255     |   |              |   | 1,137,566 |   |
| Advances to suppliers                                                                                                                                                                         |   |          | 25,177,421  |   |              |   | 8,582,346 |   |
| Deposit in derivative hedge                                                                                                                                                                   |   |          | -           |   |              |   | 1,000,000 |   |
| Total current assets                                                                                                                                                                          |   |          | 186,440,671 |   |              |   | 149,601,115 |   |
|                                                                                                                                                                                          |   |          |        |   |              |   |   |   |
| PLANT AND EQUIPMENT, net                                                                                                                                                                      |   |          | 125,365,827 |   |              |   | 117,385,566 |   |
|                                                                                                                                                                                          |   |          |        |   |              |   |   |   |
| OTHER ASSETS:                                                                                                                                                                                 |   |          |        |   |              |   |   |   |
| Advances to suppliers, non-current                                                                                                                                                            |   |          | 711,311     |   |              |   | 1,356,404 |   |
| Notes receivables, non-current                                                                                                                                                                |   |          | 429,106     |   |              |   | 699,106 |   |
| Intangible assets, net of accumulated amortization                                                                                                                                            |   |          | 13,659,841  |   |              |   | 11,924,056 |   |
| Goodwill                                                                                                                                                                                      |   |          | 1,669,789   |   |              |   | - |   |
| Deferred loan expense, net                                                                                                                                                                    |   |          | -           |   |              |   | 2,045,349 |   |
| Deferred tax assets                                                                                                                                                                           |   |          | 15,248,484  |   |              |   | 14,283,528 |   |
| Total other assets                                                                                                                                                                            |   |          | 31,718,531  |   |              |   | 30,308,443 |   |
|                                                                                                                                                                                          |   |          |        |   |              |   |   |   |
| Total assets                                                                                                                                                                                  |   | $             | 343,525,029 |   |              | $      | 297,295,124 |   |
|                                                                                                                                                                                          |   |          |        |   |              |   |   |   |
| LIABILITIES AND SHAREHOLDERS' EQUITY                                                                                                                                                          |   |          |        |   |              |   |   |   |
|                                                                                                                                                                                          |   |          |        |   |              |   |   |   |
| CURRENT LIABILITIES:                                                                                                                                                                          |   |          |        |   |              |   |   |   |
| Revolver line of credit                                                                                                                                                                       |   | $             | -           |   |              | $      | 4,033,783 |   |
| Accounts payable, trade                                                                                                                                                                       |   |          | 7,313,267   |   |              |   | 4,002,773 |   |
| Notes payable, current                                                                                                                                                                        |   |          | -           |   |              |   | 10,000,000 |   |
| Other payables and accrued liabilities                                                                                                                                                        |   |          | 5,167,396   |   |              |   | 3,928,374 |   |
| Taxes payable                                                                                                                                                                                 |   |          | 3,278,520   |   |              |   | 2,599,055 |   |
| Cross currency hedge payable                                                                                                                                                                  |   |          | -           |   |              |   | 436,702 |   |
| Obligation under capital lease, current                                                                                                                                                       |   |          | 76,557      |   |              |   | 71,503 |   |
| Total current liabilities                                                                                                                                                                     |   |          | 15,835,740  |   |              |   | 25,072,190 |   |
|                                                                                                                                                                                          |   |          |        |   |              |   |   |   |
| LONG-TERM LIABILITIES:                                                                                                                                                                        |   |          |        |   |              |   |   |   |
| Notes payable, non-current                                                                                                                                                                    |   |          | -           |   |              |   | 25,000,000 |   |
| Obligation under capital lease, non-current                                                                                                                                                   |   |          | 110,719     |   |              |   | 153,626 |   |
| Deferred tax liabilities                                                                                                                                                                      |   |          | 669,540     |   |              |   |   |   |
| Fair value of derivative instrument                                                                                                                                                           |   |          | -           |   |              |   | 7,532,527 |   |
| Total long-term liabilities                                                                                                                                                                   |   |          | 780,259     |   |              |   | 32,686,153 |   |
|                                                                                                                                                                                          |   |          |        |   |              |   |   |   |
| Total liabilities                                                                                                                                                                             |   |          | 16,615,999  |   |              |   | 57,758,343 |   |
|                                                                                                                                                                                          |   |          |        |   |              |   |   |   |
| COMMITMENTS AND CONTINGENCIES                                                                                                                                                                 |   |          | 4,881,843   |   |              |   |   |   |
|                                                                                                                                                                                          |   |          |        |   |              |   |   |   |
| SHAREHOLDERS' EQUITY:                                                                                                                                                                         |   |          |        |   |              |   |   |   |
|                                                                                                                                                                                          |   |          |        |   |              |   |   |   |
| Preferred stock, $0.001 par value, 5,000,000 shares authorized, none issued or outstanding as of June 30, 2010 and December 31, 2009                                                          |   |          | -           |   |              |   | - |   |
| Common stock, $0.006  par value, 100,000,000 shares authorized, June 30, 2010: 37,518,595 shares issued and outstanding December 31, 2009: 29,772,780 shares issued and outstanding |   |          | 225,113     |   |              |   | 178,638 |   |
| Additional paid in capital                                                                                                                                                                    |   |          | 164,829,350 |   |              |   | 105,540,676 |   |
| Statutory Reserves                                                                                                                                                                            |   |          | 19,511,407  |   |              |   | 16,282,793 |   |
| Retained earnings                                                                                                                                                                             |   |          | 110,473,348 |   |              |   | 92,312,280 |   |
| Accumulated other comprehensive income                                                                                                                                                        |   |          | 26,987,969  |   |              |   | 25,222,394 |   |
| Total shareholders' equity                                                                                                                                                                    |   |          | 322,027,187 |   |              |   | 239,536,781 |   |
|                                                                                                                                                                                          |   |          |        |   |              |   |   |   |
| Total liabilities and shareholders' equity                                                                                                                                                    |   | $             | 343,525,029 |   |              | $      | 297,295,124 |   |

----

|                                                             |   | Three months ended June 30, |       |   | Six months ended June 30, |   |
|------------------------------------------------------------------|--------|-------------------------------------------------|------------|--------|-----------------------------------------------|--------|
|                                                             |   | 2010                                            |       |   | 2009                                          |   |   | 2010 |   |   | 2009 |   |
|                                                             |   |                                            |       |   |                                          |   |   |   |   |   |   |   |
| REVENUES                                                         |   | $                                               | 69,005,366 |   |                                          | $      | 48,301,545 |   |   | $ | 128,555,208 |   |   | $ | 83,558,081 |   |
|                                                             |   |                                            |       |   |                                          |   |   |   |   |   |   |   |   |   |   |   |
| COST OF GOODS SOLD                                               |   |                                            | 49,415,219 |   |                                          |   | 34,848,865 |   |   |   | 91,143,795 |   |   |   | 61,166,026 |   |
|                                                             |   |                                            |       |   |                                          |   |   |   |   |   |   |   |   |   |   |   |
| GROSS PROFIT                                                     |   |                                            | 19,590,147 |   |                                          |   | 13,452,680 |   |   |   | 37,411,413 |   |   |   | 22,392,055 |   |
|                                                             |   |                                            |       |   |                                          |   |   |   |   |   |   |   |   |   |   |   |
| OPERATING EXPENSES:                                              |   |                                            |       |   |                                          |   |   |   |   |   |   |   |   |   |   |   |
| Selling expenses                                                 |   |                                            | 1,365,164  |   |                                          |   | 1,086,414 |   |   |   | 2,617,126 |   |   |   | 2,288,561 |   |
| General and administrative expenses                              |   |                                            | 4,084,266  |   |                                          |   | 3,167,361 |   |   |   | 7,806,816 |   |   |   | 6,237,603 |   |
| Total operating expenses                                         |   |                                            | 5,449,430  |   |                                          |   | 4,253,775 |   |   |   | 10,423,942 |   |   |   | 8,526,164 |   |
|                                                             |   |                                            |       |   |                                          |   |   |   |   |   |   |   |   |   |   |   |
| INCOME FROM OPERATIONS                                           |   |                                            | 14,140,717 |   |                                          |   | 9,198,905 |   |   |   | 26,987,471 |   |   |   | 13,865,891 |   |
|                                                             |   |                                            |       |   |                                          |   |   |   |   |   |   |   |   |   |   |   |
| OTHER INCOME (EXPENSE):                                          |   |                                            |       |   |                                          |   |   |   |   |   |   |   |   |   |   |   |
| Interest income                                                  |   |                                            | 197,151    |   |                                          |   | 83,004 |   |   |   | 389,941 |   |   |   | 166,621 |   |
| Interest expense                                                 |   |                                            | (68,709    | )      |                                          |   | (1,478,203 | ) |   |   | (577,191 | ) |   |   | (2,949,071 | )  |
| Loss on cross currency hedge                                     |   |                                            | -          |   |                                          |   | (215,964 | ) |   |   | (753,666 | ) |   |   | (382,374 | )  |
| Loss on debt extinguishment                                      |   |                                            | -          |   |                                          |   | - |   |   |   | (2,395,778 | ) |   |   | - |   |
| Change in fair value of derivative liability - warrants          |   |                                            | -          |   |                                          |   | (688,876 | ) |   |   | - |   |   |   | (752,114 | )  |
| Change in fair value of derivative liability - conversion option |   |                                            | -          |   |                                          |   | (4,583,809 | ) |   |   | - |   |   |   | (5,122,846 | )  |
| Change in fair value of derivative instrument                    |   |                                            | -          |   |                                          |   | (751,227 | ) |   |   | 882,527 |   |   |   | (3,513,356 | )  |
| Other income (expense), net                                      |   |                                            | 122,628    |   |                                          |   | (140,133 | ) |   |   | (18,444 | ) |   |   | (246,482 | )  |
| Total other income (expense), net                                |   |                                            | 251,070    |   |                                          |   | (7,775,208 | ) |   |   | (2,472,611 | ) |   |   | (12,799,622 | )  |
|                                                             |   |                                            |       |   |                                          |   |   |   |   |   |   |   |   |   |   |   |
| INCOME BEFORE INCOME TAXES                                       |   |                                            | 14,391,787 |   |                                          |   | 1,423,697 |   |   |   | 24,514,860 |   |   |   | 1,066,269 |   |
|                                                             |   |                                            |       |   |                                          |   |   |   |   |   |   |   |   |   |   |   |
| (PROVISION) BENEFIT FOR INCOME TAXES:                            |   |                                            |       |   |                                          |   |   |   |   |   |   |   |   |   |   |   |
| Deferred income tax expense                                 |   |                                            | 79,529     |   |                                          |   | 993,597 |   |   |   | 964,956 |   |   |   | 3,559,248 |   |
| Current income tax expense                                       |   |                                            | (2,154,173 | )      |                                          |   | (1,350,404 | ) |   |   | (4,090,134 | ) |   |   | (2,280,715 | ) |
| (Provision) benefit for income taxes, net                        |   |                                            | (2,074,644 | )      |                                          |   | (356,807 | ) |   |   | (3,125,178 | ) |   |   | 1,278,533 |   |
|                                                             |   |                                            |       |   |                                          |   |   |   |   |   |   |   |   |   |   |   |
| NET INCOME                                                       |   |                                            | 12,317,143 |   |                                          |   | 1,066,890 |   |   |   | 21,389,682 |   |   |   | 2,344,802 |   |
|                                                             |   |                                            |       |   |                                          |   |   |   |   |   |   |   |   |   |   |   |
| OTHER COMPREHENSIVE INCOME:                                      |   |                                            |       |   |                                          |   |   |   |   |   |   |   |   |   |   |   |
| Foreign currency translation adjustment                          |   |                                            | 1,890,314  |   |                                          |   | 433,866 |   |   |   | 1,765,575 |   |   |   | 39,958 |   |
|                                                             |   |                                            |       |   |                                          |   |   |   |   |   |   |   |   |   |   |   |
| COMPREHENSIVE INCOME                                             |   | $                                               | 14,207,457 |   |                                          | $      | 1,500,756 |   |   | $ | 23,155,257 |   |   | $ | 2,384,760 |   |
|                                                             |   |                                            |       |   |                                          |   |   |   |   |   |   |   |   |   |   |   |
| EARNINGS PER SHARE:                                              |   |                                            |       |   |                                          |   |   |   |   |   |   |   |   |   |   |   |
| Basic                                                            |   | $                                               | 0.33       |   |                                          | $      | 0.04 |   |   | $ | 0.59 |   |   | $ | 0.08 |   |
| Diluted                                                          |   | $                                               | 0.32       |   |                                          | $      | 0.04 |   |   | $ | 0.58 |   |   | $ | 0.08 |   |
|                                                             |   |                                            |       |   |                                          |   |   |   |   |   |   |   |   |   |   |   |
| WEIGHTED AVERAGE SHARES:                                         |   |                                            |       |   |                                          |   |   |   |   |   |   |   |   |   |   |   |
| Basic                                                            |   |                                            | 37,343,714 |   |                                          |   | 27,827,838 |   |   |   | 36,016,078 |   |   |   | 27,696,388 |   |
| Diluted                                                          |   |                                            | 37,991,800 |   |                                          |   | 28,323,611 |   |   |   | 36,633,668 |   |   |   | 28,054,226 |   |

----

|                                                                  |   | 2010   |        |   | 2009   |   |
|-----------------------------------------------------------------------|--------|--------|-------------|--------|--------|--------|
| CASH FLOWS FROM OPERATING ACTIVITIES:                                 |   |   |        |   |   |   |
| Net income                                                            |   | $      | 21,389,682  |   |   | $      | 2,344,802 |   |
| Adjustments to reconcile net income provided by operating activities: |   |   |        |   |   |   |   |   |
| Change in fair value of derivative instrument                         |   |   | (882,527    | )      |   |   | 3,513,356 |   |
| Bad debt expense                                                      |   |   | -           |   |   |   | 27,793 |   |
| Write-off of non-current advances to suppliers                        |   |   | 525,588     |   |   |   | - |   |
| Write-off of patent                                                   |   |   | 87,500      |   |   |   | - |   |
| Reserve for inventories                                               |   |   | 56,000      |   |   |   | 23,272 |   |
| Inventories write-off                                                 |   |   | -           |   |   |   | 179,654 |   |
| Depreciation                                                          |   |   | 5,710,030   |   |   |   | 4,612,405 |   |
| Loss on sale of property and equipment                                |   |   | -           |   |   |   | 117,430 |   |
| Deferred taxes                                                        |   |   | (964,956    | )      |   |   | (3,559,248 | ) |
| Reserve for notes receivables                                         |   |   | 250,000     |   |   |   | - |   |
| Amortization of intangible assets                                     |   |   | 255,982     |   |   |   | 238,283 |   |
| Amortization of loan commission                                       |   |   | 249,571     |   |   |   | 544,900 |   |
| Amortization of stock compensation expense                            |   |   | 373,649     |   |   |   | 928,727 |   |
| Loss on cross currency hedge                                          |   |   | 753,666     |   |   |   | 382,374 |   |
| Loss on debt extinguishment                                           |   |   | 2,395,778   |   |   |   | - |   |
| Change in fair value of derivative liability - conversion option      |   |   | -           |   |   |   | 5,122,846 |   |
| Change in fair value of derivative liability - warrants               |   |   | -           |   |   |   | 752,114 |   |
| Change in operating assets and liabilities:                           |   |   |        |   |   |   |   |   |
| Accounts receivable                                                   |   |   | 6,477,996   |   |   |   | (9,906,381 | ) |
| Inventories                                                           |   |   | (10,215,093 | )      |   |   | (10,699,400 | ) |
| Notes receivables                                                     |   |   | (41,241     | )      |   |   | 63,638 |   |
| Other receivables and prepayments                                     |   |   | 460,654     |   |   |   | 102,867 |   |
| Advances to suppliers - current                                       |   |   | (15,826,015 | )      |   |   | 12,233,042 |   |
| Accounts payable                                                      |   |   | 318,422     |   |   |   | (2,091,085 | ) |
| Other payables and accrued liabilities                                |   |   | (1,704,613  | )      |   |   | (2,477,339 | ) |
| Taxes payable                                                         |   |   | 297,576     |   |   |   | 2,062,180 |   |
| Net cash provided by operating activities                             |   |   | 9,967,649   |   |   |   | 4,516,230 |   |
|                                                                  |   |   |        |   |   |   |   |   |
| CASH FLOWS FROM INVESTING ACTIVITIES:                                 |   |   |        |   |   |   |   |   |
| Payment for purchase of subsidiaries                                  |   |   | (6,375,000  | )      |   |   | - |   |
| Cash acquired from acquisition of subsidiaries                        |   |   | 901,463     |   |   |   | - |   |
| Payments on cross currency hedge payable                              |   |   | (1,190,368  | )      |   |   | (114,580 | ) |
| Payment for unwind of cross currency hedge                            |   |   | (5,650,000  | )      |   |   | - |   |
| Proceeds from sale of property and equipment                          |   |   | -           |   |   |   | 424,444 |   |
| Purchases of property and equipment                                   |   |   | (1,736,395  | )      |   |   | (3,135,693 | ) |
| Net of payments on prepayment of equipment                            |   |   | -           |   |   |   | (2,473,841 | ) |
| Net of claimed VAT on purchases of property and equipment             |   |   | 25,755      |   |   |   | - |   |
| Net cash used in investing activities                                 |   |   | (14,024,545 | )      |   |   | (5,299,670 | ) |
|                                                                  |   |   |        |   |   |   |   |   |
| CASH FLOWS FROM FINANCING ACTIVITIES:                                 |   |   |        |   |   |   |   |   |
| Net payments on revolver line of credit                               |   |   | (9,513      | )      |   |   | (222,709 | ) |
| Payoff of revolver line of credit                                     |   |   | (4,024,270  | )      |   |   | - |   |
| Payments on short-term bank loans                                     |   |   | -           |   |   |   | (17,553,600 | ) |
| Release of restricted cash                                            |   |   | -           |   |   |   | 1,000,000 |   |
| Payment on capital lease obligation                                   |   |   | (37,853     | )      |   |   | - |   |
| Payment of high yield notes payable                                   |   |   | (35,600,000 | )      |   |   | - |   |
| Proceeds on issuance of common stock                                  |   |   | 56,361,500  |   |   |   | 1,920,000 |   |
| Net cash provided by (used in) financing activities                   |   |   | 16,689,864  |   |   |   | (14,856,309 | ) |
|                                                                  |   |   |        |   |   |   |   |   |
| EFFECT OF EXCHANGE RATE ON CASH                                       |   |   | 556,738     |   |   |   | (38,459 | ) |
|                                                                  |   |   |        |   |   |   |   |   |
| CHANGE IN CASH                                                        |   |   | 13,189,706  |   |   |   | (15,678,208 | ) |
|                                                                  |   |   |        |   |   |   |   |   |
| CASH, beginning of period                                             |   |   | 60,597,849  |   |   |   | 65,611,770 |   |
|                                                                  |   |   |        |   |   |   |   |   |
| CASH, end of period                                                   |   | $      | 73,787,555  |   |   | $      | 49,933,562 |   |
|                                                                  |   |   |        |   |   |   |   |   |
| Supplemental cash flow disclosures:                                   |   |   |        |   |   |   |   |   |
| Interest paid                                                         |   | $      | 1,401,542   |   |   | $      | 1,988,420 |   |
| Income tax paid                                                       |   | $      | 3,830,567   |   |   | $      | 1,933,546 |   |

----

----

----

|            |   | June 30, 2010 |        |   | June 30, 2009 |   |
|-----------------|--------|--------------------|-------------|--------|-------------------------|--------|
|            |   | (Unaudited)        |        |   | (Unaudited)             |   |
| China           |   | $                  | 100,144,783 |   |                    | $      | 64,210,887 |   |
| USA             |   |               | 20,871,927  |   |                    |   | 14,933,674 |   |
| Europe          |   |               | 4,209,363   |   |                    |   | 1,943,156 |   |
| Other countries |   |               | 3,329,135   |   |                    |   | 2,470,364 |   |
| Total sales     |   | $                  | 128,555,208 |   |                    | $      | 83,558,081 |   |

|            |   | June 30, 2010 |       |   | June 30, 2009 |   |
|-----------------|--------|---------------|------------|--------|---------------|--------|
|            |   | (Unaudited)   |       |   | (Unaudited)   |   |
| China           |   | $             | 54,451,218 |   |          | $      | 38,669,320 |   |
| USA             |   |          | 10,847,910 |   |          |   | 7,626,838 |   |
| Europe          |   |          | 2,020,127  |   |          |   | 464,910 |   |
| Other countries |   |          | 1,686,111  |   |          |   | 1,540,477 |   |
| Total sales     |   | $             | 69,005,366 |   |          | $      | 48,301,545 |   |

----

|                           |   | Estimated Useful Life |
|--------------------------------|--------|----------------------------|
| Buildings and improvements     |   | 20-39.5 years              |
| Machinery and equipment        |   | 7-15 years                 |
| Office furniture and equipment |   | 3-5 years                  |
| Transportation equipment       |   | 3-5 years                  |

----

----

----

|                           |   | June 30, 2010 |        |   | December 31, 2009 |   |
|--------------------------------|--------|-------------------------|-------------|--------|-----------------------------|--------|
|                           |   | (Unaudited)             |        |   |                        |   |
| Trade accounts receivable      |   | $                       | 65,090,051  |   |                        | $      | 68,309,284 |   |
| Allowance for bad debts        |   |                    | ( 1,031,398 | )      |                        |   | (1,024,684 | ) |
| Trade accounts receivable, net |   | $                       | 64,058,653  |   |                        | $      | 67,284,600 |   |

| Allowance for doubtful accounts at December 31, 2008         |   | $      | 318,529   |   |
|--------------------------------------------------------------|--------|--------|-----------|--------|
| Recovery of bad debt                                         |   |   | 27,793    |   |
| Accounts receivable write off                                |   |   | -         |   |
| Effect of foreign currency translation                       |   |   | (339      | )      |
| Allowance for doubtful accounts at June 30, 2009 (Unaudited) |   |   | 345,983   |   |
| Additional reserves                                          |   |   | 678,032   |   |
| Accounts receivable write off                                |   |   | -         |   |
| Effect of foreign currency translation                       |   |   | 669       |   |
| Allowance for doubtful accounts at December 31, 2009         |   |   | 1,024,684 |   |
| Additional reserves                                          |   |   | -         |   |
| Accounts receivable write off                                |   |   | -         |   |
| Effect of foreign currency translation                       |   |   | 6,714     |   |
| Allowance for doubtful accounts at June 30, 2010 (Unaudited) |   | $      | 1,031,398 |   |

----

|                                  |   | June 30, 2010 |       |   | December 31, 2009 |   |
|---------------------------------------|--------|--------------------|------------|--------|-----------------------------|--------|
|                                  |   | (Unaudited)        |       |   |                        |   |
| Raw materials                         |   | $                  | 13,496,170 |   |                        | $      | 5,137,002 |   |
| Work in process                       |   |               | 4,228,269  |   |                        |   | 2,777,890 |   |
| Finished goods                        |   |               | 4,925,079  |   |                        |   | 3,007,279 |   |
| Totals                                |   |               | 22,649,518 |   |                        |   | 10,922,171 |   |
| Less allowance for obsolete inventory |   |               | (102,389   | )      |                        |   | (46,389 | ) |
| Totals                                |   | $                  | 22,547,129 |   |                        | $      | 10,875,782 |   |

| Allowance for obsolete inventory at December 31, 2008         |   | $      | 160,487   |   |
|---------------------------------------------------------------|--------|--------|-----------|--------|
| Additional reserves                                           |   |   | 23,272    |   |
| Recovery of reserve                                           |   |   | -         |   |
| Effect of foreign currency translation                        |   |   | -         |   |
| Allowance for obsolete inventory at June 30, 2009 (Unaudited) |   |   | 183,759   |   |
| Additional reserves                                           |   |   | -         |   |
| Reserves write off                                            |   |   | (137,370  | )      |
| Effect of foreign currency translation                        |   |   | -         |   |
| Allowance for obsolete inventory at December 31, 2009         |   |   | 46,389    |   |
| Additional reserves                                           |   |   | 56,000    |   |
| Recovery of reserve                                           |   |   | -         |   |
| Effect of foreign currency translation                        |   |   | -         |   |
| Allowance for obsolete inventory at June 30, 2010 (Unaudited) |   | $      | 10 2 ,389 |   |

|                          |   | June 30, 2010 |        |   | December 31, 2009 |   |
|-------------------------------|--------|-------------------------|-------------|--------|-----------------------------|--------|
|                          |   | (Unaudited)             |        |   |                        |   |
| Land                          |   | $                       | 100,726     |   |                        | $      | 100,726 |   |
| Buildings and improvements    |   |                    | 62,298,980  |   |                        |   | 43,665,594 |   |
| Transportation equipment      |   |                    | 4,205,211   |   |                        |   | 4,177,943 |   |
| Machinery and equipment       |   |                    | 82,526,938  |   |                        |   | 74,463,717 |   |
| Office furniture              |   |                    | 1,294,108   |   |                        |   | 1,172,121 |   |
| Construction in progress      |   |                    | 6,430,326   |   |                        |   | 19,449,384 |   |
| Totals                        |   |                    | 156,856,289 |   |                        |   | 143,029,485 |   |
| Less accumulated depreciation |   |                    | (31,490,462 | )      |                        |   | (25,643,919 | ) |
| Totals                        |   | $                       | 125,365,827 |   |                        | $      | 117,385,566 |   |

----

| No.    |   | Project Description                                     |   | June 30,2010 |      | CommencementDate |     | Expectedcompletiondate |
|--------|--------|--------------------------------------------------------------|--------|-------------------|-----------|------------------|----------|------------------------|
|   |   |                                                         |   |              |      |             |     |                   |
| 1      |   | Manufacturing machinery and equipment for CCA/CCS (Multiple) |   | $                 | 3,366,335 |             | Dec 2007 |                   | Sep, 2010 |
| 2      |   | Manufacturing machinery and equipment for CCA/CCS (Multiple) |   |              | 2,846,745 |             | Dec 2009 |                   | Mar, 2011 |
| 3      |   | Manufacturing machinery and equipment for CCA                |   |              | 217,246   |             | Oct 2009 |                   | Sep, 2010 |
|   |   | Total                                                        |   | $                 | 6,430,326 |             |     |                   |   |

| No.    |   | Project Description                                     |   | December 31,2009 |       | CommencementDate |     | Expectedcompletion date |
|--------|--------|--------------------------------------------------------------|--------|-----------------------|------------|------------------|----------|------------------------------|
|   |   |                                                         |   |                  |       |             |     |                         |
| 1      |   | Manufacturing machinery and equipment for CCA/CCS (Multiple) |   | $                     | 4,276,753  |             | Dec 2007 |                         | Mar, 2010 |
| 2      |   | Corporation administration office building                   |   |                  | 13,144,394 |             | May 2003 |                         | Dec, 2010 |
| 3      |   | Manufacture building (Dalian)                                |   |                  | 630,389    |             | Jan 2008 |                         | Jun, 2010 |
| 4      |   | Manufacturing machinery and equipment for CCA/CCS (Multiple) |   |                  | 1,322,848  |             | Dec 2009 |                         | Mar, 2011 |
| 5      |   | Manufacturing machinery and equipment for CCA                |   |                  | 75,000     |             | Oct 2009 |                         | Mar, 2010 |
|   |   | Total                                                        |   | $                     | 19,449,384 |             |     |                         |   |

|                                                 |   | Plant and equipment |        |
|------------------------------------------------------|--------|-------------------------------|-------------|
| Balance as of December 31, 2009                      |   | $                             | 143,029,485 |   |
| Acquired through acquisition of Jinchuan and Hongtai |   |                          | 11,222,868  |   |
| Acquired through cash payment                        |   |                          | 661,324     |   |
| Acquired from advanced payments                      |   |                          | 1,290,409   |   |
| Acquired from accounts payable                       |   |                          | 12,071      |   |
| Fixed assets transferred from CIP                    |   |                          | 13,775,722  |   |
| CIP transferred to fixed assets                      |   |                          | (13,775,722 | ) |
| VAT claimed on purchase of capital assets            |   |                          | (185,256    | ) |
| FX rate effect                                       |   |                          | 825,388     |   |
| Balance as of June 30, 2010 (Unaudited)              |   | $                             | 156,856,289 |   |

----

|                                       |   | June 30, 2010 |       |   | December 31, 2009 |   |
|--------------------------------------------|--------|-------------------------|------------|--------|-----------------------------|--------|
|                                       |   | (Unaudited)             |       |   |                        |   |
| Advances for inventories – current   |   | $                       | 25,177,421 |   |                        | $      | 8,582,346 |   |
| Advances for equipment – non current |   |                    | 711,311    |   |                        |   | 1,356,404 |   |
| Total advances to suppliers                |   | $                       | 25,888,732 |   |                        | $      | 9,938,750 |   |

|                           |   | June 30, 2010 |       |   | December 31, 2009 |   |
|--------------------------------|--------|-------------------------|------------|--------|-----------------------------|--------|
|                           |   | (Unaudited)             |       |   |                        |   |
| Patents                        |   | $                       | 1,976,198  |   |                        | $      | 1,754,270 |   |
| Land use rights                |   |                    | 14,437,371 |   |                        |   | 12,472,131 |   |
| Total:                         |   |                    | 16,413,569 |   |                        |   | 14,226,401 |   |
| Less: accumulated amortization |   |                    | (2,753,728 | )      |                        |   | (2,302,345 | ) |
| Intangible assets, net         |   | $                       | 13,659,841 |   |                        | $      | 11,924,056 |   |

| June 30, |                           | Amount |       |
|---------------|--------------------------------|--------|------------|
| 2011          |                           | $      | 567,029    |   |
| 2012          |       |   | 567,029    |   |
| 2013          |                           |   | 481,670    |   |
| 2014          |                           |   | 423,289    |   |
| 2014          |                           |   | 423,289    |   |
| Thereafter    |                           |   | 11,812,707 |   |

|                |   | June 30, 2010 |      |   | December 31,2009 |   |
|---------------------|--------|-------------------------|-----------|--------|-----------------------|--------|
|                |   | (Unaudited)             |      |   |                  |   |
| Income tax          |   | $                       | 2,294,151 |   |                  | $      | 1,796,019 |   |
| VAT provision       |   |                    | 855,045   |   |                  |   | 769,025 |   |
| Others              |   |                    | 129,324   |   |                  |   | 34,011 |   |
| Total taxes payable |   | $                       | 3,278,520 |   |                  | $      | 2,599,055 |   |

|                     |   | June 30, 2010 |    |   | December 31,2009 |   |
|--------------------------|--------|---------------|---------|--------|------------------|--------|
|                     |   | (Unaudited)   |    |   |             |   |
| Deferred tax liabilities |   | $             | 669,540 |   |             | $      | - |   |

----

|                             |      |   | 2010          |   |   | 2010      |   |   | 2009          |   |   | 2009      |   |
|----------------------------------|-----------|--------|---------------|--------|--------|-----------|--------|--------|---------------|--------|--------|-----------|--------|
| Entities                         |      |   | Statutory     |   |   | Income    |   |   | Statutory     |   |   | Income    |   |
|                             |      |   | Income        |   |   | Tax       |   |   | Income        |   |   | Tax       |   |
|                             |      |   | Tax Rate |   |   | Exemption |   |   | Tax Rate |   |   | Exemption |   |
| Fushi International              | China (a) |   |          | 25     | %      |      |   | 12.5   | %             |   |   | 25        | %      |   |   | 12.5 | % |
| Dalian Fushi                     | China (a) |   |          | 25     | %      |      |   | -      |          |   |   | 25        | %      |   |   | - |   |
| Jinchuan                         | China (a) |   |          | 25     | %      |      |   | -      |          |   |   | n/a       |   |   |   | n/a |   |
| Hongtai                          | China (a) |   |          | 25     | %      |      |   | -      |          |   |   | n/a       |   |   |   | n/a |   |
| Copperweld UK                    | UK (b)    |   |          | 21     | %      |      |   | -      |          |   |   | 21        | %      |   |   | - |   |
| Fushi, Fushi holding, Copperweld | US (c)    |   |          | 34     | %      |      |   | -      |          |   |   | 34        | %      |   |   | - |   |
| Copperweld US                    | State     |   |          | 6.5    | %      |      |   | -      |          |   |   | 6.5       | %      |   |   | - |   |

----

|                                     |   | Three months ended June 30, |       |   | Six months ended June 30, |   |
|------------------------------------------|--------|-------------------------------------------------|------------|--------|-----------------------------------------------|--------|
|                                     |   | 2010                                            |       |   | 2009                                          |   |   | 2010 |   |   | 2009 |   |
|                                     |   | (Unaudited)                                     |       |   | (Unaudited)                                   |   |   | (Unaudited) |   |   | (Unaudited) |   |
|                                     |   |                                            |       |   |                                          |   |   |   |   |   |   |   |
| Effective foreign income taxes - current |   |                                            | (2,154,173 | )      |                                          |   | (1,350,404 | ) |   |   | (4,090,134 | ) |   |   | (2,280,715 | ) |
| US federal income tax - deferred         |   |                                            | 79,529     |   |                                          |   | 993,597 |   |   |   | 964,956 |   |   |   | 3,559,248 |   |
| (Provision) benefit for income tax       |   |                                            | (2,074,644 | )      |                                          |   | (356,807 | ) |   |   | (3,755,178 | ) |   |   | 1,278,533 |   |
|                                     |   |                                            |       |   |                                          |   |   |   |   |   |   |   |   |   |   |   |
| Effective tax rate                       |   |                                            | 14.4       | %      |                                          |   | 25.1 | % |   |   | 15.3 | % |   |   | -119.9 | % |

|                                                  |   | Amount |       |
|-------------------------------------------------------|--------|--------|------------|
| The deferred tax activity consisted of the following: |   |   |       |
| Deferred tax assets at December 31, 2008              |   | $      | 9,292,233  |   |
| Additions to deferred tax assets                      |   |   | 4,991,295  |   |
| Deferred tax assets at December 31, 2009              |   | $      | 14,283,528 |   |
| Additions to deferred tax assets                      |   |   | 964,956    |   |
| Deferred tax assets at June 30, 2010 (unaudited)      |   | $      | 15,248,484 |   |

----

| Name of lender               |   | June 30,2010 |   |   | December 31,2009 |   |
|----------------------------------------|--------|-------------------|--------|--------|-----------------------|--------|
|                                   |   | (Unaudited)       |   |   |                  |   |
| Wells Fargo Bank revolving credit line |   | $                 | -      |   |                  | $      | 4,033,783 |   |
| Total                                  |   | $                 | -      |   |                  | $      | 4,033,783 |   |

|                                                                   |   | June 30, 2010 |   |   | December 31, 2009 |   |
|------------------------------------------------------------------------|--------|-------------------------|--------|--------|-----------------------------|--------|
|                                                                   |   | (Unaudited)             |   |   |                        |   |
| Guaranteed senior secured floating rate notes (“HY Notes”) |   |                    | -      |   |                        |   | 35,000,000 |   |
|                                                                   |   |                    |   |   |                        |   |   |   |
| Less current portion                                                   |   |                    | -      |   |                        |   | 10,000,000 |   |
|                                                                   |   |                    |   |   |                        |   |   |   |
| Total notes payable, noncurrent                                        |   | $                       | -      |   |                        | $      | 25,000,000 |   |

----

|                           |   | June 30, 2010 |    |   | December 31, 2009 |   |
|--------------------------------|--------|-------------------------|---------|--------|-----------------------------|--------|
| Plant facility                 |   | $                       | 266,598 |   |                        | $      | 266,598 |   |
| Less: accumulated depreciation |   |                    | (22,216 | )      |                        |   | (8,887 | ) |
| Net leased plant facility      |   | $                       | 244,382 |   |                        | $      | 257,711 |   |

| Year ending June 30,            |   | Minimum leasePayment |    |
|------------------------------------------------|--------|---------------------------|---------|
| 2011                                           |   | $                         | 92,561  |   |
| 2012                                           |   |                      | 100,976 |   |
| Thereafter                                     |   |                      | 16,830  |   |
| Total minimum lease payments                   |   |                      | 210,367 |   |
| Less: interest *1                              |   |                      | (23,091 | ) |
| Present value of net minimum lease payments *2 |   | $                         | 187,276 |   |

----

|                                                      |   | Three months ended June 30, |       |   | Six months ended June 30, |   |
|-----------------------------------------------------------|--------|-------------------------------------------------|------------|--------|-----------------------------------------------|--------|
|                                                      |   | 2010                                            |       |   | 2009                                          |   |   | 2010 |   |   | 2009 |   |
|                                                      |   | (Unaudited)                                     |       |   | (Unaudited)                                   |   |   | (Unaudited) |   |   | (Unaudited) |   |
| Net income for basic and diluted earnings per share       |   | $                                               | 12,317,143 |   |                                          | $      | 1,066,890 |   |   | $ | 21,389,682 |   |   | $ | 2,344,802 |   |
|                                                      |   |                                            |       |   |                                          |   |   |   |   |   |   |   |   |   |   |   |
| Weighted average shares used in basic computation         |   |                                            | 37,343,714 |   |                                          |   | 27,827,838 |   |   |   | 36,016,078 |   |   |   | 27,696,388 |   |
| Dilutive effect of warrants, options and convertible note |   |                                            | 648,086    |   |                                          |   | 495,773 |   |   |   | 617,590 |   |   |   | 357,838 |   |
| Weighted average shares used in diluted computation       |   |                                            | 37,991,800 |   |                                          |   | 28,323,611 |   |   |   | 36,633,668 |   |   |   | 28,054,226 |   |
|                                                      |   |                                            |       |   |                                          |   |   |   |   |   |   |   |   |   |   |   |
| Earnings per share                                        |   |                                            |       |   |                                          |   |   |   |   |   |   |   |   |   |   |   |
| Basic                                                     |   | $                                               | 0.33       |   |                                          | $      | 0.04 |   |   | $ | 0.59 |   |   | $ | 0.08 |   |
| Diluted                                                   |   | $                                               | 0.32       |   |                                          | $      | 0.04 |   |   | $ | 0.58 |   |   | $ | 0.08 |   |

| Dateissued/granted       |   | Nature   |   | Excise price |        |   | Shares excludedfor year dilutedEPS calculation |   | Reason forexclusion |
|--------------------------|--------|----------|--------|-------------------|-------------|--------|--------------------------------------------------------------------|--------|--------------------------|
|                     |   |     |   |              |        |   |                                                               |   |                     |
| 11/31/2007               |   | Warrants |   | $                 | 16.80       |   |                                                               |   | 100,000                  |   | Anti-dilutive |
| 05/21/2007 to 11/13/2007 |   | Options  |   | $                 | 11.75-20.94 |   |                                                               |   | 385,000                  |   | Anti-dilutive |
| 04/10/2008 to 6/25/2008  |   | Options  |   | $                 | 15.04-23.25 |   |                                                               |   | 126,000                  |   | Anti-dilutive |

----

|   | ExercisePrice |   | Number |    |   | AverageRemaining Life(years) |   |
|--------|---------------|--------|--------|---------|--------|-----------------------------------|--------|
|   |          |   |   |    |   |                              |   |
| $      | 3.11          |   |   | 279,772 |   |                              |   | 1.50 |   |
| $      | 16.80         |   |   | 100,000 |   |                              |   | 1.40 |   |
| $      | 5.25          |   |   | 100,000 |   |                              |   | 0.04 |   |
| $      | 5.50          |   |   | 100,000 |   |                              |   | 0.04 |   |
| $      | 6.00          |   |   | 100,000 |   |                              |   | 0.55 |   |
|   |          |   |   | 679,772 |   |                              |   | 0.92 |   |

|                                  |   | Number ofWarrantsOutstanding |    |   | Weighted-AverageExercisePrice |   | AverageRemainingContractualLife |
|---------------------------------------|--------|-----------------------------------|---------|--------|-------------------------------|--------|---------------------------------|
| Balance, at December 31, 2008         |   |                              | 432,124 |   |                          | $      | 6.28                            |   | 2.92 years |
| Granted                               |   |                              | 300,000 |   |                          | $      | 5.58                            |   |   |
| Forfeited                             |   |                              | -       |   |                          |   |                            |   |   |
| Exercised                             |   |                              | -       |   |                          |   |                            |   |   |
| Balance, at June 30, 2009 (unaudited) |   |                              | 732,124 |   |                          | $      | 5.99                            |   | 2.05 years |
| Granted                               |   |                              | -       |   |                          |   |                            |   |   |
| Forfeited                             |   |                              | -       |   |                          |   |                            |   |   |
| Exercised                             |   |                              | (52,352 | )      |                          | $      | 3.11                            |   |   |
| Balance, at December 31, 2009         |   |                              | 679,772 |   |                          | $      | 6.22                            |   | 1.24 years |
| Granted                               |   |                              | -       |   |                          |   |                            |   |   |
| Forfeited                             |   |                              | -       |   |                          |   |                            |   |   |
| Exercised                             |   |                              | -       |   |                          |   |                            |   |   |
| Balance, at June 30, 2010 (unaudited) |   |                              | 679,772 |   |                          | $      | 6.22                            |   | 0.92 years |

----

| GrantYear |   | Granted Options (Shares) |      |   | Forfeited and expired Option(Shares) |   |    | Exercise PriceOption($) |   |
|-----------|--------|------------------------------------|-----------|--------|-----------------------------------------------------|--------|---------|------------------------------|--------|
| 2007      |   |                               | 335,000   |   |                                                |   | 325,000 |                         | $      | 16.44-$20.94 |   |
| 2008      |   |                               | 151,000   |   |                                                |   | 25,000  |                         | $      | 15.04-$23.25 |   |
| 2009      |   |                               | 688,000   |   |                                                |   | 198,300 |                         | $      | 4.95-$7.93 |   |
| 2010      |   |                               | 156,530   |   |                                                |   | 24,555  |                         | $      | 8.61 |   |
| Total     |   |                               | 1,330,530 |   |                                                |   | 572,855 |                         |   |   |   |

| GrantYear |   | GrantedRestricted Stock(Shares) |    |   | Forfeited andexpired Restricted Stock(Shares) |   |   | VestedRestricted stock(Shares) |   |   | Grant date Fairmarket value($) |   |
|-----------|--------|--------------------------------------|---------|--------|--------------------------------------------------------------|--------|--------|-------------------------------------|--------|--------|-----------------------------------------------|--------|
| 2009      |   |                                 | 50,000  |   |                                                         |   | -      |                                |   |   | -                                             |   |   | $ | 8.08 |   |
| 2010      |   |                                 | 51,000  |   |                                                         |   | -      |                                |   |   | 25,500                                        |   |   | $ | 8.61 |   |
| Total     |   |                                 | 101,000 |   |                                                         |   | -      |                                |   |   | 25,500                                        |   |   |   |   |   |

|                                           |   | Six months ended,2010 |   |   | Year ended,2009 |   |      | Year ended2008 |   |   | Year ended2007 |   |
|------------------------------------------------|--------|----------------------------|--------|--------|----------------------|--------|-----------|---------------------|--------|--------|---------------------|--------|
| Risk-free interest rate (1)                    |   |                       | 0.87   | %      |                 |   | 0.78%-2.2 | %                   |   |   | 1.84%-2.82          | %      |   |   | 3.54%-4.57 | % |
| Expected dividend yield (2)                    |   |                       | -      |   |                 |   | -         |                |   |   | -                   |   |   |   | - |   |
| Expected option life (3)                       |   | 2 Years                    |   |   | 2-5 Years            |   |      | 0.5-2 Years         |   |   | 2 Years             |   |
| Expected stock price volatility (4)            |   |                       | 60     | %      |                 |   | 60        | %                   |   |   | 50                  | %      |   |   | 50 | % |
| Weighted average fair value of options granted |   | $                          | 2.88   |   |                 | $      | 2.77      |                |   | $      | 4.57                |   |   | $ | 4.08 |   |

| (1) | Risk-free interest rate – Risk-free interest rate is based on US Treasury zero-coupon issues with maturity terms similar to the expected term on the expected life of the option. An increase in the risk-free interest rate will increase compensation expense.  |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2) | Expected dividend yield – The dividend yield was estimated by the Company based on its expected dividend policy over the expected term of the options. The Company has no plans to pay any dividend in the foreseeable future. Therefore, the Company considers the dividend yield to be zero.  |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (3) | Expected option life – Because the Company has no historical share option exercise experience to estimate future exercise patterns, the expected life was determined using the simplified method as these awards meet the definition of “plain-vanilla” options under the rules prescribed by accounting standards. An increase in expected life will increase compensation expense. |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| (4) | Expected stock price volatility  – This is a measure of the amount by which a price has fluctuated or is expected to fluctuate. As a forward-looking measure, the Company uses implied volatility of Company’s 225 days call options with strike price of $5.00 on March 7, 2009 (source: Morningstar.com), adjusted by the 2-year historical volatility of the Company’s stock as well as 2-year historical volatilities of the Company’s comparable public companies, to calculate the expected stock price volatility. An increase in the expected volatility will increase compensation expense. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                               |   | Number ofOptionsOutstanding |      |    | Weighted-AverageExercisePrice |   |   | AggregateIntrinsicValue |   |
|------------------------------------|--------|----------------------------------|-----------|---------|-------------------------------|--------|--------|-------------------------|--------|
| Balance, December 31, 2008         |   |                             | 1,067,333 |    |                          | $      | 14.9   |                    |   |   | - |   |
| Granted                            |   |                             | 388,000   |    |                          | $      | 4.95   |                    |   |   | - |   |
| Forfeited                          |   |                             | (35,250   | )       |                          | $      | 4.95   |                    |   |   | - |   |
| Exercised                          |   |                             | (4,000    | )  |                          |   | 4.95   |                    |   |   | - |   |
| Balance, June 30, 2009 (unaudited) |   |                             | 1,416,083 |    |                          | $      | 12.42  |                    |   |   | - |   |
| Granted                            |   |                             | 300,000   |    |                          | $      | 6.19   |                    |   |   | - |   |
| Forfeited                          |   |                             | (13,800   | )       |                          | $      | 4.95   |                    |   |   | - |   |
| Expired                            |   |                             | (95,000   | )       |                          | $      | 17.19  |                    |   |   | - |   |
| Exercised                          |   |                             | (9,000    | )       |                          | $      | 4.95   |                    |   |   | - |   |
| Balance, December 31, 2009         |   |                             | 1,598,283 |    |                          | $      | 11.38  |                    |   | $ | 2,383,162 |   |
| Granted                            |   |                             | 156,530   |    |                          | $      | 8.61   |                    |   |   | - |   |
| Forfeited                          |   |                             | (138,805  | )       |                          | $      | 7.45   |                    |   |   | - |   |
| Expired                            |   |                             | (496,333  | )       |                          | $      | 13.92  |                    |   |   | - |   |
| Exercised                          |   |                             | (14,250   | )       |                          | $      | 4.95   |                    |   |   | - |   |
| Balance, June 30, 2010 (unaudited) |   |                             | 1,105,425 |    |                          | $      | 10.42  |                    |   | $ | 897,714 |   |

|   | Outstanding Option |   | Exercisable Options |      |
|--------|-------------------------|--------|--------------------------|-----------|
|   | ExercisePrice           |   | Number                   |      | AverageRemainingContractualLife |   | AverageExercisePrice |   |   | Number |   |   | WeightedAverageExercisePrice |   |
| $      | 12.30                   |   |                     | 100,000   |   | 1.89 years |   | $ | 12.30 |   |   |   | 100,000 |   |   | $ | 12.30 |   |
| $      | 11.75                   |   |                     | 150,000   |   | 2.01 years |   | $ | 11.75 |   |   |   | 150,000 |   |   | $ | 11.75 |   |
| $      | 13.70                   |   |                     | 125,000   |   | 1.24 years |   | $ | 13.70 |   |   |   | 125,000 |   |   | $ | 13.70 |   |
| $      | 16.36                   |   |                     | 10,000    |   | 1.37 years |   | $ | 16.36 |   |   |   | 10,000 |   |   | $ | 16.36 |   |
| $      | 23.25                   |   |                     | 59,000    |   | 1.50 years |   | $ | 23.25 |   |   |   | 59,000 |   |   | $ | 23.25 |   |
| $      | 15.04                   |   |                     | 17,000    |   | 1.78 years |   | $ | 15.04 |   |   |   | 17,000 |   |   | $ | 15.04 |   |
| $      | 20.04                   |   |                     | 50,000    |   | 2.89 years |   | $ | 20.04 |   |   |   | 50,000 |   |   | $ | 20.04 |   |
| $      | 4.95                    |   |                     | 262,450   |   | 2.50 years |   | $ | 4.95 |   |   |   | 262,450 |   |   | $ | 4.95 |   |
| $      | 7.93                    |   |                     | 200,000   |   | 9.41 years |   | $ | 7.93 |   |   |   | - |   |   | $ | 7.93 |   |
| $      | 8.61                    |   |                     | 131,975   |   | 6.51 years |   | $ | 8.61 |   |   |   | 38,614 |   |   | $ | 8.61 |   |
|   | Total                   |   |                     | 1,105,425 |   |   |   |   |   |   |   |   | 812,064 |   |   |   |   |   |

----

|                     |      |   | As of February 5, 2010 |      |
|--------------------------|-----------|--------|------------------------|-----------|
|                     |      |   |                   | USD       |   |
| Consideration       |      |   |                   |      |   |
| Cash                     |      |   |                   | 5,075,000 |   |
| Contingent consideration |  (i) |   |                   | 4,819,107 |   |
|                     |      |   |                   | 9,894,107 |   |

| Fair values of identifiable assets acquired and liabilities assumed |   |   |       |    |
|---------------------------------------------------------------------|--------|--------|------------|---------|
| Cash                                                                |   |   | 859,243    |    |
| Other current assets                                                |   |   | 3,879,155  |    |
| Property and equipment                                              |   |   | 6,132,168  |    |
| Land use right                                                      |   |   | 1,693,759  |    |
| Current liabilities                                                 |   |   | (2,977,257 | )  |
| Non-current deferred income tax liabilities                         |   |   | (260,853   | )  |
| Total identifiable assets acquired and liabilities assumed          |   |   | 9,326,215  |    |
| Goodwill                                                            |   |   | 567,892    |    |
|                                                                |   |   | 9,894,107  |    |

| (i) | On February 5, 2010, the Company estimated the possibility that Jinchuan would meet the performance target was 100% and the expected payment date was one year after the acquisition date. Thus the fair value of the contingent consideration arrangement was determined at $ 4,819,107 by using an annual discount rate of 5.31%.  |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|                                   |   | As of May 31, 2010 |      |
|----------------------------------------|--------|--------------------|-----------|
|                                   |   |               |  USD |   |
| Consideration                          |   |               |      |   |
| Cash                                   |   |               | 1,300,000 |   |
| 263,158 ordinary shares of the Company |   |               | 2,600,000 |   |
|                                   |   |               | 3,900,000 |   |

|                                                                |   |   |       |    |
|---------------------------------------------------------------------|--------|--------|------------|---------|
| Fair values of identifiable assets acquired and liabilities assumed |   |   |       |    |
| Cash                                                                |   |   | 42,199     |    |
| Other current assets                                                |   |   | 807,122    |    |
| Property and equipment                                              |   |   | 5,090,700  |    |
| Intangible assets                                                   |   |   | 292,942    |    |
| Current liabilities                                                 |   |   | (3,026,173 | )  |
| Non-current deferred income tax liabilities                         |   |   | (408,687   | )  |
| Total identifiable assets acquired and liabilities assumed          |   |   | 2,798,103  |    |
| Goodwill                                                            |   |   | 1,101,897  |    |
|                                                                |   |   | 3,900,000  |    |

----

| Pro forma                    |   | For the threemonths endedJune 30, |       |   | For the threemonths endedJune 30, |   |       | For the sixmonths endedJune 30, |   |   | For the sixmonths endedJune 30, |   |
|------------------------------|--------|-------------------------------------------------------|------------|--------|-------------------------------------------------------|--------|------------|-----------------------------------------------------|--------|--------|-----------------------------------------------------|--------|
|                         |   | 2010                                                  |       |   | 2009                                                  |   |       | 2010                                                |   |   | 2009                                                |   |
| Sales                        |   | $                                                     | 70,695,518 |   |                                                  | $      | 57,704,974 |                                                |   | $      | 133,904,554                                         |   |   | $ | 99,510,940 |   |
| Cost of Goods Sold           |   |                                                  | 50,515,589 |   |                                                  |   | 41,920,866 |                                                |   |   | 94,923,669                                          |   |   |   | 73,140,166 |   |
| Gross Profit                 |   |                                                  | 20,179,929 |   |                                                  |   | 15,784,108 |                                                |   |   | 38,980,885                                          |   |   |   | 26,370,774 |   |
| Operating Expenses           |   |                                                  | 5,525,752  |   |                                                  |   | 4,512,118  |                                                |   |   | 10,681,690                                          |   |   |   | 9,043,390 |   |
| Income from Operations       |   |                                                  | 14,654,177 |   |                                                  |   | 11,271,990 |                                                |   |   | 28,299,195                                          |   |   |   | 17,327,384 |   |
| Other Income (Expense), net  |   |                                                  | 251,070    |   |                                                  |   | (7,767,524 | )                                              |   |   | (2,495,229                                          | )      |   |   | (12,791,938 | ) |
| Income before Income Tax     |   |                                                  | 14,905,247 |   |                                                  |   | 3,504,466  |                                                |   |   | 25,803,966                                          |   |   |   | 4,535,445 |   |
| Income tax expense (benefit) |   |                                                  | 2,203,009  |   |                                                  |   | 875,078    |                                                |   |   | 3,448,965                                           |   |   |   | (413,160 | )  |
| Net Income                   |   | $                                                     | 12,702,238 |   |                                                  | $      | 2,629,388  |                                                |   | $      | 22,355,001                                          |   |   | $ | 4,948,605 |   |

----

|              |   | For the six monthsended June 30, 2010 |      |   | For the six monthsended June 30, 2009 |   |
|-------------------|--------|-----------------------------------------------------------|-----------|--------|---------------------------------------------------------------------|--------|
| Revenue           |   | $                                                         | 2,285,317 |   |                                                                | $      | 1,398,157 |   |
| Net income (loss) |   |                                                      | 60,032    |   |                                                                |   | (186,234 | ) |

|              |   | For the three monthsended June 30, 2010 |      |   | For the three monthsended June 30, 2009 |   |
|-------------------|--------|-----------------------------------------------------------------------|-----------|--------|-----------------------------------------------------------------------|--------|
| Revenue           |   | $                                                                     | 1,135,015 |   |                                                                  | $      | 701,437 |   |
| Net income (loss) |   |                                                                  | 27,590    |   |                                                                  |   | (156,979 | ) |

|   |   | June 30, 2010 |      |   | December 31, 2009 |   |
|--------|--------|-------------------------|-----------|--------|-----------------------------|--------|
| Assets |   | $                       | 2,950,494 |   |                        | $      | 2,673,254 |   |

| For the six months ended June30, 2010         |   |   |        |   |   |   |       |      |   |   |         |   |   |   |       |
|-----------------------------------------------------------------------------|--------|--------|-------------|--------|--------|--------|------------|-----------|--------|--------|--------------|--------|--------|--------|------------|
|                                                                        |   | PRC    |        |   | US     |   |       | Corporate |   |   | Eliminations |   |   | Total  |       |
| Revenues                                                                    |   | $      | 103,097,984 |   |   | $      | 27,425,876 |      |   | $      | -            |   |   | $      | (1,968,652 | ) |   | $ | 128,555,208 |   |
| Gross Profit                                                                |   |   | 33,556,710  |   |   |   | 3,854,703  |      |   |   | -            |   |   |   | -          |   |   |   | 37,411,413 |   |
| Selling, general and administrative expenses                                |   |   | 5,615,718   |   |   |   | 2,656,730  |      |   |   | 2,151,494    |   |   |   | -          |   |   |   | 10,423,942 |   |
| Operating income (loss)                                                     |   |   | 27,940,992  |   |   |   | 1,197,973  |      |   |   | (2,151,494   | )      |   |   | -          |   |   |   | 26,987,471 |   |
| Capital expenditures                                                        |   |   | 1,594,149   |   |   |   | 142,246    |      |   |   | -            |   |   |   | -          |   |   |   | 1,736,395 |   |
| Depreciation expense (Included in cost of goods sold and Operating expense) |   | $      | 4,736,398   |   |   | $      | 973,632    |      |   | $      | -            |   |   | $      | -          |   |   | $ | 5,710,030 |   |

----

| For the three months ended June 30, 2010                                    |   |   |       |   |   |   |       |      |   |   |         |   |   |   |     |
|-----------------------------------------------------------------------------|--------|--------|------------|--------|--------|--------|------------|-----------|--------|--------|--------------|--------|--------|--------|----------|
|                                                                        |   | PRC    |       |   | US     |   |       | Corporate |   |   | Eliminations |   |   | Total  |     |
| Revenues                                                                    |   | $      | 55,733,198 |   |   | $      | 14,119,871 |      |   | $      | -            |   |   | $      | (847,703 | ) |   | $ | 69,005,366 |   |
| Gross Profit                                                                |   |   | 17,542,417 |   |   |   | 2,047,730  |      |   |   | -            |   |   |   | -        |   |   |   | 19,590,147 |   |
| Selling, general and administrative expenses                                |   |   | 2,980,781  |   |   |   | 1,319,864  |      |   |   | 1,148,785    |   |   |   | -        |   |   |   | 5,449,430 |   |
| Operating income (loss)                                                     |   |   | 14,561,636 |   |   |   | 727,866    |      |   |   | (1,148,785   | )      |   |   | -        |   |   |   | 14,140,717 |   |
| Capital expenditures                                                        |   |   | 347,236    |   |   |   | 126,666    |      |   |   | -            |   |   |   | -        |   |   |   | 473,902 |   |
| Depreciation expense (Included in cost of goods sold and Operating expense) |   | $      | 2,497,416  |   |   | $      | 485,189    |      |   | $      | -            |   |   | $      | -        |   |   | $ | 2,982,605 |   |

| For the six months ended June 30, 2009                                      |   |   |       |   |   |   |       |      |   |   |         |   |   |   |   |
|-----------------------------------------------------------------------------|--------|--------|------------|--------|--------|--------|------------|-----------|--------|--------|--------------|--------|--------|--------|--------|
|                                                                        |   | PRC    |       |   | US     |   |       | Corporate |   |   | Eliminations |   |   | Total  |   |
| Revenues                                                                    |   | $      | 65,817,481 |   |   | $      | 17,649,847 |      |   | $      | -            |   |   | $      | 90,753 |   |   | $ | 83,558,081 |   |
| Gross Profit                                                                |   |   | 20,888,875 |   |   |   | 1,503,180  |      |   |   | -            |   |   |   | -      |   |   |   | 22,392,055 |   |
| Selling, general and administrative expenses                                |   |   | 3,493,460  |   |   |   | 2,931,883  |      |   |   | 2,100,821    |   |   |   | -      |   |   |   | 8,526,164 |   |
| Operating income (loss)                                                     |   |   | 17,395,415 |   |   |   | (1,428,703 | )         |   |   | (2,100,821   | )      |   |   | -      |   |   |   | 13,865,891 |   |
| Capital expenditures                                                        |   |   | 5,353,890  |   |   |   | 255,645    |      |   |   | -            |   |   |   | -      |   |   |   | 5,609,535 |   |
| Depreciation expense (Included in cost of goods sold and Operating expense) |   | $      | 3,780,340  |   |   | $      | 832,065    |      |   | $      | -            |   |   | $      | -      |   |   | $ | 4,612,405 |   |

| For the three months ended June 30, 2009                                    |   |   |       |   |   |   |      |      |   |   |                           |   |   |   |    |
|-----------------------------------------------------------------------------|--------|--------|------------|--------|--------|--------|-----------|-----------|--------|--------|--------------------------------|--------|--------|--------|---------|
|                                                                        |   | PRC    |       |   | US     |   |      | Corporate |   |   | Eliminations                   |   |   | Total  |    |
| Revenues                                                                    |   | $      | 39,480,037 |   |   | $      | 8,879,618 |      |   | $      |       |   |   | $      | (58,110 | ) |   | $ | 48,301,545 |   |
| Gross Profit                                                                |   |   | 12,229,639 |   |   |   | 1,223,041 |      |   |   |                           |   |   |   |    |   |   |   | 13,452,680 |   |
| Selling, general and administrative expenses                                |   |   | 1,829,642  |   |   |   | 1,335,836 |      |   |   | 1,088,297                      |   |   |   |    |   |   |   | 4,253,775 |   |
| Operating income (loss)                                                     |   |   | 10,399,997 |   |   |   | (112,795  | )         |   |   | (1,088,297                     | )      |   |   |    |   |   |   | 9,198,905 |   |
| Capital expenditures                                                        |   |   | 100,857    |   |   |   | 78,280    |      |   |   |                           |   |   |   |    |   |   |   | 179,137 |   |
| Depreciation expense (Included in cost of goods sold and Operating expense) |   | $      | 2,046,456  |   |   | $      | 468,741   |      |   | $      |                           |   |   | $      |    |   |   | $ | 2,515,197 |   |

|                               |   | PRC    |        |   | US     |   |       | Corporate |   |   | Total      |   |
|------------------------------------|--------|--------|-------------|--------|--------|--------|------------|-----------|--------|--------|------------|--------|
| As of June 30, 2010                |   |   |        |   |   |   |       |      |   |   |       |   |
| Property, plant and equipment, net |   | $      | 114,116,359 |   |   | $      | 11,249,468 |      |   | $      | -          |   |   | $ | 125,365,827 |   |
|                               |   |   |        |   |   |   |       |      |   |   |       |   |   |   |   |   |
| Total assets                       |   | $      | 296,343,667 |   |   | $      | 28,990,694 |      |   | $      | 18,190,668 |   |   | $ | 343,525,029 |   |
|                               |   |   |        |   |   |   |       |      |   |   |       |   |   |   |   |   |
| As of December 31, 2009            |   |   |        |   |   |   |       |      |   |   |       |   |   |   |   |   |
| Property, plant and equipment, net |   | $      | 105,190,257 |   |   | $      | 12,195,309 |      |   | $      | -          |   |   | $ | 117,385,566 |   |
|                               |   |   |        |   |   |   |       |      |   |   |       |   |   |   |   |   |
| Total assets                       |   | $      | 254,054,799 |   |   | $      | 25,902,180 |      |   | $      | 17,338,145 |   |   | $ | 297,295,124 |   |

----

----

|                                                                                                                                                                                         |   | June 30,  |        |   | December 31, |   |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-----------|-------------|--------|--------------|--------|
|                                                                                                                                                                                         |   | 2010      |        |   | 2009         |   |
|                                                                                                                                                                                         |   | Unaudited |        |   |         |   |
| ASSETS                                                                                                                                                                                       |   |      |        |   |         |   |
| CURRENT ASSETS:                                                                                                                                                                              |   |      |        |   |         |   |
| Cash                                                                                                                                                                                         |   | $         | 2,942,185   |   |         | $      | 98,839 |   |
| Deposit in derivative hedge                                                                                                                                                                  |   |      | -           |   |         |   | 1,000,000 |   |
| Total current assets                                                                                                                                                                         |   |      | 2,942,185   |   |         |   | 1,098,839 |   |
|                                                                                                                                                                                         |   |      |        |   |         |   |   |   |
| OTHER ASSETS:                                                                                                                                                                                |   |      |        |   |         |   |   |   |
| Investments in subsidiaries                                                                                                                                                                  |   |      | 321,411,407 |   |         |   | 290,640,043 |   |
| Deferred loan expense, net                                                                                                                                                                   |   |      | -           |   |         |   | 1,955,778 |   |
| Deferred tax assets                                                                                                                                                                          |   |      | 15,248,484  |   |         |   | 14,283,528 |   |
| Total other assets                                                                                                                                                                           |   |      | 336,659,891 |   |         |   | 306,879,349 |   |
|                                                                                                                                                                                         |   |      |        |   |         |   |   |   |
| Total assets                                                                                                                                                                                 |   | $         | 339,602,076 |   |         | $      | 307,978,188 |   |
|                                                                                                                                                                                         |   |      |        |   |         |   |   |   |
| LIABILITIES AND SHAREHOLDERS' EQUITY                                                                                                                                                         |   |      |        |   |         |   |   |   |
|                                                                                                                                                                                         |   |      |        |   |         |   |   |   |
| CURRENT LIABILITIES:                                                                                                                                                                         |   |      |        |   |         |   |   |   |
| Notes payable, current                                                                                                                                                                       |   | $         | -           |   |         | $      | 10,000,000 |   |
| Other payables and accrued liabilities                                                                                                                                                       |   |      | 887,035     |   |         |   | 2,609,037 |   |
| Cross currency hedge payable                                                                                                                                                                 |   |      | -           |   |         |   | 436,702 |   |
| Total current liabilities                                                                                                                                                                    |   |      | 887,035     |   |         |   | 13,045,739 |   |
|                                                                                                                                                                                         |   |      |        |   |         |   |   |   |
| LONG-TERM  LIABILITIES:                                                                                                                                                            |   |      |        |   |         |   |   |   |
| Intercompany payables                                                                                                                                                                        |   |      | 16,687,854  |   |         |   | 22,863,141 |   |
| Notes payable, non-current                                                                                                                                                                   |   |      | -           |   |         |   | 25,000,000 |   |
| Fair value of derivative instrument                                                                                                                                                          |   |      | -           |   |         |   | 7,532,527 |   |
| Total long-term liabilities                                                                                                                                                                  |   |      | 16,687,854  |   |         |   | 55,395,668 |   |
|                                                                                                                                                                                         |   |      |        |   |         |   |   |   |
| Total liabilities                                                                                                                                                                            |   |      | 17,574,889  |   |         |   | 68,441,407 |   |
|                                                                                                                                                                                         |   |      |        |   |         |   |   |   |
| COMMITMENTS AND CONTINGENCIES                                                                                                                                                                |   |      |        |   |         |   |   |   |
|                                                                                                                                                                                         |   |      |        |   |         |   |   |   |
| SHAREHOLDERS' EQUITY:                                                                                                                                                                        |   |      |        |   |         |   |   |   |
| Preferred stock,$0.001 par value, 5,000,000 shares authorized, none issued or outstanding as of June 30, 2010 and December 31, 2009                                                          |   |      | -           |   |         |   | - |   |
| Common stock,$0.006  par value, 100,000,000 shares authorized, June 30, 2010: 37,518,595 shares issued and outstanding December 31, 2009: 29,772,780 shares issued and outstanding |   |      | 225,113     |   |         |   | 178,638 |   |
| Additional paid in capital                                                                                                                                                                   |   |      | 164,829,350 |   |         |   | 105,540,676 |   |
| Statutory reserves                                                                                                                                                                           |   |      | 19,511,407  |   |         |   | 16,282,793 |   |
| Retained earnings                                                                                                                                                                            |   |      | 110,473,348 |   |         |   | 92,312,280 |   |
| Accumulated other comprehensive income                                                                                                                                                       |   |      | 26,987,969  |   |         |   | 25,222,394 |   |
| Total shareholders' equity                                                                                                                                                                   |   |      | 322,027,187 |   |         |   | 239,536,781 |   |
|                                                                                                                                                                                         |   |      |        |   |         |   |   |   |
| Total liabilities and shareholders' equity                                                                                                                                                   |   | $         | 339,602,076 |   |         | $      | 307,978,188 |   |

----

|                                               |   | Three months ended June 30, |       |   | Six months ended June 30, |   |
|----------------------------------------------------|--------|-----------------------------|------------|--------|---------------------------|--------|
|                                               |   | 2010                        |       |   | 2009                      |   |   | 2010 |   |   | 2009 |   |
|                                               |   |                        |       |   |                      |   |   |   |   |   |   |   |
| OPERATING EXPENSES                                 |   |                        |       |   |                      |   |   |   |   |   |   |   |
|                                               |   |                        |       |   |                      |   |   |   |   |   |   |   |
| General and administrative expenses                |   | $                           | 1,148,785  |   |                      | $      | 1,088,297 |   |   | $ | 2,151,494 |   |   | $ | 2,100,821 |   |
| Total operating expenses                           |   |                        | 1,148,785  |   |                      |   | 1,088,297 |   |   |   | 2,151,494 |   |   |   | 2,100,821 |   |
|                                               |   |                        |       |   |                      |   |   |   |   |   |   |   |   |   |   |   |
| OTHER INCOME (EXPENSE)                             |   |                        |       |   |                      |   |   |   |   |   |   |   |   |   |   |   |
|                                               |   |                        |       |   |                      |   |   |   |   |   |   |   |   |   |   |   |
| Interest and other expense, net                    |   |                        | 13,634     |   |                      |   | (1,430,166 | ) |   |   | (444,422 | ) |   |   | (2,804,009 | ) |
| Loss on cross currency hedge                       |   |                        | -          |   |                      |   | (215,964 | ) |   |   | (753,666 | ) |   |   | (382,374 | ) |
| Loss on debt extinguishment                        |   |                        | -          |   |                      |   | - |   |   |   | (2,395,778 | ) |   |   | - |   |
| Change in derivative liability - warrants          |   |                        | -          |   |                      |   | (688,876 | ) |   |   | - |   |   |   | (752,114 | ) |
| Change in derivative liability - conversion option |   |                        | -          |   |                      |   | (4,583,809 | ) |   |   | - |   |   |   | (5,122,846 | ) |
| Change in fair value of derivative instrument      |   |                        | -          |   |                      |   | (751,227 | ) |   |   | 882,527 |   |   |   | (3,513,356 | ) |
| Other income (expense), net                        |   |                        | 306,040    |   |                      |   | - |   |   |   | 306,040 |   |   |   | - |   |
| Total  other income (expense), net       |   |                        | 319,674    |   |                      |   | (7,670,042 | ) |   |   | (2,405,299 | ) |   |   | (12,574,699 | ) |
|                                               |   |                        |       |   |                      |   |   |   |   |   |   |   |   |   |   |   |
| EQUITY INCOME EARNINGS OF SUBSIDIARIES             |   |                        | 13,066,724 |   |                      |   | 8,831,632 |   |   |   | 24,981,519 |   |   |   | 13,461,074 |   |
|                                               |   |                        |       |   |                      |   |   |   |   |   |   |   |   |   |   |   |
| INCOME (LOSS) BEFORE INCOME TAXES             |   |                        | 12,237,613 |   |                      |   | 73,293 |   |   |   | 20,424,726 |   |   |   | (1,214,446 | ) |
|                                               |   |                        |       |   |                      |   |   |   |   |   |   |   |   |   |   |   |
| BENEFIT FOR INCOME TAXES                           |   |                        | 79,529     |   |                      |   | 993,597 |   |   |   | 964,956 |   |   |   | 3,559,248 |   |
|                                               |   |                        |       |   |                      |   |   |   |   |   |   |   |   |   |   |   |
| NET INCOME                                         |   |                        | 12,317,143 |   |                      |   | 1,066,890 |   |   |   | 21,389,682 |   |   |   | 2,344,802 |   |
|                                               |   |                        |       |   |                      |   |   |   |   |   |   |   |   |   |   |   |
| OTHER COMPREHENSIVE INCOME (LOSS):                 |   |                        |       |   |                      |   |   |   |   |   |   |   |   |   |   |   |
| Foreign currency translation adjustment            |   |                        | 1,890,314  |   |                      |   | 433,866 |   |   |   | 1,765,575 |   |   |   | 39,957 |   |
|                                               |   |                        |       |   |                      |   |   |   |   |   |   |   |   |   |   |   |
| COMPREHENSIVE INCOME                               |   | $                           | 14,207,457 |   |                      | $      | 1,500,756 |   |   | $ | 23,155,257 |   |   | $ | 2,384,759 |   |

----

|                                                              |   | 2010   |        |   | 2009   |   |
|-------------------------------------------------------------------|--------|--------|-------------|--------|--------|--------|
| CASH FLOWS FROM OPERATING ACTIVITIES:                             |   |   |        |   |   |   |
| Net Income                                                        |   | $      | 21,389,682  |   |   | $      | 2,344,802 |   |
| Adjustments to reconcile net income used in operating activities: |   |   |        |   |   |   |   |   |
| Change in fair value of derivative instrument                     |   |   | (882,527    | )      |   |   | 3,513,356 |   |
| Equity in earnings of subsidiaries                                |   |   | (24,981,519 | )      |   |   | (13,461,074 | ) |
| Deferred taxes                                                    |   |   | (964,956    | )      |   |   | (3,559,248 | ) |
| Amortization of loan commission                                   |   |   | 160,000     |   |   |   | 524,995 |   |
| Amortization of stock compensation expense                        |   |   | 373,649     |   |   |   | 928,727 |   |
| Loss on cross currency hedge                                      |   |   | 753,666     |   |   |   | 382,374 |   |
| Loss on derivative instrument settlement                          |   |   | -           |   |   |   | - |   |
| Loss on debt extinguishment                                       |   |   | 2,395,778   |   |   |   | - |   |
| Change in derivative liability - warrants                         |   |   | -           |   |   |   | 752,114 |   |
| Change in derivative liability - conversion option                |   |   | -           |   |   |   | 5,122,846 |   |
| Change in operating assets and liabilities:                       |   |   |        |   |   |   |   |   |
| Other payables and accrued liabilities                            |   |   | (1,722,002  | )      |   |   | (1,866,167 | ) |
| Net cash used in operating activities                             |   |   | (3,478,229  | )      |   |   | (5,317,275 | ) |
|                                                              |   |   |        |   |   |   |   |   |
| CASH FLOWS FROM INVESTING ACTIVITIES:                             |   |   |        |   |   |   |   |   |
| Investment in subsidiaries                                        |   |   | (4,024,270  | )      |   |   | (2,630,754 | ) |
| Payment for unwind of cross currency hedge                        |   |   | (5,650,000  | )      |   |   | - |   |
| Payments on cross currency hedge payable                          |   |   | (1,190,368  | )      |   |   | (114,580 | ) |
| Net cash used in investing activities                             |   |   | (10,864,638 | )      |   |   | (2,745,334 | ) |
|                                                              |   |   |        |   |   |   |   |   |
| CASH FLOWS FROM FINANCING ACTIVITIES:                             |   |   |        |   |   |   |   |   |
| Intercompany payables                                             |   |   | (3,575,287  | )      |   |   | 5,255,842 |   |
| Change in restricted cash                                         |   |   | -           |   |   |   | 1,000,000 |   |
| Payment of high yield notes payable                               |   |   | (35,600,000 | )      |   |   | - |   |
| Proceeds on issuance of common stock and warrants                 |   |   | 56,361,500  |   |   |   | 1,920,000 |   |
| Net cash provided by financing activities                         |   |   | 17,186,213  |   |   |   | 8,175,842 |   |
|                                                              |   |   |        |   |   |   |   |   |
| CHANGE IN CASH                                                    |   |   | 2,843,346   |   |   |   | 113,233 |   |
|                                                              |   |   |        |   |   |   |   |   |
| CASH, beginning of period                                         |   |   | 98,839      |   |   |   | 30,414 |   |
|                                                              |   |   |        |   |   |   |   |   |
| CASH, end of period                                               |   | $      | 2,942,185   |   |   | $      | 143,647 |   |
|                                                              |   |   |        |   |   |   |   |   |
| SUPPLEMENTAL CASH FLOWS DISCLOSURE:                               |   |   |        |   |   |   |   |   |
| Interest paid                                                     |   | $      | 1,343,849   |   |   | $      | 1,852,432 |   |

----

|                                                                   |   | June 30, 2010 |   |   | December 31, 2009 |   |
|------------------------------------------------------------------------|--------|-------------------------|--------|--------|-----------------------------|--------|
|                                                                   |   | (Unaudited)             |   |   |                        |   |
| Guaranteed senior secured floating rate notes (“HY Notes”) |   |                    | -      |   |                        |   | 35,000,000 |   |
| Less current portion                                                   |   |                    | -      |   |                        |   | 10,000,000 |   |
| Total notes payable, noncurrent                                        |   | $                       | -      |   |                        | $      | 25,000,000 |   |

----

| Balance Sheet sheet items              |   | June 30  |        |   | June 30  |   |        | December 31 |   |   | December 31 |   |
|----------------------------------------|--------|----------|-------------|--------|----------|--------|-------------|-------------|--------|--------|-------------|--------|
|                                   |   | 2010     |        |   | 2010     |   |        | 2009        |   |   | 2009        |   |
|                                   |   | Restated |        |   | Original |   |        | Restated    |   |   | Original    |   |
|                                   |   |     |        |   |     |   |        |        |   |   |        |   |   |   |
| Plant and Equipment, net               |   | $        | 125,365,827 |   |     | $      | 130,964,932 |        |   | $      |        |   |   | $ |   |   |
| Intangible assets, net                 |   |     | 13,659,841  |   |     |   | 14,275,013  |        |   |   |        |   |   |   |
| Goodwill                               |   |     | 1,669,789   |   |     |   | -           |        |   |   |        |   |   |   |
| Deferred tax assets                    |   |     |        |   |     |   |        |        |   |   | 14,283,528  |   |   |   | 11,722,469 |   |
| Tax payable                            |   |     | 3,278,520   |   |     |   | 3,907,036   |        |   |   |        |   |   |   |   |   |
| Deferred Tax Liabilities               |   |     | 669,540     |   |     |   | -           |        |   |   |        |   |   |   |   |   |
| Commitment and Contingencies           |   |     | 4,881,843   |   |     |   | 5,075,000   |        |   |   |        |   |   |   |   |   |
|                                   |   |     |        |   |     |   |        |        |   |   |        |   |   |   |   |   |
| Retained earnings                 |   |     | 110,473,348 |   |     |   | 114,865,703 |        |   |   | 92,312,280  |   |   |   | 97,283,748 |   |
| Accumulated other comprehensive income |   |     |        |   |     |   |        |        |   |   | 25,222,394  |   |   |   | 17,689,867 |   |
| Total shareholders' equity             |   |     | 322,027,187 |   |     |   | 326,419,542 |        |   |   | 239,536,781 |   |   |   | 236,975,722 |   |
| Total Assets                           |   | $        | 343,525,029 |   |     | $      | 348,069,517 |        |   | $      | 297,295,124 |   |   | $ | 294,734,065 |   |

----

| Income Statement items                                     |   | FOR THE THREE MONTHS ENDED JUNE 30, |       |
|------------------------------------------------------------|--------|-------------------------------------|------------|
|                                                       |   | 2010                                |       |   | 2010 |   |   | 2009 |   |   | 2009 |   |
|                                                       |   | Restated                            |       |   | Original |   |   | Restated |   |   | Original |   |
|                                                       |   |                                |       |   |   |   |   |   |   |   |   |   |
| General and administrative expenses                        |   | $                                   | 4,084,266  |   |   | $ | 4,161,196 |   |   | $ |   |   |   | $ |   |   |
| Acquisition gain                                           |   |                                | -          |   |   |   | 1,765,376 |   |   |   |   |   |   |   |
| Interest expense                                           |   |                                | (68,709    | ) |   |   | (5,973 | ) |   |   |   |   |   |   |
| Change in fair value of derivative instrument- gain/(loss) |   |                                |       |   |   |   |   |   |   |   | (751,227 | ) |   |   |   |   |
| Deferred income tax expense (benefit)                      |   |                                |       |   |   |   |   |   |   |   | (993,597 | ) |   |   | (738,180 | ) |
| Current income tax expense                                 |   |                                | 2,154,273  |   |   |   | 2,782,689 |   |   |   |   |   |   |   |   |   |
| Net Income                                                 |   |                                | 12,317,143 |   |   |   | 13,439,809 |   |   |   | 1,066,890 |   |   |   | 1,562,700 |   |
| Other Comprehensive Income                                 |   |                                |       |   |   |   |   |   |   |   | 433,866 |   |   |   | (317,361 | ) |
| Comprehensive Income                                       |   | $                                   | 14,207,457 |   |   | $ | 15,330,123 |   |   | $ | 1,500,756 |   |   | $ | 1,245,339 |   |
|                                                       |   |                                |       |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Earnings per share:                                        |   |                                |       |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Basic                                                      |   | $                                   | 0.33       |   |   | $ | 0.36 |   |   | $ | 0.04 |   |   | $ | 0.06 |   |
| Diluted                                                    |   | $                                   | 0.32       |   |   | $ | 0.35 |   |   | $ | 0.04 |   |   | $ | 0.06 |   |

|                                                       |   |                              |       |   |     |   |       |     |   |   |       |   |
|------------------------------------------------------------|--------|-----------------------------------|------------|--------|----------|--------|------------|----------|--------|--------|------------|--------|
| Income Statement items                                     |   | FOR THE SIX MONTHS ENDED JUNE 30, |       |
|                                                       |   | 2010                              |       |   | 2010     |   |       | 2009     |   |   | 2009       |   |
|                                                       |   | Restated                          |       |   | Original |   |       | Restated |   |   | Original   |   |
|                                                       |   |                              |       |   |     |   |       |     |   |   |       |   |
| General and administrative expenses                        |   | $                                 | 7,806,816  |   |     | $      | 7,919,070  |     |   | $      |       |   |   | $ |   |   |
| Acquisition gain                                           |   |                              | -          |   |     |   | 5,070,389  |     |   |   |       |   |   |   |
| Loss on extinguishment of derivative instrument            |   |                              |       |   |     |   | (6,650,000 | )        |   |   |       |   |   |   |
| Interest expense                                           |   |                              | (577,191   | )      |     |   | (514,455   | )        |   |   |       |   |   |   |
| Change in fair value of derivative instrument- gain/(loss) |   |                              | 882,527    |   |     |   | -          |     |   |   | (3,513,356 | )      |   |   | - |   |
| Deferred income tax expense (benefit)                      |   |                              | (964,956   | )      |     |   | (3,526,015 | )        |   |   | (3,559,248 | )      |   |   | (2,364,707 | ) |
| Current income tax expense                                 |   |                              | 4,090,134  |   |     |   | 4,718,650  |     |   |   |       |   |   |   |   |   |
| Net Income                                                 |   |                              | 21,389,682 |   |     |   | 20,810,569 |     |   |   | 2,344,802  |   |   |   | 4,663,617 |   |
| Other Comprehensive Income                                 |   |                              | 1,765,575  |   |     |   | 9,298,102  |     |   |   | 39,958     |   |   |   | (3,473,399 | ) |
| Comprehensive Income                                       |   | $                                 | 23,155,257 |   |     | $      | 30,108,671 |     |   | $      | 2,384,760  |   |   | $ | 1,190,218 |   |
|                                                       |   |                              |       |   |     |   |       |     |   |   |       |   |   |   |   |   |
| Earnings per share:                                        |   |                              |       |   |     |   |       |     |   |   |       |   |   |   |   |   |
| Basic                                                      |   | $                                 | 0.59       |   |     | $      | 0.58       |     |   | $      | 0.08       |   |   | $ | 0.17 |   |
| Diluted                                                    |   | $                                 | 0.58       |   |     | $      | 0.57       |     |   | $      | 0.08       |   |   | $ | 0.17 |   |

----

----

|   | · | Investing in organic and inorganic growth in both infrastructure-based and fast-growing markets; |
|--------|--------|--------------------------------------------------------------------------------------------------|

|   | · | Focusing on new, higher-margin products, applications and markets through investment in new machinery and research and development; |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Improving business processes throughout the Company by focusing on key performance indicators and operational excellence; |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------|

|   | · | Strategically hiring and developing  talent, to improve the effectiveness of our performance management processes; and |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------|

|   | · | Protecting and enhancing the Fushi Copperweld brand. |
|--------|--------|------------------------------------------------------|

----

|   | · | GAAP net income increased 1054.5% to $12.3M or $0.32 per diluted share compared to the three months ended June 30, 2009, adjusted net income increased 76.1% to $12.4M or $0.33 per diluted share; |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Metric tons of volume shipped from our US segment increased 28.6% compared to the second quarter of 2009; |
|--------|--------|-----------------------------------------------------------------------------------------------------------|

|   | · | Added 8,200 metric tons of additional capacity of CCS at our Dalian facility; |
|--------|--------|-------------------------------------------------------------------------------|

|   | · | Operating income margin increased 150 basis points from 19.0% to 20.5% of revenues; |
|--------|--------|-------------------------------------------------------------------------------------|

|   | · | Returned to profitability at Fayetteville facility; generated approximately $0.6 million of net income; and |
|--------|--------|-------------------------------------------------------------------------------------------------------------|

|   | · | Closed acquisition of Hongtai to establish new facility in Yixing, China. |
|--------|--------|--------------------------------------------------------------------------------|

----

|   | · | Government stimulus packages focused on infrastructure: high-speed railways, transmission and distribution and power grid build out; |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Worldwide underlying long-term growth trends in the electric utility and infrastructure markets; |
|--------|--------|--------------------------------------------------------------------------------------------------|

|   | · | Population growth in developing countries with growing middle classes which influence demand for wire and cable; and |
|--------|--------|----------------------------------------------------------------------------------------------------------------------|

|   | · | Continuing demand for cost effective, energy saving alternatives. |
|--------|--------|-------------------------------------------------------------------|

----

| (in millions, except percentages) |   | Three Months Ended |   |   |          |   |   | Six Months Ended |   |   |          |   |
|--------------------------------------------------|--------|------------------------------|--------|--------|---------------|--------|--------|----------------------------|--------|--------|---------------|--------|
|                                        |   | June 30,                |   |   | June 30, |   |   |                       |   |   | June 30, |   |   | June 30, |   |   |   |   |
|                                        |   | 2010                         |   |   | 2009          |   |   | % Change              |   |   | 2010          |   |   | 2009 |   |   | % Change |   |
| Revenues                                         |   | $                            | 69.0   |   |          | $      | 48.3   |                       |   |   | 42.9          | %      |   | $ | 128.6 |   |   | $ | 83.6 |   |   |   | 53.9 | % |
| Gross Profit                                     |   |                         | 19.6   |   |          |   | 13.5   |                       |   |   | 45.2          | %      |   |   | 37.4 |   |   |   | 22.4 |   |   |   | 67.0 | % |
| Selling, general and administrative expenses     |   |                         | 5.4    |   |          |   | 4.3    |                       |   |   | 25.6          | %      |   |   | 10.4 |   |   |   | 8.5 |   |   |   | 23.5 | % |
| Operating Income                                 |   |                         | 14.1   |   |          |   | 9.2    |                       |   |   | 53.3          | %      |   |   | 26.9 |   |   |   | 13.9 |   |   |   | 93.5 | % |
| Income Before Taxes                              |   |                         | 14.4   |   |          |   | 1.4    |                       |   |   | 928.6         | %      |   |   | 24.5 |   |   |   | 1.1 |   |   |   | 2127.3 | % |
| Net Income Tax Provision                         |   |                         | (2.1   | )      |          |   | (0.3   | )                          |   |   | 540.0         | %      |   |   | (3.1 | ) |   |   | 1.3 |   |   |   | -338.5 | % |
| Net Income                                       |   | $                            | 12.3   |   |          | $      | 1.1    |                       |   |   | 1018.2        | %      |   | $ | 21.4 |   |   | $ | 2.4 |   |   |   | 791.7 | % |

|                                       |   | Net Sales                                  |   |   |                    |   |   |   |   |
|--------------------------------------------|--------|-------------------------------------------------|--------|--------|-------------------------|--------|--------|--------|--------|
| (in millions, except percentage) |   | Three Months Ended June 30, |   |   |                    |   |   |   |   |
|                                  |   | 2010                                            |   |   | 2009                    |   |   |   |   |   |   |   |
|                                  |   | Amount                                          |   |   | % of NetSales |   |   | Amount |   |   | % of NetSales |   |   | DollarChange |   |   | % Change |   |
| PRC                                        |   | $                                               | 54.9   |   |                    |   | 79.6   | %      |   | $ | 39.4 |   |   |   | 81.6 | % |   | $ | 15.5 |   |   |   | 39.3 | % |
| US                                         |   |                                            | 14.1   |   |                    |   | 20.4   | %      |   |   | 8.9 |   |   |   | 18.4 | % |   |   | 5.2 |   |   |   | 58.4 | % |
| Total net sales                            |   | $                                               | 69.0   |   |                    |   | 100.0  | %      |   | $ | 48.3 |   |   |   | 100.0 | % |   | $ | 20.7 |   |   |   | 42.9 | % |

|      |   | Metric Tons Sold                      |   |   |                   |   |   |   |   |
|---------------------|--------|-------------------------------------------------|--------|--------|------------------------|--------|--------|--------|--------|
|           |   | Three Months Ended June 30, |   |   |                   |   |   |   |   |
|           |   | 2010                                            |   |   | 2009                   |   |   |   |   |   |   |   |
|           |   | MT                                              |   |   | % of MTSales |   |   | MT     |   |   | % of MTSales |   |   | TonnageChange |   |   | % Change |   |
| PRC *          |   |                                            | 7,454  |   |                   |   | 74.7   | %      |   |   | 9,060 |   |   |   | 82.2 | % |   |   | -1,606 |   |   |   | -17.7 | % |
| US                  |   |                                            | 2,520  |   |                   |   | 25.3   | %      |   |   | 1,960 |   |   |   | 17.8 | % |   |   | 560 |   |   |   | 28.6 | % |
| Total sales volume* |   |                                            | 9,974  |   |                   |   | 100.0  | %      |   |   | 11,020 |   |   |   | 100.0 | % |   |   | -1,046 |   |   |   | -9.5 | % |

----

|                                             |    | Net Sales                                  |    |    |                    |    |    |   |    |
|--------------------------------------------------|--------------|-------------------------------------------------|--------------|--------------|-------------------------|--------------|--------------|--------|--------------|
|                                        |    | Three Months Ended June 30, |    |    |                    |    |    |   |    |
| (in millions, except percentages) |    | 2010                                            |    |    | 2009                    |    |    |   |    |    |   |    |
|                                        |    | Amount                                          |    |    | % of NetSales |    |    | Amount |    |    | % of NetSales |    |    | DollarChange |    |    | % Change |   |
| Telecommunication                                |         | $                                               | 28.1         |         |                    |         | 40.7         | %      |         | $ | 23.1 |   |   |   | 47.8 | % |   |   | 5.0 |   |   |   | 21.6 | % |
| Utility                                          |         |                                            | 38.2         |         |                    |         | 55.3         | %      |         |   | 22.1 |   |   |   | 45.8 | % |   |   | 16.1 |   |   |   | 72.9 | % |
| Transportation                                   |         |                                            | 1.1          |         |                    |         | 1.6          | %      |         |   | 0.4 |   |   |   | 0.8 | % |   |   | 0.7 |   |   |   | 175.0 | % |
| Other                                            |         |                                            | 1.6          |         |                    |         | 2.4          | %      |         |   | 2.7 |   |   |   | 5.6 | % |   |   | -1.1 |   |   |   | -40.7 | % |
| Total net sales                                  |         | $                                               | 69.0         |         |                    |         | 100.0        | %      |         | $ | 48.3 |   |   |   | 100.0 | % |   |   | 20.7 |   |   |   | 42.9 | % |

|                 |    | Three Months Ended June 30, |    |    |                   |    |    |   |    |
|----------------------|--------------|-------------------------------------------------|--------------|--------------|------------------------|--------------|--------------|--------|--------------|
|            |    | 2010                                            |    |    | 2009                   |    |    |   |    |    |   |    |
|            |    | MT                                              |    |    | % of MTSales |    |    | MT     |    |    | % of MTSales |    |    | TonnageChange |    |    | % Change |    |
| Telecommunication    |         |                                            | 4,883        |         |                   |         | 49.0         | %      |         |   | 5,294 |   |   |   | 48.0 | % |   |   | -411 |   |   |   | -7.8 | % |
| Utility *            |         |                                            | 4,518        |         |                   |         | 45.3         | %      |         |   | 4,887 |   |   |   | 44.4 | % |   |   | -369 |   |   |   | -7.6 | % |
| Transportation       |         |                                            | 147          |         |                   |         | 1.5          | %      |         |   | 64 |   |   |   | 0.6 | % |   |   | 83 |   |   |   | 129.7 | % |
| Other                |         |                                            | 426          |         |                   |         | 4.2          | %      |         |   | 775 |   |   |   | 7.0 | % |   |   | -349 |   |   |   | -45.0 | % |
| Total sales volume * |         |                                            | 9,974        |         |                   |         | 100.0        | %      |         |   | 11,020 |   |   |   | 100.0 | % |   |   | -1,046 |   |   |   | -9.5 | % |

----

|         |    | Three Months Ended June 30, 2010 |    |
|--------------|--------------|-----------------------------------------------------------|--------------|
|    |    | PRC                                                       |    |    | US |    |
| (MT)         |    | Capacity(MT)                                              |    |    | Sold(MT) |    |    | Capacity(MT) |    |    | Sold(MT) |    |
| CCA          |         |                                                      | 10,000       |   |   |   | 7,303 |   |   |   | 3,062 |   |   |   | 868 |   |
| CCS          |         |                                                      | 2,050        |   |   |   | 19 |   |   |   | 4, 274 |   |   |   | 1,618 |   |
| Total        |         |                                                      | 12,050       |   |   |   | 7,322 |   |   |   | 7, 336 |   |   |   | 2,486 |   |

|              |    | Metric Tons Sold                      |    |    |                   |    |    |   |    |
|-------------------|--------------|-------------------------------------------------|--------------|--------------|------------------------|--------------|--------------|--------|--------------|
|         |    | Three Months Ended June 30, |    |    |                   |    |    |   |    |
|         |    | 2010                                            |    |    | 2009                   |    |    |   |    |    |   |    |
| (MT)              |    | MT                                              |    |    | % of MTSales |    |    | MT     |    |    | % of MTSales |    |    | TonnageChange |    |    | % Change |    |
| CCA               |         |                                            | 8,171        |         |                   |         | 81.9         | %      |         |   | 9,309 |   |   |   | 84.5 | % |   |   | -1,138 |   |   |   | -12.2 | % |
| CCS               |         |                                            | 1,637        |         |                   |         | 16.4         | %      |         |   | 1,479 |   |   |   | 13.4 | % |   |   | 158 |   |   |   | 10.7 | % |
| Others *          |         |                                            | 166          |         |                   |         | 1.7          | %      |         |   | 232 |   |   |   | 2.1 | % |   |   | -66 |   |   |   | -28.4 | % |
| Total net sales * |         |                                            | 9,974        |         |                   |         | 100.0        | %      |         |   | 11,020 |   |   |   | 100.0 | % |   |   | -1,046 |   |   |   | -9.5 | % |

----

|                                              |    | Three Months Ended June 30, |    |    | Change |    |
|---------------------------------------------------|--------------|-------------------------------------------------|--------------|--------------|--------|--------------|
| (in millions , except percentage ) |    | 2010                                            |    |    | 2009   |    |    | Dollar |    |    | % |    |
| Gross Profit                                 |         | $                                               | 19.6         |         |   | $            | 13.5 |   |   | $ | 6.1 |   |   |   | 45.2 | % |
| Gross Margin                                      |         |                                            | 28.4         | %            |   |         | 27.9 | % |   |   |   |   |   |   | 0.5 | % |

|                                    |    | Three Months Ended June 30, |    |    | Change |    |
|---------------------------------------------------|--------------|-------------------------------------------------|--------------|--------------|--------|--------------|
| (in millions , except percentage ) |    | 2010                                            |    |    | 2009   |    |    | Dollar |    |    | % |   |
| Selling Expenses                                  |         | $                                               | 1.4          |         |   | $            | 1.1 |   |   | $ | 0.3 |   |   |   | 27.3 | % |
| as a percentage of net sales                      |         |                                            | 2.0          | %            |   |         | 2.2 | % |   |   |   |   |   |   | -0.2 | % |

|                                              |    | Three Months Ended June 30, |    |    | Change |    |
|---------------------------------------------------|--------------|-------------------------------------------------|--------------|--------------|--------|--------------|
| (in millions , except percentage ) |    | 2010                                            |    |    | 2009   |    |    | Dollar |    |    | % |   |
| General and Administrative Expenses               |         | $                                               | 4.1          |         |   | $            | 3.2 |   |   | $ | 0.9 |   |   |   | 28.1 | % |
| as a percentage of net sales                      |         |                                            | 5.9          | %            |   |         | 6.6 | % |   |   |   |   |   |   | -0.7 | % |

----

|                                             |    | Three Months Ended June 30, |    |    |                     |    |    |   |    |
|--------------------------------------------------|--------------|-------------------------------------------------|--------------|--------------|--------------------------|--------------|--------------|--------|--------------|
| (in millions, except  percentage) |    | 2010                                            |    |    | 2009                     |    |    |   |    |    |   |    |
|                                        |    | Amount                                          |    |    | % ofOperatingincome |    |    | Amount |    |    | % ofOperatingincome |    |    | DollarChange |    |    | % Change |    |
| PRC                                              |    | $                                               | 14.5         |    |                     |         | 102.8        | %      |         | $ | 10.4 |   |   |   | 113.0 | % |   | $ | 4.1 |   |   |   | 39.4 | % |
| US                                               |         | $                                               | 0.7          |         |                     |         | 5.0          | %      |         | $ | (0.1 | )  |   |   | -1.0 | % |   | $ | 0.8 |   |   |   | 800 | % |
| Corporate                                        |         | $                                               | (1.1         | )            |                     |         | -7.8         | %      |         | $ | (1.1 | ) |   |   | -12.0 | % |   | $ | 0.0 |   |   |   | - |   |
| Total operating income                           |         | $                                               | 14.1         |         |                     |         | 100.0        | %      |         | $ | 9.2 |   |   |   | 100.0 | % |   | $ | 4.9 |   |   |   | 53.3 | % |

|                                              |    | Three Months Ended June 30, |    |    | Change |    |
|---------------------------------------------------|--------------|-------------------------------------------------|--------------|--------------|--------|--------------|
| (in millions , except percentage ) |    | 2010                                            |    |    | 2009   |    |    | Dollar |    |    | % |    |
| Interest Income                                   |         | $                                               | 0.2          |         |   | $            | 0.1 |   |   | $ | 0.1 |   |   |   | 100.0 | % |
| Interest (Expense)                                |         | $                                               | (0.1         | )       |   | $            | (1.5 | ) |   | $ | 1.4 |   |   |   | -93.3 | % |
| Net Interest Income / (Expense)                   |         | $                                               | 0.1          |         |   | $            | (1.4 | ) |   | $ | 1.5 |   |   |   | -107.1 | % |
| as a percentage of net sales                      |         |                                            | 0.2          | %            |   |         | -2.9 | % |   |   |   |   |   |   | 3.1 | % |

----

|                                            |    | Three Months Ended June 30, 2010 |    |
|-------------------------------------------------|--------------|-----------------------------------------------------------|--------------|
| (in millions, except percentage) |    | PRC                                                       |    |    | US |    |    | Parent Company |    |    | Consolidated |    |
| Profit (Loss) before income tax                 |         | $                                                         | 14.6         |   |   | $ | 0.6 |   |   | $  | (0.8 | ) |   | $  | 14.4 |   |
| Income tax expense (credit)                     |         | $                                                         | 2.2          |   |   |   | - |   |   |   | (0.1 | ) |   |   | 2.1 |   |
| Profit (loss) after income tax                  |         | $                                                         | 12.4         |   |   | $ | 0.6 |   |   | $ | (0.7 | ) |   | $ | 12.3 |   |

|                                              |    | Three Months Ended June 30, |    |    | Change |    |
|---------------------------------------------------|--------------|-------------------------------------------------|--------------|--------------|--------|--------------|
| (in millions , except percentage ) |    | 2010                                            |    |    | 2009   |    |    | Dollar |    |    | % |    |
| Income Before Taxes                               |         | $                                               | 14.4         |         |   | $            | 1.4 |   |   | $ | 13.0 |   |   |   | 928.6 | % |
| Provision for Income Taxes                        |         | $                                               | 2.1          |         |   | $            | 0.3 |   |   | $ | 1.8 |   |   |   | 600.0 | % |
| Net Income After Taxes                            |         | $                                               | 12.3         |         |   | $            | 1.1 |   |   | $ | 11.2 |   |   |   | 1018.2 | % |
| as a percentage of net sales                      |         |                                            | 17.8         | %            |   |         | 2.2 | % |   |   |   |   |   |   | 15.6 | % |

|                                         |    | Three Months Ended June 30, |    |
|----------------------------------------------|--------------|-------------------------------------------------|--------------|
|                                    |    | 2010                                            |    |    | 2009 |    |
|                                    |    | Unaudited                                       |    |    | Unaudited |    |
| Net Income for Basic Earnings Per Share |         | $                                               | 12,317,143   |   |   | $ | 1,066,890 |   |
| Basic Weighted Average Number of Shares      |         |                                            | 37,343,714   |   |   |   | 27,827,838 |   |
| Net Income per Share – Basic           |         | $                                               | 0.33         |   |   | $ | 0.04 |   |
| Net Income for Diluted Earnings Per Share    |         | $                                               | 12,317,143   |   |   | $ | 1,066,890 |   |
| Diluted Weighted Average Number of Shares    |         |                                            | 37,991,800   |   |   |   | 28,323,611 |   |
| Net Income per Share – Diluted         |         | $                                               | 0.32         |   |   | $ | 0.04 |   |

----

|                                            |    | Net Sales                                |    |    |                          |    |    |   |    |
|-------------------------------------------------|--------------|-----------------------------------------------|--------------|--------------|-------------------------------|--------------|--------------|--------|--------------|
|                                       |    | Six Months Ended June 30, |    |    |                          |    |    |   |    |
|                                       |    | 2010                                          |    |    | 2009                          |    |    |   |    |    |   |    |
| (In millions, except percentage) |    | Amount                                        |    |    | % of Net Sales |    |    | Amount |    |    | % of Net Sales |    |    | Dollar Change |    |    | % Change |   |
| PRC                                             |         | $                                             | 101.2        |         |                          |         | 78.7         | %      |         | $ | 65.8 |   |   |   | 78.7 | % |   | $ | 35.4 |   |   |   | 53.8 | % |
| US                                              |         |                                          | 27.4         |         |                          |         | 21.3         | %      |         |   | 17.8 |   |   |   | 21.3 | % |   |   | 9.6 |   |   |   | 53.9 | % |
| Total net sales                                 |         | $                                             | 128.6        |         |                          |         | 100.0        | %      |         | $ | 83.6 |   |   |   | 100.0 | % |   | $ | 45.0 |   |   |   | 53.8 | % |

|                 |    | Six Months Ended June 30, |    |    |                          |    |    |    |    |
|----------------------|--------------|-----------------------------------------------|--------------|--------------|-------------------------------|--------------|--------------|---------|--------------|
|            |    | 2009                                          |    |    | 2009                          |    |    |    |    |    |   |    |
|            |    | Tonnage                                       |    |    | % of Net Sales |    |    | Tonnage |    |    | % of Net Sales |    |    | Tonnage Change |    | % Change |    |
| PRC*                 |    |                                          | 14,122       |         |                          |         | 74.0         | %       |         |   | 14,947 |   |   |   | 78.7 | % |   |   | -825 |   |   |   | -5.5 | % |
| US                   |         |                                          | 4,952        |         |                          |         | 26.0         | %       |         |   | 4,054 |   |   |   | 21.3 | % |   |   | 898 |   |   |   | 22.2 | % |
| Total sales volume * |         |                                          | 19,074       |         |                          |         | 100.0        | %       |         |   | 19,001 |   |   |   | 100.0 | % |   |   | 73 |   |   |   | 0.4 | % |

----

|                                            |   | Net Sales                                |   |   |                          |   |   |   |   |
|-------------------------------------------------|--------|-----------------------------------------------|--------|--------|-------------------------------|--------|--------|--------|--------|
|                                       |   | Six Months Ended June 30, |   |   |                          |   |   |   |   |
|                                       |   | 2010                                          |   |   | 2009                          |   |   |   |   |   |   |   |
| (In millions, except percentage) |   | Amount                                        |   |   | % of Net Sales |   |   | Amount |   |   | % of Net Sales |   |   | Dollar Change |   |   | % Change |   |
| Telecommunication                               |   | $                                             | 53.1   |   |                          |   | 41.3   | %      |   | $ | 37.7 |   |   |   | 45.1 | % |   | $ | 15.4 |   |   |   | 40.8 | % |
| Utility                                         |   |                                          | 67.8   |   |                          |   | 52.7   | %      |   |   | 41.0 |   |   |   | 49.0 | % |   |   | 26.8 |   |   |   | 65.4 | % |
| Transportation                                  |   |                                          | 1.7    |   |                          |   | 1.0    | %      |   |   | 0.8 |   |   |   | 1.0 | % |   |   | 0.9 |   |   |   | 112.5 | % |
| Other                                           |   |                                          | 6.0    |   |                          |   | 5.0    | %      |   |   | 4.1 |   |   |   | 4.9 | % |   |   | 1.9 |   |   |   | 46.3 | % |
| Total net sales                                 |   | $                                             | 128. 6 |   |                          |   | 100.0  | %      |   | $ | 83.6 |   |   |   | 100.0 | % |   | $ | 45.0 |   |   |   | 53.8 | % |

|                 |    | Net Sales                                |    |    |                          |    |    |    |    |
|----------------------|--------------|-----------------------------------------------|--------------|--------------|-------------------------------|--------------|--------------|---------|--------------|
|            |    | Six Months Ended June 30, |    |    |                          |    |    |    |    |
|            |    | 2010                                          |    |    | 2009                          |    |    |    |    |    |   |    |
|            |    | To nnage                                      |    |    | % of Net Sales |    |    | Tonnage |    |    | % of Net Sales |    |    | Tonnage Change |    | % Change |    |
| Telecommunication    |         |                                          | 9,234        |         |                          |         | 48.4         | %       |         |   | 8,762 |   |   |   | 46.1 | % |   |   | 472 |   |   |   | 5.4 | % |
| Utility*             |         |                                          | 8,221        |         |                          |         | 43.1         | %       |         |   | 8,915 |   |   |   | 46.9 | % |   |   | -694 |   |   |   | -7.8 | % |
| Transportation       |         |                                          | 221          |         |                          |         | 1.2          | %       |         |   | 124 |   |   |   | 0.7 | % |   |   | 97 |   |   |   | 78.2 | % |
| Other                |         |                                          | 1,398        |         |                          |         | 7.3          | %       |         |   | 1,200 |   |   |   | 6.3 | % |   |   | 198 |   |   |   | 16.5 | % |
| Total sales volume * |         |                                          | 19,074       |         |                          |         | 100.0        | %       |         |   | 19,001 |   |   |   | 100.0 | % |   |   | 73 |   |   |   | 0.4 | %  |

|         |    | Six Months Ended June 30, 2010 |    |
|--------------|--------------|---------------------------------------------------------|--------------|
|    |    | PRC                                                     |    |    | US |    |
| (MT)         |    | Capacity                                                |    |    | Sold |    |    | Capacity |    |    | Sold |   |
| CCA          |         |                                                    | 20,000       |   |   |   | 13,840 |   |   |   | 6,124 |   |   |   | 1,661 |   |
| CCS          |         |                                                    | 4,100        |   |   |   | 32 |   |   |   | 8,547 |   |   |   | 3,225 |   |
| Total        |         |                                                    | 24,100       |   |   |   | 13,872 |   |   |   | 14,671 |   |   |   | 4,886 |   |

----

|               |   | Metric Tons Sold                    |   |   |                    |   |   |    |   |
|--------------------|--------|-----------------------------------------------|--------|--------|-------------------------|--------|--------|---------|--------|
|          |   | Six Months Ended June 30, |   |   |                    |   |   |    |   |
|               |   | 2010                                          |   |   | 2009                    |   |   |    |   |   |   |   |
| (MT)               |   | Tonnage                                       |   |   | % of NetSales |   |   | Tonnage |   |   | % of NetSales |   |   | Tonnage Change |   |   | %  Change |   |
| CCA                |   |                                          | 15,501 |   |                    |   | 81.3   | %       |   |   | 15,631 |   |   |   | 82.3 | % |   |   | -130 |   |   |   | -0.8 | % |
| CCS                |   |                                          | 3,257  |   |                    |   | 17.1   | %       |   |   | 3,064 |   |   |   | 16.1 | % |   |   | 193 |   |   |   | 6.3 | % |
| Others             |   |                                          | 316    |   |                    |   | 1.6    | %       |   |   | 306 |   |   |   | 1.6 | % |   |   | 10 |   |   |   | -3.3 | % |
| Total sales volume |   |                                          | 19,074 |   |                    |   | 100.0  | %       |   |   | 19,001 |   |   |   | 100.0 | % |   |   | 73 |   |   |   | 0.4 | % |

|                                              |    | Six Months Ended June 30, |    |    | Change |    |
|---------------------------------------------------|--------------|-----------------------------------------------|--------------|--------------|--------|--------------|
| (in millions , except percentage ) |    | 2010                                          |    |    | 2009   |    |    | Dollar |    |    | % |   |
| Gross Profit                                      |         | $                                             | 37.4         |         |   | $            | 22.4 |   |   | $ | 15.0 |   |   |   | 67.0 | % |
| Gross margin                                      |         |                                          | 29.1         | %            |   |         | 26.8 | % |   |   |   |   |   |   | 2.3 | % |

|                                              |    | Six Months Ended June 30, |    |    | Change |    |
|---------------------------------------------------|--------------|-----------------------------------------------|--------------|--------------|--------|--------------|
| (in millions , except percentage ) |    | 2010                                          |    |    | 2009   |    |    | Dollar |    |    | % |   |
| Selling Expenses                                  |         | $                                             | 2.6          |         |   | $            | 2.3 |   |   | $ | 0.3 |   |   |   | 13.0 | % |
| as a percentage of net sales                      |         |                                          | 2.0          | %            |   |         | 2.7 | % |   |   |   |   |   |   | -0.7 | % |

----

|                                              |    | Six Months Ended June 30, |    |    | Change |    |
|---------------------------------------------------|--------------|-----------------------------------------------|--------------|--------------|--------|--------------|
| (in millions , except percentage ) |    | 2010                                          |    |    | 2009   |    |    | Dollar |    |    | % |   |
| General and Administrative Costs                  |         | $                                             | 7.8          |         |   | $            | 6.2 |   |   | $ | 1.6 |   |   |   | 25.8 | % |
| as a percentage of net sales                      |         |                                          | 6.1          | %            |   |         | 7.4 | % |   |   |   |   |   |   | -1.3 | % |

|                                            |   | Six Months Ended June 30, |   |   |                                 |   |   |   |   |
|-------------------------------------------------|--------|------------------------------------------|--------|--------|--------------------------------------|--------|--------|--------|--------|
|                                       |   | 2010                                     |   |   | 2009                                 |   |   |   |   |   |   |   |
| (in millions, except percentage) |   | Amount                                   |   |   | % of operating income |   |   | Amount |   |   | % of operating income |   |   | Dollar Change |   |   | % Change |   |
| PRC                                             |   | $                                        | 27.9   |   |                                 |   | 103.3  | %      |   | $ | 17.4 |   |   |   | 125.2 | % |   | $ | 10.5 |   |   |   | 60.3 | % |
| US                                              |   | $                                        | 1.2    |   |                                 |   | 4.4    | %      |   | $ | (1.4 | ) |   |   | -10.1 | % |   | $ | 2.6 |   |   |   | 185.7 | % |
| Corporate                                       |   | $                                        | (2.1   | )      |                                 |   | -7.7   | %      |   | $ | (2.1 | ) |   |   | -15.1 | % |   | $ | - |   |   |   | - | % |
| Total operating income                          |   | $                                        | 27.0   |   |                                 |   | 100.0  | %      |   | $ | 13.9 |   |   |   | 100.0 | % |   | $ | 13.1 |   |   |   | 94.2 | % |

|                                              |    | Six Months Ended June 30, |    |    | Change |    |
|---------------------------------------------------|--------------|-----------------------------------------------|--------------|--------------|--------|--------------|
| (in millions , except percentage ) |    | 2010                                          |    |    | 2009   |    |    | Dollar |    |    | % |    |
| Interest Income                              |         | $                                             | 0.4          |         |   | $            | 0.2 |   |   | $ | 0.2 |   |   |   | 100.0 | % |
| Interest Expense                                  |         | $                                             | (0.6         | )            |   | $            | (3.0 | ) |   | $ | 2.4 |   |   |   | -80.0 | % |
| Net Interest Expense                              |         | $                                             | (0.2         | )            |   | $            | (2.8 | ) |   | $ | 2.6 |   |   |   | -92.9 | % |
| as a percentage of net sales                      |         |                                          | -0.1         | %            |   |         | -3.3 | % |   |   |   |   |   |   | 3.1 | % |

----

|                            |   | Six Months Ended June 30, 2010 |   |
|---------------------------------|--------|---------------------------------------------------------|--------|
| (in millions)         |   | Dali an                                            |   |   | Fayetteville &Telford |   |   | Parent Company |   |   | Consolidated |   |
| Profit (loss) before income tax |   |                                                    | 24.8   |   |   |   | 1.0 |   |   |   | (1.3 | ) |   |   | 24.5 |   |
| Income tax expense (credit)     |   |                                                    | 4.1    |   |   |   | - |   |   |   | (1.0 | ) |   |   | 3.1 |   |
| Profit after income tax         |   |                                                    | 20.7   |   |   |   | 1.0 |   |   |   | (0.3 | ) |   |   | 21.4 |   |

|                                  |   | Six Months Ended June 30, |   |   | Change |   |
|---------------------------------------|--------|-----------------------------------------------|--------|--------|--------|--------|
| (in millions, except percentage) |   | 2010                                          |   |   | 2009   |   |   | Dollar |   |   | % |   |
| Income Before Taxes                   |   | $                                             | 24.5   |   |   | $      | 1.1 |   |   | $ | 23.4 |   |   |   | 2127.3 | % |
| (Benefit) Provision for Income Taxes  |   | $                                             | 3.1    |   |   | $      | (1.3 | ) |   | $ | 4.4 |   |   |   | -338.5 | % |
| Net Income After Taxes                |   | $                                             | 21.4   |   |   | $      | 2.4 |   |   | $ | 19.0 |   |   |   | 791.7 | % |
| as a percentage of net sales          |   |                                          | 16.6   | %      |   |   | 2.8 | % |   |   |   |   |   |   | 13.8 | % |

----

|                                      |   | Six Months Ended June 30, |       |
|-------------------------------------------|--------|-----------------------------------------------|------------|
|                                      |   | 2010                                          |       |   | 2009 |   |
|                                      |   | Unaudited                                     |       |   | Unaudited |   |
| Net Income for Basic Earnings Per Share   |   | $                                             | 21,389,682 |   |   | $ | 2,344,802 |   |
| Basic Weighted Average Number of Shares   |   |                                          | 36,016,078 |   |   |   | 27,696,388 |   |
| Net Income per Share - Basic              |   | $                                             | 0.59       |   |   | $ | 0.08 |   |
| Net Income for Diluted Earnings Per Share |   | $                                             | 21,389,682 |   |   | $ | 2,344,802 |   |
| Diluted Weighted Average Number of Shares |   |                                          | 36,633,668 |   |   |   | 28,054,226 |   |
| Net Income per Share - Diluted            |   | $                                             | 0.58       |   |   | $ | 0.08 |   |

|                                  |   | Selected Balance Sheet Data |   |
|---------------------------------------|--------|--------------------------------------------|--------|
|                                  |   | June 30, 2010                    |   |   | December 31, 2009 |   |   | Change |   |
| (in millions, except percentage) |   | Unaudited                                  |   |   |   |   |   | Dollar |   |   | % |   |
| Cash                                  |   | $                                          | 73.8   |   |   | $ | 60.6 |   |   | $ | 13.2 |   |   |   | 21.8 | % |
| Accounts Receivable, net              |   | $                                          | 64.1   |   |   | $ | 67.3 |   |   | $ | (3.2 | ) |   |   | -4.8 | % |
| PP&E (a)                          |   | $                                          | 125.4  |   |   | $ | 117.4 |   |   | $ | 8.0 |   |   |   | 6.8 | % |
| Total Assets                          |   | $                                          | 343.5  |   |   | $ | 297.3 |   |   | $ | 46.2 |   |   |   | 15.5 | % |
| Short Term Debt                       |   | $                                          | -      |   |   | $ | 14.0 |   |   | $ | (14.0 | ) |   |   | -100.0 | % |
| Long Term Debt                        |   | $                                          | 0.8    |   |   | $ | 32.7 |   |   | $ | (31.9 | ) |   |   | -97.6 | % |
| Shareholders' Equity                  |   | $                                          | 322.0  |   |   | $ | 239.5 |   |   | $ | 82.5 |   |   |   | 34.4 | % |

----

|                                                |   | Six Months Ended June 30, |   |
|-----------------------------------------------------|--------|-----------------------------------------------|--------|
| (in millions)                                  |   | 2010                                          |   |   | 2009 |   |
| Net cash provided by operating activities           |   | $                                             | 10.0   |   |   | $ | 4.5 |   |
| Net cash used in investing activities               |   | $                                             | (14.0  | ) |   | $ | (5.3 | ) |
| Net cash provided by (used in) financing activities |   | $                                             | 16.7   |   |   | $ | (14.9 | ) |
| Effect of exchange rate on cash                     |   | $                                             | 0.6    |   |   | $ | (0.0 | ) |
| Cash and cash equivalents at beginning of period    |   | $                                             | 60.6   |   |   | $ | 65.6 |   |
| Cash and cash equivalents at end of period          |   | $                                             | 73.8   |   |   | $ | 49.9 |   |

----

|                  |   | Year ended December 31, 2009 |   | Six months ended June 30, 2010 |
|-----------------------|--------|--------------------------------------------------|--------|---------------------------------------------------------|
| Customer Payment Term |   | Payment in advance up to 120 days                |   | Payment in advance up to 120 days                       |
| Supplier Payment Term |   | Payment in advance up to 30 days                 |   | Payment in advance up to 30 days                        |

|                |   | June 30, 2010 |        |   | December 31, 2009 |   |
|---------------------|--------|-------------------------|-------------|--------|-----------------------------|--------|
|                |   | (Unaudited)             |        |   |                        |   |
| 1-30 days           |   | $                       | 25,415,494  |   |                        | $      | 19,055,520 |   |
| 31-60 days          |   |                    | 23,218,708  |   |                        |   | 17,199,485 |   |
| 61-90 days          |   |                    | 14,909,704  |   |                        |   | 15,029,899 |   |
| 91-180 days         |   |                    | 1,541,431   |   |                        |   | 12,776,229 |   |
| 180-365 days        |   |                    | 251         |   |                        |   | 4,027,988 |   |
| Over 365 days       |   |                    | 4,463       |   |                        |   | 220,163 |   |
| Bad debts allowance |   |                    | ( 1,031,398 | )      |                        |   | (1,024,684 | ) |
| Total               |   | $                       | 64,058,653  |   |                        | $      | 67,284,600 |   |

----

| Contractual obligations                                     |   | Total  |      |   | Payment due byless than 1 year |   |      | 2 – 3 years |   |   | 4-5 years |   |   | More than 5years |   |
|------------------------------------------------------------------|--------|--------|-----------|--------|---------------------------------------------------------|--------|-----------|------------------------|--------|--------|----------------|--------|--------|----------------------------|--------|
| Contingent second installment payment for Jinchuan acquisition * |   | $      | 4,881,843 |   |                                                    | $      | 4,881,843 |                   |   | $      | -              |   |   | $                          | -      |   |   | $ | - |   |
| Capital-lease obligation                                         |   |   | 187,276   |   |                                                    |   | 76,557    |                   |   |   | 110,719        |   |   |                       | -      |   |   |   | - |   |
| Total                                                            |   | $      | 5,069,119 |   |                                                    | $      | 4,958,400 |                   |   | $      | 110,719        |   |   | $                          | -      |   |   | $ | - |   |

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| ·   | Insufficient competent accounting personnel in applying U.S. GAAP in our financial reporting process |
|--------------------|------------------------------------------------------------------------------------------------------|

| ·   | Insufficient competent accounting personnel in determination of the measurement of derivative financial instruments and assets acquired and liabilities assumed in business combinations |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| b) | Changes in Internal Control over Financial Reporting |
|----|------------------------------------------------------|

| ExhibitNo. |   | Document Description                                                                                                                                                                                          |
|------------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|       |   |                                                                                                                                                                                                               |
| 31.1       |   | Certification of the Principal Executive Officer pursuant to Rule 13A-14(A)/15D-14(A) of the Securities Exchange Act of 1934, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.                |
|       |   |                                                                                                                                                                                                               |
| 31.2       |   | Certification of the Principal Accounting and Financial Officer pursuant to Rule 13A-14(A)/15D-14(A) of the Securities Exchange Act of 1934, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. |
|       |   |                                                                                                                                                                                                               |
| 32.1       |   | Certification of the Principal Executive Officer and of the Principal Accounting and Financial Officer pursuant to 18 U.S.C. 1350 (Section 906 of the Sarbanes-Oxley Act of 2002).                                 |

----

|                | FUSHI COPPERWELD, INC.                                                     |
|---------------------|----------------------------------------------------------------------------|
|                |                                                                       |   |
| Date: April 4, 2011 | By:                                                              | /s/ Craig H. Studwell   |
|                | Name: Craig H. Studwell                                                    |
|                | Title: Chief Financial Officer(Principal Accounting and Financial Officer) |

----

| ExhibitNo. |   | Document Description                                                                                                                                                                                          |
|------------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|       |   |                                                                                                                                                                                                               |
| 31.1       |   | Certification of the Principal Executive Officer pursuant to Rule 13A-14(A)/15D-14(A) of the Securities Exchange Act of 1934, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.                |
|       |   |                                                                                                                                                                                                               |
| 31.2       |   | Certification of the Principal Accounting and Financial Officer pursuant to Rule 13A-14(A)/15D-14(A) of the Securities Exchange Act of 1934, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. |
|       |   |                                                                                                                                                                                                               |
| 32.1       |   | Certification of the Principal Executive Officer and of the Principal Accounting and Financial Officer pursuant to 18 U.S.C. 1350 (Section 906 of the Sarbanes-Oxley Act of 2002).                                 |
|       |   |                                                                                                                                                                                                               |

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