----

----

| x      | QUARTERLY      REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE                  |
|--------|-------------------------------------------------------------------------------|
|   | SECURITIES      EXCHANGE ACT OF 1934                                          |
|   |                                                                          |
|   | For      the quarterly period ended June 30,      2008                        |
|   |                                                                          |
|   | OR                                                                            |
|   |                                                                          |
| o      | TRANSITION      REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE                 |
|   | SECURITIES      EXCHANGE ACT OF 1934                                          |
|   |                                                                          |
|   | For      the transition period from ________________ to      ________________ |

| Delaware                                                                                                                 |   | 87-0438200               |
|--------------------------------------------------------------------------------------------------------------------------|--------|--------------------------|
| (State      or other jurisdiction of                                                                                     |   | (I.R.S.      Employer    |
| incorporation      or organization)                                                                                      |   | Identification      No.) |
|                                                                                                                     |   |                     |
| Room      B, Second Floor, M-10, Central (W.)Shenzhen      High-Tech ParkShenzhen,      People’s Republic of China |   | 518057                   |
| (Address      of principal executive offices)                                                                            |   | (Zip      Code)          |

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

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

| Class                                        |   | Outstanding      at August 11, 2008 |
|----------------------------------------------|--------|-------------------------------------|
| Common      Stock, $0.00 par value per share |   | 20,000,441      shares              |

----

----

----

| PART I - FINANCIAL      INFORMATION                                                                      | 3      |
|---------------------------------------------------------------------------------------------------------------|--------|
|                                                                                                          |   |
| Item      1. Financial Statements                                                                             | 3      |
|                                                                                                          |   |
| Item      2. Management’s Discussion and Analysis of Financial Condition      and Results of Operations | 18     |
|                                                                                                          |   |
| Item      3. Quantitative and Qualitative Disclosures About Market      Risk                             | 24     |
|                                                                                                          |   |
| Item      4T. Controls and Procedures                                                                    | 24     |
|                                                                                                          |   |
| PART      II - OTHER INFORMATION                                                                              | 25     |
|                                                                                                          |   |
| Item      1. Legal Proceedings                                                                                | 25     |
|                                                                                                          |   |
| Item      1A. Risk Factors                                                                                    | 25     |
|                                                                                                          |   |
| Item      2. Unregistered Sales of Equity Securities and Use of    Proceeds                                   | 30     |
|                                                                                                          |   |
| Item      3. Defaults Upon Senior Securities                                                                  | 30     |
|                                                                                                          |   |
| Item      4. Submission of Matters to a Vote of Security Holders                                              | 30     |
|                                                                                                          |   |
| Item      5. Other Information                                                                                | 31     |
|                                                                                                          |   |
| Item      6. Exhibits                                                                                         | 31     |
|                                                                                                          |   |
| SIGNATURES                                                                                                    | 32     |

----

| SINOHUB, INC. AND      SUBSIDIARIES                                                                                                                     |   |
|---------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
| (fka  Liberty Alliance,      Inc.)                                                                                                                 |   |
| CONDENSED CONSOLIDATED BALANCE      SHEETS                                                                                                              |   |
|                                                                                                                                                    |   |
|                                                                                                                                                    |   |
|                                                                                                                                                    |   |
| ASSETS                                                                                                                                                  |   |   |   |   |   |   |
|                                                                                                                                                    |   | June 30,    2008 |   |   | December 31,      2007 |   |
|                                                                                                                                                    |   | (Unaudited) |   |   | (Audited) |   |
| CURRENT      ASSETS                                                                                                                                |   |   |   |   |   |   |
|           Cash and cash      equivalents                                                                                            |   | $ | 2,568,913 |   |   | $ | 4,282,548 |   |
|           Restricted      cash                                                                                                      |   |   | 2,282,793 |   |   |   | 5,509,183 |   |
|           Accounts      receivable, net of allowance                                                                                |   |   | 14,392,445 |   |   |   | 9,747,515 |   |
|           Prepaid      expenses and other current assets                                                                            |   |   | 494,624 |   |   |   | 426,349 |   |
|           Inventories,      net                                                                                                     |   |   | 1,951,157 |   |   |   | 852,446 |   |
|           Due from a      related company                                                                                           |   |   | 696,025 |   |   |   | 1,492,766 |   |
|              Total Current Assets                                                 |   |   | 22,385,957 |   |   |   | 22,310,807 |   |
|                                                                                                                                                    |   |
|                                                                                                                                                    |   |
| PROPERTY AND      EQUIPMENT, NET                                                                                                                   |   |   | 681,896 |   |   |   | 845,909 |   |
|                                                                                                                                                    |   |
| TOTAL      ASSETS                                                                                                                                  |   | $ | 23,067,853 |   |   | $ | 23,156,716 |   |
|                                                                                                                                                    |   |
| LIABILITIES      AND STOCKHOLDERS' EQUITY                                                                                                          |   |   |   |   |   |   |   |   |
|                                                                                                                                                    |   |
| CURRENT      LIABILITIES                                                                                                                           |   |   |   |   |   |   |   |   |
|           Accounts      payable                                                                                                     |   | $ | 7,048,798 |   |   | $ | 6,777,183 |   |
|           Other payables      and accrued liabilities                                                                               |   |   | 557,550 |   |   |   | 307,293 |   |
|           Notes      payable                                                                                                        |   |   | 4,953,033 |   |   |   | 6,904,430 |   |
|           Other loans      payable                                                                                                  |   |   | 250,793 |   |   |   | 250,793 |   |
|           Income tax and      other taxes payable                                                                                   |   |   | 265,600 |   |   |   | 1,456,911 |   |
|              Total Current      Liabilities                                       |   |   | 13,075,774 |   |   |   | 15,696,610 |   |
|                                                                                                                                                    |   |
| COMMITMENTS      AND CONTINGENCIES                                                                                                                 |   |   | - |   |   |   | - |   |
|                                                                                                                                                    |   |
| STOCKHOLDERS'      EQUITY                                                                                                                          |   |   |   |   |   |   |   |   |
|           Preferred      stock ($0.001 par value, 5,000,000 shares                                                                  |   |   |   |   |   |   |   |   |
|              authorized, no shares issued and      outstanding                    |   |   |   |   |   |   |   |   |
|              as of June 30, 2008 and December      31, 2007)                      |   |   | - |   |   |   | - |   |
|           Common stock      ($0.001 par value, 100,000,000 shares authorized,                                                       |   |   |   |   |   |   |   |   |
|              20,000,411 shares and 18,290,000      shares issued and outstanding  |   |   |   |   |   |   |   |   |
|              as of June 30, 2008 and December      31, 2007 respectively)         |   |   | 20,000 |   |   |   | 18,290 |   |
|           Additional      paid-in capital                                                                                           |   |   | 4,945,073 |   |   |   | 4,507,606 |   |
|           Retained      earnings                                                                                                    |   |   |   |   |   |   |   |   |
|              Unappropriated                                                       |   |   | 3,937,682 |   |   |   | 2,309,509 |   |
|              Appropriated                                                         |   |   | 356,098 |   |   |   | 356,098 |   |
|           Accumulated      other comprehensive income                                                                               |   |   | 733,226 |   |   |   | 268,603 |   |
|              Total Stockholders'      Equity                                      |   |   | 9,992,079 |   |   |   | 7,460,106 |   |
| TOTAL      LIABILITIES AND STOCKHOLDERS' EQUITY                                                                                                    |   | $ | 23,067,853 |   |   | $ | 23,156,716 |   |

----

| SINOHUB,      INC. AND SUBSIDIARIES                      |   |
|----------------------------------------------------------|--------|
| (fka Liberty Alliance,      Inc.)                        |   |
| CONDENSED      CONSOLIDATED STATEMENTS OF OPERATIONS AND |   |
| COMPREHENSIVE      INCOME (UNAUDITED)                    |   |
|                                                     |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                     |   | For      the three months ended |   |   | For      the six months ended |   |
|                                                     |   | June      30, |   |   | June      30, |   |
|                                                     |   | 2008 |   |   | 2007 |   |   | 2008 |   |   | 2007 |   |
|                                                     |   |   |   |   |   |   |   |   |   |   |   |   |
| NET      SALES                                           |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Supply      Chain Management service income              |   | $ | 568,978 |   |   | $  | 481,279 |   |   | $ | 1,091,062 |   |   | $ | 873,533 |   |
| Sales      of electronic components                      |   |   | 12,639,726 |   |   |   | 5,597,059 |   |   |   | 23,736,151 |   |   |   | 10,380,329 |   |
| Total      Net Sales                                     |   |   | 13,208,704 |   |   |   | 6,078,338 |   |   |   | 24,827,213 |   |   |   | 11,253,862 |   |
|                                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| COST      OF SALES                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Cost      of sales - Supply Chain Management             |   |   | 133,665 |   |   |   | 236,858 |   |   |   | 281,955 |   |   |   | 448,256 |   |
| Cost      of sales - Electronic components               |   |   | 11,075,519 |   |   |   | 4,201,414 |   |   |   | 20,707,564 |   |   |   | 7,873,662 |   |
| Total      Cost of Sales                                 |   |   | 11,209,184 |   |   |   | 4,438,272 |   |   |   | 20,989,519 |   |   |   | 8,321,918 |   |
|                                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| GROSS      PROFIT                                        |   |   | 1,999,520 |   |   |   | 1,640,066 |   |   |   | 3,837,694 |   |   |   | 2,931,944 |   |
|                                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| OPERATING      EXPENSES                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Selling,      general and administrative expenses        |   |   | 574,337 |   |   |   | 407,762 |   |   |   | 1,071,410 |   |   |   | 825,952 |   |
| Professional      services                               |   |   | 493,500 |   |   |   | - |   |   |   | 493,500 |   |   |   | - |   |
| Stock      compensation expenses-options issued          |   |   | 5,677 |   |   |   | - |   |   |   | 5,677 |   |   |   | - |   |
| Depreciation                                             |   |   | 99,902 |   |   |   | 91,278 |   |   |   | 198,255 |   |   |   | 179,340 |   |
| Loss      on disposal of property and equipment          |   |   | 5,059 |   |   |   | - |   |   |   | 5,059 |   |   |   | - |   |
| Total      Operating Expenses                            |   |   | 1,178,475 |   |   |   | 499,040 |   |   |   | 1,773,901 |   |   |   | 1,005,292 |   |
|                                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| INCOME      FROM OPERATIONS                              |   |   | 821,045 |   |   |   | 1,141,026 |   |   |   | 2,063,793 |   |   |   | 1,926,652 |   |
|                                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| OTHER      INCOME (EXPENSE)                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Other      expenses                                      |   |   | (2,119 | ) |   |   | (19,506 | ) |   |   | (3,667 | ) |   |   | (24,654 | ) |
| Other      incomes                                       |   |   | 11,484 |   |   |   | 3,194 |   |   |   | 19,827 |   |   |   | 6,341 |   |
| Interest      expense                                    |   |   | (51,106 | ) |   |   | (57,388 | ) |   |   | (128,281 | ) |   |   | (67,529 | ) |
| Interest      income                                     |   |   | 13,244 |   |   |   | 28,066 |   |   |   | 18,717 |   |   |   | 50,006 |   |
| Total      Other Expenses, net                           |   |   | (28,497 | ) |   |   | (45,634 | ) |   |   | (93,404 | ) |   |   | (35,836 | ) |
|                                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| NET      INCOME BEFORE TAXES                             |   |   | 792,548 |   |   |   | 1,095,392 |   |   |   | 1,970,389 |   |   |   | 1,890,816 |   |
|                                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Income      tax expense                                  |   |   | (252,594 | ) |   |   | (130,815 | ) |   |   | (342,216 | ) |   |   | (227,985 | ) |
|                                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| NET      INCOME                                          |   |   | 539,954 |   |   |   | 964,577 |   |   |   | 1,628,173 |   |   |   | 1,662,831 |   |
|                                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| OTHER      COMPREHENSIVE INCOME                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Foreign      currency translation gain                   |   |   | 179,541 |   |   |   | 44,972 |   |   |   | 464,623 |   |   |   | 57,396 |   |
|                                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| COMPREHENSIVE      INCOME                                |   | $ | 719,495 |   |   | $ | 1,009,549 |   |   | $ | 2,092,796 |   |   | $ | 1,720,227 |   |
|                                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net      income per share-basic                          |   | $ | 0.03 |   |   | $ | 0.05 |   |   | $ | 0.09 |   |   | $ | 0.09 |   |
| Weighted      average number of share-basic              |   |   | 19,191,978 |   |   |   | 18,290,000 |   |   |   | 18,740,989 |   |   |   | 18,290,000 |   |
| Net      income per share- diluted                       |   | $ | 0.03 |   |   | $ | 0.05 |   |   | $ | 0.08 |   |   | $ | 0.09 |   |
| Weighted      average number of share-diluted            |   |   | 19,641,745 |   |   |   | 18,290,000 |   |   |   | 19,190,756 |   |   |   | 18,290,000 |   |

----

| SINOHUB, INC. AND SUBSIDIARIES                                      |   |
|---------------------------------------------------------------------|--------|
| (fka Liberty Alliance,      Inc.)                                   |   |
| CONDENSED      CONSOLIDATED STATEMENTS OF CASH FLOWS                |   |
| (UNAUDITED)                                                         |   |
|                                                                |   |   |   |   |   |   |
|                                                                |   | For      the six months ended |   |
|                                                                |   | June      30, |   |
|                                                                |   | 2008 |   |   | 2007 |   |
| CASH      FLOWS FROM OPERATING ACTIVITIES                           |   |   |   |   |   |   |
| Net      income                                                     |   | $ | 1,628,173 |   |   | $ | 1,662,831 |   |
| Adjusted      to reconcile net income to cash (used in) provided    |   |   |   |   |   |   |   |   |
| by      operating activities:                                       |   |   |   |   |   |   |   |   |
| Depreciation                                                        |   |   | 198,255 |   |   |   | 179,340 |   |
| Loss      on disposal of property and equipment                     |   |   | 5,059 |   |   |   | - |   |
| Amortization      of stock option compensation                      |   |   | 5,677 |   |   |   | - |   |
| Stock      issued for services                                      |   |   | 433,500 |   |   |   | - |   |
| Changes      in operating assets and liabilities                    |   |   |   |   |   |   |   |   |
| (Increase)      Decrease in:                                        |   |   |   |   |   |   |   |   |
| Accounts      receivable                                            |   |   | (3,903,457 | ) |   |   | 2,460,299 |   |
| Prepaid      expenses and other current assets                      |   |   | (39,674 | ) |   |   | (15,987 | ) |
| Inventories                                                         |   |   | (1,014,203 | ) |   |   | 50,194 |   |
| Increase      (Decrease) in:                                        |   |   |   |   |   |   |   |   |
| Accounts      payable                                               |   |   | (159,921 | ) |   |   | (2,929,067 | ) |
| Other      payables and accrued liabilities                         |   |   | 223,934 |   |   |   | (1,628,315 | ) |
| Income      tax and other taxes payable                             |   |   | (1,248,594 | ) |   |   | 221,054 |   |
| Net      cash (used in) provided by operating activities            |   |   | (3,871,251 | ) |   |   | 349 |   |
|                                                                |   |   |   |   |   |   |   |   |
| CASH      FLOWS FROM INVESTING ACTIVITIES                           |   |   |   |   |   |   |   |   |
| Proceed      from disposal of property and equipment                |   |   | 9,597 |   |   |   | - |   |
| Purchase      of property and equipment                             |   |   | (655 | ) |   |   | (17,460 | ) |
| Net      cash provided by (used in) investing activities            |   |   | 8,942 |   |   |   | (17,460 | ) |
|                                                                |   |   |   |   |   |   |   |   |
| CASH      FLOWS FROM FINANCING ACTIVITIES                           |   |   |   |   |   |   |   |   |
| Restricted      cash                                                |   |   | 3,226,390 |   |   |   | - |   |
| Contribution      by stockholders                                   |   |   | - |   |   |   | 1,560,596 |   |
| Due      to a director                                              |   |   | - |   |   |   | (203,038 | ) |
| Bank      loans borrowed                                            |   |   | 2,594,417 |   |   |   | - |   |
| Bank      loans repaid                                              |   |   | (4,922,185 | ) |   |   | 2,894,842 |   |
| Other      loans repaid                                             |   |   | - |   |   |   | (304,938 | ) |
| Due      from (to) a related company                                |   |   | 867,470 |   |   |   | (2,513,167 | ) |
| Net      cash provided by financing activities                      |   |   | 1,766,092 |   |   |   | 1,434,295 |   |
|                                                                |   |   |   |   |   |   |   |   |
| EFFECT      OF EXCHANGE RATES ON CASH                               |   |   | 382,582 |   |   |   | 44,749 |   |
|                                                                |   |   |   |   |   |   |   |   |
| NET      (DECREASE) INCREASE  IN CASH AND CASHEQUIVALENTS |   |   | (1,713,635 | ) |   |   | 1,461,933 |   |
|                                                                |   |   |   |   |   |   |   |   |
| CASH      AND CASH EQUIVALENTS AT BEGINNING OF PERIOD               |   |   | 4,282,548 |   |   |   | 3,000,413 |   |
|                                                                |   |   |   |   |   |   |   |   |
| CASH      AND CASH EQUIVALENTS AT END OF PERIOD                     |   | $ | 2,568,913 |   |   | $ | 4,462,346 |   |
|                                                                |   |   |   |   |   |   |   |   |
| SUPPLEMENTAL      DISCLOSURE OF CASH FLOW INFORMATION               |   |   |   |   |   |   |   |   |
|                                                                |   |   |   |   |   |   |   |   |
| Cash      paid for interest expenses                                |   | $ | 128,281 |   |   | $ | 67,529 |   |
| Cash      paid for income tax                                       |   | $ | 402,746 |   |   | $ | 6,628 |   |

----

----

|   | The      unaudited condensed consolidated financial statements have been prepared      as if the reorganization had occurred retroactively. Accordingly, the      unaudited condensed consolidated financial statements include the      following:                                                                                                                                                                                                                                     |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
|   | (1)      The unaudited condensed consolidated balance sheet consists of the net      assets of the acquirer at historical cost and the net assets of the      acquiree at historical cost.                                                                                                                                                                                                                                                                                              |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
|   | (2)      The unaudited condensed consolidated statement of operations includes the      operations of the acquirer for the periods presented and the operations of      the acquiree from the date of the merger.                                                                                                                                                                                                                                                                       |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
| (B)    | Principles      of consolidation                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
|   | The      accompanying unaudited condensed consolidated financial statements for the      six months ended 2008 include the financial statements of SinoHub and its      wholly owned subsidiaries, SinoHub International, SinoHub Electronics SZ,      SinoHub SCM SZ, SinoHub Electronics SH, SinoHub SCM SH, B2B Chips and      SinoHub Hong Kong (collectively, “the Company”).                                                                                          |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
|   | All      significant inter-company accounts and transactions have been eliminated      in consolidation.                                                                                                                                                                                                                                                                                                                                                                                |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
| (C)    | Use      of estimates                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
|   | The      preparation of the financial statements in conformity with generally      accepted accounting principles requires management to make estimates and      assumptions that affect the reported amount of assets and liabilities and      disclosure of contingent assets and liabilities at the date of the      financial statements and the reported amounts of revenues and expenses      during the reporting period. Actual results could differ from those      estimates. |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
| (D)    | Cash      and cash equivalents                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
|   | For      purpose of the statements of cash flows, cash and cash equivalents include      cash on hand and demand deposits with a bank with a maturity of less than      three months.                                                                                                                                                                                                                                                                                                   |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
|   | The      cash held in the bank as security for the Company’s bank loans is      accounted for as restricted cash and is not shown as cash or cash      equivalents on the balance sheet until the security for such funds has      been released.                                                                                                                                                                                                                                 |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
| (E)    | Accounts      receivable                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
|   | The      Company extends unsecured credit to its customers in the ordinary course      of business but mitigates the associated risks by performing credit checks      and actively pursuing past due accounts.  An allowance for      doubtful accounts is established and recorded based on managements’      assessment of the credit history with the customer and current      relationships with them.                                                            |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
|   | For      the six months ended June 30, 2008 and the year ended 2007, the Company      considers all its accounts receivable to be collectible and no provision      for doubtful accounts has been made in the financial      statements.                                                                                                                                                                                                                                               |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
| (F)    | Inventories                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
|   | Inventories      are stated at lower of cost or market value, cost being determined on a      first in first out method.  The Company provided inventory      allowances based on excess and obsolete inventories determined principally      by customer demand. Inventory consists of electronic components purchased      from suppliers.                                                                                                                                  |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
| (G)    | Property      and equipment                                                                                                                                                                                                                                                                                                                                                                                                                                                             |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
|   | Property      and equipment are stated at cost, less accumulated      depreciation.  Expenditures for additions, major renewals and      betterments are capitalized and expenditures for maintenance and repairs      are charged to expense as incurred.                                                                                                                                                                                                                    |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
|   | Depreciation      is provided on a straight-line basis, less estimated residual values over      the assets’ estimated useful lives. The estimated useful lives are as      follows:                                                                                                                                                                                                                                                                                              |

| Plant and      machinery                | 5    Years        |
|----------------------------------------------|-------------------|
| Motor    vehicles                            | 5    Years        |
|  Furniture,      fixtures and equipment | 2 to 5      Years |

----

| (H) | Long-lived      assets |
|-----|------------------------|

|   | The      Company accounts for long-lived assets under the Statements of Financial      Accounting Standards (“SFAS”) Nos. 142 and 144 “Accounting for Goodwill      and Other Intangible Assets” and “Accounting for Impairment or Disposal of      Long-Lived Assets” (“SFAS No. 142 and 144”).  In accordance with      SFAS No. 142 and 144, long-lived assets held and used by the Company are      reviewed for impairment annually in the fourth quarter or more frequently      if events or changes in circumstances indicate that the carrying amount of      an asset may not be recoverable. For purposes of evaluating the      recoverability of long-lived assets, when undiscounted future cash flows      will not be sufficient to recover an asset’s carrying amount, the asset is      written down to its fair value. The Company believes that no impairment of      property and equipment exists at June 30,2008. |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (I) | Financial      instruments |
|-----|----------------------------|

|   | The      Company analyzes all financial instruments with features of both      liabilities and equity under SFAS 150, “Accounting for Certain Financial      Instruments with Characteristics of Both Liabilities and Equity,” SFAS No      133, “Accounting for Derivative Instruments and Hedging Activities” and      EITF 00-19, “Accounting for Derivative Financial Instruments Indexed to,      and Potentially Settled in, a Company’s Own Stock.” Additionally, the      Company analyzes registration rights agreements associated with any equity      instruments issued to determine if penalties triggered for late filing      should be accrued under FSP EITF 00-19-2, “Accounting for Registration      Payment Arrangements.” |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (J) | Fair      value of financialinstruments |
|-----|-----------------------------------------|

|   | SFAS      No. 107, "Disclosure About Fair Value of Financial Instruments," requires      certain disclosures regarding the fair value of financial instruments.      Fair value of financial instruments is made at a specific point in time,      based on relevant information about financial markets and specific      financial instruments. As these estimates are subjective in nature,      involving uncertainties and matters of significant judgment, they cannot      be determined with precision. Changes in assumptions can significantly      affect estimated fair values. |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | The      carrying value of cash and cash equivalents, accounts receivable (trade      and others), accounts payable (trade and related party), accrued      liabilities, notes payable and other loans payable approximate their      fair values because of the short-term nature of these instruments. The      management of the Company is of the opinion that the Company is not      exposed to significant interest or credit risks arising from these      financial instruments. |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | The      Company’s major operations are in the PRC, which may give rise to      significant foreign currency risks from fluctuations and the degree of      volatility of foreign exchange rates between United States dollars (“US$”)      and Chinese Renminbi (“RMB”). On July 21, 2005, the PRC allowed the RMB to      fluctuate ending its decade-old valuation peg to the US$. Initially the      RMB rate reflected approximately a 2% increase in value against the US$.      Since that time, the increase in value of the RMB against the US$ has      grown to approximately 17.5% Historically, the PRC government has      benchmarked the RMB exchange ratio against the US$, thereby mitigating the      associated foreign currency exchange rate fluctuation risk. The Company      does not believe that its foreign currency exchange rate fluctuation risk      is significant, especially if the PRC government continues to benchmark      the RMB against the US$. |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (K) | Derivative      Instrument |
|-----|----------------------------|

|   | The      Company uses a cross currency hedge, a derivative financial instrument, to      hedge the risk of rising interest rates on their variable interest rate      debt. This type of derivative financial instrument is known as a cash flow      hedge. The Company accounts for this interest rate swap in accordance with      FAS No. 133, “Accounting for Derivatives Instruments and Hedging      Activity,” which requires the derivative to be carried on the balance      sheet at fair value and to meet certain documentary and analytical      requirements to qualify for hedge accounting treatment. The above      derivative qualifies for hedge accounting under FAS 133 and, accordingly,      changes in the fair value effective portion is reported in accumulated      other comprehensive income, net of related income tax effects. Amounts      included in accumulated other comprehensive income are reclassified into      earnings when the hedged transaction affects  earnings. |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | At      the inception of the transaction, the Company documents the relationship      between hedging instruments and hedged items, as well as its risk      management objective and the strategy for undertaking various hedge      transactions. This process includes linking all derivatives designated to      specific firm commitments of forecast transactions. The Company also      documents its assessment, both at inception and on an ongoing basis, of      whether the derivative financial instruments that are used in hedging      transactions are highly effective in offsetting changes in fair values or      cash flows of hedged items. Any portion deemed ineffective is recorded in      earnings with the effective portion reflected in accumulated other      comprehensive income. Changes in the fair values of derivative financial      instruments accounted for as cash flow hedges, to the extent they qualify      for hedge accounting, are recorded in accumulated other comprehensive      income. |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| (L)    | Stock-Based      Compensation                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
|   | The      Company adopted SFAS No. 123R, “Share-Based Payments”. This Statement      requires a public entity to measure the cost of services received in      exchange for an award of equity instruments based on the grant-date fair      value of the award. That cost will be recognized over the period during      which services are received. Stock compensation for stock granted to      non-employees has been determined in accordance with SFAS 123R and the      Emerging Issues Task Force consensus Issue No. 96-18, "Accounting for      Equity Instruments that are issued to Other than Employees for Acquiring,      or in Conjunction with Selling Goods or Services" ("EITF 96-18"), as the      fair value of the consideration received or the fair value of equity      instruments issued, whichever is more reliably  measured. |

| (M)       | Revenue      recognition                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
|-----------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|      |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
|      | Revenues      represent the invoiced value of goods sold, recognized upon the delivery      of goods to customers, less any sale discounts and allowances. Supply      chain management services income is realized on taking receipt of      electronic components, logistics, custom clearances, warehousing, delivery      and effecting payments to suppliers on behalf of customers as required.      SCM service income is recognized when the services are      provided.                                                                                                                                                                                                                                                                                                                                   |
|      |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
|      |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
| (N)       | Income      taxes                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
|      |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
|      | The      Company accounts for income taxes under the SFAS No. 109, “Accounting for      Income Taxes” (“SFAS 109”). Under SFAS 109, deferred tax assets and      liabilities are recognized for the future tax consequences attributable to      differences between the financial statement carrying amounts of existing      assets and liabilities and their respective tax bases. Deferred tax assets      and liabilities are measured using enacted tax rates expected to apply to      taxable income in the years in which those temporary differences are      expected to be recovered or settled. Under SFAS 109, the effect on      deferred tax assets and liabilities of a change in tax rates is recognized      in income in the period that included the enactment  date. |
|      |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
| (O)       | Foreign      currency translation                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |
|      |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
|      | SinoHub,      SinoHub International, B2B Chips and SinoHub Hong Kong maintain their      accounting records in their functional currencies in US$ and Hong Kong      Dollars (“HK$”) respectively, whereas SinoHub SCM SZ, SinoHub Electronics      SZ, SinoHub SCM SH and SinoHub Electronics SH maintain their accounting      records in their functional currency in RMB.                                                                                                                                                                                                                                                                                                                                                                                                                          |
|      |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
|      | Foreign      currency transactions during the year are translated to their functional      currencies at the approximate rates of exchange on the dates of      transactions.  Monetary assets and liabilities denominated in      foreign currencies at the balance sheet date are translated at the      approximate rates of exchange at that date.  No-monetary assets      and liabilities are translated at the rates of exchange prevailing at the      time the asset or liability was acquired.  Exchange gains or      losses are recorded in the statement of operations.                                                                                                                                                                                                 |
|      |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
|      | The financial      statements of the subsidiaries (whose functional currencies are HK$ and      RMB) are translated into US$ using the closing rate method.  The      balance sheet items are translated into US$ using the exchange rates at      the respective balance sheet dates.  The capital and various      reserves are translated at historical exchange rates prevailing at the      time of the transactions while income and expenses items are translated at      the average exchange rate for the year.  All exchange      differences are recorded as a component of accumulated other comprehensive      income within equity. Translation gain for      the six months ended June 30, 2008 and 2007 was $464,623      and $57,396 respectively.        |
|      |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
| (P)  | Comprehensive      income                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
|      |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
|      | The      foreign currency translation gain or loss resulting from the translation      of the financial statements expressed in HK$ and RMB to US$ is reported as      other comprehensive income in the statements of operations and      stockholders’ equity. Other comprehensive income for the six months ended      June 30, 2008 and 2007 was $464,623      and $57,396 respectively.                                                                                                                                                                                                                                                                                                                                                                                                                 |

----

| (Q)    | Earnings      per share                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
|   | Earnings      per share in accordance with the provisions of SFAS No. 128, "Earnings Per      Share." SFAS No. 128 requires presentation of basic and diluted earnings      per share in conjunction with the disclosure of the methodology used in      computing such earnings per share. Basic earnings per share excludes      dilution and is computed by dividing income available to common      stockholders by the weighted average common shares outstanding during the      period. Diluted earnings per share takes into account the potential      dilution that could occur if securities or other contracts to issue common      stock were exercised and converted into common stock using the treasury      method. |

| (R)    | Segments                                                                                           |
|--------|----------------------------------------------------------------------------------------------------|
|   |                                                                                               |
|   | The      Company operates in only one segment. Therefore segment disclosure is not      presented. |

| (S)    | Recent      Accounting Pronouncements                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
|   | In      September 2006, the FASB issued SFAS No. 157, “Fair Value Measurements”.      The objective of SFAS 157 is to increase consistency and comparability in      fair value measurements and to expand disclosures about fair value      measurements.  SFAS 157 defines fair value, establishes a      framework for measuring fair value in generally accepted accounting      principles, and expands disclosures about fair value measurements. SFAS      157 applies under other accounting pronouncements that require or permit      fair value measurements and does not require any new fair value      measurements. The provisions of SFAS No. 157 are effective for fair value      measurements made in fiscal years beginning after November 15, 2007. The      adoption of this statement did not have a material effect on the Company's      future reported financial position or results of    operations.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
|   | In      February 2007, the Financial Accounting Standards Board (FASB) issued SFAS      No. 159, “The Fair Value Option for Financial Assets and Financial      Liabilities – Including an Amendment of FASB Statement No.      115”.  This statement permits entities to choose to measure many      financial instruments and certain other items at fair value. Most of the      provisions of SFAS No. 159 apply only to entities that elect the fair      value option. However, the amendment to SFAS No. 115 “Accounting for      Certain Investments in Debt and Equity Securities ”applies to all entities      with available-for-sale and trading securities. SFAS No. 159 is effective      as of the beginning of an entity’s first fiscal year that begins after      November 15, 2007. Early adoption is permitted as of the beginning of a      fiscal year that begins on or before November 15, 2007, provided the      entity also elects to apply the provision of SFAS No. 157, “Fair Value      Measurements”.  The adoption of this statement did not have a      material effect on the Company's financial statements.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
|   | In      December 2007, the Financial Accounting Standards Board (FASB) issued SFAS      No. 160, “Noncontrolling Interests in Consolidated Financial Statements –      an amendment of ARB No. 51 ”.  This statement improves the      relevance, comparability, and transparency of the financial information      that a reporting entity provides in its consolidated financial statements      by establishing accounting and reporting standards that require; the      ownership interests in subsidiaries held by parties other than the parent      and the amount of consolidated net income attributable to the parent and      to the noncontrolling interest be clearly identified and presented on the      face of the consolidated statement of income, changes in a parent’s      ownership interest while the parent retains its controlling financial      interest in its subsidiary be accounted for consistently, when a      subsidiary is deconsolidated, any retained noncontrolling equity      investment in the former subsidiary be initially measured at fair value,      entities provide sufficient disclosures that clearly identify and      distinguish between the interests of the parent and the interests of the      noncontrolling owners.  SFAS No. 160 affects those entities that      have an outstanding noncontrolling interest in one or more subsidiaries or      that deconsolidate a subsidiary.  SFAS No. 160 is effective for      fiscal years, and interim periods within those fiscal years, beginning on      or after December 15, 2008. Early adoption is prohibited. The adoption of      this statement is not expected to have a material effect on the Company's      financial statements. |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
|   | In      March 2008, the FASB issued SFAS No. 161, “Disclosures about      Derivative Instruments and Hedging Activities, an amendment of FASB      Statement No. 133” (SFAS 161). This statement is intended to improve      transparency in financial reporting by requiring enhanced disclosures of      an entity’s derivative instruments and hedging activities and their      effects on the entity’s financial position, financial performance, and      cash flows.  SFAS 161 applies to all derivative instruments      within the scope of SFAS 133, “Accounting for Derivative Instruments and      Hedging Activities” (SFAS 133) as well as related hedged items, bifurcated      derivatives, and nonderivative instruments that are designated and qualify      as hedging instruments. Entities with instruments subject to SFAS 161 must      provide more robust qualitative disclosures and expanded quantitative      disclosures.  SFAS 161 is effective prospectively for financial      statements issued for fiscal years and interim periods beginning after      November 15, 2008, with early application permitted. We are currently      evaluating the disclosure implications of this  statement.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |

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|   | In      May 2008, the FASB released SFAS No. 162, “The Hierarchy of Generally      Accepted Accounting Principles.”   SFAS No. 162      identifies the sources of accounting principles and the framework for      selecting the principles used in the preparation of financial statements      of nongovernmental entities that presented in conformity with generally      accepted accounting principles in the United States of America. SFAS No.      162 will be effective 60 days following the SEC’s approval of the PCAOB      amendments to AU Section 411, The Meaning of Present Fairly      in Conformity With Generally Accepted Accounting Principles.       The Company does not believe SFAS 162 will have a significant impact on      the Company’s consolidated financial statements.                                                                                                                                                                                                                                                                                                                        |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
|   | In      May 2008, the FASB issued SFAS No. 163, “Accounting for Financial      Guarantee Insurance Contracts, an interpretation of FASB Statement No.      60.” The scope of this Statement is limited to financial guarantee      insurance (and reinsurance) contracts, as described in this Statement,      issued by enterprises included within the scope of Statement 60.      Accordingly, this Statement does not apply to financial guarantee      contracts issued by enterprises excluded from the scope of Statement 60 or      to some insurance contracts that seem similar to financial guarantee      insurance contracts issued by insurance enterprises (such as mortgage      guaranty insurance or credit insurance on trade receivables). This      Statement also does not apply to financial guarantee insurance contracts      that are derivative instruments included within the scope of FASB      Statement No. 133, “Accounting for Derivative Instruments and Hedging      Activities.” The Company does not believe SFAS 163 will have a significant      impact on the Company’s consolidated financial  statements. |

|                                       |   | June      30, 2008 |       |   | December      31, 2007 |   |
|--------------------------------------------|--------|--------------------|------------|--------|------------------------|--------|
|                                       |   | (unaudited)        |       |   |                   |   |
| Accounts      receivable                   |   | $                  | 14,392,445 |   |                   | $      | 9,747,515 |   |
| Less:      allowance for doubtful accounts |   |               | -          |   |                   |   | - |   |
| Accounts      receivable, net              |   | $                  | 14,392,445 |   |                   | $      | 9,747,515 |   |

|                                  |   |               |      |   |                   |   |
|---------------------------------------|--------|--------------------|-----------|--------|------------------------|--------|
|                                  |   | June      30, 2008 |      |   | December      31, 2007 |   |
|                                  |   | (unaudited)        |      |   |                   |   |
| Electronic      components            |   | $                  | 1,951,157 |   |                   | $      | 852,446 |   |
| Less:      provision for obsolescence |   |               | -         |   |                   |   | - |   |
|                                  |   | $                  | 1,951,157 |   |                   | $      | 852,446 |   |

----

|                   |   | June      30,2008 |    |   | December      31, 2007 |   |
|------------------------|--------|-------------------|---------|--------|------------------------|--------|
|                   |   | (unaudited)       |    |   |                   |   |
| Prepaid      expenses  |   | $                 | 253,157 |   |                   | $      | 199,971 |   |
| Other      receivables |   |              | 241,467 |   |                   |   | 226,378 |   |
|                   |   | $                 | 494,624 |   |                   | $      | 426,349 |   |

|                                   |   | June      30, 2008 |       |   | December      31, 2007 |   |
|----------------------------------------|--------|--------------------|------------|--------|------------------------|--------|
|                                   |   | (unaudited)        |       |   |                   |   |
| Furniture,      fixtures and equipment |   | $                  | 1,154,676  |   |                   | $      | 1,084,217 |   |
| Plant      and machinery               |   |               | 765,064    |   |                   |   | 718,799 |   |
| Motor      vehicles                    |   |               | 241,593    |   |                   |   | 251,477 |   |
|                                   |   |               | 2,161,333  |   |                   |   | 2,054,493 |   |
| Less:      accumulated depreciation    |   |               | (1,479,437 | )      |                   |   | (1,208,584 | ) |
| Property      and equipment, net       |   | $                  | 681,896    |   |                   | $      | 845,909 |   |

|                           |   | June      30, 2008 |    |   | December      31,2007 |   |
|--------------------------------|--------|--------------------|---------|--------|-----------------------|--------|
|                           |   | (unaudited)        |    |   |                  |   |
| Other      payables            |   | $                  | 434,420 |   |                  | $      | 150,841 |   |
| Other      accrued liabilities |   |               | 123,130 |   |                  |   | 156,452 |   |
|                           |   | $                  | 557,550 |   |                  | $      | 307,293 |   |

|           (A)  | Employee      benefits                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
|-----------------------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
|                                    | The      full time employees of SinoHub SCM SZ, SinoHub Electronics SZ, SinoHub SCM      SH, SinoHub Electronics SH are entitled to employee benefits including      medical care, welfare subsidies, unemployment insurance and pension      benefits through a Chinese government mandated multi-employer defined      contribution plan. The Company is required to accrue for those benefits      based on certain percentages of the employees’ salaries and make      contributions to the plans out of the amounts accrued for medical and      pension benefits. The total provision and contributions made for such      employee benefits for the six months ended June 30, 2008 and 2007 was      $42,979 and $42,078 respectively. The Chinese government is responsible      for the medical benefits and the pension liability to be paid to these      employees. |

----

|           (B)  | Commitments |
|-----------------------------------------|-------------|

| 2008   |   | $      | 151,016 |   |
|--------|--------|--------|---------|--------|
| 2009   |   |   | 289,569 |   |
| 2010   |   |   | 290,098 |   |
| 2011   |   |   | 111,700 |   |
|   |   | $      | 842,383 |   |

|                                                     |   | For      the six months ended |       |
|----------------------------------------------------------|--------|-------------------------------|------------|
|                                                     |   | June      30,                 |       |
|                                                     |   | 2008                          |       |   | 2007 |   |
|                                                     |   |                          |       |   |   |   |
| Net      income for basic and diluted earnings per share |   | $                             | 1,628,173  |   |   | $ | 1,662,831 |   |
|                                                     |   |                          |       |   |   |   |   |   |
| Weighted      average shares used in basic computation   |   |                          | 18,740,989 |   |   |   | 18,290,000 |   |
|                                                     |   |                          |       |   |   |   |   |   |
| Effect      of dilutive securities:                      |   |                          |       |   |   |   |   |   |
| Options                                                  |   |                          | 449,767    |   |   |   | - |   |
| Weighted      average shares used in diluted computation |   |                          | 19,190,756 |   |   |   | 18,290,000 |   |
|                                                     |   |                          |       |   |   |   |   |   |
| Earnings      per share:                                 |   |                          |       |   |   |   |   |   |
| Basic                                                    |   |                          | 0.09       |   |   |   | 0.09 |   |
| Diluted                                                  |   |                          | 0.08       |   |   |   | 0.09 |   |

----

| Expected   | Expected   | Dividend | Risk      Free     | Grant      Date        |
|------------|------------|----------|--------------------|------------------------|
| Life       | Volatility | Yield    | Interest      Rate | Fair      Value        |
| 5      yrs | 115%       | 0%       | 2.65%              | $0.09      to $0.18825 |

|   | - | Dividend      Yield: The expected dividend yield is zero.  The Company has not      paid a dividend and does not anticipate paying dividends in the      foreseeable future. |
|--------|---|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | - | Risk      Free Rate: Risk-free interest rate of 2.65% was used.  The      risk-free interest rate was based on U.S. Treasury yields with a remaining      term that corresponded to the expected term of the option calculated on      the granted date. |
|--------|---|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | - | Expected      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 Staff Accounting      Bulletin No. 107. |
|--------|---|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                            |   | Number      of Options      Outstanding |    |   | Weighted-Average      Exercise      Price |   |
|---------------------------------|--------|-----------------------------------------|---------|--------|-------------------------------------------|--------|
| Balance,      December 31, 2007 |   |                                    | 502,189 |   |                                      | $      | 0.18 |   |
| Granted                         |   |                                    | -       |   |                                      |   | - |   |
| Forfeited                       |   |                                    | (22,310 | )      |                                      |   | - |   |
| Exercised                       |   |                                    | -       |   |                                      |   | - |   |
| Balance,      June 30, 2008     |   |                                    | 479,879 |   |                                      | $      | 0.18 |   |

|   | (A)    | Appropriated      retained earnings                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
|   |   | The      Company’s PRC subsidiaries are required to make appropriations to reserve      funds, comprising the statutory surplus reserve, statutory public welfare      fund and discretionary surplus reserve, based on the after-tax net income      determined in accordance with the laws and regulations of the      PRC.  Prior to January 1, 2006 the appropriation to the      statutory surplus reserve should be at least 10% of the after tax net      income determined in accordance with the laws and regulations of the PRC      until the reserve is equal to 50% of the entities’ registered      capital.  Appropriations to the statutory public welfare fund      are at 5% to 10% of the after tax net income determined by the Board of      Directors.  Effective January 1, 2006, the Company is only      required to contribute to one statutory reserve fund at 10 percent of net      income after tax per annum, such contributions not to exceed 50 percent of      the respective companies’ registeredcapital. |

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|   |   | The      statutory reserve funds are restricted for use to set off against prior      period losses, expansion of production and operation or for the increase      in the registered capital of the Company. The statutory public welfare      fund is restricted for use in capital expenditures for the collective      welfare of employees. These reserves are not transferable to the Company      in the form of cash dividends, loans or advances. These reserves are      therefore not available for distribution except in      liquidation. |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
|   |   | As      at June 30, 2008 and December 31, 2007, the Company appropriated $356,098      and $356,098 respectively to the reserves funds based on its net income in      accordance with the laws and regulations of the PRC.                                                                                                                                                                                                                                                                                                                             |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
|   | (B)    | Issuance      of common stock                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
|   |   | Stock      issued in Reverse Merger                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
|   |   | On      May 14, 2008, the Company issued to 1,200,000 shares of common stock for      the recapitalization.                                                                                                                                                                                                                                                                                                                                                                                                                                             |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
|   |   | Stock      issued for services                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
|   |   | On      May 14, 2008, the Company issued 510,000 shares of common stock to a      consultant for services at a fair value of  $433,500.                                                                                                                                                                                                                                                                                                                                                                                                                 |

|   | (A)  | As      of June 30, 2008, a related company owed the Company $696,024 which is      interest free and repayable on demand.                                                                                                                               |
|--------|-----------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |      |                                                                                                                                                                                                                                                     |
|   | (B)  | The      Company sold goods totaling $6,327,045 to a related company during the six      months ended June 30, 2008.  The Company purchased goods totaling      $5,631,021 from the related company during the six months ended June 30,      2008. |

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|     |   | For      the six months ended |    |
|----------|--------|-------------------------------|---------|
|     |   | June      30,                 |    |
|     |   | 2008                          |    |   | 2007 |   |
|     |   |                          |    |   |   |   |
|     |   |                          |    |   |   |   |
| Current  |   |                          | 342,216 |   |   |   | 227,985 |   |
| Deferred |   |                          | -       |   |   |   | - |   |
|     |   | $                             | 342,216 |   |   | $ | 227,985 |   |

|                                                   |   | For      the six months ended |   |
|--------------------------------------------------------|--------|-------------------------------|--------|
|                                                   |   | June      30,                 |   |
|                                                   |   | 2008                          |   |   | 2007 |   |
| SinoHub                                                |   |                          |   |   |   |   |
| Income      tax computed at the federal statutory rate |   |                          | 34%    |   |   |   | 34% |   |
| State      income taxes, net of federal tax benefit    |   |                          | 5%     |   |   |   | 5% |   |
| Valuation      allowance                               |   |                          | -39%   |   |   |   | -39% |   |
|                                                   |   |                          |   |   |   |   |   |   |
| SinoHub      International                             |   |                          |   |   |   |   |   |   |
| Income      tax computed at the federal statutory rate |   |                          | 34%    |   |   |   | 34% |   |
| State      income taxes, net of federal tax benefit    |   |                          | 5%     |   |   |   | 5% |   |
| Valuation      allowance                               |   |                          | -39%   |   |   |   | -39% |   |
|                                                   |   |                          |   |   |   |   |   |   |
| SinoHub      SCM SZ                                    |   |                          |   |   |   |   |   |   |
| China      income taxes                                |   |                          | 25%    |   |   |   | 33% |   |
| China      income taxes exemption                      |   |                          | -7%    |   |   |   | -18% |   |
|                                                   |   |                          | 18%    |   |   |   | 15% |   |
| SinoHub      Electronics SZ                            |   |                          |   |   |   |   |   |   |
| China      income taxes                                |   |                          | 25%    |   |   |   | 33% |   |
| China      income taxes exemption                      |   |                          | -7%    |   |   |   | -25.5% |   |
|                                                   |   |                          | 18%    |   |   |   | 7.5% |   |
| SinoHub      Electronics SH                            |   |                          |   |   |   |   |   |   |
| China      income taxes                                |   |                          | 25%    |   |   |   | 33% |   |
| China      income taxes exemption                      |   |                          | -      |   |   |   | -33% |   |
|                                                   |   |                          | 25%    |   |   |   | - |   |
| SinoHub      SCM SH                                    |   |                          |   |   |   |   |   |   |
| China      income taxes                                |   |                          | 25%    |   |   |   | 33% |   |

----

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The cost of maintaining, operating and enhancingour SinoHub SCM Platform is allocated to both SCM services and VMIservices.

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Operating Income

Income Taxes

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| OPERATING      LEASE COMMITMENTS IN PR CHINA |                                     |                                     |                                             |
|----------------------------------------------|------------------------------------------|------------------------------------------|--------------------------------------------------|
|                                         |                                     |                                     |                                             |   |   |
|                                         | SinoHub      SCM      Shenzhen      Ltd. | SinoHub      SCM      Shenzhen      Ltd. | SinoHub      Electronics      Shanghai      Ltd. | SinoHub      SCM      Shanghai      Ltd. | SinoHub      Electronics      Shanghai      Ltd. |
| Lease      expires on:                       | 7/09/2008                                | 7/09/2008                                | 5/31/2011                                        | 3/22/2011 | 12/09/2008 |
|                                         |                                     |                                     |                                             |   |   |
| Annual      rent (RMB)                       | 351,937.80                               | 280,487.28                               | 183,630.00                                       | 307,317.00 | 67,200.00 |
| Annual      rent (USD)                       | 51,215                                   | 40,817                                   | 26,722                                           | 44,721 | 9,779 |
| Due      as follows:                         |                                     |                                     |                                             |   |   |   |
| 2008                                         |                                     | 8,677.92                                 | 6,916.13                                         |       91,815.00 |     153,658.50 | 33,600.00 |
| 2009                                         |                                     |                                     |                                             |     183,630.00 | 320,070.00 |   |
| 2010                                         |                                     |                                     |                                             |     183,630.00 |     323,707.00 |   |
| 2011                                         |                                     |                                     |                                             | 76,512.50 |       71,836.00 |   |
| Total      :                                 |                                     |    8,677.92               | 6,916.13                                         |     535,587.50 | 869,271.50 | 33,600.00 |

| 1.     | Cash      and cash equivalents                                                                                                                                                                                                                          |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                                                                                                    |
|   | For      purpose of the statements of cash flows, cash and cash equivalents include      cash on hand and demand deposits with a bank with a maturity of less than      three months.                                                                   |
|   |                                                                                                                                                                                                                                                    |
|   | The      cash held in the bank as security for the Company’s bank loans is      accounted for as restricted cash and is not shown as cash or cash      equivalents on the balance sheet until the security for such funds has      been released. |

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| 2.     | Accounts      receivable                                                                                                                                                                                                                                                                                                                                                                                                     |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                                                                                                                                                                                                                                                                         |
|   | The      Company extends unsecured credit to its customers in the ordinary course      of business but mitigates the associated risks by performing credit checks      and actively pursuing past due accounts.  An allowance for      doubtful accounts is established and recorded based on managements’      assessment of the credit history with the customer and current      relationships with them. |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                         |
|   | For      the six months ended June 30, 2008 and the year ended 2007, the Company      considers all its accounts receivable to be collectible and no provision      for doubtful accounts has been made in the financial      statements.                                                                                                                                                                                    |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                         |
| 3.     | Inventories                                                                                                                                                                                                                                                                                                                                                                                                                  |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                         |
|   | Inventories      are stated at lower of cost or market value, cost being determined on a      first in first out method.  The Company provided inventory      allowances based on excess and obsolete inventories determined principally      by customer demand. Inventory consists of electronic components purchased      from suppliers.                                                                       |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                         |
| 4.     | Property      and equipment                                                                                                                                                                                                                                                                                                                                                                                                  |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                         |
|   | Property      and equipment are stated at cost, less accumulated      depreciation.  Expenditures for additions, major renewals and      betterments are capitalized and expenditures for maintenance and repairs      are charged to expense as incurred.                                                                                                                                                         |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                         |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                         |
|   | Depreciation      is provided on a straight-line basis, less estimated residual values over      the assets’ estimated useful lives. The estimated useful lives are as      follows:                                                                                                                                                                                                                                   |

| Plant and      machinery                | 5    Years        |
|----------------------------------------------|-------------------|
| Motor    vehicles                            | 5    Years        |
|  Furniture,      fixtures and equipment | 2 to 5      Years |

| 5.     | Stock-Based      Compensation                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
|   | The      Company adopted SFAS No. 123R, “Share-Based Payments”. This Statement      requires a public entity to measure the cost of services received in      exchange for an award of equity instruments based on the grant-date fair      value of the award. That cost will be recognized over the period during      which services are received. Stock compensation for stock granted to      non-employees has been determined in accordance with SFAS 123R and the      Emerging Issues Task Force consensus Issue No. 96-18, "Accounting for      Equity Instruments that are issued to Other than Employees for Acquiring,      or in Conjunction with Selling Goods or Services" ("EITF 96-18"), as the      fair value of the consideration received or the fair value of equity      instruments issued, whichever is more reliably  measured. |

| 6.     | Revenue      recognition                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
|   | Revenues      represent the invoiced value of goods sold, recognized upon the delivery      of goods to customers, less any sale discounts and allowances. Supply      chain management services income is realized on taking receipt of      electronic components, logistics, custom clearances, warehousing, delivery      and effecting payments to suppliers on behalf of customers as required.      SCM service income is recognized when the services are      provided.                                                                                                                                                                                                                                                                                                                                   |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
| 7.     | Income      taxes                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
|   | The      Company accounts for income taxes under the SFAS No. 109, “Accounting for      Income Taxes” (“SFAS 109”). Under SFAS 109, deferred tax assets and      liabilities are recognized for the future tax consequences attributable to      differences between the financial statement carrying amounts of existing      assets and liabilities and their respective tax bases. Deferred tax assets      and liabilities are measured using enacted tax rates expected to apply to      taxable income in the years in which those temporary differences are      expected to be recovered or settled. Under SFAS 109, the effect on      deferred tax assets and liabilities of a change in tax rates is recognized      in income in the period that included the enactment  date. |

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| 8.     | Foreign      currency translation                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
|   | SinoHub,      SinoHub International, B2B Chips and SinoHub Hong Kong maintain their      accounting records in their functional currencies in US$ and Hong Kong      Dollars (“HK$”) respectively, whereas SinoHub SCM SZ, SinoHub Electronics      SZ, SinoHub SCM SH and SinoHub Electronics SH maintain their accounting      records in their functional currency in RMB.                                                                                                                                                                                                                                                                                                                                                                                                                   |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
|   | Foreign      currency transactions during the year are translated to their functional      currencies at the approximate rates of exchange on the dates of      transactions.  Monetary assets and liabilities denominated in      foreign currencies at the balance sheet date are translated at the      approximate rates of exchange at that date.  No-monetary assets      and liabilities are translated at the rates of exchange prevailing at the      time the asset or liability was acquired.  Exchange gains or      losses are recorded in the statement of operations.                                                                                                                                                                                          |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
|   | The financial      statements of the subsidiaries (whose functional currencies are HK$ and      RMB) are translated into US$ using the closing rate method.  The      balance sheet items are translated into US$ using the exchange rates at      the respective balance sheet dates.  The capital and various      reserves are translated at historical exchange rates prevailing at the      time of the transactions while income and expenses items are translated at      the average exchange rate for the year.  All exchange      differences are recorded as a component of accumulated other comprehensive      income within equity. Translation gain for      the six months ended June 30, 2008 and 2007 was $464,623      and $57,396 respectively. |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
| 9.     | Comprehensive      income                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
|   | The      foreign currency translation gain or loss resulting from the translation      of the financial statements expressed in HK$ and RMB to US$ is reported as      other comprehensive income in the statements of operations and      stockholders’ equity. Other comprehensive income for the six months ended      June 30, 2008 and 2007 was $464,623      and $57,396 respectively.                                                                                                                                                                                                                                                                                                                                                                                                          |

| 10.    | Earnings      per share                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
|   | Earnings      per share in accordance with the provisions of SFAS No. 128, "Earnings Per      Share." SFAS No. 128 requires presentation of basic and diluted earnings      per share in conjunction with the disclosure of the methodology used in      computing such earnings per share. Basic earnings per share excludes      dilution and is computed by dividing income available to common      stockholders by the weighted average common shares outstanding during the      period. Diluted earnings per share takes into account the potential      dilution that could occur if securities or other contracts to issue common      stock were exercised and converted into common stock using the treasury      method. |

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|   | · | regulatory      restrictions, trade disputes, industry-specific quotas, tariffs,      non-tariff barriers and taxes that may result in limiting exports from      China. |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | The      reduction or elimination of tax rebates or other forms of governmental      subsidies and economic incentives for Chinese export    products. |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------|

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Risks Related to the People’s Republic ofChina

|   | · | foreign      laws and regulations that may be materially different from those of the      United States; |
|--------|--------|----------------------------------------------------------------------------------------------------------|
|   | · | changes      in applicable laws and regulations;                                                         |

|   | · | challenges      to, or failure of, title; |
|--------|--------|-------------------------------------------|
|   | · | labor      and political unrest;          |

|   | · | foreign      currency fluctuations;                       |
|--------|--------|-----------------------------------------------------------|
|   | · | changes      in foreign economic and politicalconditions; |

|   | · | export      and import restrictions;                   |
|--------|--------|--------------------------------------------------------|
|   | · | tariffs,      customs, duties and other tradebarriers; |

|   | · | difficulties      in staffing and managing foreign operations; |
|--------|--------|----------------------------------------------------------------|
|   | · | longer      time periods in collectingrevenues;                |

|   | · | difficulties      in collecting accounts receivable and enforcing  agreements;     |
|--------|--------|------------------------------------------------------------------------------------|
|   | · | possible      loss of properties due to nationalization or expropriation;      and |

|   | · | limitations      on repatriation of income orcapital. |
|--------|--------|-------------------------------------------------------|

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|   | · | Judgments      of United States courts obtained against us or these non-residents based      on the civil liability provisions of the securities laws of the United      States or any state; or |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | In      original actions brought in the Republic of China, liabilities against us      or non-residents predicated upon the securities laws of the United States      or any state. Enforcement of a foreign judgment in the Republic of China      also may be limited or otherwise affected by applicable bankruptcy,      insolvency, liquidation, arrangement, moratorium or similar laws relating      to or affecting creditors' rights generally and will be subject to a      statutory limitation of time within which proceedings may be      brought. |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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| Exhibit No. |    | Title      of Document                                                                                                                                                        |
|------------------|--------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|             |         |                                                                                                                                                                          |
| 31.1             |         | Certification      of Principal Executive Officer pursuant to Rule 13a-14 and Rule      15d-14(a), promulgated under the Securities and Exchange Act of 1934, as      amended |
|             |         |                                                                                                                                                                          |
| 31.2             |         | Certification      of Principal Financial Officer pursuant to Rule 13a-14 and Rule 15d      14(a), promulgated under the Securities and Exchange Act of 1934, as      amended |
|             |         |                                                                                                                                                                          |
| 32.1             |         | Certification      pursuant to Section 906 of Sarbanes Oxley Act of 2002 (Chief Executive      Officer)                                                                       |
|             |         |                                                                                                                                                                          |
| 32.2             |         | Certification      pursuant to Section 906 of Sarbanes Oxley Act of 2002 (Chief Financial      Officer)                                                                       |

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|                                  | SINOHUB,      INC. |                                 |
|---------------------------------------|--------------------|--------------------------------------|
|                                  |               |                                 |   |
| Date:  August      14, 2008 | By:                | /s/      Henry      T. Cochran  |   |
|                                  |               | Henry      T. Cochran                |   |
|                                  |               | Chief      Executive Officer         |   |

| August      14, 2008 | By:    | /s/      Willa Li                                                              |   |
|----------------------|--------|-------------------------------------------------------------------------------------|--------|
|                 |   | Willa      Li                                                                       |   |
|                 |   | Chief      Financial Officer(Principal      Financial and Accounting Officer)  |   |

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