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| x      | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE             |
|--------|---------------------------------------------------------------------|
|   | SECURITIES EXCHANGE ACT OF 1934                                     |
|   |                                                                |
|   | For the quarterly period ended March 31, 2011                       |
|   |                                                                |
|   | 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.) |
|                                                                                                         |   |                |
| 6/F, Bldg 51, Rd 5, Qiongyu Blvd.Technology Park, Nanshan DistrictShenzhen, People’s Republic of China |   |   518057  |
| (Address of principal executive offices)                                                                     |   | (Zip Code)          |

| Large accelerated filer  | o      |  Accelerated filer                             | o      |
|-------------------------------|--------|-----------------------------------------------------|--------|
| Non-accelerated filer         | o      | Smaller Reporting Company                           | x      |
|                          |   | (Do not check if a smaller reporting company)  |   |

| Class                                    |   | Outstanding at April 30, 2011 |
|------------------------------------------|--------|-------------------------------|
| Common Stock, $0.001 par value per share |   | 33,451,806 shares             |

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TABLE OF CONTENTS

| PART I - FINANCIAL INFORMATION                                                                      | 3      |
|-----------------------------------------------------------------------------------------------------|--------|
|                                                                                                |   |
| Item 1. Financial Statements                                                                        | 3      |
|                                                                                                |   |
| Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations | 30     |
|                                                                                                |   |
| Item 3. Quantitative and Qualitative Disclosures About Market Risk                                  | 33     |
|                                                                                                |   |
| Item 4T. Controls and Procedures                                                                    | 33     |
|                                                                                                |   |
| PART II - OTHER INFORMATION                                                                         | 36     |
|                                                                                                |   |
| Item 1. Legal Proceedings                                                                           | 36     |
|                                                                                                |   |
| Item 1A. Risk Factors                                                                               | 36     |
|                                                                                                |   |
| Item 2. Unregistered Sales of Equity Securities and Use of Proceeds                                 | 36     |
|                                                                                                |   |
| Item 3. Defaults Upon Senior Securities                                                             | 36     |
|                                                                                                |   |
| Item 4. [Removed and Reserved]                                                                      | 36     |
|                                                                                                |   |
| Item 5. Other Information                                                                           | 36     |
|                                                                                                |   |
| Item 6. Exhibits                                                                                    | 37     |
|                                                                                                |   |
| SIGNATURES                                                                                          | 38     |

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PART I - FINANCIAL INFORMATION

Item 1.  Financial Statements

| ASSETS                                                                                        |   | March 31, 2011 |        |   | December 31, 2010 |   |
|-----------------------------------------------------------------------------------------------|--------|----------------|-------------|--------|-------------------|--------|
|                                                                                          |   | (Unaudited)    |        |   | (Audited)         |   |
|                                                                                          |   |           |        |   | (As Restated)     |   |
| CURRENT ASSETS                                                                                |   |           |        |   |              |   |
|      Cash and cash equivalents                                       |   | $              | 13,950,000  |   |              | $      | 4,524,000 |   |
|      Restricted cash                                                 |   |           | 74,604,000  |   |              |   | 32,059,000 |   |
|      Accounts receivable, net                                        |   |           | 49,256,000  |   |              |   | 45,686,000 |   |
|      Inventories, net                                                |   |           | 19,960,000  |   |              |   | 14,631,000 |   |
|      Prepaid expenses and other current assets                       |   |           | 1,916,000   |   |              |   | 704,000 |   |
|      Deposit with suppliers                                          |   |           | 579,000     |   |              |   | 1,308,000 |   |
|           Total current assets              |   |           | 160,266,000 |   |              |   | 98,913,000 |   |
|                                                                                          |   |           |        |   |              |   |   |   |
| PROPERTY AND EQUIPMENT, NET                                                                   |   |           | 13,290,000  |   |              |   | 11,190,000 |   |
|                                                                                          |   |           |        |   |              |   |   |   |
| TOTAL ASSETS                                                                                  |   | $              | 173,556,000 |   |              | $      | 110,103,000 |   |
|                                                                                          |   |           |        |   |              |   |   |   |
| LIABILITIES AND STOCKHOLDERS’ EQUITY                                                    |   |           |        |   |              |   |   |   |
|                                                                                          |   |           |        |   |              |   |   |   |
| CURRENT LIABILITIES                                                                           |   |           |        |   |              |   |   |   |
|      Accounts payable                                                |   | $              | 1,721,000   |   |              | $      | 865,000 |   |
|      Customer deposits                                               |   |           | 749,000     |   |              |   | 107,000 |   |
|      Accrued expenses and other current liabilities                  |   |           | 779,000     |   |              |   | 709,000 |   |
|      Bank borrowings                                                 |   |           | 86,330,000  |   |              |   | 37,299,000 |   |
|      Capital lease obligations – current portion               |   |           | 608,000     |   |              |   | 756,000 |   |
|      Income and other taxes payable                                  |   |           | 541,000     |   |              |   | 1,712,000 |   |
|           Total current liabilities         |   |           | 90,728,000  |   |              |   | 41,449,000 |   |
|                                                                                          |   |           |        |   |              |   |   |   |
| LONG-TERM LIABILITIES                                                                         |   |           |        |   |              |   |   |   |
|      Capital lease obligations, net of current portion               |   |           | 880,000     |   |              |   | 845,000 |   |
|      Warrant Derivatives                                             |   |           | 1,181,000   |   |              |   | 1,692,000 |   |
| TOTAL LIABILITIES                                                                             |   |           | 92,789,000  |   |              |   | 43,985,000 |   |
|                                                                                          |   |           |        |   |              |   |   |   |
| STOCKHOLDERS’ EQUITY                                                                    |   |           |        |   |              |   |   |   |
|      Preferred stock, $0.001 par value, 5,000,000 shares authorized; |   |           | -           |   |              |   | - |   |
|      no shares issued                                                |
|      Common stock, $0.001 par value, 100,000,000 shares authorized;  |   |           | 33,000      |   |              |   | 29,000 |   |
|      33,379,420 shares and 28,570,859 shares issued and outstanding  |
|      as of March 31, 2011 and December 31, 2010, respectively        |
|      Additional paid-in capital                                      |   |           | 30,622,000  |   |              |   | 20,122,000 |   |
|      Retained earnings                                               |   |           |        |   |              |   |   |   |
|           Unappropriated                    |   |           | 45,846,000  |   |              |   | 42,301,000 |   |
|           Appropriated                      |   |           | 934,000     |   |              |   | 934,000 |   |
|      Accumulated other comprehensive income                          |   |           | 3,331,000   |   |              |   | 2,730,000 |   |
|           Total stockholders’ equity  |   |           | 80,766,000  |   |              |   | 66,118,000 |   |
|                                                                                          |   |           |        |   |              |   |   |   |
| TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY                                              |   | $              | 173,556,000 |   |              | $      | 110,103,000 |   |

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|                                                                                          |   | Three months ended March 31, |       |
|-----------------------------------------------------------------------------------------------|--------|------------------------------|------------|
|                                                                                          |   |                         |       |   | 2010 |   |
|                                                                                          |   | 2011                         |       |   | (As Restated) |   |
| NET SALES                                                                                     |   |                         |       |   |   |   |
|      ECSS                                                            |   | $                            | 21,526,000 |   |   | $ | 32,218,000 |   |
|      ICM                                                             |   |                         | 16,442,000 |   |   |   | 6,386,000 |   |
|           Total net sales                   |   |                         | 37,968,000 |   |   |   | 38,604,000 |   |
| COST OF SALES                                                                                 |   |                         |       |   |   |   |   |   |
|      ECSS                                                            |   |                         | 17,311,000 |   |   |   | 26,438,000 |   |
|      ICM                                                             |   |                         | 12,972,000 |   |   |   | 5,071,000 |   |
|           Total cost of sales               |   |                         | 30,282,000 |   |   |   | 31,509,000 |   |
|                                                                                          |   |                         |       |   |   |   |   |   |
| GROSS PROFIT                                                                                  |   |                         | 7,686,000  |   |   |   | 7,095,000 |   |
|                                                                                          |   |                         |       |   |   |   |   |   |
| OPERATING EXPENSES                                                                            |   |                         |       |   |   |   |   |   |
|      Selling, general and administrative                             |   |                         | 2,322,000  |   |   |   | 1,895,000 |   |
|      Professional services                                           |   |                         | 281,000    |   |   |   | 245,000 |   |
|      Stock compensation expense                                      |   |                         | -          |   |   |   | 56,000 |   |
|      Stock option compensation amortization                          |   |                         | 109,000    |   |   |   | 93,000 |   |
|      Depreciation                                                    |   |                         | 466,000    |   |   |   | 223,000 |   |
|      Provision for bad debts                                         |   |                         | 52,000     |   |   |   | 33,000 |   |
|           Total operating expenses          |   |                         | 3,231,000  |   |   |   | 2,545,000 |   |
|                                                                                          |   |                         |       |   |   |   |   |   |
| INCOME FROM OPERATIONS                                                                        |   |                         | 4,455,000  |   |   |   | 4,550,000 |   |
|                                                                                          |   |                         |       |   |   |   |   |   |
| OTHER INCOME (EXPENSE)                                                                        |   |                         |       |   |   |   |   |   |
|      Interest expense                                                |   |                         | (490,000   | ) |   |   | (30,000 | ) |
|      Interest income                                                 |   |                         | 342,000    |   |   |   | 6,000 |   |
|      Changes in fair values of warrant derivatives                   |   |                         | 511,000    |   |   |   | (44,000 | ) |
|      Other, net                                                      |   |                         | 227,000    |   |   |   | 6,000 |   |
|           Total other income (expense), net |   |                         | 590,000    |   |   |   | (62,000 | ) |
|                                                                                          |   |                         |       |   |   |   |   |   |
| INCOME BEFORE INCOME TAXES                                                                    |   |                         | 5,045,000  |   |   |   | 4,488,000 |   |
|      Income tax expense                                              |   |                         | 1,502,000  |   |   |   | 1,037,000 |   |
|                                                                                          |   |                         |       |   |   |   |   |   |
| NET INCOME                                                                                    |   |                         | 3,543,000  |   |   |   | 3,451,000 |   |
|                                                                                          |   |                         |       |   |   |   |   |   |
| OTHER COMPREHENSIVE INCOME                                                                    |   |                         |       |   |   |   |   |   |
|      Foreign currency translation gain                               |   |                         | 601,000    |   |   |   | 27,000 |   |
|                                                                                          |   |                         |       |   |   |   |   |   |
| COMPREHENSIVE INCOME                                                                          |   | $                            | 4,144,000  |   |   | $ | 3,478,000 |   |
|                                                                                          |   |                         |       |   |   |   |   |   |
| SHARE AND PER SHARE DATA                                                                      |   |                         |       |   |   |   |   |   |
|      Net income per share-basic                                      |   | $                            | 0.12       |   |   | $ | 0.13 |   |
|      Weighted average number of shares-basic                         |   |                         | 30,181,000 |   |   |   | 27,283,000 |   |
|      Net income per share-diluted                                    |   | $                            | 0.12       |   |   | $ | 0.12 |   |
|      Weighted average number of shares-diluted                       |   |                         | 30,336,000 |   |   |   | 27,979,000 |   |

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|                                                                                                                            |   | Three months ended March 31, |        |
|---------------------------------------------------------------------------------------------------------------------------------|--------|------------------------------|-------------|
|                                                                                                                            |   |                         |        |   | 2010 |   |
|                                                                                                                            |   | 2011                         |        |   | (As Restated) |   |
|                                                                                                                            |   |                         |        |   |   |   |
| CASH FLOWS FROM OPERATING ACTIVITIES                                                                                            |   |                         |        |   |   |   |
|      Net income                                                                                        |   | $                            | 3,543,000   |   |   | $ | 3,451,000 |   |
|      Adjustments to reconcile net income to cash used in operations:                                   |   |                         |        |   |   |   |   |   |
|           Depreciation - operating expenses                                   |   |                         | 466,000     |   |   |   | 223,000 |   |
|           Depreciation - cost of sales                                        |   |                         | 406,000     |   |   |   | - |   |
|           Changes in fair value of warrant derivatives                        |   |                         | (511,000    | ) |   |   | 44,000 |   |
|           Provision for bad debts                                             |   |                         | 52,000      |   |   |   | 33,000 |   |
|           Stock compensation expense                                          |   |                         | -           |   |   |   | 56,000 |   |
|           Stock option compensation amortization                              |   |                         | 109,000     |   |   |   | 93,000 |   |
|      Changes in operating assets and liabilities:                                                      |   |                         |        |   |   |   |   |   |
|           Accounts receivable                                                 |   |                         | (3,181,000  | ) |   |   | (2,445,000 | ) |
|           Inventories                                                         |   |                         | (5,175,000  | ) |   |   | 1,993,000 |   |
|           Prepaid expenses and other current assets                           |   |                         | (1,201,000  | ) |   |   | (379,000 | ) |
|           Deposit with suppliers                                              |   |                         | 739,000     |   |   |   | (1,120,000 | ) |
|           Accounts payable                                                    |   |                         | 845,000     |   |   |   | 513,000 |   |
|           Customer deposits                                                   |   |                         | 639,000     |   |   |   | (985,000 | ) |
|           Accrued expenses and other current liabilities                      |   |                         | 63,000      |   |   |   | (330,000 | ) |
|           Income and other taxes payable                                      |   |                         | (1,183,000  | ) |   |   | (1,185,000 | ) |
|                Net cash used in operating activities |   |                         | (4,389,000  | ) |   |   | (38,000 | ) |
|                                                                                                                            |   |                         |        |   |   |   |   |   |
| CASH FLOWS FROM INVESTING ACTIVITIES                                                                                            |   |                         |        |   |   |   |   |   |
|      Increase in restricted cash                                                                       |   |                         | (42,545,000 | ) |   |   | (3,984,000 | ) |
|      Purchase of property and equipment                                                                |   |                         | (2,793,000  | ) |   |   | (2,186,000 | ) |
|           Net cash used in investing activities                               |   |                         | (45,338,000 | ) |   |   | (6,170,000 | ) |
|                                                                                                                            |   |                         |        |   |   |   |   |   |
| CASH FLOWS FROM FINANCING ACTIVITIES                                                                                            |   |                         |        |   |   |   |   |   |
|      Proceeds from issuance of common stock, net of cost                                               |   |                         | 10,441,000  |   |   |   | 4,470,000 |   |
|      Bank borrowings -  proceeds                                                             |   |                         | 53,000,000  |   |   |   | 7,003,000 |   |
|      Bank borrowings -  repayments                                                           |   |                         | (4,478,000  | ) |   |   | (3,328,000 | ) |
|      Repayments of capital lease obligations                                                           |   |                         | (128,000    | ) |   |   | - |   |
|           Net cash provided by financing activities                           |   |                         | 58,836,000  |   |   |   | 8,145,000 |   |
|                                                                                                                            |   |                         |        |   |   |   |   |   |
| EFFECT OF EXCHANGE RATE CHANGES                                                                                                 |   |                         | 316,000     |   |   |   | 21,000 |   |
|                                                                                                                            |   |                         |        |   |   |   |   |   |
| NET INCREASE IN CASH AND CASH EQUIVALENTS                                                                                       |   |                         | 9,426,000   |   |   |   | 1,958,000 |   |
|                                                                                                                            |   |                         |        |   |   |   |   |   |
| CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD                                                                                |   |                         | 4,524,000   |   |   |   | 8,347,000 |   |
|                                                                                                                            |   |                         |        |   |   |   |   |   |
| CASH AND CASH EQUIVALENTS AT END OF PERIOD                                                                                      |   | $                            | 13,950,000  |   |   | $ | 10,305,000 |   |
|                                                                                                                            |   |                         |        |   |   |   |   |   |
| SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION                                                                                |   |                         |        |   |   |   |   |   |
|      Cash paid for interest expense                                                                    |   | $                            | 490,000     |   |   | $ | 30,000 |   |
|      Cash paid for income tax                                                                          |   | $                            | 2,092,000   |   |   | $ | 2,350,000 |   |

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| Plant and machinery               | 2 to 5 Years                   |
|-----------------------------------|--------------------------------|
| Motor vehicles                    | 5 Years                        |
| Furniture, fixtures and equipment | 2 to 5 Years                   |
| Leasehold improvements            | Over the unexpired lease terms |

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|                |   |                                              |    |
|---------------------|--------|---------------------------------------------------|---------|
|                |   | Quoted Pricesin ActiveMarkets forIdentical Assets |    |   | SignificantOtherObservableInputs |   |   | SignificantUnobservableInputs |   |   |   |   |
|                |   | (Level 1)                                         |    |   | (Level 2) |   |   | (Level 3) |   |   | Total |   |
|  2010 Warrants |   | $                                                 | — |   |   | $ | — |   |   | $ | 1,181,000 |   |   | $ | 1,181,000 |   |

|                                      |   | 2011   |      |   | 2010   |    |
|-------------------------------------------|--------|--------|-----------|--------|--------|---------|
| Beginning Balance,                        |   | $      | 1,692,000 |   |   | $       | - |   |
| Fair value of 2010 warrants at issue date |   |   |  -   |   |   |    | 2,304,000 |   |
| Net (gain) loss included in earnings      |   |   | (511,000  | )      |   |    | 44,000 |   |
| Balance March 31                          |   | $      | 1,181,000 |   |   | $  | 2,348,000 |   |

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|                                              |   | 2011      |   |   | 2010      |   |
|---------------------------------------------------|--------|-----------|--------|--------|-----------|--------|
| Estimated market value of stock on grant date (1) |   | $         | 1.89   |   |      | $      | 3.18 |   |
| Risk-free interest rate  (2)            |   |      | 1.60   | %      |      |   | 2.55 | % |
| Dividend yield   (3)               |   |      | 0.00   | %      |      |   | 0.00 | % |
| Volatility factor                                 |   |      | 123.08 | %      |      |   | 146.50 | % |
| Expected life  (4)                      |   | 3.9 years |   |   | 4.9 years |   |

|   | (1) | The estimated market value of the stock on the date of grant was based on a calculation by management after consideration of price per share received in the private offerings and reported public market prices. |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (2) | The risk-free interest rate was determined by management using the U.S. Treasury zero-coupon yield over the contractual term of the option on date of grant. |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (3) | Management determined the dividend yield to be 0% based upon its expectation that the Company will not make any near term change to its policy of retaining all earnings available to pay dividends for use in the Company’s business. |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (4) | Expected life is remaining contractual life of the warrants. |
|--------|-----|--------------------------------------------------------------|

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| (i)   | for the fiscal quarter ended March 31, 2010, included in its Quarterly Report on Form 10-Q for the fiscal quarter ended March 31, 2010, filed with the SEC on May 17, 2010 (the “March 2010 Form 10-Q”); |
|-----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (ii)   |  for the fiscal quarter ended June 30, 2010, included in its Quarterly Report on Form 10-Q for the fiscal quarter ended June 30, 2010, filed with the SEC on August 12, 2010 (the “June 2010 Form 10-Q”); and |
|------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (iii)   |  for the fiscal quarter ended September 30, 2010, included in its Quarterly Report on Form 10-Q for the fiscal quarter ended September 30, 2010 filed with the SEC on November 12, 2010 (the “September 2010 Form 10-Q” and, collectively with the March 2010 Form 10-Q and June 2010 Form 10-Q, the“Form 10-Qs”), |
|-------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|                                       |   | Year EndedDecember 31, 2010 |              |
|--------------------------------------------|--------|----------------------------------|-------------------|
|                                       |   | As Previously Recorded           |              |   | As Restated |   |
|                                       |   |                             |              |   |   |   |
| Total Assets                               |   | $                                | 110,103,000       |   | $  |  110,103,000 |   |
|                                       |   |                             |              |   |   |   |   |
| Total Current Liabilities                  |   | $                                | 41,449,000        |   | $   |  41,449,000 |   |
|                                       |   |                             |              |   |   |   |   |
| LONG-TERM LIABILITIES                      |   |                             |              |   |   |   |   |
| Warrant Derivatives                        |   |                             | -                 |   |   |  1,692,000 |   |
|                                       |   |                             |              |   |   |   |   |
| TOTAL LIABILITIES                          |   | $                                | 42,294,000        |   | $   | 43,985,000 |   |
|                                       |   |                             |              |   |   |   |   |
| STOCKHOLDERS' EQUITY                       |   |                             |              |   |   |   |   |
|                                       |   |                             |              |   |   |   |   |
| Additional paid-in capital                 |   |                             |   22,426,000 |   |   | 20,122,000 |   |
| Retained earnings                          |   |                             |              |   |   |   |   |
| Unappropriated                             |   |                             |   41,691,000 |   |   | 42,301,000 |   |
|                                       |   |                             |              |   |   |   |   |
| Total stockholders' equity            |   |                             | 67,809,000        |   |   |  66,118,000 |   |
|                                       |   |                             |              |   |   |   |   |
| TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY |   | $                                | 110,103,000       |   | $  |   110,103,000 |   |

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|                                                 |   | Three Months EndedMarch 31, 2010 |      |
|------------------------------------------------------|--------|----------------------------------|-----------|
|                                                 |   | As Previously Recorded           |      |   | As Restated |   |
|                                                 |   |                             |      |   |   |   |
| Change in fair value of derivative warrant liability |   | $                                | -         |   | $  | (44,000) |   |
|                                                 |   |                             |      |   |   |   |   |
| Total other income (expense)                         |   | $                                | (18,000)  |   | $  | (62,000) |   |
|                                                 |   |                             |      |   |   |   |   |
| Net Income Before Provision for Income Tax           |   | $                                | 4,532,000 |   | $  | 4,488,000 |   |
|                                                 |   |                             |      |   |   |   |   |
| Net Income                                           |   | $                                | 3,495,000 |   | $  | 3,451,000 |   |
|                                                 |   |                             |      |   |   |   |   |
| Basic Earnings Per Share                             |   | $                                | 0.13      |   | $  | 0.13 |   |
|                                                 |   |                             |      |   |   |   |   |
| Diluted Earnings Per Share                           |   | $                                | 0.12      |   | $  | 0.12 |   |
|                                                 |   |                             |      |   |   |   |   |
| Other Comprehensive Income                           |   |                             |      |   |   |   |   |
| Foreign currency translation adjustment              |   | $                                | 27,000    |   | $  | 27,000 |   |
|                                                 |   |                             |      |   |   |   |   |
|                                                 |   |                             |      |   |   |   |   |
| Comprehensive Income                                 |   | $                                | 3,522,000 |   | $  | 3,478,000 |   |

|                                         |   | Three Months EndedMarch 31, 2010 |      |
|----------------------------------------------|--------|----------------------------------|-----------|
|                                         |   | As Previously Recorded           |      |   | As Restated |   |
|                                         |   |                             |      |   |   |   |
| Net Income                                   |   | $                                | 3,495,000 |   |   | $ | 3,451,000 |   |
|                                         |   |                             |      |   |   |   |   |   |
| Change in fair value of derivative liability |   |                             | -         |   |   |   | 44,000 |   |
|                                         |   |                             |      |   |   |   |   |   |
| Total:                                       |   | $                                | 3,495,000 |   |   | $ | 3,495,000 |   |

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|                                  |   | March 31, 2011 |       |   | December 31, 2010 |    |
|---------------------------------------|--------|----------------|------------|--------|-------------------|---------|
|                                  |   | (Unaudited)    |       |   | (Audited)         |    |
|                                  |   |           |       |   | (As Restated)     |    |
| Accounts receivable                   |   | $         | 49,984,000 |   |              | $  | 46,362,000 |   |
| Less: allowance for doubtful accounts |   |           | 728,000    |   |              |    | 676,000 |   |
| Accounts receivable, net              |   | $              | 49,256,000 |   |              | $       | 45,686,000 |   |

|                                     |   | March 31, 2011 |       |   | December 31, 2010 |   |
|------------------------------------------|--------|----------------|------------|--------|-------------------|--------|
|                                     |   | (Unaudited)    |       |   | (Audited)         |   |
|                                     |   |           |       |   | (As Restated)     |   |
| Raw materials                            |   | $              | 18,188,000 |   |              | $      | 169,000 |   |
| Work-in-progress                         |   |           | 9,000      |   |              |   | - |   |
| Finished goods and goods for resale      |   |           | 1,763,000  |   |              |   | 14,462,000 |   |
|                                     |   | $              | 19,960,000 |   |              | $      | 14,631,000 |   |
| Less: allowance for obsolete inventories |   |           | -          |   |              |   | - |   |
| Inventories, net                         |   | $              | 19,960,000 |   |              | $      | 14,631,000 |   |

|   | Letter of credit facility with China Construction Bank in the amount of $12,900,000 to support our component sales and services business.  Restricted cash balances are required as security for draws against the facility.  The facility renews each year and is available through January 2012. |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Letter of credit facility with Industrial Bank in the amount of $50,000,000 to support our business.  Restricted cash balances are required as security for draws against the facility.  The facility is available through March, 2012. |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Letter of credit facility with Hangzhou Bank in the amount of $5,300,000 to support our component sales and services business.  Restricted cash balances are required as security for draws against the facility.  In addition, the bank requires third party guarantees from two subsidiaries, SinoHub SCM Shenzhen, Ltd., and B2B Chips, Ltd., and a director and an executive officer.  Also, the bank requires a third party guarantor.  The third-party guarantor is Meisun Technology Ltd.  The only relationship between the Company and Meisun Technology Ltd. is the guaranty. The facility renews each year and is available through May, 2011. |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Letter of credit facility with Bank of Ningbo in the amount of $7,000,000 to support our electronics product manufacturing and sales business.  The bank requires the unlimited personal guaranty of an executive officer.  The facility renews each year and is available through December, 2011. |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

Table of Contents

|   | Letter of credit facility with Bank of Jiangsu in the amount of $9,000,000 to support our electronics product manufacturing and sales business.  The bank requires the unlimited personal guaranty of an executive officer.  In addition, the credit facility is secured by a lien on SinoHub's inventory and accounts receivable.  The facility renews each year and is available through May 2011. |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Letter of credit facility with Bank of Shanghai in the amount of $3,050,000 to support our electronics product manufacturing and sales business.  The bank requires the unlimited personal guaranty of an executive officer.  The facility renews each year and is available through September 2011. |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                                                                  |   | March 31,   |   |   | December 31,  |   |
|-----------------------------------------------------------------------|--------|-------------|--------|--------|---------------|--------|
|                                                                  |   | 2011        |   |   | 2010          |   |
|                                                                  |   | (Unaudited) |   |   | (Audited)     |   |
|                                                                  |   |        |   |   | (As Restated) |   |
| Note payable to a bank, annual interest rate 5.61%, due May 2011      |   | $           | -      |   |          | $      | 1,512,000 |   |
| Note payable to a bank, annual interest rate 5.38%, due June 2011     |   |        | -      |   |          |   | 634,000 |   |
| Note payable to a bank, annual interest rate 5.38%, due June 2011     |   |        | -      |   |          |   | 536,000 |   |
| Note payable to a bank, annual interest rate 5.38%, due June 2011     |   |        | -      |   |          |   | 1,140,000 |   |
| Note payable to a bank, annual interest rate 5.38%, due June 2011     |   |        | -      |   |          |   | 505,000 |   |
| Note payable to a bank, annual interest rate 5.38%, due June 2011     |   |        | -      |   |          |   | 484,000 |   |
| Note payable to a bank, annual interest rate 5.38%, due June 2011     |   |        | -      |   |          |   | 1,800,000 |   |
| Note payable to a bank, annual interest rate 5.38%, due June 2011     |   |        | -      |   |          |   | 847,000 |   |
| Note payable to a bank, annual interest rate 5.38%, due June 2011     |   |        | -      |   |          |   | 1,805,000 |   |
| Note payable to a bank, annual interest rate 5.38%, due June 2011     |   |        | -      |   |          |   | 352,000 |   |
| Note payable to a bank, annual interest rate 5.38%, due June 2011     |   |        | -      |   |          |   | 342,000 |   |
| Note payable to a bank, annual interest rate 5.38%, due June 2011     |   |        | -      |   |          |   | 5,022,000 |   |
| Note payable to a bank, annual interest rate 5.38%, due June 2011     |   |        | -      |   |          |   | 362,000 |   |
| Note payable to a bank, annual interest rate 5.38%, due June 2011     |   |        | -      |   |          |   | 993,000 |   |
| Note payable to a bank, annual interest rate 5.38%, due June 2011     |   |        | -      |   |          |   | 480,000 |   |
| Note payable to a bank, annual interest rate 5.38%, due June 2011     |   |        | -      |   |          |   | 736,000 |   |
| Note payable to a bank, annual interest rate 5.38%, due June 2011     |   |        | -      |   |          |   | 1,001,000 |   |
| Note payable to a bank, annual interest rate 5.38%, due June 2011     |   |        | -      |   |          |   | 1,443,000 |   |
| Note payable to a bank, annual interest rate 5.38%, due June 2011     |   |        | -      |   |          |   | 702,000 |   |
| Note payable to a bank, annual interest rate 5.84%, due October 2011  |   |        | -      |   |          |   | 756,000 |   |
| Note payable to a bank, annual interest rate 6.12%, due November 2011 |   |        | -      |   |          |   | 756,000 |   |
| Note payable to a bank, annual interest rate 5.38%, due November 2011 |   |        | -      |   |          |   | 5,815,000 |   |
| Note payable to a bank, annual interest rate 5.38%, due December 2011 |   |        | -      |   |          |   | 4,044,000 |   |
| Note payable to a bank, annual interest rate 5.50%, due December 2011 |   |        | -      |   |          |   | 5,232,000 |   |

----

Table of Contents

| Note payable to a bank, annual interest rate 5.50%, due April 2011     |   | $      | 3,359,000 |   |   | $      | - |   |
|------------------------------------------------------------------------|--------|--------|-----------|--------|--------|--------|---|--------|
| Note payable to a bank, annual interest rate 3.00%, due April 2011     |   |   | 3,951,000 |   |   |   | - |   |
| Note payable to a bank, annual interest rate 5.50%, due April 2011     |   |   | 198,000   |   |   |   | - |   |
| Note payable to a bank, annual interest rate 5.50%, due April 2011     |   |   | 1,527,000 |   |   |   | - |   |
| Note payable to a bank, annual interest rate 5.61%, due May 2011       |   |   | 1,527,000 |   |   |   | - |   |
| Note payable to a bank, annual interest rate 3.00%, due May 2011       |   |   | 2,614,000 |   |   |   | - |   |
| Note payable to a bank, annual interest rate 3.00%, due May 2011       |   |   | 2,405,000 |   |   |   | - |   |
| Note payable to a bank, annual interest rate 5.50%, due May 2011       |   |   | 197,000   |   |   |   | - |   |
| Note payable to a bank, annual interest rate 2.66%, due May 2011       |   |   | 709,000   |   |   |   | - |   |
| Note payable to a bank, annual interest rate 2.67%, due June 2011      |   |   | 640,000   |   |   |   | - |   |
| Note payable to a bank, annual interest rate 3.16%, due June 2011      |   |   | 541,000   |   |   |   | - |   |
| Note payable to a bank, annual interest rate 3.00%, due June 2011      |   |   | 1,151,000 |   |   |   | - |   |
| Note payable to a bank, annual interest rate 2.99%, due June 2011      |   |   | 510,000   |   |   |   | - |   |
| Note payable to a bank, annual interest rate 3.16%, due June 2011      |   |   | 489,000   |   |   |   | - |   |
| Note payable to a bank, annual interest rate 3.00%, due June 2011      |   |   | 1,817,000 |   |   |   | - |   |
| Note payable to a bank, annual interest rate 3.16%, due June 2011      |   |   | 855,000   |   |   |   | - |   |
| Note payable to a bank, annual interest rate 3.00%, due June 2011      |   |   | 1,822,000 |   |   |   | - |   |
| Note payable to a bank, annual interest rate 3.00%, due June 2011      |   |   | 355,000   |   |   |   | - |   |
| Note payable to a bank, annual interest rate 2.25%, due June 2011      |   |   | 345,000   |   |   |   | - |   |
| Note payable to a bank, annual interest rate 3.00%, due June 2011      |   |   | 5,069,000 |   |   |   | - |   |
| Note payable to a bank, annual interest rate 3.00%, due June 2011      |   |   | 2,501,000 |   |   |   | - |   |
| Note payable to a bank, annual interest rate 3.03%, due June 2011      |   |   | 365,000   |   |   |   | - |   |
| Note payable to a bank, annual interest rate 3.00%, due June 2011      |   |   | 1,002,000 |   |   |   | - |   |
| Note payable to a bank, annual interest rate 3.16%, due June 2011      |   |   | 484,000   |   |   |   | - |   |
| Note payable to a bank, annual interest rate 5.38%, due June 2011      |   |   | 3,402,000 |   |   |   | - |   |
| Note payable to a bank, annual interest rate 3.16%, due June 2011      |   |   | 743,000   |   |   |   | - |   |
| Note payable to a bank, annual interest rate 3.00%, due June 2011      |   |   | 1,010,000 |   |   |   | - |   |
| Note payable to a bank, annual interest rate 3.16%, due June 2011      |   |   | 1,457,000 |   |   |   | - |   |
| Note payable to a bank, annual interest rate 3.16%, due July 2011      |   |   | 356,000   |   |   |   | - |   |
| Note payable to a bank, annual interest rate 3.16%, due July 2011      |   |   | 611,000   |   |   |   | - |   |
| Note payable to a bank, annual interest rate 2.93%, due July 2011      |   |   | 1,067,000 |   |   |   | - |   |
| Note payable to a bank, annual interest rate 2.93%, due July 2011      |   |   | 186,000   |   |   |   | - |   |
| Note payable to a bank, annual interest rate 2.41%, due July 2011      |   |   | 677,000   |   |   |   | - |   |
| Note payable to a bank, annual interest rate 5.50%, due July 2011      |   |   | 244,000   |   |   |   | - |   |
| Note payable to a bank, annual interest rate 5.50%, due July 2011      |   |   | 1,221,000 |   |   |   | - |   |
| Note payable to a bank, annual interest rate 2.25%, due July 2011      |   |   | 321,000   |   |   |   | - |   |
| Note payable to a bank, annual interest rate 2.65%, due July 2011      |   |   | 238,000   |   |   |   | - |   |
| Note payable to a bank, annual interest rate 3.16%, due August 2011    |   |   | 1,572,000 |   |   |   | - |   |
| Note payable to a bank, annual interest rate 3.17%, due August 2011    |   |   | 465,000   |   |   |   | - |   |
| Note payable to a bank, annual interest rate 2.58%, due August 2011    |   |   | 1,067,000 |   |   |   | - |   |
| Note payable to a bank, annual interest rate 5.50%, due August 2011    |   |   | 171,000   |   |   |   | - |   |
| Note payable to a bank, annual interest rate 2.45%, due August 2011    |   |   | 357,000   |   |   |   | - |   |
| Note payable to a bank, annual interest rate 3.17%, due August 2011    |   |   | 1,038,000 |   |   |   | - |   |
| Note payable to a bank, annual interest rate 3.17%, due August 2011    |   |   | 332,000   |   |   |   | - |   |
| Note payable to a bank, annual interest rate 3.17%, due August 2011    |   |   | 217,000   |   |   |   | - |   |
| Note payable to a bank, annual interest rate 3.17%, due August 2011    |   |   | 574,000   |   |   |   | - |   |
| Note payable to a bank, annual interest rate 3.16%, due September 2011 |   |   | 5,479,000 |   |   |   | - |   |

----

Table of Contents

| Note payable to a bank, annual interest rate 2.59%, due September 2011 |   |   | 658,000    |   |   |   | -          |   |
|------------------------------------------------------------------------|--------|--------|------------|--------|--------|--------|------------|--------|
| Note payable to a bank, annual interest rate 2.59%, due September 2011 |   |   | 149,000    |   |   |   | -          |   |
| Note payable to a bank, annual interest rate 3.16%, due September 2011 |   |   | 2,919,000  |   |   |   | -          |   |
| Note payable to a bank, annual interest rate 2.59%, due September 2011 |   |   | 204,000    |   |   |   | -          |   |
| Note payable to a bank, annual interest rate 5.50%, due September 2011 |   |   | 1,527,000  |   |   |   | -          |   |
| Note payable to a bank, annual interest rate 2.60%, due September 2011 |   |   | 726,000    |   |   |   | -          |   |
| Note payable to a bank, annual interest rate 3.16%, due September 2011 |   |   | 397,000    |   |   |   | -          |   |
| Note payable to a bank, annual interest rate 2.62%, due September 2011 |   |   | 392,000    |   |   |   | -          |   |
| Note payable to a bank, annual interest rate 3.16%, due September 2011 |   |   | 213,000    |   |   |   | -          |   |
| Note payable to a bank, annual interest rate 3.16%, due September 2011 |   |   | 236,000    |   |   |   | -          |   |
| Note payable to a bank, annual interest rate 3.16%, due September 2011 |   |   | 394,000    |   |   |   | -          |   |
| Note payable to a bank, annual interest rate 5.50%, due September 2011 |   |   | 115,000    |   |   |   | -          |   |
| Note payable to a bank, annual interest rate 3.45%, due September 2011 |   |   | 360,000    |   |   |   | -          |   |
| Note payable to a bank, annual interest rate 3.63%, due September 2011 |   |   | 105,000    |   |   |   | -          |   |
| Note payable to a bank, annual interest rate 4.06%, due September 2011 |   |   | 1,312,000  |   |   |   | -          |   |
| Note payable to a bank, annual interest rate 3.63%, due September 2011 |   |   | 945,000    |   |   |   | -          |   |
| Note payable to a bank, annual interest rate 4.06%, due September 2011 |   |   | 705,000    |   |   |   | -          |   |
| Note payable to a bank, annual interest rate 3.63%, due September 2011 |   |   | 787,000    |   |   |   | -          |   |
| Note payable to a bank, annual interest rate 5.84%, due October 2011   |   |   | 763,000    |   |   |   | -          |   |
| Note payable to a bank, annual interest rate 6.12%, due November 2011  |   |   | 763,000    |   |   |   | -          |   |
| Note payable to a bank, annual interest rate 3.00%, due November 2011  |   |   | 5,870,000  |   |   |   | -          |   |
| Note payable to a bank, annual interest rate 3.00%, due December 2011  |   |   | 4,082,000  |   |   |   | -          |   |
| Note payable to a bank, annual interest rate 3.00%, due January 2012   |   |   | 3,476,000  |   |   |   | -          |   |
| Note payable to a bank, annual interest rate 3.00%, due January 2012   |   |   | 1,993,000  |   |   |   | -          |   |
|                                                                   |   |   |       |   |   |   |       |   |
|                                                                   |   | $      | 86,330,000 |   |   | $      | 37,299,000 |   |
| Less : current portion                                                 |   |   | 86,330,000 |   |   |   | 37,299,000 |   |
| Long -term portion                                                     |   | $      | -          |   |   | $      | -          |   |

----

Table of Contents

|                                |   | March 31, 2011 |      |   | December 31, 2010   |   |
|-------------------------------------|--------|----------------|-----------|--------|---------------------|--------|
|                                |   | (Unaudited)    |      |   | (Audited)           |   |
|                                |   |           |      |   | (As Restated)  |   |
| Gross capital lease obligations     |   | $              | 1,488,000 |   |                | $      | 1,601,000 |   |
| Less: current portion               |   |           | 608,000   |   |                |   | 756,000 |   |
| Long-term capital lease obligations |   | $              | 880,000   |   |                | $      | 845,000 |   |

| Fiscal year ending December 31, |   |   |      |
|---------------------------------|--------|--------|-----------|
|                            |   |   |      |
| 2011                            |   | $      | 830,000   |   |
| 2012                            |   |   | 883,000   |   |
| 2013                            |   |   | 280,000   |   |
| 2014                            |   |   | 54,000    |   |
| 2015                            |   |   | 13,000    |   |
|                            |   | $      | 2,060,000 |   |

| Fiscal year ending December 31,              |   |   |      |
|----------------------------------------------|--------|--------|-----------|
|                                         |   |   |      |
| 2011                                         |   | $      | 486,000   |   |
| 2012                                         |   |   | 730,000   |   |
| 2013                                         |   |   | 365,000   |   |
|                                         |   |   | 1,581,000 |   |
| Less: Interest                               |   |   | 93,000    |   |
|                                         |   |   | 1,488,000 |   |
| Less: Current portion                        |   |   | 608,000   |   |
| Capital lease obligation – Non-current |   | $      | 880,000   |   |

----

Table of Contents

|                                                |   | Three months ended March 31 |       |
|-----------------------------------------------------|--------|-----------------------------|------------|
|                                                |   |                        |       |
|                                                |   | 2011                        |       |   | 2010 |   |
|                                                |   | (Unaudited)                 |       |   | (Unaudited) |   |
|                                                |   |                        |       |   | (As Restated) |   |
| Net income for basic and diluted earnings per share |   | $                           | 3,543,000  |   |   | $ | 3,451,000 |   |
|                                                |   |                        |       |   |   |   |   |   |
| Weighted average shares used in basic computation   |   |                        | 30,181,000 |   |   |   | 27,283,000 |   |
| Effect of dilutive stock options and warrants       |   |                        | 155,000    |   |   |   | 696,000 |   |
| Weighted average shares used in diluted computation |   |                        | 30,336,000 |   |   |   | 27,979,000 |   |
|                                                |   |                        |       |   |   |   |   |   |
| Earnings per share:                                 |   |                        |       |   |   |   |   |   |
| Basic                                               |   | $                           | 0.12       |   |   | $ | 0.13 |   |
| Diluted                                             |   | $                           | 0.12       |   |   | $ | 0.12 |   |

----

Table of Contents

| March 31, 2011 | December 31, 2010 |
|----------------|-------------------|
|           |              |   |   |   |   |   |   | Average |   |   |   |   |   |   |   |   | Average |
|           |              |   |   |   |   |   |   | Remaining |   |   |   |   |   |   |   |   | Remaining |
|           |              |   |   | Number |   |   | Number |   | Contractual |   |   |   |   | Number |   |   | Number |   | Contractual |
| Exercise Price |              |   | Outstanding |   |   | Exercisable |   | Life |   | Exercise Price |   |   | Outstanding |   |   | Exercisable |   | Life |
|           | $                 | 3.00 |   |   |   | 2,649,069 |   |   |   | 1,211,740 |   | 2.45 years |   | $ | 3.00 |   |   |   | 1,211,740 |   |   |   | 1,211,740 |   | 2.66 years |
|           | $                 | 3.11 |   |   |   | 853,433 |   |   |   | 853,433 |   | 4.43 years |   | $ | 3.25 |   |   |   | 891,670 |   |   |   | 816,670 |   | 4.66 years |
|           | $                 | 3.25 |   |   |   | 75,000 |   |   |   | 75,000 |   | 1.84 years |   |   |   |   |   |   |   |   |   |   |   |   |   |
|           | Total             |   |   |   | 3,577,502 |   |   |   | 2,140,173 |   |   |   | Total |   |   |   | 2,103,410 |   |   |   | 2,028,410 |   |   |

----

Table of Contents

| Expected      | Expected   | Dividend | Risk Free     | Grant Date    |
|---------------|------------|----------|---------------|---------------|
| Life          | Volatility | Yield    | Interest Rate | Fair Value    |
|          |       |     |          |          |
| The 2000 ISOP |
| 5 years       | 175%       | 0%       | 2.50%         | $0.09 - $0.19 |
|          |       |     |          |          |
| The 2008 ISOP |
| 1-5 years     | 83% - 121% | 0%       | 0.3% - 2.5%   | $0.47 - $2.79 |

----

Table of Contents

|                                                                                        |   | Number of   |      |   | Weighted- |   |
|---------------------------------------------------------------------------------------------|--------|-------------|-----------|--------|-----------|--------|
|                                                                                        |   | Options     |      |   | Average   |   |
|                                                                                        |   | Outstanding |      |   | Exercise  |   |
|                                                                                        |   |        |      |   | Price     |   |
|                                                                                        |   |        |      |   |      |   |
| Balance at December 31, 2009                                                                |   |        | 1,263,978 |   |      | $      | 2.01 |   |
| Granted                                                                                     |   |        | 563,496   |   |      |   | 2.73 |   |
| Forfeited                                                                                   |   |        | (571,687  | )      |      |   | - |   |
| Exercised                                                                                   |   |        | (194,589  | )      |      |   | 0.47 |   |
| Balance at December 31, 2010                                                                |   |        | 1,061,198 |   |      | $      | 2.50 |   |
| Granted                                                                                     |   |        | 98,361    |   |      |   | 2.71 |   |
| Forfeited                                                                                   |   |        | (75,796   | )      |      |   | - |   |
| Exercised                                                                                   |   |        | (17,464   | )      |      |   | 1.13 |   |
| Balance at March 31, 2011                                                                   |   |        | 1,066,299 |   |      | $      | 2.56 |   |
| Options exercisable on March 31, 2011                                                       |   |        | 304,847   |   |      | $      | 2.26 |   |
| Weighted average fair value of options granted during the three months ended March 31, 2011 |   |        |      |   |      | $      | 1.53 |   |

| Outstanding Options at March 31, 2011 |        | Exercisable Options |
|---------------------------------------|-------------|---------------------|
|                                  |        |                |   |   |   |   |   |   |   |   |
| Range of                              |        | Number              |   | Weighted |   | Weighted |   | Number |   | Weighted |
| Exercise Price                        | Average     | Average             | Average |
|                                  | Remaining   | Exercise            | Exercise |
|                                  | Contractual | Price               | Price |
|                                  | Life        |                |   |
| $0.10 - $1.02                         |        | 147,554             |   | 6.9 years |   | $0.44 |   | 80,067 |   | $0.23 |
| $2.21 - $3.00                         |        | 730,145             |   | 5.8 years |   | $2.62 |   | 155,302 |   | $2.53 |
| $3.92 - $4.36                         |        | 188,600             |   | 8.5 years |   | $3.97 |   | 69,478 |   | $3.97 |
|                                  |        |                |   |   |   |   |   |   |   |   |
| Total                                 |        | 1,066,299           |   |   |   |   |   | 304,847 |   | $2.26 |

----

Table of Contents

| Outstanding Options at December 31, 2010 |        | Exercisable Options |
|------------------------------------------|-------------|---------------------|
|                                     |        |                |   |   |   |   |   |   |   |   |
| Range of                                 |        | Number              |   | Weighted |   | Weighted |   | Number |   | Weighted |
| Exercise Price                           | Average     | Average             | Average |
|                                     | Remaining   | Exercise            | Exercise |
|                                     | Contractual | Price               | Price |
|                                     | Life        |                |   |
| $0.10 - $1.02                            |        | 167,114             |   | 7.1 years |   | $0.44 |   | 92,708 |   | $0.39 |
| $2.21 - $3.00                            |        | 700,684             |   | 5.9 years |   | $2.58 |   | 145,453 |   | $2.40 |
| $3.92 - $4.36                            |        | 193,400             |   | 8.8 years |   | $3.97 |   | 61,467 |   | $3.93 |
|                                     |        |                |   |   |   |   |   |   |   |   |
| Total                                    |        | 1,061,198           |   |   |   |   |   | 299,628 |   | $2.09 |

----

Table of Contents

|     |   | 2011   |      |   | 2010          |   |
|----------|--------|--------|-----------|--------|---------------|--------|
|     |   |   |      |   | (As Restated) |   |
| Current  |   | $      | 1,502,000 |   |          | $      | 1,037,000 |   |
| Deferred |   |   | -         |   |          |   | - |   |
|     |   | $      | 1,502,000 |   |          | $      | 1,037,000 |   |

|                                                    |   | 2011   |      |       | 2010          |   |
|---------------------------------------------------------|--------|--------|-----------|------------|---------------|--------|
|                                                    |   |   |      |       | (As Restated) |   |
| Income before income taxes                              |   | $      | 5,045,000 | 100%       |          | $      | 4,488,000 | 100% |
|                                                    |   |   |      |       |          |   |   |   |
| China income taxes at statutory rate                    |   | $      | 1,261,000 | 25%        |          | $      | 1,122,000 | 25% |
| Operating loss carried forward                          |   |   | 412,000   | 8%         |          |   | 45,000 | 1% |
| Effect of (non-taxable income)/ non-deductible expenses |   |   | (108,000) |   -2% |          |   | 11,000 |   0% |
| China qualified income tax exemptions                   |   |   | (63,000)  | -1%        |          |   | (141,000) | -3% |
| Income tax expense                                      |   | $      | 1,502,000 | 30%        |          | $      | 1,037,000 | 23% |

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|                                    |   | For three months ended March 31, |       |
|-----------------------------------------|--------|----------------------------------|------------|
|                                    |   | 2011                             |       |   | 2010 |   |
| Revenues from external customers:       |   |                             |       |   |   |   |
| ECSS                                    |   | $                                | 21,526,000 |   |   | $ | 32,218,000 |   |
| ICM                                     |   |                             | 16,442,000 |   |   |   | 6,386,000 |   |
|                                    |   | $                                | 37,968,000 |   |   | $ | 38,604,000 |   |
| Depreciation:                           |   |                             |       |   |   |   |   |   |
| ECSS                                    |   | $                                | 373,000    |   |   | $ | 215,000 |   |
| ICM                                     |   |                             | 93,000     |   |   |   | 8,000 |   |
|                                    |   | $                                | 466,000    |   |   | $ | 223,000 |   |
| Stock compensation expense:             |   |                             |       |   |   |   |   |   |
| ECSS                                    |   | $                                | -          |   |   | $ | 47,000 |   |
| ICM                                     |   |                             | -          |   |   |   | 9,000 |   |
|                                    |   | $                                | -          |   |   | $ | 56,000 |   |
| Stock option compensation amortization: |   |                             |       |   |   |   |   |   |
| ECSS                                    |   | $                                | 60,000     |   |   | $ | 78,000 |   |
| ICM                                     |   |                             | 49,000     |   |   |   | 15,000 |   |
|                                    |   | $                                | 109,000    |   |   | $ | 93,000 |   |
| Provision for bad debts:                |   |                             |       |   |   |   |   |   |
| ECSS                                    |   | $                                | 28,000     |   |   | $ | 28,000 |   |
| ICM                                     |   |                             | 24,000     |   |   |   | 5,000 |   |
|                                    |   | $                                | 52,000     |   |   | $ | 33,000 |   |
| Interest income:                        |   |                             |       |   |   |   |   |   |
| ECSS                                    |   | $                                | 194,000    |   |   | $ | 5,000 |   |
| ICM                                     |   |                             | 148,000    |   |   |   | 1,000 |   |
|                                    |   | $                                | 342,000    |   |   | $ | 6,000 |   |
| Interest expense:                       |   |                             |       |   |   |   |   |   |
| ECSS                                    |   | $                                | 278,000    |   |   | $ | 25,000 |   |
| ICM                                     |   |                             | 212,000    |   |   |   | 5,000 |   |
|                                    |   | $                                | 490,000    |   |   | $ | 30,000 |   |
| Income taxes expenses:                  |   |                             |       |   |   |   |   |   |
| ECSS                                    |   | $                                | 868,000    |   |   | $ | 814,000 |   |
| ICM                                     |   |                             | 634,000    |   |   |   | 223,000 |   |
|                                    |   | $                                | 1,502,000  |   |   | $ | 1,037,000 |   |
| Income from operations:                 |   |                             |       |   |   |   |   |   |
| ECSS                                    |   | $                                | 1,760,000  |   |   | $ | 3,434,000 |   |
| ICM                                     |   |                             | 2,695,000  |   |   |   | 1,116,000 |   |
|                                    |   | $                                | 4,455,000  |   |   | $ | 4,550,000 |   |

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| Total amount of income from operations is consistent with the consolidated statements of operations. |   |
|------------------------------------------------------------------------------------------------------|--------|
|                                                                                                 |   |   |   |   |   |   |   |   |
| Addition to property and equipment:                                                                  |   |   |   |   |   |   |   |   |
| ECSS                                                                                                 |   | $ | 2,309,000 |   |   | $ | 2,186,000 |   |
| ICM                                                                                                  |   |   | 457,000 |   |   |   | - |   |
|                                                                                                 |   | $ | 2,766,000 |   |   | $ | 2,186,000 |   |
| Total segment assets:                                                                                |   |   |   |   |   |   |   |   |
| ECSS                                                                                                 |   | $ | 73,161,000 |   |   | $ | 60,522,000 |   |
| ICM                                                                                                  |   |   | 100,395,000 |   |   |   | 8,646,000 |   |
|                                                                                                 |   | $ | 173,556,000 |   |   | $ | 69,168,000 |   |

|                   |   | March 31, 2011 |       |   | December 31, 2010 |   |
|------------------------|--------|----------------|------------|--------|-------------------|--------|
|                   |   | (Unaudited)    |       |   | (Audited)         |   |
|                   |   |           |       |   | (As Restated)     |   |
| Restricted cash - loan |   | $              | 3,288,000  |   |              | $      | 3,016,000 |   |
| Restricted cash - NDF  |   |           | 71,316,000 |   |              |   | 29,043,000 |   |
| Total Restricted cash  |   | $              | 74,604,000 |   |              | $      | 32,059,000 |   |
|                   |   |           |       |   |              |   |   |   |
| Bank borrowings - loan |   | $              | 15,014,000 |   |              | $      | 8,256,000 |   |
| Bank borrowings - NDF  |   |           | 71,316,000 |   |              |   | 29,043,000 |   |
| Total Bank borrowings  |   | $              | 86,330,000 |   |              | $      | 37,299,000 |   |

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Item 2.  Management’s Discussion and Analysis of Financial Condition and Results of Operations

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Item 3.  Quantitative and Qualitative Disclosures About Market Risk

Item 4T.  Controls and Procedures

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PART II - OTHER INFORMATION

Item 1.  Legal Proceedings

Item 1A.  Risk Factors

Item 2.  Unregistered Sales of Equity Securities and Use of Proceeds

Item 3.  Defaults Upon Senior Securities

Item 4.  (Removed and Reserved)

Item 5.  Other Information

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Item 6.  Exhibits

|   Exhibit No. |   | Title of Document                                                                                                                                                                                                                                                          |
|-------------------------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                    |   |                                                                                                                                                                                                                                                                       |
|                    |   |                                                                                                                                                                                                                                                                       |
| 4.1                     |   | Form of Common Stock Warrant (filed as Exhibit 4.1 to the Company’s Current Report on Form 8-K filed with the SEC on March 21, 2011 and incorporated herein by reference)                                                                                            |
|                    |   |                                                                                                                                                                                                                                                                       |
| 10.1                    |   | Form of Securities Purchase Agreement dated March 16, 2011 (filed as Exhibit 10.1 to the Company’s Current Report on Form 8-K filed with the SEC on March 21, 2011 and incorporated herein by reference)                                                             |
|                    |   |                                                                                                                                                                                                                                                                       |
| 10.2                    |   | Form of Escrow Agreement dated March 16, 2011 by and among SinoHub, Inc., Rodman & Renshaw, LLC and Signature Bank (filed as Exhibit 10.2 to the Company’s Current Report on Form 8-K filed with the SEC on March 21, 2011 and incorporated herein by reference) |
|                    |   |                                                                                                                                                                                                                                                                       |
| 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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SIGNATURES

|                          | SINOHUB, INC. |                    |
|-------------------------------|---------------|-------------------------|
|                          |          |                    |   |
| Date:  May 16, 2011 | By:           | /s/ Henry T. Cochran    |   |
|                          |          | Henry T. Cochran        |   |
|                          |          | Chief Executive Officer |   |

| Date:  May 16, 2011 | By:    | /s/ Li De Hai                                                       |   |
|-------------------------------|--------|---------------------------------------------------------------------|--------|
|                          |   | Li De Hai                                                           |   |
|                          |   | Chief Financial Officer(Principal Financial and Accounting Officer) |   |

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