| Deleware                              |   |  43-1401158              |
|---------------------------------------|--------|-------------------------------|
| (State or other      jurisdiction     |   | (IRS Employer ID      Number) |
| of incorporation or      organization |   |                          |

| Transitional      Small Business Disclosure Format: | Yes____ | No   X |
|-----------------------------------------------------|---------|-----------------------|

----

| A.   | Organic rice and      grains: |
|----------------|-------------------------------|

| B.   | Organic      foods.  31 Series,including: |
|----------------|-----------------------------------------------------|

| 1.   | organic      corn-based cakes, which come in a variety of flavors (corn flavored,      buttermilk flavored, egg whiteflavored) |
|----------------|--------------------------------------------------------------------------------------------------------------------------------|

| 2.   | low-sugar      organic wheat biscuits |
|----------------|---------------------------------------|

| 3.   | organic      grain fiber powders |
|----------------|----------------------------------|

| 4.   | organic      grain sugar wafers |
|----------------|---------------------------------|

| 5.   | organic      bean rice crackers |
|----------------|---------------------------------|

|   |            1.  Spirulina      supplements (tablet form), classified as blue-green algae or as blue green      bacteria. Spirulina is a rich source of protein and contains chlorophyll,      carotenoids, minerals, and gamma-linolenic acid (GLA). Spirulina is taken      as a protein supplement, in addition to protecting against various types      of allergic reactions, antibiotic-related illnesses, and liver      disorders. |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   |            2.      Gingko leaf extract supplements (tablet form).  These extracts      from the gingko tree are used to treat a variety of ailments, including      asthma, bronchitis, fatigue, andtinnitus. |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | These      products are skin creams that reduce damage associated with the sun. These      products are moisturizers, which were formulated to help balance the      skin's moisture level and restore its moisture balance. The antioxidant      rich, non-greasy formula helps improve the overall smoothness of the skin,      soothes the skin and protects the skin from free radical attack. The      cosmetics are sold in five series: Organic Shiyimei series, Ajiaoshu      series, the Peach-blossom series, the Kasidina series and the      Kaidimisha series. |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| ·   | Acquiring      more organic soil resources by various means:  acquisition,      cooperation and tenancy.  Management currently plans to invest      10 million RMB ($1.2mil) to acquire rights to 1000 hectares of organic      land in the Changbai Mountain.  Jilin Huaren will use the new      area to plant Chinese herbal medicines, utilizing the local natural herbal      medicines resources. The herbal medicines will be used as raw materials      for organic healthcare products.  Management also plans to      invest another 10 million RMB ($1.2mil) to obtain rights to 1000 hectares      of organic land in the Shandong, Xinjiang, Henan  areas, where      Jilin Huaren will plant cotton, which will be used as raw materials for      organic garments. |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Developing      a captive source of nitraria (“white thorn”), the principal component of      many of Jilin Huaren’s cosmetic products.  Towards that end, the      Company has entered into a written agreement with the Baicheng Forestry      Bureau, which contemplates that they will each develop 500,000 acres of      nitraria production, and that the Company, with the assistance of the      Baicheng Forestry Bureau, will develop a processing factory for nitraria      in Baicheng.  The agreement includes covenants by the Baicheng      Forestry Bureau to facilitate working capital loans for the Company as      well as preferential policies. |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Strengthening      research and development of organic products, and developing organic      health products, organic cosmetics, organic costumes,  etc. |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Continual      expansion of the marketing network by bringing in more branch stores,      specialty stores and distributors. |
|--------------------|------------------------------------------------------------------------------------------------------------------------------|

| ·   | Purchasing      and acquiring organic food processing factories and organic product      processing factories, to obtain greater control over the production      segment. |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

----

| Item      5. | Market      for Registrant's Common Equity, Related Stockholder Matters and Small      Business Issuer Purchases of EquitySecurities |
|--------------|--------------------------------------------------------------------------------------------------------------------------------------|

|                    |   | Bid    |   |
|-------------------------|--------|--------|--------|
| Quarter Ending          |   | High   |   |   | Low |   |
| March      31, 2006     |   | $      | 2.34   |   |   | $ | .78 |   |
| June      30, 2006      |   | $      | 1.56   |   |   | $ | .39 |   |
| September      30, 2006 |   | $      | .78    |   |   | $ | .39 |   |
| December      31, 2006  |   | $      | 1.56   |   |   | $ | .39 |   |
|                    |   |   |   |   |   |   |   |   |
| March      31, 2007     |   | $      | 1.00   |   |   | $ | .58 |   |
| June      30, 2007      |   | $      | 2.00   |   |   | $ | .55 |   |
| September      30, 2007 |   | $      | 1.05   |   |   | $ | .27 |   |
| December      31, 2007  |   | $      | 4.55   |   |   | $ | .65 |   |

----

| Item      6 | Management’s      Discussion and Analysis |
|-------------|-------------------------------------------------|

| ·   | There      are thousand of individuals involved in selling our products – but we      incur no payroll obligation for them.  They are owners or      employees of the companies that distribute for us.  So our      selling expenses were less than 2% of revenue in 2007 and have been less      than 4% of our revenue since we began operations in  2005. |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Our      manufacturing activity is completely outsourced to enterprises dedicated      to organic agricultural manufacturing.  As a result, during 2007      our general and administrative expense equaled less than 3.8% of our      revenue.  In 2007 our depreciation expense – often a major      factor in agribusiness operations – was only $11,888, since we own no      manufacturing equipment. |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

----

----

| Item      8. | Changes      in and Disagreements with Accountants on Accounting and Financial      Disclosure |
|--------------|------------------------------------------------------------------------------------------------|

----

| Item      9. |    Directors,      Executive Officers, Promoters, Control Persons and Corporate Governance;      Compliance with Section 16(a) of the Exchange  Act. |
|--------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Name                |                 Age | Position with the Company                                       |                          Director Since |
|---------------------|-----------------------------------------------------------------------|-----------------------------------------------------------------|----------------------------------------------------------------------------------------------------------------------------------------|
| Fang      Jinzhong  | 52                                                                    | Chairman,      Chief Executive Officer, Chief Financial Officer | 2006                                                                                                                                   |
| Zhang      Chengcai | 46                                                                    | Director,      V.P.- Marketing, Secretary                       | 2006                                                                                                                                   |
| Zhou      Huakang   | 56                                                                    | Director                                                        | 2006                                                                                                                                   |

| Name              | Position with theCompany                                                   |
|-------------------|----------------------------------------------------------------------------|
|              |                                                                       |
| Cao      Yushu    | Chairman,      Chief Executive Officer, Chief Financial Officer,  Director |
| Zhou      Huakang | Director                                                                   |

----

|               |  Year |  Salary |  Bonus | StockAwards | OptionAwards | OtherCompensation |
|--------------------|------------|--------------|-------------|-------------|--------------|-------------------|
| Fang      Jinzhong | 2007       | $10,000      |        |        |         |              |
|               | 2006       | $10,000      |        |        |         |              |
|               | 2005       | $10,000      |        |        |         |              |

|               |                                                        |                                                                  |                                           |                                         |   Potential      realizable value      at assumed annual      rates of appreciationfor      option term |   |
|--------------------|-------------------------------------------------------------|-----------------------------------------------------------------------|------------------------------------------------|----------------------------------------------|-------------------------------------------------------------------------------------------------------------------|--------|
|               |   Number      ofsecuritiesunderlyingoptiongranted | Percentof      totaloptionsgranted      toemployeesin      fiscalyear |     ExercisePrice($/share) |      ExpirationDate |                                                                                                              |
| 5%                 | 10%                                                         |                                                                  |
| Fang      Jinzhong | --                                                          | --                                                                    | --                                             | --                                           | --                                                                                                                | --     |

|               | Number      ofShares      ThatHave      NotVested | Market      Valueof      Shares ThatHave      NotVested |
|--------------------|---------------------------------------------------|---------------------------------------------------------|
| Fang      Jinzhong | 0                                                 | --                                                      |

|   | Item      11.   Security Ownership of Certain Beneficial Owners and      Management and Related StockholderMatters |
|--------|-----------------------------------------------------------------------------------------------------------------------------------|

| ·   | each      shareholder known by us to own beneficially more than 5% of our common      stock; |
|--------------------|----------------------------------------------------------------------------------------------|

| ·   | Fand      Jinzhong, our Chief ExecutiveOfficer |
|--------------------|------------------------------------------------|

| ·   | each      of our directors; and |
|--------------------|---------------------------------|

| ·   | all      directors and executive officers as agroup. |
|--------------------|------------------------------------------------------|

----

| Name  ofBeneficial Owner(1)                                    | Amount      and Nature ofBeneficial Ownership(2) |  Percentage of Class |
|--------------------------------------------------------------------------|--------------------------------------------------|---------------------------|
| Fang      Jinzhong                                                       | 2,376,000                                        | 15.8%                     |
| Zhang      Chengcai                                                      | 1,419,272                                        | 9.5%                 |
| Zhou      Huakang18      Kimberly CourtEast      Hanover, NJ 07936  | 2,857,765(3)                                     | 19.1%                     |
| All      officers and directors(3      persons)                     | 6,653,037                                        | 44.4%                     |

|   | (1)    Except      as otherwise noted, the address of each shareholder is 648 Weihai Road,      Changchun, Jilin Province, P.R.China. |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (3)    Represents      shares held of record by Warner Technology & Investment Corp., of      which Mr. Zhou is the President and controlling    shareholder. |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                                                                                                                                                                                                    | Number      of securities to be issued upon exercise of outstanding options, warrants      and rights |  Weighted      average exercise price of outstanding options, warrants and      rights | Number      of securities remaining available for future issuance under equity      compensation plans |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------|--------------------------------------------------------------------------------------------------------|
| Equity      compensation plans approved by security holders.......                                                                                                                                      |  0                                                                                               |                                                                                        |  0                                                                                                |
| Equity      compensation plans not approved by security holders......                                                                                                                                   |  0                                                                                               |                                                                                        |  0                                                                                                |
|                               Total.............. | 0                                                                                                     |                                                                                        | 0                                                                                                      |

----

| 3-a. | Articles      of Incorporation, and 1989 amendment. - filed as an exhibit to the      Company’s Registration Statement on Form SB-2 (33-85218 C) and      incorporated herein by reference. |
|------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 3-a(1) | Amendment      to Articles of Incorporation dated March 4, 1991, March 22, 1994, and      November 18, 1994. - filed as an exhibit to the Company’s Registration      Statement on Form SB-2 (33-85218 C) and incorporated herein by      reference. |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 3-a(2) | Certification      of Correction of Articles of Incorporation. - filed as an exhibit to the      Company’s Registration Statement on Form SB-2 (33-85218 C) and      incorporated herein by reference. |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 3-a(3) | Amendment      to Articles of Incorporation dated July 26, 1996 - filed as an Exhibit to      Form 10-KSB for the year ended December 31, 1997, and incorporated herein      by reference. |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 3-a(4) | Amendment      to Articles of Incorporation dated June 15, 2005 - – filed as an exhibit      to the Current Report on Form 8-K dated February 17, 2005 and incorporated      herein by reference. |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 3-a(5) | Amendment      to Articles of Incorporation dated January 16, 2007 - – filed as an      exhibit to the Current Report on Form 8-K dated January 5, 2007 and      incorporated herein by reference. |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 3-b. | By-laws.      - filed as an exhibit to the Company’s Registration Statement on Form SB-2      (33-85218 C) and incorporated herein by  reference. |
|------|---------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10-a | Intention      Agreement on Construction On One Million Acres of White Thorn Deep      Processing Based Between Baicheng Forestry Bureau and China Huaren Organic      Products Inc. |
|------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 21 | Subsidiaries      –  China Organic Health Products,Inc. |
|----|-------------------------------------------------------------------------|

|   | Jilin      Huaren Organic Health Products Co.,Ltd. |
|--------|----------------------------------------------------|

| 31 | Rule      13a-14(a) Certification |
|----|-----------------------------------|

| 32 | Rule      13a-14(b) Certification |
|----|-----------------------------------|

----

----

| Page                 |                                                                                                                              |   |
|----------------------|-----------------------------------------------------------------------------------------------------------------------------------|--------|
|                 |                                                                                                                              |   |
| F - 2                | Report of      Independent Registered Public Accounting Firm                                                                      |   |
|                 |                                                                                                                              |   |
| F - 3                | Consolidated Balance      Sheet as of December 31, 2007                                                                           |   |
|                 |                                                                                                                              |   |
| F - 4                | Consolidated      Statements of Operations for the Years Ended December 31, 2007 and      2006                                    |   |
|                 |                                                                                                                              |   |
| F - 5                | Consolidated      Statements of Stockholders' Equity and Comprehensive Income for the Years      Ended December 31, 2007 and 2006 |   |
|                 |                                                                                                                              |   |
| F - 6                | Consolidated      Statements of Cash Flows for the Years Ended December 31, 2007 and      2006                                    |   |
|                 |                                                                                                                              |   |
| F - 7 to F -      14 |                                                                                                                              |   |

----

----

| CHINA      HUAREN ORGANIC PRODUCTS INC. AND SUBSIDIARY |                                                                          |                                                                                                                                       |
|--------------------------------------------------------|-------------------------------------------------------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------|
| CONSOLIDATED      BALANCE SHEET                        |                                                                          |                                                                                                                                       |
| DECEMBER      31, 2007                                 |                                                                          |                                                                                                                                       |
|                                                   |                                                                          |                                                                                                                                       |   |   |   |   |   |   |
|                                                   |                                                                          |                                                                                                                                       |   |   |   |   |   |   |
| Assets                                                 |                                                                          |                                                                                                                                       |   |   |   |   |
| Current      Assets:                                   |                                                                          |                                                                                                                                       |   |
|                                                   | Cash      and equivalents                                                     |              $                                                                                          |                       76,658 |
|                                                   | Accounts      receivable, net of allowance for doubtful amounts of    $45,668 |                                                                                                                                       |                  4,521,106 |
|                                                   | Inventories                                                                   |                                                                                                                                       |   |   |                     762,972 |
|                                                   | Prepaid      expenses                                                         |                                                                                                                                       |                  1,591,952 |
|                                                   | Other      current assets                                                     |                                                                                                                                       |                            110 |
|                                                   |                                                                          |                                                                                                                                       | Total      Current Assets |   |                  6,952,798 |
|                                                   |                                                                          |                                                                                                                                       |   |   |   |   |   |   |
| Property      and Equipment, Net                       |                                                                          |                       10,670 |
| Deposit      for Purchase of Fixed Assets              |                                                                          |                  3,692,950                            |
|                                                   |                                                                          |                                                                                                                                       | Total      Assets |   |                10,656,418 |
|                                                   |                                                                          |                                                                                                                                       |   |   |   |   |   |   |
| Liabilities      and Stockholders' Equity              |                                                                          |                                                                                                                                       |
| Current      Liabilities:                              |                                                                          |                                                                                                                                       |   |
|                                                   | Accounts      payable and accrued expenses                                    |                                                                                                                                       |                       87,732 |
|                                                   | Loan      from officers/stockholders                                          |                                                                                                                                       |                       90,132 |
|                                                   | Tax      payable                                                              |                                                                                                                                       |   |   |                  1,570,078 |
|                                                   | Other      current liabilities                                                |                                                                                                                                       |                         5,127 |
|                                                   |                                                                          |                                                                                                                                       | Total      Current Liabilities |   |                  1,753,069 |
|                                                   |                                                                          |                                                                                                                                       |   |   |   |   |   |   |
| Stockholders'      Equity                              |                                                                          |                                                                                                                                       |
|                                                   | Series      C preferred stock, $0.01 par value, 150,000 shares in year        |                                                                                                                                       |   |
|                                                   |                                                                          | 2007      and 2006 authorized, 100,000  shares issued and                                                                        |   |   |
|                                                   |                                                                          | outstanding      on December 31, 2007 and 2006.                                                                                            |   |                         1,000 |
|                                                   | Common      stock,$0.01 par value,100,000,000 shares in year 2007             |                                                                                                                                       |   |
|                                                   |                                                                          | and      2006 authorized; 14,699,853 shares issued and outstanding                                                                         |   |   |
|                                                   |                                                                          | on      December 31, 2007 and 2006.                                                                                                        |   | 146,999 |
|                                                   | Additional      paid-in capital                                               |                                                                                                                                       | 6,043,876 |
|                                                   | Reserve      fund                                                             |                                                                                                                                       |   | 259,244 |
|                                                   | Retained      earnings                                                        |                                                                                                                                       | 1,447,838 |
|                                                   | Accumulated      other comprehensive income                                   |                                                                                                                                       | 1,004,392 |
|                                                   |                                                                          |                                                                                                                                       | Total      Shareholders’ Equity |   |                  8,903,349 |
|                                                   |                                                                          |                                                                                                                                       | Total      Liabilities and Stockholders’ Equity |               $ |                10,656,418 |
|                                                   |                                                                          |                                                                                                                                       |   |   |   |   |   |   |

| See      notes to consolidated financialstatements. |
|-----------------------------------------------------|

----

| CHINA      HUAREN ORGANIC PRODUCTS INC. AND SUBSIDIARY |                                     |                                                                                                                                                          |                                                                                                                                                                     |                                                                                                                                                                     |
|--------------------------------------------------------|------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| CONSOLIDATED      STATEMENTS OF OPERATIONS             |                                     |                                                                                                                                                          |                                                                                                                                                                     |                                                                                                                                                                     |
|                                                   |                                     |                                                                                                                                                          |                                                                                                                                                                     |                                                                                                                                                                     |   |   |   |
|                                                   |                                     |                                                                                                                                                          |                                                                                                                                                                     |                                                                                                                                                                     |   |   |   |
|                                                   |                                     |                                                                                                                                                          |                                                                                                                                                                     |                                                                                                                                                                     | For      Years Ended December 31, |
|                                                   |                                     |                                                                                                                                                          |                                                                                                                                                                     |                                                                                                                                                                     | 2007 |   | 2006 |
|                                                   |                                     |                                                                                                                                                          |                                                                                                                                                                     |                                                                                                                                                                     |   |   |   |
| Revenues                                               |                                     |                                                                                                                                                          | $                                                                                                                                                                        |                       7,449,370                            |                              $ |                     2,188,146 |
| Cost      of Goods Sold                                |                                     |                                                                                                                                                          |                       6,183,543                            |                                                                                                                                                                     |                     1,104,847 |
|                                                   |                                     |                                                                                                                                                          |                                                                                                                                                                     |                                                                                                                                                                     |   |   |   |
| Gross      Profit                                      |                                     |                                                                                                                                                          |                                                                                                                                                                     |                       1,265,827                            |   |                     1,083,299 |
|                                                   |                                     |                                                                                                                                                          |                                                                                                                                                                     |                                                                                                                                                                     |   |   |   |
| Operating      Expenses                                |                                     |                                                                                                                                                          |                                                                                                                                                                     |                                                                                                                                                                     |   |
|                                                   | Selling      expenses                    |                                                                                                                                                          |                                                                                                                                                                     |                          148,262            |   |                          97,159 |
|                                                   | General      and administrative expenses |                                                                                                                                                          |                          281,637            |                                                                                                                                                                     |                        260,290 |
|                                                   | Research      and development            |                                                                                                                                                          |                            52,603 |                                                                                                                                                                     |                          76,142 |
|                                                   |                                     |                                                                                                                                                          |                                                                                                                                                                     |                                                                                                                                                                     |   |   |   |
| Total      Operating Expenses                          |                                     |                                                                                                                                                          |                          482,502            |                                                                                                                                                                     |                        433,591 |
|                                                   |                                     |                                                                                                                                                          |                                                                                                                                                                     |                                                                                                                                                                     |   |   |   |
| Income  From      Operations                 |                                     |                                                                                                                                                          |                          783,325            |                                                                                                                                                                     |                        649,708 |
|                                                   |                                     |                                                                                                                                                          |                                                                                                                                                                     |                                                                                                                                                                     |   |   |   |
| Other      Income (Expenses)                           |                                     |                                                                                                                                                          |                                                                                                                                                                     |                                                                                                                                                                     |   |
|                                                   | Interest      income                     |                                                                                                                                                          |                                                                                                                                                                     |                            17,076 |   |                          33,751 |
|                                                   | Other      expense, net                  |                                                                                                                                                          |                                                                                                                                                                     |                        (165,665)                      |   |                        (52,355) |
|                                                   | Loss      on disposal of inventory       |                                                                                                                                                          |                        (282,922)                      |                                                                                                                                                                     |                                   - |
|                                                   | Loss      on disposal of fixed assets    |                                                                                                                                                          |                          (25,050)           |                                                                                                                                                                     |                          (3,244) |
|                                                   |                                     |                                                                                                                                                          |                                                                                                                                                                     |                                                                                                                                                                     |   |   |   |
| Total      Other Expenses                              |                                     |                                                                                                                                                          |                        (456,561)                      |                                                                                                                                                                     |                        (21,848) |
|                                                   |                                     |                                                                                                                                                          |                                                                                                                                                                     |                                                                                                                                                                     |   |   |   |
| Income  Before      Income Taxes             |                                     |                          326,764 |                                                                                                                                                                     |                        627,860                        |
|                                                   |                                     |                                                                                                                                                          |                                                                                                                                                                     |                                                                                                                                                                     |   |   |   |
| Provision      for Income Taxes                        |                                     |                                                                                                                                                          |                          114,824            |                                                                                                                                                                     |                        207,279 |
|                                                   |                                     |                                                                                                                                                          |                                                                                                                                                                     |                                                                                                                                                                     |   |   |   |
| Net      Income                                        |                                     |                                                                                                                                                          | $                                                                                                                                                                        |                          211,940            |                             $ |                        420,581 |
|                                                   |                                     |                                                                                                                                                          |                                                                                                                                                                     |                                                                                                                                                                     |   |   |   |
| Foreign      Currency Translation Adjustment           |                                     |                          576,680 |                                                                                                                                                                     |                        262,480                        |
|                                                   |                                     |                                                                                                                                                          |                                                                                                                                                                     |                                                                                                                                                                     |   |   |   |
| Comprehensive      Income                              |                                     | $                                                                                                                                                             |                          788,620            |                             $                              |                        683,061 |
|                                                   |                                     |                                                                                                                                                          |                                                                                                                                                                     |                                                                                                                                                                     |   |   |   |
| Net      Income  Per Common Share            |                                     |                                                                                                                                                          |                                                                                                                                                                     |                                                                                                                                                                     |
|  -Basic                                           |                                     |                                                                                                                                                          | $                                                                                                                                                                        | 0.01                                                                                                                                                                     |                             $ | 0.03 |
|  -Diluted                                         |                                     |                                                                                                                                                          | $                                                                                                                                                                        | 0.01                                                                                                                                                                     |                             $ | 0.03 |
|                                                   |                                     |                                                                                                                                                          |                                                                                                                                                                     |                                                                                                                                                                     |   |   |   |
| Weighted      Common Shares Outstanding*               |                                     |                                                                                                                                                          |                                                                                                                                                                     |                                                                                                                                                                     |
|  -Basic                                           |                                     |                                                                                                                                                          |                                                                                                                                                                     |                     14,699,853                                       |   |                   14,699,853 |
|  -Diluted                                         |                                     |                                                                                                                                                          |                                                                                                                                                                     |                     14,999,850                                       |   |                   14,999,850 |
|                                                   |                                     |                                                                                                                                                          |                                                                                                                                                                     |                                                                                                                                                                     |   |   |   |

| *      As restated to reflect recapitalization and the subsequent reverse stock      split. |
|---------------------------------------------------------------------------------------------|
|                                                                                        |   |   |   |
| See      notes to consolidated financialstatements.                                         |

----

| CHINA      HUAREN ORGANIC PRODUCTS INC. AND SUBSIDIARY                            |                                                                                                                            |                                                                                                                            |                                                                                                                            |                                                                                                                      |                                                                                                                                        |                                                                                                                                        |                                                                                                                                        |                                                                                                                      |                                                                                                                                              |                                                                                                                                              |
|-----------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------|
| STATEMENTS      OF STOCKHOLDERS’ EQUITY AND COMPREHENSIVE INCOME            |                                                                                                                            |                                                                                                                            |                                                                                                                            |                                                                                                                      |                                                                                                                                        |                                                                                                                                        |                                                                                                                                        |                                                                                                                      |                                                                                                                                              |                                                                                                                                              |
| FOR      THE  YEARS ENDED OF  DECEMBER 31, 2007 AND      2006 |                                                                                                                            |                                                                                                                            |                                                                                                                            |                                                                                                                      |                                                                                                                                        |                                                                                                                                        |                                                                                                                                        |                                                                                                                      |                                                                                                                                              |                                                                                                                                              |   |   |   |
|                                                                              |                                                                                                                            |                                                                                                                            |                                                                                                                            |                                                                                                                      |                                                                                                                                        |                                                                                                                                        |                                                                                                                                        |                                                                                                                      |                                                                                                                                              |                                                                                                                                              |   |   |   |   |   |   |   |   |   |   |
|                                                                              |                                                                                                                            |                                                                                                                            |                                                                                                                            |                                                                                                                      |                                                                                                                                        |                                                                                                                                        |                                                                                                                                        |                                                                                                                      |                                                                                                                                              |                                                                                                                                              |   |   |   |   |   | Retained |   | Accumulated |   |   |
|                                                                              |                                                                                                                            |                                                                                                                            |                                                                                                                            |                 Series C preferred stock                                |                                                                                                                                        |                                                                                                                                        |                                                                                                                                        |                                                                                                                      |                                                                                                                                              | Additional                                                                                                                                        |   |   |   | earnings      / |   | other |   | Total      stock- |
|                                                                              |                                                                                                                            |                                                                                                                            |                                                                                                                            |                            |                                                                                                                                        |                                                                                                                                        |                                                                                                                                        | Common      stock                                                                                                         |                                                                                                                                              | paid-in                                                                                                                                           |   | Reserve |   | accumulated |   | comprehensive | holders' |
|                                                                              |                                                                                                                            |                                                                                                                            |                                                                                                                            | No      of shares                                                                                                         | Amount                                                                                                                                      |                                                                                                                                        | No      of Shares                                                                                                                           |                                                                                                                      | Amount                                                                                                                                            |                                                                                                                                              | capital |   | fund |   | (deficit) |   | income |   | equity |
|                                                                              |                                                                                                                            |                                                                                                                            |                                                                                                                            |                                                                                                                      |                                                                                                                                        |                                                                                                                                        |                                                                                                                                        |                                                                                                                      |                                                                                                                                              |                                                                                                                                              |   |   |   |   |   |   |   |   |   |   |
| Balance      as of                                                                |                                                                                                                            |                                                                                                                            |                                                                                                                            |                                                                                                                      |                                                                                                                                        |                                                                                                                                        |                                                                                                                                        |                                                                                                                      |                                                                                                                                              |                                                                                                                                              |   |   |   |   |   |   |   |   |
|   December      31, 2005                                                |                      - |  $                                                                                                                         |                     -       |                                                                                                                      |        50,000,000                                                                                        |  $                                                                                                                                     |      6,050,000                                                                                                     |  $                                                                                                                   |             141,875                                                                   |  $                                                                                                                                           |         161,149 | $ |            913,412 |  $ |                165,232 |  $ |           7,431,668 |
|                                                                              |                                                                                                                            |                                                                                                                            |                                                                                                                            |                                                                                                                      |                                                                                                                                        |                                                                                                                                        |                                                                                                                                        |                                                                                                                      |                                                                                                                                              |                                                                                                                                              |   |   |   |   |   |   |   |   |   |   |
| Merge      with China Organic                                                     | 1                                                                                                                               |                                                                                                                            | 1,000                                                                                                                           |                                                                                                                      |      (35,300,147)                                                                                                  |                                                                                                                                        |     (5,903,001)                                                                                                         |                                                                                                                      |          5,902,001                                                                                   |                                                                                                                                              |                     - |   |                        - |   |                            - |   |                         - |
|                                                                              |                                                                                                                            |                                                                                                                            |                                                                                                                            |                                                                                                                      |                                                                                                                                        |                                                                                                                                        |                                                                                                                                        |                                                                                                                      |                                                                                                                                              |                                                                                                                                              |   |   |   |   |   |   |   |   |   |   |
| Net      income                                                                   |                                                                                                                            |                      - |                                                                                                                            |                     - |                                                                                                                                        |                        - |                                                                                                                                        |                     - |                                                                                                                                              |                         - |   |                     - |   |            420,581 |   |                            - |   |              420,581 |
|                                                                              |                                                                                                                            |                                                                                                                            |                                                                                                                            |                                                                                                                      |                                                                                                                                        |                                                                                                                                        |                                                                                                                                        |                                                                                                                      |                                                                                                                                              |                                                                                                                                              |   |   |   |   |   |   |   |   |   |   |
| Appropriation      of                                                             |                                                                                                                            |                                                                                                                            |                                                                                                                            |                                                                                                                      |                                                                                                                                        |                                                                                                                                        |                                                                                                                                        |                                                                                                                      |                                                                                                                                              |                                                                                                                                              |   |   |   |   |   |   |   |   |
|   reserve      funds                                                    |                                                                                                                            |                      - |                                                                                                                            |                     - |                                                                                                                                        |                        - |                                                                                                                                        |                     - |                                                                                                                                              |                         - |   |           63,126 |   |            (63,126) |   |                            - |   |                         - |
|                                                                              |                                                                                                                            |                                                                                                                            |                                                                                                                            |                                                                                                                      |                                                                                                                                        |                                                                                                                                        |                                                                                                                                        |                                                                                                                      |                                                                                                                                              |                                                                                                                                              |   |   |   |   |   |   |   |   |   |   |
| Foreign      currency translation gain                                            |                      - |                                                                                                                            |                     -       |                                                                                                                      |                        - |                                                                                                                                        |                     -                   |                                                                                                                      |                         - |                                                                                                                                              |                     - |   |                        - |   |                262,480 |   |              262,480 |
|                                                                              |                                                                                                                            |                                                                                                                            |                                                                                                                            |                                                                                                                      |                                                                                                                                        |                                                                                                                                        |                                                                                                                                        |                                                                                                                      |                                                                                                                                              |                                                                                                                                              |   |   |   |   |   |   |   |   |   |   |
| Balance      as of                                                                |                                                                                                                            |                                                                                                                            |                                                                                                                            |                                                                                                                      |                                                                                                                                        |                                                                                                                                        |                                                                                                                                        |                                                                                                                      |                                                                                                                                              |                                                                                                                                              |   |   |   |   |   |   |   |   |
|   December      31, 2006                                                |                     1       |                                                                                                                            |             1,000                                                   |                                                                                                                      |        14,699,853                                                                                        |                                                                                                                                        |         146,999                                                                                     |                                                                                                                      |          6,043,876                                                                                   |                                                                                                                                              |         224,275 |   |         1,270,867 |   |                427,712 |   |           8,114,729 |
|                                                                              |                                                                                                                            |                                                                                                                            |                                                                                                                            |                                                                                                                      |                                                                                                                                        |                                                                                                                                        |                                                                                                                                        |                                                                                                                      |                                                                                                                                              |                                                                                                                                              |   |   |   |   |   |   |   |   |   |   |
| Net      income                                                                   |                                                                                                                            |                                                                                                                            |                      - |                                                                                                                      |                     -                   |                                                                                                                                        |                        - |                                                                                                                      |                     -                         |                                                                                                                                              |                         - |   |                     - |   |            211,940 |   |                            - |   |              211,940 |
|                                                                              |                                                                                                                            |                                                                                                                            |                                                                                                                            |                                                                                                                      |                                                                                                                                        |                                                                                                                                        |                                                                                                                                        |                                                                                                                      |                                                                                                                                              |                                                                                                                                              |   |   |   |   |   |   |   |   |   |   |
| Appropriation      of                                                             |                                                                                                                            |                                                                                                                            |                                                                                                                            |                                                                                                                      |                                                                                                                                        |                                                                                                                                        |                                                                                                                                        |                                                                                                                      |                                                                                                                                              |                                                                                                                                              |   |   |   |   |   |   |   |   |
|   reserve      funds                                                    |                                                                                                                            |                      - |                                                                                                                            |                     - |                                                                                                                                        |                        - |                                                                                                                                        |                     - |                                                                                                                                              |                         - |   |           34,969 |   |            (34,969) |   |                            - |   |                         - |
|                                                                              |                                                                                                                            |                                                                                                                            |                                                                                                                            |                                                                                                                      |                                                                                                                                        |                                                                                                                                        |                                                                                                                                        |                                                                                                                      |                                                                                                                                              |                                                                                                                                              |   |   |   |   |   |   |   |   |   |   |
| Foreign      currency translation gain                                            |                      - |                                                                                                                            |                     -       |                                                                                                                      |                        - |                                                                                                                                        |                     -                   |                                                                                                                      |                         - |                                                                                                                                              |                     - |   |                        - |   |                576,680 |   |              576,680 |
|                                                                              |                                                                                                                            |                                                                                                                            |                                                                                                                            |                                                                                                                      |                                                                                                                                        |                                                                                                                                        |                                                                                                                                        |                                                                                                                      |                                                                                                                                              |                                                                                                                                              |   |   |   |   |   |   |   |   |   |   |
| Balance      as of                                                                |                                                                                                                            |                                                                                                                            |                                                                                                                            |                                                                                                                      |                                                                                                                                        |                                                                                                                                        |                                                                                                                                        |                                                                                                                      |                                                                                                                                              |                                                                                                                                              |   |   |   |   |   |   |   |   |
|   December      31, 2007                                                |                     1       |  $                                                                                                                         |             1,000                                                   |                                                                                                                      |        14,699,853                                                                                        |  $                                                                                                                                     |         146,999                                                                                     |  $                                                                                                                   |          6,043,876                                                                                   |  $                                                                                                                                           |         259,244 | $ |         1,447,838 |  $ |             1,004,392 | $ |           8,903,349 |
|                                                                              |                                                                                                                            |                                                                                                                            |                                                                                                                            |                                                                                                                      |                                                                                                                                        |                                                                                                                                        |                                                                                                                                        |                                                                                                                      |                                                                                                                                              |                                                                                                                                              |   |   |   |   |   |   |   |   |   |   |

| See      notes to consolidated financialstatements. |
|-----------------------------------------------------|

----

| CHINA      HUAREN ORGANIC PRODUCTS INC. AND SUBSIDIARY                 |                                                        |   |        |                                                                                                                                                                |                                                                                                                                                                |
|------------------------------------------------------------------------|-------------------------------------------------------------|--------|-------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| CONSOLIDATED      STATEMENTS OF CASH FLOWS                             |                                                        |   |        |                                                                                                                                                                |                                                                                                                                                                |
|                                                                   |                                                        |   |        |                                                                                                                                                                |                                                                                                                                                                |   |   |
|                                                                   |                                                        |   |        |                                                                                                                                                                | For      Years Ended December 31,                                                                                                                                   |
|                                                                   |                                                        |   |        |                                                                                                                                                                | 2007                                                                                                                                                                |   | 2006 |
|                                                                   |                                                        |   |        |                                                                                                                                                                |                                                                                                                                                                |   |   |
| Cash      flows From Operating Activities:                             |                                                        |   |        |                                                                                                                                                                |                                                                                                                                                                |
|    Net      Income                                      |                                                        |   | $           | 211,940                                                                                                                                                             |                        $                                                       | 420,581 |
|    Adjustments      to Reconcile Net Income to Net Cash |                                                        |   |        |                                                                                                                                                                |                                                                                                                                                                |
|    Provided      by Operating Activities                |                                                        |   |        |                                                                                                                                                                |                                                                                                                                                                |
|                                                                   | Bad      debt adjustment                                    |   |        |                                                                                                                                                                | 78,059                                                                                                                                                              |   | (6,439) |
|                                                                   | Depreciation                                                |   |        |                                                                                                                                                                | 11,888                                                                                                                                                              |   | 12,463 |
|                                                                   | Loss      on disposal of fixed assets                       |   |        | 25,050                                                                                                                                                              |                                                                                                                                                                | 3,244 |
|                                                                   | Loss      on disposal of inventory                          |   |        | 282,922                                                                                                                                                             |                                                                                                                                                                |                            - |
|    Changes      in Operating Assets and Liabilities     |                                                        |   |        |                                                                                                                                                                |                                                                                                                                                                |
|                                                                   | Accounts      receivable                                    |   |        |                                                                                                                                                                | (3,758,892)                                                                                                                                                         |   | 1,300,090 |
|                                                                   | Inventories                                                 |   |        |                                                                                                                                                                | 4,272,204                                                                                                                                                           |   | 238,938 |
|                                                                   | Other      receivable                                       |   |        |                                                                                                                                                                | (110)                                                                                                                                                               |   |                            - |
|                                                                   | Employee      travel and operation advance                  |   |        |                            - |                                                                                                                                                                | (13,435) |
|                                                                   | Advances      to suppliers                                  |   |        |                                                                                                                                                                | 124,762                                                                                                                                                             |   | (73,972) |
|                                                                   | Prepaid      expenses                                       |   |        |                                                                                                                                                                | 435,254                                                                                                                                                             |   | (1,841,204) |
|                                                                   | Other      current assets                                   |   |        |                                                                                                                                                                | 43,451                                                                                                                                                              |   | (15,300) |
|                                                                   | Accounts      payable and accrued expenses                  |   |        | (4,268)                                                                                                                                                             |                                                                                                                                                                | 60,894 |
|                                                                   | Customer      deposit                                       |   |        |                                                                                                                                                                | (78,684)                                                                                                                                                            |   | 13,144 |
|                                                                   | Welfare      payable                                        |   |        |                                                                                                                                                                |                            - |   | (8,120) |
|                                                                   | Tax      payable                                            |   |        |                                                                                                                                                                | 421,251                                                                                                                                                             |   | 292,536 |
|                                                                   | Other      current liabilities                              |   |        |                                                                                                                                                                | (3,373)                                                                                                                                                             |   | (5,790) |
| Net      Cash Provided by Operating Activities                         |                                                        |   | 2,061,454   |                                                                                                                                                                | 377,630                                                                                                                                                             |
|                                                                   |                                                        |   |        |                                                                                                                                                                |                                                                                                                                                                |   |   |
| Cash      Flows From Investing Activities                              |                                                        |   |        |                                                                                                                                                                |                                                                                                                                                                |
|                                                                   | Purchases      of property and equipment                    |   |        | (1,675)                                                                                                                                                             |                                                                                                                                                                | (3,961) |
|                                                                   | Proceeds      from repayment of related party advance       |   |        | 37,441                                                                                                                                                              |                                                                                                                                                                | 502,465 |
|                                                                   | Payment      for deposit of purchase of fixed assets        |   |        | (2,154,639)                                                                                                                                                         |                                                                                                                                                                | (1,191,991) |
| Net      Cash Used in Investing Activities                             |                                                        |   | (2,118,873) |                                                                                                                                                                | (693,487)                                                                                                                                                           |
|                                                                   |                                                        |   |        |                                                                                                                                                                |                                                                                                                                                                |   |   |
| Cash      Flows From Financing Activities                              |                                                        |   |        |                                                                                                                                                                |                                                                                                                                                                |
|                                                                   | Proceeds      from officers/shareholders loans              |   |        | 168,938                                                                                                                                                             |                                                                                                                                                                | 1,433,957 |
|                                                                   | Payment      for loan to officers/shareholders              |   |        | (76,632)                                                                                                                                                            |                                                                                                                                                                | (1,056,918) |
| Net      Cash Provided by Financing Activities                         |                                                        |   | 92,306      |                                                                                                                                                                | 377,039                                                                                                                                                             |
|                                                                   |                                                        |   |        |                                                                                                                                                                |                                                                                                                                                                |   |   |
| Net      Increase in Cash and Equivalents                              |                                                        |   | 34,887      |                                                                                                                                                                | 61,182                                                                                                                                                              |
| Effect      of Exchange Rate Changes on Cash                           |                                                        |   | (44,495)    |                                                                                                                                                                | (16,784)                                                                                                                                                            |
| Cash      and Equivalents, Beginning of Period                         |                                                        |   | 86,266      |                                                                                                                                                                | 41,868                                                                                                                                                              |
| Cash      and Equivalents, End of Period                               |                                                        | $      | 76,658      |                        $                                                       | 86,266                                                                                                                                                              |
|                                                                   |                                                        |   |        |                                                                                                                                                                |                                                                                                                                                                |   |   |
| SUPPLEMENT      SCHEDULE OF NON-CASH INVESTING AND FINANCING           |                                                        |   |        |
|                                                                   | Other      receivable decreased for inventories transfer in |   | $           |                            - |                   $                                                       | (5,211,843) |

| See      notes to consolidated financialstatements. |
|-----------------------------------------------------|

----

----

----

----

|                               |   |   |   |                                                         December 31, |
|------------------------------------|--------|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                               |   |   |   |                                                                                                                                                                                                                                                                                                                           | 2007 |   | 2006 |
|                               |   |   |   |                                                                                                                                                                                                                                                                                                                           |   |   |   |
| Work      in process               |   |   | $      |        480,532                                                                                                                                                                                                                                                                              |            $ |        307,047 |
| Finished      goods                |   |   |   |        242,633                                                                                                                                                                                                                                                                              |   |      4,957,890 |
| Packaging      materials and other |   |   |   |          39,807                                                                                                                                                                                                                                                                   |   |            3,351 |
|                               |   |   |   |                                                                                                                                                                                                                                                                                                                           |   |   |   |
|                               | Total  |   |   | $                                                                                                                                                                                                                                                                                                                              |        762,972 |            $ |      5,268,288 |

|                                              |   |   |                                                                                                    |                                                                                                    |                                               December      31, |
|---------------------------------------------------|--------|--------|---------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                              |   |   |                                                                                                    |                                                                                                    | 2007                                                                                                                                                                                                                                                                                                  |   | 2006 |
|                                              |   |   |                                                                                                    |                                                                                                    |                                                                                                                                                                                                                                                                                                  |   |   |
| Prepaid      office rent                          |   |   | $                                                                                                       |              267                       |             $                                                                                                                                                                                                                                                           |                  - |
| Prepaid      lease fee for the right to use lands |   |   |      1,591,685                                                                 |                                                                                                    |      1,867,599                                                                                                                                                                                                                                                               |
| Prepaid      research and development fee         |   |   |                  - |                                                                                                    |          51,255                                                                                                                                                                                                                                          |
| Prepaid      heating fee                          |   |   |                                                                                                    |                  - |                                                                                                                                                                                                                                                                                                  |            4,421 |
|                                              | Total  |   |                                                                                                    | $                                                                                                       |      1,591,952                                                                                                                                                                                                                                                               |             $ |      1,923,275 |

----

|                                        |   |   |                                                                                                    |                                                                                                    | December      31,                                                                 |
|---------------------------------------------|--------|--------|---------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------|-----------------------------------------------------------------------------------|
|                                        |   |   |                                                                                                    |                                                                                                    | 2007                                                                              |   | 2006 |
|                                        |   |   |                                                                                                    |                                                                                                    |                                                                              |   |   |
| Other      receivable                       |   |   | $                                                                                                       |              110                       |                $                     |                  - |
| Employees      travel and operation advance |   |   |                  - |                                                                                                    |          25,864                      |
| Advances      to suppliers                  |   |   |                                                                                                    |                  - |                                                                              |        124,762 |
| Loan      to officers/shareholders          |   |   |                                                                                                    |                  - |                                                                              |            1,885 |
| Advance      to related parties             |   |   |                                                                                                    |                  - |                                                                              |          37,441 |
| Other      current assets                   |   |   |                                                                                                    |                  - |                                                                              |          17,587 |
|                                        | Total  |   |                                                                                                    | $                                                                                                       |              110 |               $ |        207,539 |

|                                |         |                |                |                                                                                                    |   December      31,                                |
|-------------------------------------|--------------|---------------------|---------------------|---------------------------------------------------------------------------------------------------------|--------------------------------------------------------------|
|                                |         | Estimated      Life |                |                                                                                                    | 2007                                                         |   | 2006 |
|                                |         |                |                |                                                                                                    |                                                         |   |   |
| Office      equipments              | 5      years |                |         $ |          21,930                                            |          $                                    |          18,933 |
| Vehicles                            | 5      years |                |                |                  - |                                                         |          41,837 |
|                                | Subtotal     |                |                |                                                                                                    |          21,930 |   |          60,770 |
| Less:      Accumulated depreciation |         |                |                |          11,260                                            |                                                         |          16,370 |
|                                | Total        |                |                |         $                                                                                     |          10,670 |    $ |          44,400 |

----

|                                                  |   |   |                                    |                                  |    December      31,                                                                     |
|-------------------------------------------------------|--------|--------|-----------------------------------------|---------------------------------------|---------------------------------------------------------------------------------------------------------|
|                                                  |   |   |                                    |                                  | 2007                                                                                                    |   | 2006 |
|                                                  |   |   |                                    |                                  |                                                                                                    |   |   |
| Deposit      for purchase office building             |   | $      |      1,389,876 |            $ |      1,297,217                                                                 |
| Deposit      for purchase land use right from village |   |   |      2,303,074 |                                  |                  - |
|                                                  | Total  |   |                                    | $                                     |      3,692,950                                                                 |            $ |      1,297,217 |

| Year      Ending December 31, |                                 |   |                                                            |
|-------------------------------|--------------------------------------|--------|-----------------------------------------------------------------|
|                          | 2008                                 |   | $                                                               |            182,233 |
|                          | 2009                                 |   |                                                            |            137,088 |
|                          | 2010                                 |   |                                                            |            137,088 |
|                          | 2011                                 |   |                                                            |            137,088 |
|                          | 2012                                 |   |                                                            |            137,088 |
|                          | Thereafter                           |   |                                                            |          5,974,739 |
|                          | Total      minimum payments required | $      |          6,705,324 |

----

|                                               |   |   |                                                                    |                                                         |   December      31,                                           |
|----------------------------------------------------|--------|--------|-------------------------------------------------------------------------|--------------------------------------------------------------|-------------------------------------------------------------------------|
|                                               |   |   |                                                                    |                                                         | 2007                                                                    |   | 2006 |
|                                               |   |   |                                                                    |                                                         |                                                                    |   |   |
| Value-added      tax                               |   |   | $                                                                       |        557,813            |               $                 |        233,702 |
| Income      tax                                    |   |   |                                                                    |        964,564            |                                                                    |        789,711 |
| Delaware      franchise taxes                      |   |   |                                                                    |          21,186 |                                                                    |                  - |
| Individual      income tax withholdings            |   |   |            6,126 |                                                         |            3,788 |
| City      construction, education, and other taxes |   |   |          20,389            |                                                         |          19,124            |
|                                               | Total  |   |                                                                    | $                                                            |      1,570,078                                 |               $ |      1,046,325 |

----

|   |            |                                  | Sales      to                                                                                                                                                                                     |   | Number      of |   | Percentage          |
|--------|-----------------|---------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|----------------|--------|---------------------|
|   | Year      Ended |                                  | Major      Customers                                                                                                                                                                              |   | Customers      |   | of  Total |
|   | 2007            |            $ | 5,097,508                                                                                                                                                                                         |   | 1              |   | 68.43%              |
|   | 2006            |            $ |                                594,363 |   | 2              |   | 26.59%              |

|   |            |                                              | Purchases      from                                                                                                                                                                                                                               |   | Number      of |   | Percentage                |
|--------|-----------------|---------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|----------------|--------|---------------------------|
|   | Year      Ended |                                              | Major      Suppliers                                                                                                                                                                                                                              |   | Suppliers      |   | of  Total       |
|   | 2007            |              $ | 798,509                                                                                                                                                                                                                                           |   | 2              |   | 92.09%                    |
|   | 2006            |              $ |                                              - |   | -              |   |     - |

----