UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                              Washington, DC 20549

                                    FORM 10-K

(Mark One)
[X] ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
    ACT OF 1934

                   For the fiscal year ended December 31, 2009
                                       OR

[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
    ACT OF 1934

           For the transition period from ____________ to ___________

                         Commission File Number 0-32323

                 INTERNATIONAL BUILDING TECHNOLOGIES GROUP, INC
             (Exact name of registrant as specified in its charter)

           Nevada                                       20-1217659
(State or Other Jurisdiction of             (I.R.S. Employer Identification No.)
 Incorporation or Organization)

      17800 Castleton Street, Suite 638, City of Industry, California 91748
                    (Address of principal executive offices)

       Registrant's telephone number, including area code: (626) 581-8500

        Securities registered pursuant to Section 12(b) of the Act: None

           Securities registered pursuant to Section 12(g) of the Act:

                               Title of Each Class
                         Common Stock, $.00001 par value

Indicate by check mark if the  registrant  is a  well-known  seasoned  issuer as
defined in Rule 405 of the Securities Act. Yes [ ] No [X]

Indicate  by  check  mark if the  registrant  is not  required  to file  reports
pursuant to Section 13 or Section 15(d) of the Act. Yes [ ] No [X]

Indicate  by check  mark  whether  the  registrant:  (1) has filed  all  reports
required by Section 13 or 15(d) of the  Securities  Exchange  Act of 1934 during
the  preceding  12 months (or for such  shorter  period that he  registrant  was
required  to file  such  reports),  and  (2) has  been  subject  to such  filing
requirements for the past 90 days. Yes [X] No [ ]

Indicate by check mark if disclosure of delinquent  filers  pursuant to Item 405
of Regulation S- K is not contained  herein,  and will not be contained,  to the
best  of  the  registrant's   knowledge,  in  definitive  proxy  or  information
statements  incorporated  by  reference  in Part  III of this  Form  10-K or any
amendment to this Form 10-K. [ ]

Indicate by check mark whether the registrant is a large  accelerated  filer, an
accelerated filer, a non-accelerated  filer or a smaller reporting company.  See
definitions  of "large  accelerated  filer,"  "accelerated  filer," and "smaller
reporting company" in Rule 12b-2 of the Exchange Act.

Large accelerated filer [ ]                        Accelerated filer [ ]
Non-accelerated filer [ ]                          Smaller reporting company [X]

Indicate by check mark whether the  registrant is a shell company (as defined in
Rule 12b-2 of the Act). Yes [ ] No [X]

The aggregate  marker value of the voting and  non-voting  common equity held by
non-affiliates computed by reference to the price at which the common equity was
last sold, or the average bid and asked price of such common  equity,  as of the
last business day of the Registrant's  second fiscal quarter (June 30, 2009) was
approximately $325,701.

On March 29, 2010,  2,525,114,285  shares of the Registrant's  common stock were
outstanding.

                    DOCUMENTS INCORPORATED BY REFERENCE: None
<PAGE>
                                TABLE OF CONTENTS

ITEMS                                                                       PAGE
-----                                                                       ----
                                     PART I
Item 1.   Business                                                            4
Item 2.   Properties                                                          9
Item 3.   Legal Proceedings                                                   9
Item 4.   Submission of Matters to a Vote of Security Holders                 9

                                     PART II

Item 5.   Market For Common Equity and Related Stockholder Matters and        9
          Issuer Purchases of Equity Securities
Item 6.   Selected Financial Data                                            15
Item 7.   Management's Discussion and Analysis of Financial Condition
           and Results of Operations                                         15
Item 8.   Financial Statements and Supplementary Data                        19
Item 9.   Changes in and Disagreements with Accountants on Accounting
           and Financial Disclosure                                          20
Item 9A.  Controls and Procedures                                            20
Item 9B.  Other Information                                                  22

                                    PART III

Item 10.  Directors, Executive Officers and Corporate Governance             22
Item 11.  Executive Compensation                                             25
Item 12.  Security Ownership of Certain Beneficial Owners and Management
           and Related Stockholder Matters                                   27
Item 13.  Certain Relationships and Related Transactions, and Director
           Independence                                                      28
Item 14.  Principal Accounting Fees and Services                             29

                                     PART IV

Item 15.  Exhibits, Financial Statement Schedules                            30

                                       2
<PAGE>
                              CAUTIONARY STATEMENT

     This Form 10-K contains "forward-looking  statements" within the meaning of
the Private  Securities  Litigation  Reform Act of 1995.  Some of the statements
contained in this Form 10-K for International  Building Technologies Group, Inc.
("Company")  discuss  future  expectations,  contain  projections  of results of
operation or financial condition or state other  "forward-looking"  information.
These  statements  are subject to known and unknown  risks,  uncertainties,  and
other  factors  that could cause the actual  results to differ  materially  from
those contemplated by the statements.  The forward-looking  information is based
on various factors and is derived using numerous assumptions.

     Management  expresses its  expectations,  beliefs and  projections  in good
faith  and  believes  the  expectations   reflected  in  these   forward-looking
statements  are based on  reasonable  assumptions;  however,  Management  cannot
assure current stockholders or prospective stockholders that these expectations,
beliefs  and  projections  will  prove  to  be  correct.   Such  forward-looking
statements  reflect the current views of Management  with respect to the Company
and anticipated future events.

     Management cautions current stockholders and prospective  stockholders that
such forward-looking statements,  including,  without limitation, those relating
to the Company's future business prospects,  demand for its products,  revenues,
capital needs, expenses, development and operation costs, wherever they occur in
this Form 10-K, as well as in the documents  incorporated  by reference  herein,
are not guarantees of future  performance or results,  but are simply  estimates
reflecting  the best  judgment of  Management  and involve a number of risks and
uncertainties  that could cause actual results to differ  materially  from those
suggested by such forward-looking statements.

      Important factors that may cause actual results to differ from projections
include, for example:

     *    the  success or failure of  management's  efforts to  implement  their
          business strategy;

     *    the  ability  of the  Company  to  raise  sufficient  capital  to meet
          operating requirements;

     *    the  uncertainty  of consumer  demand for our  products,  services and
          technologies;

     *    the  ability  of the  Company  to protect  its  intellectual  property
          rights;

     *    the  ability  of  the  Company  to  compete  with  major   established
          companies;

     *    the effect of changing economic conditions;

     *    the ability of the Company to attract and retain quality employees;

     *    the current global recession and financial uncertainty; and

     *    other risks which may be described in future filings with the SEC.

     Words such as "anticipates,"  "expects,"  "intends,"  "plans,"  "believes,"
"seeks,"  "estimates," and variations of such words and similar  expressions are
intended to identify such forward-looking  statements.  These statements are not
guarantees of future performance and are subject to certain risks, uncertainties
and  assumptions  that are difficult to predict.  Therefore,  actual results and
outcomes may differ  materially from what is expressed or forecasted in any such
forward-looking  statements.  Unless required by law, the Company  undertakes no
obligation  to update  publicly  any  forward-looking  statements,  whether as a
result of new information, future events or otherwise.

                                       3
<PAGE>
                                     PART I

ITEM 1. BUSINESS.

BUSINESS DEVELOPMENT

     International   Building   Technologies   Group,   Inc.   ("Company")   was
incorporated as Ten Stix Inc. on January 10, 1996 under the laws of the State of
Colorado to engage in the design, development and marketing of unique card games
and other gaming products for the gaming  industry.  Ten Stix, Inc.  changed its
domicile from Colorado to Nevada in 2004.

     During 2004, the Company  amended its Articles of  Incorporation  to change
its name to Motorsports Emporium, Inc. in order to bring the name of the Company
in line with its then new business focus,  targeting  motor sports  enthusiasts.
During 2004,  the Company  divested  itself of all interest in Ten Stix Inc. and
the gaming business.

     As a result of the change in control and new business  focus of the Company
occasioned by the events  discussed  below,  the Company amended its Articles of
Incorporation to change its name to International  Building  Technologies Group,
Inc. in 2007.

BUSINESS TRANSFORMATION

     The Company  divested its motor sports related assets and began to focus on
its current business related to building technologies,  when on May 2, 2007, the
Company entered into a Stock Sale and Purchase  Agreement with Axia Group,  Inc.
("Axia") and International  Building  Technologies,  Inc.  ("IBT"),  pursuant to
which  the  Company  acquired   50,000,000   shares  of  IBT  common  stock  (or
approximately  80% of IBT's issued and  outstanding  common stock) from Axia for
consideration   consisting  of  a  (i)  $1,000,000  convertible  note  and  (ii)
20,000,000  shares of the  Company's  common stock.  On September 25, 2007,  the
Company and Axia  renegotiated the purchase price of the 80% equity stake in IBT
and made a downward adjustment of $1,000,000 to the purchase price and cancelled
the convertible note.

     As a result of the  transaction  with Axia and IBT,  the Company  dedicated
itself  to  providing  innovative  solutions  for  the  construction  of  homes,
buildings  and  communities  around  the world,  offering  a  complete  turn-key
approach to most projects from design and engineering to materials, training and
construction  assistance.  Acting through,  IBT, a Nevada  corporation,  and its
wholly owned subsidiary International Building Technologies Co., Ltd. ("IBT Hong
Kong"), a Hong Kong corporation,  we are a worldwide  manufacturer and developer
of light panel  technology to be used in residential  and  commercial  business,
primarily in regions that are at risk of earthquakes and hurricane-like winds.

THE COMPANY BUSINESS

     The Company is in the business of  manufacturing,  marketing  and providing
equipment and materials to the building and construction industries. The Company
is dedicated to providing unique and sustainable  construction  methods that can
be used in developing and developed countries around the world.

     The Company is a developer and provider of a superior  panel based building
technology.  Our panel  technology  is  superior  to many  traditional  building
methods, offers greater strength and resistance to winds and hurricanes, as well
as  providing a  sustainable  building  solution  that does not utilize  timber,
provides high insulation  values and is resistant to bugs, mold and rot. See the
discussion under "IBT Panel Technology," below.

     Our panel technology allows for the rapid,  cost effective  construction of
residential,  commercial,  and high-rise  buildings utilizing materials that are
superior in strength and appearance,  economical and  eco-friendly.  The Company
provides  customers  with  architectural  design,  panel  supply,   installation
supervision, engineering, training and technical support.

                                       4
<PAGE>
     Drawing on decades of experience in the construction  industry in China and
other  countries in the Far East, the Company is seeking to develop new business
in China, as well as establishing a manufacturing facility for our equipment and
materials to customers  throughout the world.  We plan to manufacture  equipment
for our own projects,  as well as exporting equipment and materials to customers
throughout the world.

     The  Company  has  also  been  working   with   investors  to  establish  a
Company-operated panel production factory in China's Sichuan Province. This plan
has been received with great interest by the Sichuan  Construction  Bureau,  the
government authority in governing major construction  projects in rebuilding the
earthquake region in Sichuan Province.

IBT PANEL TECHNOLOGY

     As stated  above,  the  Company is a developer  and  provider of a superior
panel  based  building  technology.  Our panel  technology  is  superior to many
traditional  building  methods,  offers greater strength and resistance to winds
and hurricanes,  as well as providing a sustainable  building solution that does
not utilize timber,  provides high  insulation  values and is resistant to bugs,
mold and rot.

     The components of our panels are simple, but effective:

     *    A light weight, high tensile treated galvanized steel wire cage;
     *    A core of expanded polystyrene;
     *    Connected and held in place by a logical series of treated  galvanized
          trusses;
     *    A coat of Portland  cement,  either gun or manually  applied to bother
          sides; and
     *    IBT  panel  technology   complies  with  European  and  U.S.  Standard
          ICBO-ER-3509

     Based on standard building codes prescribed by authorities  worldwide,  our
IBT technology will meet and exceed the minimum requirements. This includes load
tests of transverse,  vertical compression and racking shear load and fire tests
including corner room burn and fire exposure under load.

SUPERIOR STRENGTH AND VALUE

     *    Earthquakes
          *    The IBT technology  system is 30% more resistant when it comes to
               seismic movement when compared to the traditional block system.

     *    Hurricanes
          *    The  IBT  technology  has  a  structural  capacity  to  withstand
               hurricane-like winds up to 180 km per hour.

     *    Fires
          *    The IBT  technology can undertake fire exposure for more than one
               and a half hours.

     *    Insulation

          *    The expanded polystyrene used in the IBT technology system has an
               acoustic  insulation  capacity  that is 4 times  higher  than the
               traditional  block  system and has  thermal  insulation  that can
               isolate heat 8 times more than construction using the traditional
               block system.

     *    Environmental Safety
          *    Raw materials used in the  manufacturing of expanded  polystyrene
               do not expel toxic fumes into the atmosphere.

                                       5
<PAGE>
ADVANTAGES

     *    Versatile Design and Use
          *    Complete  architectural  freedom and flexibility,  sound barrier,
               security and property  walls  exterior and interior wall systems,
               roof systems,  flat and pitched.  This technology can be used for
               multi-story buildings, walls and floors.

     *    Spectacular Visual Appeal
          *    No evidence of  prefabrication  after  application  of  concrete,
               which can have a variety of finishes, smooth to heavily textured.

     *    Environment Friendly and Energy Saving
          *    No wood or timber products used,  Thermal insulation allows for a
               cooler  internal   environment.   Air   conditioning   bills  are
               considerably lower.

     *    Cost Savings
          *    Significant  decreases in on-site construction time and effective
               use of labor due to simplicity of erection.

APPLICATIONS

     *    Residential Homes
     *    Schools
     *    High Rise Buildings
     *    Churches
     *    Condominiums
     *    Mining Shafts
     *    Hospitals
     *    Fences and Walls
     *    Vacation Lodges
     *    Medical Care Centers
     *    Community Buildings

     We believe our panel based  technology is one of the finest,  strongest and
most cost effective building technologies available.  Our panel based technology
is superior to other traditional building methods in terms of strength,  time to
completion  and  resistance  to the elements.  Our IBT panel  technology is also
versatile in its use and can be used to create unique  architectural  and design
elements.   The  results  are  buildings  that  look  great  and  meet  superior
construction standards.

     Historically,  IBT has  completed  projects in the United  States,  Central
America, the Caribbean, Asia, Europe and Africa.

OTHER PRODUCTS AND SERVICES OFFERED BY THE COMPANY

     Currently,  IBT  provides  Site  Planning,  Architectural  and  Engineering
Services,  Contractor Services,  Materials,  Equipment, training and Supervision
and is engaged in projects in China utilizing our IBT technology.

HOW TO CONTACT US

     The Company's  principal  executive  offices are located at 17800 Castleton
Street,  Suite 638, City of Industry,  California 91748. Our telephone number is
(626) 581-8500 and our facsimile number is (626) 626-7603.

                                       6
<PAGE>
COMPETITIVE BUSINESS CONDITIONS

     The Company  competes with many companies in the global markets and many of
our competitors are large, well funded companies who have  substantially  larger
staffs and resources than we have at the present time. Unlike the many companies
that  compete in the global  market  manufacturing  building  materials,  we are
unique. Few companies  manufacture our product or anything similar in nature. We
intend to compete  based on our unique  technology  and business and  government
contacts within China.

FOREIGN CURRENCY RISK

     The Company has subsidiaries  operating in the foreign arena and is exposed
to foreign  currency  fluctuations.  Currently,  the Company's  subsidiaries are
operating in China and Hong Kong.  The  Company's  exposure to foreign  currency
fluctuations  in Hong Kong is limited as the Hong Kong Dollar is pegged  against
the  U.S.  dollar.   However,   the  Company's   exposure  to  foreign  currency
fluctuations in China is greater as the Chinese RMB has a floating exchange rate
based on market supply and demand with reference to a basket of currencies.

RAW MATERIALS AND SUPPLIES

     China is the main supplier of the raw materials needed for our panels.  The
Company has contact with and access to numerous  suppliers of the raw  materials
needed to  manufacture  its  building  panels  and is not  dependent  on any one
supplier or limited group of suppliers.

DEPENDENCE ON ONE OR A FEW MAJOR CUSTOMERS

     The Company  believes  that the  diversity  of the products and services it
offers helps  alleviate  the  dependence on any one customer or limited group of
customers.  The Company's  offerings of services and products appeal to both the
retail and industrial customer base. Through the widespread use of the Company's
products and services, the Company will continue to increase its customer base.

EFFECT OF EXISTING OR PROBABLE GOVERNMENTAL REGULATIONS

     The Company's  common stock is registered  pursuant to Section 12(g) of the
Securities  Exchange Act of 1934 ("1934 Act"). As a result of such registration,
the Company is subject to  Regulation  14A of the "1934  Act,"  which  regulates
proxy  solicitations.  Section  14(a)  requires all  companies  with  securities
registered  pursuant  to  Section  12(g)  thereof  to comply  with the rules and
regulations  of the Commission  regarding  proxy  solicitations,  as outlined in
Regulation 14A. Matters submitted to stockholders of the Company at a special or
annual meeting thereof or pursuant to a written consent will require the Company
to provide its  stockholders  with the information  outlined in Schedules 14A or
14C of Regulation 14;  preliminary  copies of this information must be submitted
to the Commission at least 10 days prior to the date that  definitive  copies of
this information are forwarded to stockholders.

     The  Company  is also  required  to file  annual  reports  on Form 10-K and
quarterly  reports on Form 10-Q with the Commission on a regular basis, and will
be required to disclose  certain  events in a timely  manner,  (e.g.  changes in
corporate  control;  acquisitions  or  dispositions  of a significant  amount of
assets  other than in the  ordinary  course of business;  and  bankruptcy)  in a
Current Report on Form 8-K.

     WE WILL BE SUBJECT TO THE REQUIREMENTS OF SECTION 404 OF THE SARBANES-OXLEY
ACT. IF WE ARE UNABLE TO TIMELY  COMPLY WITH SECTION 404 OR IF THE COSTS RELATED
TO COMPLIANCE ARE  SIGNIFICANT,  OUR  PROFITABILITY,  STOCK PRICE AND RESULTS OF
OPERATIONS AND FINANCIAL CONDITION COULD BE MATERIALLY ADVERSELY AFFECTED.

     The Company is required to comply with the provisions of Section 404 of the
Sarbanes-Oxley  Act of  2002,  which  requires  that we  document  and  test our
internal  controls  and  certify  that we are  responsible  for  maintaining  an
adequate  system of internal  control  procedures for the 2008 fiscal year. This
section also requires that our  independent  registered  public  accounting firm
opine on those internal controls and management's  assessment of those controls.
We are currently  evaluating our existing controls against the standards adopted

                                       7
<PAGE>
by the Committee of Sponsoring  Organizations of the Treadway Commission (COSO).
During the course of our ongoing  evaluation  and  integration  of the  internal
controls of our business,  we may identify areas requiring  improvement,  and we
may have to design enhanced  processes and controls to address issues identified
through this review (see Item 9A, below for a discussion  our internal  controls
and procedures).

     Our subsidiaries  currently operating in China also have to comply with the
provisions of Section 404 of the  Sarbanes-Oxley  Act of 2002.  However,  due to
time  differences,  cultural  differences,  and  differences in common  business
practices, documentation and testing of our internal controls overseas will be a
longer and more difficult process.

     We believe that the  out-of-pocket  costs,  the  diversion of  management's
attention from running the day-to-day  operations and operational changes caused
by the need to comply with the requirement of Section 404 of the  Sarbanes-Oxley
Act could be significant.  If the time and costs associated with such compliance
exceed  our  current  expectations,  our  results of  operations  and the future
fillings of our Company could be materially adversely affected.

     Our subsidiaries currently operating in China are subject to inherent risks
associated with operations in a foreign arena. IBT and IBT Hong Kong are exposed
to risks of changes in  governmental  policies and building  codes.  There is no
guarantee  of  current  Management's  ability  to  be  notified  of  changes  in
governmental  policies  and  building  codes in a  timely  manner,  which  could
materially affect the Company.

     Aside from required  compliance with foreign  governmental  regulations and
rules,  federal and state securities  laws,  regulations and rules, and federal,
state and local tax laws, regulations and rules, the Company is not aware of any
other governmental  regulations now in existence or that may arise in the future
that would have an effect on the business of the Company.

DEPENDENCE ON KEY EMPLOYEES AND NEED FOR ADDITIONAL MANAGEMENT AND PERSONNEL

      The Company is heavily dependent on the ability of our President,  Kenneth
Yeung, who has contributed  essential technical and management experience to our
business.  The  Company  will be  dependent  upon  Mr.  Yeung  to  recruit  good
management for the Company.

      In the event of future growth in administration,  marketing, manufacturing
and customer support  functions,  the Company may have to increase the depth and
experience of its management team by adding new members.  The Company's  success
will depend to a large degree upon the active  participation of its key officers
and employees,  as well as the continued service of its key management personnel
and its ability to identify,  hire, and retain additional  qualified  personnel.
There  can be no  assurance  that  the  Company  will be able  to  recruit  such
qualified personnel to enable it to conduct its proposed business successfully.

INTELLECTUAL PROPERTY RIGHTS

     The Company  presently holds no intellectual  property rights.  The Company
intends  to seek  copyright  and  trademark  protection  of its trade  names and
products. The Company's success and ability to compete are dependent to a degree
on the Company's  name and product  recognition.  Accordingly,  the Company will
primarily  rely on  copyright,  trade  secret and  trademark  law to protect its
product and brand names of  products  or under  which the Company  conducts  its
business.  Effective trademark protection may not be available for the Company's
trademarks.

      The  Company's  competitors  or others may adopt  product or service names
similar to the Company's,  thereby impeding the Company's ability to build brand
identity and possibly leading to customer confusion.  The Company's inability to
adequately  protect its product,  brand, trade names and trademarks would have a
material  adverse  effect on the  Company's  business,  financial  condition and
operating results.  Despite any precautions the Company takes, a third party may
be able to copy or otherwise  obtain and use the  Company's  technology or other
proprietary  information without  authorization or to develop similar technology
independently.

      Policing  unauthorized  use of the Company's  products are made especially
difficult by the global nature of the Internet and the difficulty in controlling
the  ultimate  destination  or security  of products or other data.  The laws of
other countries may afford the Company little or no effective protection for the
Company's intellectual property.

                                       8
<PAGE>
EMPLOYEES

      As of March 29, 2010, we had one full time employee, Kenneth Yeung, who is
our President and Chief  Executive  Officer.  We believe that our relations with
our employee are good. Our employee is not  represented by a union or covered by
a collective bargaining agreement.

REPORTS TO SECURITY HOLDERS

      The public may view and obtain copies of the Company's  reports,  as filed
with the Securities and Exchange Commission,  at the SEC's Public Reference Room
at 100 F Street,  NE, Room 1580,  Washington,  D.C.  20549.  Information  on the
Public  Reference  Room is  available  by  calling  the  SEC at  1-800-SEC-0330.
Additionally,  copies of the Company's reports are available and can be accessed
and   downloaded   via   the   internet   on  the   SEC's   internet   site   at
http://www.sec.gov.

ITEM 2. PROPERTIES.

     The Company does not own any real estate.

     On February 20, 2009, the Company relocated its principal executive offices
to 17800 Castleton  Street,  Suite 638, City of Industry,  California 91748. The
new offices are being leased under a verbal  sublease  from Allied  Consultants,
Inc., a company owned by Nelson  Yeung,  the brother of our  President,  Kenneth
Yeung.  Kenneth Yeung has no financial or other interest in Allied  Consultants,
Inc. The sublease rental is $3,250.00 per month,  which covers access to and use
of office furniture and equipment owned by Allied Consultants, Inc. The sublease
is a month to month lease.

ITEM. 3 LEGAL PROCEEDINGS.

      The  Company is not the subject of any pending  legal  proceedings  to the
knowledge of  management,  nor is there any presently  contemplated  against the
Company by any federal,  state,  or local  government  agency.  Further,  to the
knowledge  of  management,  no director or  executive  officer is a party to any
action in which his interest is adverse to the Company.

ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.

     No matter was  submitted  to a vote of our  shareholders  during the fourth
quarter of the year ended December 31, 2009.

                                     PART II

ITEM 5. MARKET FOR REGISTRANT'S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND
        ISSUER PURCHASES OF EQUITY SECURITIES.

     As of the date of this Annual Report,  the Company's Common Stock is quoted
on the  Over-the-Counter  Bulletin Board under the symbol  "INBG.OB." The market
for the Company's  Common Stock is limited,  volatile and sporadic and the price
of the Company's Common Stock could be subject to wide  fluctuations in response
to  quarterly  variations  in operating  results,  news  announcements,  trading
volume, sales of Common Stock by officers,  directors and principal shareholders
of the Company,  general market trends, changes in the supply and demand for the
Company's shares, and other factors. The following table sets forth the high and
low sales prices for each quarter relating to the Company's Common Stock for the
last two fiscal years.  These  quotations  reflect  inter-dealer  prices without
retail  mark-up,   markdown,   or  commissions,   and  may  not  reflect  actual
transactions.

                                       9
<PAGE>
     Fiscal 2008                         High                Low
     -----------                         ----                ---

     First Quarter (1)                 $.00625             $.0020
     Second Quarter (1)                $.00450             $.0010
     Third Quarter (1)                 $.00250             $.0015
     Fourth Quarter (1)                $.00200             $.0001

     Fiscal 2009                         High                Low
     -----------                         ----                ---

     First Quarter (2)                 $0.0008             $0.0001
     Second Quarter (1)                $0.0004             $0.0001
     Third Quarter (1)                 $0.0002             $0.0001
     Fourth Quarter (1)                $0.0002             $0.0001

----------
(1)  This  represents  the  closing  bid  information  for the  stock on the OTC
     Bulletin Board. The bid and ask quotations represent prices between dealers
     and do not  include  retail  markup,  markdown or  commission.  They do not
     represent  actual  transactions  and  have  not  been  adjusted  for  stock
     dividends or splits.
(2)  This represents the closing price for the stock on the OTC Bulletin Board.

     All of the  above  information  was  listed  as  reported  by the  National
Association of Securities Dealers Composite feed or other qualified inter-dealer
quotation medium.

     Our common stock is  considered  a "penny  stock." The  application  of the
"penny stock" rules to our common stock could limit the trading and liquidity of
the common  stock,  adversely  affect the market  price of our common  stock and
increase your transaction costs to sell those shares. The Commission has adopted
regulations  which  generally  define a "penny stock" to be any equity  security
that has a market price (as defined) of less than $5.00 per share or an exercise
price of less than $5.00 per share, subject to certain exceptions.

     Shareholders  should be aware that,  according to SEC Release No.  34-29093
dated April 17,  1991,  the market for penny stocks has suffered in recent years
from  patterns  of fraud and abuse.  Such  patterns  include  (1) control of the
market for the security by one or a few broker-dealers that are often related to
the promoter or issuer; (2) manipulation of prices through prearranged  matching
of purchases and sales and false and misleading press releases;  (3) boiler room
practices   involving   high-pressure   sales  tactics  and  unrealistic   price
projections  by  inexperienced  sales  persons;  (4) excessive  and  undisclosed
bid-ask  differential  and  markups  by  selling  broker  dealers;  and  (5) the
wholesale dumping of the same securities by promoters and  broker-dealers  after
prices  have been  manipulated  to a desired  level,  along  with the  resulting
inevitable  collapse of those prices and with consequent  investor  losses.  The
occurrence of these  patterns or practices  could increase the volatility of our
share price.

     Our  management is aware of the abuses that have occurred  historically  in
the penny stock market.

HOLDERS

     As of March 26, 2010, there were  approximately  359 shareholders of record
of the Company's Common Stock, 96 shareholders of record of the Company's Series
A Preferred Stock, one shareholder of record of the Company's Series C Preferred
Stock,  four  shareholders of record of the Company's  Series D Preferred Stock,
four  shareholders  of record of the Company's  Series E Preferred Stock and one
shareholder of record of the Company's Series F Preferred Stock.

DIVIDENDS

     The Company has not declared any cash  dividends with respect to its common
stock or preferred stock during the last two fiscal years and does not intend to
declare dividends in the foreseeable future. There are no material  restrictions
limiting or that are likely to limit the  Company's  ability to pay dividends on
its outstanding securities.

                                       10
<PAGE>
RECENT ISSUANCE OF UNREGISTERED SECURITIES

     Since December 31, 2008, the Company has issued the following  common stock
without registration under the Securities Act of 1933:

                      Number of           Aggregate            Nature of
Date of Issue       Shares Issued        Sales Price          Transaction
-------------       -------------        -----------          -----------
1/12/2009            37,389,530          $ 7,477.90       Debt cancellation (1)
1/19/2009            35,000,000          $ 5,250.00       Debt cancellation (2)
2/12/2009            39,900,000          $ 3,990.00       Debt cancellation (3)
2/18/2009            35,000,000          $ 2,625.00       Debt cancellation (2)
2/23/2009            45,000,000          $ 4,500.00       Debt cancellation (4)
3/2/2009             45,000,000          $ 3,375.00       Debt cancellation (2)
3/24/2009            40,000,000          $ 4,000.00       Debt cancellation (5)
3/24/2009            40,000,000          $ 4,000.00       Debt cancellation (6)
3/24/2009            46,000,000          $ 3,450.00       Debt cancellation (2)
4/6/2009             40,000,000          $ 4,000.00       Debt cancellation (7)
4/21/2009            55,557,150          $11,450.00       Debt cancellation (1)
4/21/2009            48,000,000          $ 3,600.00       Debt cancellation (2)
5/29/2009            62,000,000          $12,400.00       Debt cancellation (4)
5/29/2009            62,000,000          $ 9,300.00       Debt cancellation (2)
6/26/2009            65,000,000          $ 6,825.00       Debt cancellation (2)
6/26/2009            64,867,747          $11,676.00       Debt cancellation (3)
7/27/2009            67,500,000          $11,897.00       Debt cancellation (1)
8/6/2009             68,000,000          $10,200.00       Debt cancellation (2)
8/18/2009            75,000,000          $11,850.00       Debt cancellation (8)
9/11/2009            82,000,000          $11,480.00       Debt cancellation (2)
9/18/2009            78,431,372          $10,000.00       Debt cancellation (1)
9/30/2009            75,000,000          $ 9,000.00       Debt cancellation (3)
10/13/2009           85,000,000          $ 9,563.00       Debt cancellation (2)
11/9/2009            90,000,000          $   850.00       Debt cancellation (2)
12/10/2009          112,500,000          $ 1,125.00       Debt cancellation (8)
12/17/2009           65,177,800          $   651.78       Debt cancellation (2)
1/8/2010             88,000,000          $12,320.00       Conversion of Series
                                                          F Preferred Stock (9)
1/19/2010           120,000,000          $13,080.00       Debt cancellation (4)
----------
(1)  Shares issued to an individual.
(2)  Shares issued to a single entity upon conversion of debenture.
(3)  Shares issued to an individual.
(4)  Shares issued to a single entity.
(5)  Shares issued to a single entity.
(6)  Shares issued to a single entity.
(7)  Shares issued to a single entity.
(8)  Shares issued to a single entity.
(9)  Shares issued to a single entity.

     Since December 31, 2008, the Company issued the following  shares of Series
C Preferred  Stock without  registration  under the  Securities  Act of 1933, as
amended:

                                       11
<PAGE>
                      Number of           Aggregate            Nature of
Date of Issue       Shares Issued        Sales Price          Transaction
-------------       -------------        -----------          -----------
October 5, 2009       1,000,000           $1,000.00          Cash investment

     Since December 31, 2008, the Company issued the following  shares of Series
D Preferred  Stock without  registration  under the  Securities  Act of 1933, as
amended:

                      Number of           Aggregate            Nature of
Date of Issue       Shares Issued        Sales Price          Transaction
-------------       -------------        -----------          -----------
4/20/2009                50,000           $50,000            Cash investment
8/3/2009                 50,000           $50,000            Cash investment
8/6/2009                 25,000           $25,000            Cash investment
8/6/2009                 25,000           $25,000            Cash investment
9/21/2009                22,500           $22,500            Cash investment
9/30/2009                50,000           $50,000            Cash investment

      During  2008,  the  Company  issued  the  following   securities   without
registration under the Securities Act of 1933:

<TABLE>
<CAPTION>
                      Number of           Aggregate            Nature of
Date of Issue       Shares Issued        Sales Price          Transaction
-------------       -------------        -----------          -----------
<S>                <C>                  <C>                  <C>
1/18/2008             1,904,762           $ 9,532.81         In exchange for consulting services (1)
1/18/2008             1,934,974           $ 5,121.30         Debt repayment (1A)
1/18/2008             3,406,800           $ 8,632.83         Debt repayment (2)
1/18/2008             3,406,800           $ 8,632.83         Debt repayment (3)
1/21/2008             1,500,000           $ 7,500.00         Settlement (4)
2/4/2008              2,000,000           $ 5,000.00         In exchange for consulting services (1)
2/4/2008              1,703,698           $ 4,395.54         Debt repayment (1A)
2/11/2008               992,064           $ 6,250.00         In exchange for consulting services (5)
2/25/2008             1,500,000           $ 6,000.00         Settlement (4)
3/11/2008             4,000,000           $ 6,000.00         Debt repayment (6)
3/11/2008             4,000,000           $ 6,000.00         Debt repayment (7)
3/11/2008             2,666,667           $ 8,533.33         In exchange for consulting services (1)
3/11/2008             4,081,293           $ 5,713.81         Debt repayment (8)
3/11/2008             4,081,293           $ 5,713.81         Debt repayment (9)
3/11/2008             4,089,000           $ 7,360.20         Debt repayment (2)
3/11/2008             2,344,288           $ 4,454.15         Debt repayment (1A)
3/19/2008             1,282,629           $ 3,847.88         In exchange for consulting services (26)
4/1/2008              5,643,350           $ 5,079.01         Debt repayment (8)
4/3/2008              3,703,704           $ 5,185.19         In exchange for consulting services (1)
4/3/2008              2,777,778           $ 3,055.56         Debt repayment (7)
4/3/2008              2,777,778           $ 3,055.56         Debt repayment (6)
4/3/2008              2,959,960           $ 4,439.94         Debt repayment (1A)
4/15/2008             6,531,558           $ 4,572.09         Debt repayment (9)
4/21/2008             3,000,000           $ 2,940.00         Debt repayment (10)
4/21/2008             3,763,150           $ 4,003.99         Debt repayment (2)
4/28/2008             8,918,919           $12,000.00         Private offering of common stock (11)
4/28/2008             6,875,000           $10,000.00         Private offering of common stock (12)
4/28/2008             4,761,905           $ 5,000.00         In exchange for consulting services (1)
4/28/2008             4,014,192           $ 4,395.43         Debt repayment (1A)
4/30/2008             7,971,014           $10,000.00         Private offering of common stock (13)
5/2/2008              6,857,483           $ 3,657.72         Debt repayment (14)
</TABLE>

                                       12
<PAGE>
<TABLE>
<CAPTION>
<S>                 <C>                 <C>                 <C>
5/21/2008             4,444,444           $ 4,000.00         In exchange for consulting services (1)
5/21/2008             5,000,000           $ 3,000.00         Debt repayment (7)
5/21/2008             5,000,000           $ 3,000.00         Debt repayment (6)
5/21/2008             7,000,000           $ 4,200.00         Debt repayment (10)
5/21/2008             7,000,000           $ 4,200.00         Debt repayment (2)
5/21/2008             5,801,656           $ 5,395.54         Debt repayment (1A)
5/21/2008             7,000,000           $ 4,200.00         Debt repayment (3)
5/21/2008             9,160,950           $ 9,160.95         Debt repayment (8)
5/23/2008             7,857,143           $10,000.00         Private offering of common stock (15)
6/17/2008             7,638,889           $10,000.00         Private offering of common stock (16)
6/30/2008             4,824,561           $ 5,000.00         Private offering of common stock (17)
7/8/2008             12,068,332           $12,068.33         Debt repayment (14)
7/11/2008            10,204,081           $ 5,000.00         Private offering of preferred stock (18)
7/11/2008            10,204,081           $ 5,000.00         Private offering of preferred stock (19)
7/11/2008            10,204,081           $ 5,000.00         Private offering of preferred stock (20)
7/11/2008            12,300,000           $12,300.00         Debt repayment (21)
7/11/2008            12,000,000           $12,000.00         Debt repayment (2)
7/11/2008            10,000,000           $10,000.00         Debt repayment (3)
7/11/2008            12,000,000           $12,000.00         Debt repayment (10)
7/11/2008             5,000,000           $ 5,000.00         Debt repayment (7)
7/11/2008             5,000,000           $ 5,000.00         Debt repayment (6)
7/29/2008            60,625,000           $40,000.00         Private offering of common stock (12)
7/29/2008            15,081,081           $12,000.00         Private offering of common stock (11)
7/29/2008            11,224,490           $10,000.00         Private offering of common stock (22)
7/31/2008             9,000,000           $ 9,000.00         Debt repayment (23)
8/1/2008              7,000,000           $ 7,000.00         Private offering of preferred stock (24)
8/1/2008             12,999,265           $ 7,604.57         Debt repayment (1A)
8/1/2008             11,976,000           $11,976.00         Debt repayment (9)
8/1/2008             11,976,000           $11,976.00         Debt repayment (8)
8/14/2008             6,111,111           $10,000.00         Private offering of common stock (25)
8/14/2008             6,932,773           $15,000.00         Private offering of common stock (16)
8/27/2008            17,629,390           $16,659.77         Debt repayment (1A)
8/29/2008             2,916,667           $ 4,375.00         In exchange for consulting services (26)
8/29/2008             4,548,340           $ 6,822.51         In exchange for consulting services (26)
9/4/2008              6,875,000           $10,000.00         Private offering of common stock (27)
9/18/2008            24,609,743           $11,320.48         Debt repayment (14)
9/19/2008             8,000,000           $ 3,360.00         Debt repayment (28)
9/22/2008             5,238,095           $10,000.00         Private offering of common stock (29)
9/29/2008             5,500,000           $ 5,000.00         Private offering of common stock (30)
9/29/2008            26,855,656           $21,350.23         Debt repayment (1A)
10/2/2008             5,565,513           $ 4,452.41         In exchange for consulting services (26)
10/30/2008            7,500,000           $ 3,000.00         Debt repayment (7)
10/30/2008            7,500,000           $ 3,000.00         Debt repayment (6)
11/4/2008             8,203,000           $ 3,500.00         Debt repayment (24)
11/4/2008             6,000,000           $ 2,940.00         Debt repayment (23)
11/4/2008             6,000,000           $ 2,940.00         Debt repayment (20)
11/4/2008             6,000,000           $ 2,940.00         Debt repayment (10)
11/4/2008             6,000,000           $ 2,940.00         Debt repayment (2)
11/4/2008             6,000,000           $ 2,940.00         Debt repayment (21)
11/4/2008             6,000,000           $ 2,940.00         Debt repayment (3)
11/4/2008             4,427,550           $ 3,055.31         In exchange for consulting services (31)
11/17/2008           15,318,264           $ 7,505.95         Debt repayment (8)
11/21/2008           30,636,529           $12,560.97         Debt repayment (1A)
11/21/2008            8,928,571           $ 5,267.85         Debt repayment (32)
11/21/2008           15,318,265           $ 7,505.95         Debt repayment (8)
</TABLE>

                                       13
<PAGE>
----------
(1)  Shares of  common  stock  issued  to a single  entity  upon  conversion  of
     debenture.
(2)  Shares of common stock issued to a singe entity.
(3)  Shares of common stock issued to a single entity.
(4)  Shares  of  common  stock  issued  to  an  individual  in  settlement  of a
     non-litigated dispute.
(5)  Shares of common stock issued to a former officer.
(6)  Shares of common stock issued to an individual consultant.
(7)  Shares of common stock issued to an individual consultant.
(8)  Shares of common stock issued to a single entity.
(9)  Shares of common stock issued to an individual consultant.
(10) Shares of common stock issued to a single entity.
(11) Shares of common  stock  issued to an  individual  investor
(12) Shares of common stock issued to an individual investor.
(13) Shares of common stock issued to an individual investor.
(14) Shares of common stock issued to an individual investor.
(15) Shares of common stock issued to an individual investor.
(16) Shares of common stock issued to an individual investor.
(17) Shares of common stock issued to an individual investor.
(18) Shares of preferred stock issued to an individual investor.
(19) Shares of preferred stock issued to an individual investor.
(20) Shares of preferred stock issued to an individual investor.
(21) Shares of common stock issued to a single entity.
(22) Shares of common stock issued to an individual investor.
(23) Shares of common stock issued to a single entity.
(24) Shares of preferred stock issued to an individual investor.
(25) Shares of common stock issued to an individual investor.
(26) Shares of common stock issued to a law firm for legal services.
(27) Shares of common stock issued to an individual investor.
(28) Shares of common stock issued to an individual.
(29) Shares of common stock issued to an individual investor.
(30) Shares of common stock issued to an individual investor.
(31) Shares of common stock issued to an individual consultant.
(32) Shares of common stock issued to an individual investor.

      During the fiscal year ended  December  31, 2007,  the Company  issued the
following securities without registration under the Securities Act of 1933:

<TABLE>
<CAPTION>
                      Number of           Aggregate            Nature of
Date of Issue       Shares Issued        Sales Price          Transaction
-------------       -------------        -----------          -----------
<S>                 <C>                 <C>                 <C>
  2/9/2007              166,667           $    5,000         In exchange for debt cancellation
  3/1/2007              384,615           $   10,000         In exchange for debt cancellation
  3/9/2007              403,225           $   10,000         In exchange for debt cancellation
 4/16/2007              551,334           $   17,521         In exchange for debt cancellation
  5/4/2007              270,000           $   10,854         In exchange for debt cancellation
 5/10/2007              271,867           $   11,114         In exchange for debt cancellation
 5/17/2007           20,000,000           $1,300,000         Asset Purchase-IBT
  6/4/2007              220,000           $   11,000         In exchange for debt cancellation
 6/15/2007            1,219,904           $   41,042         In exchange for debt cancellation
 8/13/2007              142,858           $    2,085         Private Offering
  9/4/2007              257,142           $    3,754         Private offering
 9/12/2007              450,824           $    8,791         In exchange for debt cancellation
 10/5/2007            1,105,796           $    8,791         In exchange for debt cancellation
 11/5/2007            2,577,180           $    8,599         In exchange for debt cancellation
11/28/2007            4,000,000           $    5,768         In exchange for debt cancellation
 12/3/2007            2,350,000           $    3,386         In exchange for debt cancellation
</TABLE>

                                       14
<PAGE>
<TABLE>
<CAPTION>
<S>                 <C>                 <C>                 <C>
12/17/2007            4,725,216           $    7,070         In exchange for debt cancellation
12/12/2007              350,000 (1)       $  350,000         Conversion of Note issued in connection
                                                              with the Suining Yinfa Project
12/12/2007               50,000 (2)       $   50,000         Director's Compensation
</TABLE>

----------
(1)  The Company  issued 350,000  shares of Series E Preferred  Stock.  When the
     transaction  with  Suining  Yinfa was  rescinded,  Suining  Yinfa  returned
     315,000 of these  shares to the Company and kept 35,000 of these  shares as
     compensation for their work on the project.
(2)  The Company issued 50,000 shares of Series D Preferred Stock.

     The Company did not utilize or engage a principal underwriter in connection
with any of the above  securities  transactions.  Management  believes the above
shares of common stock were issued  pursuant to the exemption from  registration
under Section 4(2) of the Securities Act of 1933, as amended.

ITEM 6. SELECTED FINANCIAL DATA.

Not applicable.

ITEM 7. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
        OF OPERATION.

CAUTIONARY FORWARD - LOOKING STATEMENT

     The following  discussion  should be read in conjunction with our financial
statements and related notes.

     Certain matters  discussed  herein may contain  forward-looking  statements
that are  subject  to risks and  uncertainties.  Such  risks  and  uncertainties
include, but are not limited to, the following:

     *    the volatile and competitive nature of our industry,
     *    the uncertainties surrounding the rapidly evolving markets in which we
          compete,
     *    the uncertainties surrounding technological change of the industry,
     *    our dependence on its intellectual property rights,
     *    the success of marketing efforts by third parties,
     *    the changing demands of customers and
     *    the arrangements with present and future customers and third parties.

     Should one or more of these risks or  uncertainties  materialize  or should
any of the underlying assumptions prove incorrect, actual results of current and
future  operations  may vary  materially  from those  anticipated.  See also the
disclosures under "Cautionary Statement" following the Table of Contents in this
Annual Report.

GENERAL

     Prior to December 1, 2004,  the  Company  was known as Ten Stix,  Inc.  and
changed  its name to  MotorSports  Emporium,  Inc. on December 1, 2004 under the
laws of the State of Nevada to  engage in the motor  sports  industry  targeting
enthusiasts  participating  in  die  cast  collecting,  automobile  restoration,
purchase of  high-performance  accessories,  motor sports related  collectibles,
driver's  apparel,  race venues and product  licensing.  On July 12,  2007,  the
Company  reported  in a  Definitive  Schedule  14C that the Company was going to
change its name to International  Building  Technologies  Group,  Inc. to better
reflect  its change of  business  from motor  sports  related  to  building  and
construction  of lightweight  panels.  On July 17, 2007 the Company  amended its
articles  of  incorporation  to  change  its  name  to  International   Building
Technologies Group, Inc. effective on August 6, 2007.  According to Statement of
Financial  Accounting  Standards No. 7, "Accounting and Reporting by Development
Stage Enterprises," the Company has reentered the development stage. The Company
devotes most of its efforts to  establishing  a new business,  raising  capital,
establishing sources of supply, acquiring property,  plant, equipment, and other
operating  assets.  The  Company's  shares of common stock are quoted on the OTC
Bulletin Board under the symbol "INBG.OB."

                                       15
<PAGE>
     Our  principal  executive  offices are located at 17800  Castleton  Street,
Suite 638, City of Industry,  CA 91748.  Our telephone  number is (626) 581-8500
and our  facsimile  number is (626)  626-7603.  More  information  regarding our
products and the Company is available on our website at www.ibtgi.com.

EXECUTIVE OVERVIEW

     The Company is in the business of  manufacturing,  marketing  and providing
equipment and materials to the building and construction industries. The Company
is dedicated to providing unique and sustainable  construction  methods that can
be used in developing and developed countries around the world.

     The Company is a developer and provider of a superior  panel based building
technology.  Our panel  technology  is  superior  to many  traditional  building
methods, offers greater strength and resistance to winds and hurricanes, as well
as  providing a  sustainable  building  solution  that does not utilize  timber,
provides high insulation values and is resistant to bugs, mold and rot.

     Our panel technology allows for the rapid,  cost effective  construction of
residential,  commercial,  and high-rise  buildings utilizing materials that are
superior in strength and appearance,  economical and  eco-friendly.  The Company
provides  customers  with  architectural  design,  panel  supply,   installation
supervision, engineering, training and technical support.

     Drawing on decades of experience in the construction  industry in China and
other  countries in the Far East, the Company is seeking to develop new business
in China,  as well as establish a  manufacturing  facility for its equipment and
materials.  We plan to  manufacture  equipment for our own projects,  as well as
exporting equipment and materials to customers throughout the world.

     The Company has also been  working  with  investors  to establish a Company
operated panel  production  factory in China's Sichuan  Province.  This plan has
been  received  with great  interest by the  Sichuan  Construction  Bureau,  the
government authority in governing major construction  projects in rebuilding the
earthquake region in Sichuan Province.

MATERIAL RECENT DEVELOPMENTS

RE-ENTERING DEVELOPMENT STAGE

     On April 1, 2007, the Company re-entered the development stage. The Company
has changed the focus of its business to building and  constructing  lightweight
panels.  The Company has devoted  most of its efforts to  establishing  this new
business,  raising capital,  establishing sources of supply, acquiring property,
plant, equipment, and other operating assets.

RESULTS OF  OPERATIONS  - YEAR ENDED  DECEMBER  31, 2009  COMPARED TO YEAR ENDED
DECEMBER 31, 2008

     The  results  of  operations  in the prior year are not  indicative  of the
performance in neither the current period nor future periods. This is due to the
change  in  business  from an  exclusive  die  cast  merchandising  business  to
developing and manufacturing lightweight panel technology.

     For the year ended  December  31,  2009,  Operating  Expenses  for  current
operations  totaled  $480,513  is less  than  year  ended  December  31,  2008's
Operating  Expenses of  $1,904,781.  The  decrease of  $1,424,268  in  Operating
Expenses  between  years  ended  2009  and  2008  is  mostly  attributed  to the
impairment  of goodwill of  $1,303,277  incurred in the year ended  December 31,
2008.  There was no such  impairment of goodwill in the year ended  December 31,
2009.

                                       16
<PAGE>
     The most  significant  change in our results of operations is the change in
fair value of  derivative.  As of  December  31,  2009,  change in fair value of
derivative gain was $32,133.  There was no such gain in 2008.  There was expense
in change in fair value of  derivative  liability  of  $2,137,962  instead.  The
expense  in 2008 was high  because  there was no such  derivative  liability  at
December 31, 2007. The Company incurred such expense for the year ended December
31, 2008 when the derivative liability was recognized at year end. The change in
the fair value of derivative is resulted  from the common stock  equivalents  of
the Company on all convertible debentures and preferred stock exceeded the total
common stock available for issuance by approximately by  54,520,869,200  shares.
The Company's Chief Executive Officer,  Kenneth Yeung, holds 2,000,000 shares of
Series C Preferred Stock that are convertible into 43,956,043,956  common shares
of the  Company.  Unless  and until  there is  enough  authorized  common  stock
available to cover all common stock equivalents,  Mr. Yeung will not convert any
of his  preferred  shares.  Furthermore,  the  stock  is only  convertible  upon
management's discretion. Management currently does not intend on converting such
stock.  Also, warrant options are not included in common stock equivalents since
the  exercise  price of $0.25 for the  warrant  exceeds the fair value of common
stock of $0.0002 per share on December  31,  2009.  The  remaining  common stock
equivalent  of  10,564,825,244  shares has been  accounted  for as a  derivative
liability.  The fair value of the  derivative  of $2,105,829  was  determined by
utilizing the Black-Scholes valuation model.

     Another  significant  change  in our  results  of  operations  is  interest
expense.  As of December  31,  2009,  Interest  Expense  for current  operations
totaled  $1,402,005 is greater than the year ended December 31, 2008's  Interest
Expense of $705,535. The increase of $696,470 in Interest Expense is largely due
to the amendment of the  conversion  feature of the notes in 2009.  Accordingly,
the beneficial  conversion features of certain convertible notes were remeasured
and were all  amortized  by the end of December  31,  2009.  This  consisted  of
non-cash  interest  expenses such as accretion of warrants and accretion on debt
discounts (See Note 6 - Notes Payable & Debt Discounts). These non-cash expenses
make up the  majority  of the  difference  between  current  year and prior year
interest expense.

LIQUIDITY AND CAPITAL RESOURCES

     Our future success and viability is primarily dependent upon our ability to
increase operating cash flows and develop new business opportunities.

     During the next 12 months, the Company's foreseeable cash requirements will
relate to continual  development of the operations of its business,  maintaining
its good  standing  and making the  requisite  filings with the  Securities  and
Exchange  Commission,  and the payment of expenses  associated with reviewing or
investigating any potential business ventures.

     Additionally,  we may  experience a cash shortfall and be required to raise
additional  capital. In the year ended December 31, 2009 we relied on funds from
the sale of shares  of stock and loans  from our  shareholders  to  finance  our
operations and growth.  Management may raise  additional  capital through future
public  or  private  offerings  of our  stock  or  through  loans  from  private
investors,  although  there can be no  assurance  that we will be able to obtain
such  financing.  Our failure to do so could have a material and adverse  affect
upon us and our shareholders.

     The chart  below  summarizes  our debt  (see Note 5 - Notes  Payable & Debt
Discounts  of  the  Consolidated   Financial  Statements  -  Notes  Payable  and
Beneficial Conversions):

Terms                                                                     Amount
-----                                                                     ------
SHORT TERM NOTES PAYABLE TO SHAREHOLDERS:
-    10% Interest;  principal of $6,597;  convertible  to common
     stock based on 75% of average price;  due on 9/3/2009,  net
     of unamortized  discount related to the debt discount of $0           6,597
-    10% Interest; principal of $104,757;  convertible to common
     stock based on 75% of average price; due on 12/31/2009, net
     of unamortized  discounted  related to the debt discount of
     $0                                                                  104,757
-    10% Interest;  principal of $11,000;  convertible to common
     stock based on 75% of average price; due on 10/9/2009,  net
     of unamortized  discount related to the debt discount of $0          11,000
-    10% Interest;  principal of $31,925;  convertible to common
     stock based on 75% of average price; due on 12/31/2009, net
     of unamortized  discounted  related to the debt discount of
     $0                                                                   31,925
-    10% Interest;  principal of $1 0,269;  convertible to common
     stock based on 75% of average price; due on 12/31/2009, net
     of unamortized  discounted  related to the debt discount of
     $0                                                                   10,269

                                       17
<PAGE>
-    10% Interest;  principal of $12,500;  convertible to common
     stock based on 75% of average price; due on 12/31/2009, net
     of unamortized  discount related to the debt discount of $0          12,500
-    10% Interest;  principal of $15,000;  convertible to common
     stock based on 75% of average price;  due on 8/1/2009,  net
     of unamortized  discount related to the debt discount of $0          15,000
-    10% Interest;  principal of $32,017;  convertible to common
     stock based on 75% of average price; due on 12/31/2009, net
     of unamortized  discount related to the debt discount of $0          32,017
-    10% Interest;  principal of $28,326;  convertible to common
     stock based on 75% of average price; due on 12/31/2009, net
     of unamortized  discounted  related to the debt discount of
     $0                                                                   28,326
-    10% Interest;  principal of $10,642;  convertible to common
     stock based on 75% of average price; due on 12/31/2009, net
     of unamortized  discount related to the debt discount of $0          10,642
-    10% Interest;  principal of $9,458;  convertible  to common
     stock based on 75% of average price; due on 12/31/2009, net
     of unamortized  discounted  related to the debt discount of
     $0                                                                    9,458
-    10% Interest;  principal of $37,133;  convertible to common
     stock based on 75% of average price; due on 12/31/2009, net
     of unamortized  discounted  related to the debt discount of
     $0                                                                   37,133
-    10% Interest;  principal of $5,000;  convertible  to common
     stock based on 75% of average price; due on 10/28/2009, net
     of unamortized  discount related to the debt discount of $0           5,000
-    10% Interest;  principal of $10,000;  convertible to common
     stock based on 75% of average price; due on 12/31/2009, net
     of  unamortized  discount  related to the debt  discount of
     $3,271                                                               10,000
-    10% Interest;  principal of $13,000;  convertible to common
     stock based on 75% of average price;  due on 8/1/2009,  net
     of unamortized  discount related to the debt discount of $0          13,000
-    10% Interest;  principal of $7,209;  convertible  to common
     stock based on 75% of average price; due on 12/31/2009, net
     of unamortized  discounted  related to the debt discount of
     $0                                                                    7,209
-    10% Interest;  principal of $23,847;  convertible to common
     stock based on 75% of average price; due on 12/31/2009, net
     of unamortized  discounted  related to the debt discount of
     $0                                                                   23,847
-    10% Interest;  principal of $20,000;  convertible to common
     stock based on 75% of average price; due on 12/31/2009, net
     of unamortized  discount related to the debt discount of $0          20,000
-    10% Interest;  principal of $25,000;  convertible to common
     stock based on 75% of average price; due on 12/31/2009, net
     of unamortized  discount related to the debt discount of $0          25,000
-    10% Interest;  principal of $70,000;  convertible to common
     stock based on 75% of average price; due on 12/31/2009, net
     of unamortized  discount related to the debt discount of $0          70,000
-    10% Interest;  principal of $36,867;  convertible to common
     stock based on 75% of average price; due on 12/31/2009, net
     of unamortized  discounted  related to the debt discount of
     $0                                                                   36,867
-    5% Interest;  principal of $73,975;  convertible  to common
     stock based on 75% of average price;  due on 7/1/2009,  net
     of unamortized  discount related to the debt discount of $0          73,975
-    10% Interest;  principal of $1,112;  convertible  to common
     stock based on 75% of average price; due on 12/31/2009, net
     of unamortized  discounted  related to the debt discount of
     $0                                                                    1,112
-    10% Interest;  principal of $10,000;  convertible to common
     stock based on 75% of average price; due on 12/31/2009, net
     of unamortized  discount related to the debt discount of $0          10,000
-    10% Interest;  principal of $15,000;  convertible to common
     stock based on 75% of average price; due on 10/29/2009, net
     of  unamortized  discount  related to the debt  discount of
     $2,463                                                               12,537
-    10% Interest;  principal of $50,240;  convertible to common
     stock based on 75% of average price; due on 12/31/2009, net
     of unamortized  discount related to the debt discount of $0          50,240
                                                                      ----------
  TOTAL SHORT TERM NOTES PAYABLE TO SHAREHOLDERS                      $  668,411
                                                                      ==========

SHORT TERM NOTES PAYABLE:
-    10% Interest;  principal of $50,000;  convertible to common
     stock based on 75% of average price; due on 12/31/2009, net
     of unamortized  discount related to the debt discount of $0          50,000

                                       18
<PAGE>
-    10% Interest;  principal of $50,000;  convertible to common
     stock based on 75% of average price; due on 12/31/2009, net
     of unamortized  discount related to the debt discount of $0          50,000
-    10% Interest;  principal of $15,000;  convertible to common
     stock based on 75% of average price; due on 12/31/2009, net
     of unamortized  discount related to the debt discount of $0          15,000
-    10% Interest;  principal of $10,000;  convertible to common
     stock based on 75% of average price; due on 12/31/2009, net
     of  unamortized  discount  related to the debt  discount of
     $325                                                                  9,675
-    10% Interest;  principal of $20,500;  convertible to common
     stock based on 75% of average price; due on 12/31/2009, net
     of unamortized  discount related to the debt discount of $0          20,500
                                                                      ----------
  TOTAL SHORT TERM NOTES PAYABLE                                      $  145,175
                                                                      ==========

YEAR ENDED DECEMBER 31, 2009

     As of December 31, 2009, the Company's  current assets were $13,525 and its
current  liabilities were $3,432,633,  resulting in a working capital deficit of
$3,419,108.  As of December  31,  2009,  current  assets were  comprised  of (i)
$12,514 in cash; (ii) $1,011 in other current assets.

     As of  December  31,  2009,  current  liabilities  were  comprised  of  (i)
$2,105,829  in  derivative   liability;   (ii)  $668,411  in  notes  payable  to
stockholders  and $145,175 in notes payable;  (ii) $305,897 in accounts  payable
and accrued expenses and $207,321 of other amounts due to shareholders.

     As of December 31, 2009,  the  Company's  total assets were $15,525 and its
total  liabilities  were  $3,432,633,   with  a  net  stockholder's  deficit  of
$3,417,108.

     For the year ended  December  31,  2009,  net cash flows used in  operating
activities  were  ($193,304)  compared  to net  cash  flows  used  in  operating
activities of $469,654, before the net cash used in and provided by discontinued
operations,  for the year ended  December  31,  2008.  The  decrease of $276,736
during the twelve-month period ended December 31, 2009 were primarily due to the
increase in accounts payable and decrease in net loss.

     For the year ended  December  31,  2009,  net cash flows used in  investing
activities  was $80,750  compared to net cash used by  investing  activities  of
$161,500  during the year ended December 31, 2008. Cash inflows in 2009 were the
return of investment deposit from Wuhan Wufeng Machinery Company.  Cash outflows
in 2008 were related to the acquisition of Wuhan Wufeng Machinery Company.

     For the  twelve-month  period  ended  December  31,  2009,  net cash  flows
provided  by  financing  activities  was  $123,501  compared  to net cash  flows
provided by financing  activities of $599,852 for the twelve-month  period ended
December  31,  2008.  Cash  inflows in 2009  consisted  of the sale of preferred
stock. Cash inflows in 2008 consisted primarily of proceeds from the issuance of
common stock and notes payable.

     Our financial  statements have been prepared assuming that we will continue
as a going concern and, accordingly,  do not include adjustments relating to the
recoverability and realization of assets and classifications of liabilities that
might be necessary should we be unable to continue our operations.

     As of the date of this Annual Report, the Company has generated no revenues
from  operations  since it  entered  the  development  stage  on April 1,  2007.
Therefore,  the Company's  auditors have expressed  substantial  doubt about the
Company's  ability to continue as a going concern.  Management  believes that it
can maintain its status as a going  concern  based on its ability to raise funds
pursuant  to future  public and private  offerings  and to obtain  advances  and
minimize operating expenses by not duplicating or incurring needless expenses.

ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA.

     Our financial  statements and supplementary  data may be found beginning at
page F-1.

                                       19
<PAGE>
ITEM 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND
        FINANCIAL DISCLOSURE.

     Not applicable.

ITEM 9A. CONTROLS AND PROCEDURES.

EVALUATION OF DISCLOSURE CONTROLS AND PROCEDURES

     We conducted an evaluation under the supervision and with the participation
of our management,  including  Kenneth Yeung,  our Chief  Executive  Officer and
Chief Financial Officer, of the effectiveness of the design and operation of our
disclosure   controls  and  procedures.   The  term  "disclosure   controls  and
procedures,"  as defined in Rules  13a-15(e) and 15d-15(e)  under the Securities
and Exchange Act of 1934, as amended  ("Exchange Act"), means controls and other
procedures of a company that are designed to ensure that information required to
be  disclosed  by the  company  in the  reports  it files or  submits  under the
Exchange Act is recorded,  processed,  summarized and reported,  within the time
periods specified in the Securities and Exchange  Commission's  rules and forms.
Disclosure controls and procedures also include,  without  limitation,  controls
and procedures designed to ensure that information required to be disclosed by a
company  in the  reports  that it files or  submits  under the  Exchange  Act is
accumulated  and  communicated  to  the  company's  management,   including  its
principal  executive and principal  financial  officers,  or persons  performing
similar functions, as appropriate,  to allow timely decisions regarding required
disclosure.  Based on this  evaluation,  our Chief  Executive  Officer and Chief
Financial Officer concluded as of December 31, 2009 that our disclosure controls
and  procedures  have  been  improved  and were  maintained  effectively  at the
reasonable  assurance  level in our internal  controls over financial  reporting
discussed immediately below.

MANAGEMENT'S REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING

     Our management is responsible for  establishing  and  maintaining  adequate
internal  control over  financial  reporting as defined in Rules  13a-15(f)  and
15d-15(f) under the Exchange Act. Our internal control over financial  reporting
is  designed  to provide  reasonable  assurance  regarding  the  reliability  of
financial  reporting and the  preparation  of financial  statements for external
purposes in  accordance  with  generally  accepted  accounting  principles.  Our
internal control over financial reporting includes those policies and procedures
that:

     (1)  pertain  to the  maintenance  of  records  that in  reasonable  detail
          accurately and fairly reflect the transactions and dispositions of our
          assets;
     (2)  provide  reasonable   assurance  that  transactions  are  recorded  as
          necessary to permit preparation of financial  statements in accordance
          with U.S. GAAP, and that our receipts and  expenditures are being made
          only in  accordance  with  the  authorization  of our  management  and
          directors; and
     (3)  provide reasonable  assurance regarding prevention or timely detection
          of  unauthorized  acquisition,  use or  disposition of our assets that
          could have a material effect on the financial statements.

                                       20
<PAGE>
     Because  of its  inherent  limitations,  internal  control  over  financial
reporting  may not prevent or detect  misstatements.  Also,  projections  of any
evaluation  of  effectiveness  to future  periods  are  subject to the risk that
controls may become  inadequate  because of changes in  conditions,  or that the
degree of compliance with the policies or procedures may deteriorate.

     Management   assessed  the  effectiveness  of  our  internal  control  over
financial  reporting  as of  December  31,  2009.  In  making  this  assessment,
management  used  the  framework  set  forth  in the  report  entitled  Internal
Control--Integrated   Framework   issued   by  the   Committee   of   Sponsoring
Organizations of the Treadway Commission, or COSO. The COSO framework summarizes
each of the components of a company's internal control system, including (i) the
control  environment,  (ii) risk  assessment,  (iii)  control  activities,  (iv)
information and communication,  and (v) monitoring.  This annual report does not
include an attestation report of our registered public accounting firm regarding
internal control over financial  reporting.  Management's report was not subject
to attestation by our registered  public  accounting  firm pursuant to temporary
rules of the Securities and Exchange  Commission that permits us to provide only
management's report in this annual report.

IDENTIFIED MATERIAL WEAKNESSES AND SIGNIFICANT DEFICIENCIES

     A material  weakness is a control  deficiency,  or  combination  of control
deficiencies,  that  results  in more than a remote  likelihood  that a material
misstatement  of the  financial  statements  will not be  prevented or detected.
Management  identified the following  internal  control  deficiency which we had
assessed  as a  material  weakness  as of Dec.  31,  2009  and 2008  during  its
assessment of our internal control over financial reporting as follows:

     1.   We did not have adequate  segregation  of duties over certain areas of
          our financial reporting process.

     The internal  control  deficiency  identified above will only be completely
corrected if the company  expands and has the capacity to  adequately  segregate
the duties to mitigate risk in financial reporting. Expansion will depend mostly
on the ability of management to begin  operations and generate  enough income to
warrant growth in personnel.

     We did not have  effective  comprehensive  entity-level  internal  controls
specific to the structure of our board of directors and organization of critical
committees.  Due to our  expected  expansion,  as  disclosed  in this Form 10-K,
without  correcting this  significant  deficiency and ensuring that our board of
directors has the proper oversight and committees are properly established,  the
control environment in subsequent years may not be effective.

     We had engaged a regionally-recognized independent consulting firm assisted
management with its assessment of the effectiveness of our internal control over
financial  reporting,   including  scope  determination,   planning,   staffing,
documentation, testing, remediation and retesting and overall program management
of the assessment project. In conclusion,  our Chief Executive Officer and Chief
Financial Officer surmised that the Company has improved the effective  internal
control over financial reporting as of December 31, 2009.

MANAGEMENT'S REMEDIATION INITIATIVES

     We are in the further  process of evaluating  our material and  significant
deficiencies.  We have  already  begun to  remediate  many of the  deficiencies.
However, others will require additional people, including adding to our board of
directors, which will take longer to remediate.

     In an effort to remediate  the  identified  material  weaknesses  and other
deficiencies and enhance our internal  controls,  we have initiated,  or plan to
initiate, the following series of measures:

     1.   Identify  and  retain  one or two  new  directors  for  our  board  of
          directors  including a member who is  appropriately  credentialed as a
          financial expert with a goal of having sufficient independent board of
          directors oversight;

                                       21
<PAGE>
     2.   Ensure  all entity  level  controls  are  applied at all levels of the
          organization and are scalable for acquisition or merge targets;
     3.   Establish   comprehensive   formal  general  accounting  policies  and
          procedures  and  require  directors  or  employees  to sign  off  such
          policies and procedures as documentation of their understanding of and
          compliance with company policies;
     4.   Make  all  directors  or  employees  subject  to our  Code  of  Ethics
          (including  those  employees in  acquisition  targets) and require all
          employees  and directors to sign our Code of Ethics on an annual basis
          and retain the related documentation; and,
     5.   Implement better segregation of duties given the size of our company.

     We believe that the above five initiatives have been at least partially, if
not fully,  implemented by the end of 2009, until we are able to hire additional
personnel.

CONCLUSION

     It is reasonably possible that, if not re-mediated, the identified material
weakness  noted above could  result in a material  misstatement  in our reported
financial  statements  that might result in a material  misstatement in a future
annual or interim period.

     In light of the identified material weaknesses,  management,  performed (1)
significant  additional  substantive  review of those areas described above, and
(2)  performed  additional  analyses,  including  but not  limited to a detailed
balance  sheet and  statement  of  operations  analytical  review that  compared
changes  from  the  prior  period's   financial   statements  and  analyzed  all
significant  differences.  These  procedures were completed so management  could
gain assurance that the financial statements and schedules included in this Form
10-K fairly present in all material respects the Company's  financial  position,
results of operations and cash flows for the periods presented.

     The changes  noted  above,  are the only changes  during our most  recently
completed fiscal quarter that have materially  affected or are reasonably likely
to materially affect, our internal control over financial reporting,  as defined
in Rules 13a-15(f) and 15d-15(f) under the Exchange Act.

     This Annual Report does not include an attestation  report of the Company's
registered  public  accounting  firm regarding  internal  control over financial
reporting.  Management's  report was not subject to attestation by the Company's
registered  public accounting firm pursuant to temporary rules of the Securities
and Exchange  Commission  that permit the Company to provide  only  management's
report in this Annual Report.

ITEM 9B. OTHER INFORMATION.

Not applicable.

                                    PART III

ITEM 10. DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE.

     Our  executive  officers are elected by the board of directors and serve at
the discretion of the board, subject to employment and/or consulting  agreements
described in Item 11, below.  All of the current  directors serve until the next
annual  shareholders'  meeting or until their  successors have been duly elected
and qualified.  The following table sets forth certain information regarding our
current directors and executive officers:

                                       22
<PAGE>
IDENTITY OF DIRECTORS AND EXECUTIVE OFFICERS AS OF MARCH 31, 2010

<TABLE>
<CAPTION>
    Name             Director Since     Age                     Position
    ----             --------------     ---                     --------
<S>                  <C>                <C>    <C>
Kenneth Yeung*       April 13, 2007      54     President, Chief Executive Officer, Chief
                                                Financial Officer, Treasurer and Director
Peter Chin**         May 21, 2007        62     Secretary and Director
</TABLE>

----------
*    On March 14, 2007,  Mr. Yeung was elected to the office of President of the
     Company. On April 16, 2007, Mr. Yeung was elected to the additional offices
     of Chief Financial Officer and Treasurer.
**   On May 21, 2007, Mr. Chin was elected to the office of Corporate Secretary.
***  All Company  officers serve at the pleasure of the Board of Directors.  All
     current members of the Board of Directors will serve as such until the next
     annual meeting of stockholders or until their successors are duly elected.

       KENNETH YEUNG. Mr. Yeung is currently the Chief Executive Officer of ia&d
Consultants,  Inc.,  a Los Angeles  based  consulting  firm engaged in planning,
architectural  design,  engineering and business consulting.  As the CEO of ia&d
consultants,  Inc.,  Mr.  Yeung leads that  company by  developing  business and
providing services such as planning, architectural design and engineering to its
clients worldwide and particularly in China. His company has completed  numerous
projects including commercial and residential developments,  hotels and resorts,
schools and recreational  facility development.  Currently,  Mr. Yeung's company
has offices in three major  cities in China.  Mr.  Yeung  received a Bachelor of
Arts and Sciences from the University of Hawaii.  From the mid-1990s,  Mr. Yeung
has held senior executive positions with companies engaged in civil engineering,
building material manufacturing, planning, architecture and design.

     PETER CHIN.  Mr. Chin was born in Shanghai,  China and raised in Hong Kong.
Mr. Chin studied  abroad in both Sydney,  Australia and the United  States.  Mr.
Chin has over 20 years of  experience  in the  financial  markets,  focusing  on
corporate finance,  while advising companies in China and the United States. Mr.
Chin served on the board of directors of Golden Arrow Group of Companies, USA, a
hotel and land  management  company in China.  Additionally,  Mr. Chin served as
Chief Executive Officer and Chairman of PTS, Inc. and as Chief Executive Officer
of Disability Access Corporation. Mr. Chin consults with various publicly traded
and private held companies on executive and financial decisions.

DIRECTORSHIPS

     No  Director  of the  Company  or  person  nominated  or chosen to become a
Director holds any other  directorship in any company with a class of securities
registered pursuant to Section 12 of the 1934 Act or subject to the requirements
of Section  15(d) of such Act or any other  company  registered as an investment
company under the Investment Company Act of 1940.

SIGNIFICANT EMPLOYEES

     No other significant employees exist.

FAMILY RELATIONSHIPS

     There are no family relationships  between any officer,  director or person
who will be nominated to serve on our Board of Directors.

COMPENSATION OF DIRECTORS

     During  2009,  we issued  50,000  shares of Series D Preferred  to Director
Peter Chin as compensation. During 2008, we did not compensate our Directors for
serving on our Board of  Directors.  During 2007,  we issued  50,000  restricted
shares of our Series D Preferred Stock one of our Directors, Peter Chin.

                                       23
<PAGE>
     There are no arrangements or understandings between any of the directors or
executive  officers,  or any other person or person  pursuant to which they were
selected as directors and/or officers.

INVOLVEMENT IN CERTAIN LEGAL PROCEEDINGS

     During the past five  years,  no  present  director,  executive  officer or
person nominated to become a director or an executive officer of the Company:

     1.   had a  petition  under  the  federal  bankruptcy  laws  or  any  state
          insolvency  law filed by or against,  or a receiver,  fiscal  agent or
          similar  officer  appointed by a court for the business or property of
          such person,  or any  partnership in which he was a general partner at
          or within two years before the time of such filing, or any corporation
          or business  association  of which he was an  executive  officer at or
          within two years before the time of such filing;
     2.   was  convicted  in a  criminal  proceeding  or  subject  to a  pending
          criminal  proceeding  (excluding  traffic  violations  and other minor
          offenses);
     3.   was  subject  to any  order,  judgment  or  decree,  not  subsequently
          reversed,   suspended   or   vacated,   of  any  court  of   competent
          jurisdiction,   permanently  or  temporarily  enjoining  him  from  or
          otherwise limiting his involvement in any of the following activities:

          (i)  Acting  as a futures  commission  merchant,  introducing  broker,
               commodity trading advisor, commodity pool operator, floor broker,
               leverage transaction merchant,  any other person regulated by the
               Commodity Futures Trading Commission,  or an associated person of
               any of the foregoing,  or as an investment adviser,  underwriter,
               broker or  dealer  in  securities,  or as an  affiliated  person,
               director or employee of any investment company, bank, savings and
               loan  association  or  insurance  company,   or  engaging  in  or
               continuing  any  conduct  or  practice  in  connection  with such
               activity;
          (ii) Engaging in any type of business practice; or
          (iii)Engaging in any activity in connection  with the purchase or sale
               of any security or commodity or in connection  with any violation
               of federal or state securities laws or federal  commodities laws;
               or

     4.   was the  subject of any order,  judgment or decree,  not  subsequently
          reversed,  suspended  or  vacated,  of an federal  or state  authority
          barring,  suspending  or otherwise  limiting for more than 60 days the
          right of such person to engage in any activity  described in paragraph
          (3) (i),  above,  or to be associated with persons engaged in any such
          activity; or
     5.   was found by a court of competent  jurisdiction  (in a civil  action),
          the  Securities  and  Exchange  Commission  or the  Commodity  Futures
          Trading  Commission to have violated a federal or state  securities or
          commodities  law, and for which the  judgment  has not been  reversed,
          suspended or vacated.

AUDIT COMMITTEE FINANCIAL EXPERT AND IDENTIFICATION OF AUDIT COMMITTEE

     Our board of directors acts as our audit committee.  No member of our board
of directors is an "audit committee  financial  expert," as that term is defined
in Item 401(e) of Regulation S-K  promulgated  under the Securities Act of 1933,
as amended.  Our board of directors  concluded that the benefits of retaining an
individual  who  qualifies as an "audit  committee  financial  expert"  would be
outweighed by the costs of retaining such a person.

SECTION 16 (a) BENEFICIAL OWNERSHIP COMPLIANCE

     Section 16(a) of the Securities Exchange Act of 1934 requires the Company's
executive  officers,  directors and persons who own more than ten percent of the
Company's Common Stock, to file initial reports of beneficial  ownership on Form
3,  changes  in  beneficial  ownership  on  Form 4 and an  annual  statement  of
beneficial ownership on Form 5, with the SEC. Such executive officers, directors
and greater than ten percent  shareholders  are required by SEC rules to furnish
the Company with copies of all such forms that they have filed.

                                       24
<PAGE>
     Based  on our  review  of the  copies  of such  forms  filed  with  the SEC
electronically,  received  by  the  Company  and  representations  from  certain
reporting  persons,  the  Company  believes  that  during the fiscal  year ended
December 31, 2009,  all the  officers,  directors  and more than 10%  beneficial
owners have complied with the above described  filing  requirements,  except for
Peter Chin and Kenneth  Yeung.  Kenneth  Yeung,  our  President  and a Director,
inadvertently did not file a Form 4 in October 2009, covering his acquisition of
1,000,000  shares  of  our  Series  C  Preferred  Stock.   However,   Mr.  Yeung
subsequently  filed a Form 5 on February 9, 2010, which included his acquisition
of the 1,000,000 shares of Series C Preferred  Stock.  Peter Chin, our Corporate
Secretary and a Director,  inadvertently  did not file a Form 4 in October 2009,
covering  his  acquisition  of 50,000  shares of our Series D  Preferred  Stock.
However,  Mr.  Chin  subsequently  filed a Form 5 on  February  9,  2010,  which
included such 50,000 shares of Series D Preferred Stock.

CODE OF ETHICS

     The Company has adopted a Code of Ethics  applicable  to its  employees and
officers,   including  its  principal  executive  officer,  principal  financial
officer,  principal  accounting  officer  or  controller  and any other  persons
performing similar functions. The Code of Ethics will be provided free of charge
by the Company to interested  parties upon request.  Requests  should be made in
writing and directed to the Company at the following  address:  17800  Castleton
Street,  Suite 638, City of Industry,  California  91748.  A copy of the Code of
Ethics was attached as Exhibit 14 to the Company's  Annual Report on Form 10-KSB
for the Fiscal Year Ended December 31, 2007.

ITEM 11. EXECUTIVE COMPENSATION.

     The  following  table sets  forth the  aggregate  compensation  paid by the
Company to the above named  executive  officers and directors of the Company for
services rendered during the periods indicated:

                           SUMMARY COMPENSATION TABLE

<TABLE>
<CAPTION>

                                                                     Non-Equity      Nonqualified
 Name and                                                            Incentive         Deferred
 Principal                                    Stock       Option        Plan         Compensation     All Other
 Position       Year   Salary($)   Bonus($)  Awards($)   Awards($)  Compensation($)   Earnings($)   Compensation($)  Totals($)
 --------       ----   ---------   --------  ---------   ---------  ---------------   -----------   ---------------  ---------
<S>            <C>     <C>         <C>        <C>           <C>          <C>              <C>         <C>             <C>

Kenneth         2009   $210,000     $   0    $     0       $   0        $   0            $   0       $ 6,676(1)      $217,676
Yeung,          2008   $100,000     $   0    $     0       $   0        $   0            $   0       $ 6,584(2)      $106,584
President       2007   $100,000     $   0    $     0       $   0        $   0            $   0       $ 3,096(3)      $103,096
and CEO

Peter Chin,     2009   $      0     $   0    $50,000       $   0        $   0            $   0       $     0         $ 50,000
Director        2008   $      0     $   0    $     0       $   0        $   0            $   0       $     0         $      0
                2007   $      0     $   0    $50,000(4)    $   0        $   0            $   0       $     0         $ 50,000
</TABLE>

----------
(1)  During the fiscal year ended  December 31, 2009, Mr. Kenneth Yeung received
     cash salary of $210,000  and a car  allowance  of $6,676  (pursuant  to his
     employment agreement with the Company).
(2)  During the fiscal year ended  December 31, 2008, Mr. Kenneth Yeung received
     cash salary of $100,000  and a car  allowance  of $6,584  (pursuant  to his
     employment agreement with the Company).

                                       25
<PAGE>
(3)  During the fiscal year ended  December 31, 2007, Mr. Kenneth Yeung received
     a cash salary of $100,000 and a car  allowance  of $3,096  (pursuant to his
     employment agreement with the Company)
(4)  During 2009, the Company  issued 50,000 shares of Series D Preferred  Stock
     to Mr. Peter Chin as  compensation  for serving as Corporate  Secretary and
     Director  of the  Company  during  2008 and 2009.  The shares ere valued at
     $1.00 per share for an aggregate consideration of $50,000.

EMPLOYMENT CONTRACTS

     On May 21, 2007, the Company entered into a three year Employment Agreement
with Kenneth Yeung,  its President and Chief Executive  Officer.  The Employment
Agreement was effective as of May 1, 2007, and expires on April 30, 2010, unless
earlier  terminated  as provided in the  Employment  Agreement.  The  Employment
Agreement provides for base compensation to Mr. Yeung of $17,500 per month until
April 30,  2010.  On February 1, 2010,  the  Company  entered  into a three year
Employment  Agreement  with Mr. Yeung to become  effective on May 1, 2010,  that
provides for the following base compensation to Mr. Yeung:

      May-December 2010                   $20,000 per month
      January-December 2011               $22,500 per month
      January-December 2012               $25,000 per month
      January-April 2013                  $27,500 per month

     In addition to the above base  compensation,  Mr.  Yeung is entitled to the
following compensation benefits:

     *    Participation in the Company's Stock Option Plan;
     *    An undesignated monthly automobile allowance;
     *    Participation in group life,  hospitalization or disability  insurance
          programs, health programs,  pension plan similar benefit plan or other
          "fringe benefits" of the Company; and
     *    An annual incentive bonus in an amount not less than 1.8% of the total
          collected sales amount from operations of the Company,  payable within
          30 days after the end of each  fiscal  year during the term of his new
          Employment Agreement; and
     *    Other  incentive  bonus  in  an  amount  deemed   appropriate  by  the
          Compensation  Committee of the Company (when constituted),  subject to
          review every six months.

DIRECTOR COMPENSATION

     We do not have formal compensation plan for our directors.  During 2009, we
issued 50,000 shares of our Series D Preferred  Stock to Director Peter Chin for
services  rendered  since  January 1, 2008.  The shares were valued at $1.00 per
share for an aggregate compensation of $50,000.

COMPENSATION DISCUSSION AND ANALYSIS

     We have  prepared the  following  Compensation  Discussion  and Analysis to
provide you with  information  that we believe is  necessary to  understand  our
executive compensation policies and decisions as they relate to the compensation
of our named executive officers.

     We have only two  members on our board of  directors  and do not  currently
have a  compensation  committee.  However,  we  intend  to  expand  our board of
directors  in the near  future  by  appointing  or  electing  at  least  two new
directors  who will be deemed  to be  independent  directors.  The  presence  of
independent  directors  on our  board  of  directors  will  allow us to form and
constitute a compensation committee of our board of directors.

     The  primary  objectives  of the  compensation  committee  with  respect to
executive  compensation  will be to (i)  attract  and retain  the best  possible
executive  talent  available  to us; (ii)  motivate  our  executive  officers to
enhance our growth and profitability and increase  shareholder  value; and (iii)
reward superior  performance and  contributions  to the achievement of corporate
objectives.

                                       26
<PAGE>
     The focus of our  executive  pay  strategy  will be to tie  short-term  and
long-term cash and equity incentives to the achievement of measurable  corporate
and  individual  performance  objectives  or benchmarks  and to align  executive
compensation with the creation and enhancement of shareholder value. In order to
achieve  these  objectives,  our  compensation  committee  will be  tasked  with
developing  and  maintaining  a  transparent  compensation  plan that will tie a
substantial  portion  of our  executives'  overall  compensation  to our  sales,
operational efficiencies and profitability.

     Our board of directors has not set any performance objectives or benchmarks
for 2010, as it intends for those  objectives and benchmarks to be determined by
the  compensation  committee  once it is  constituted  and then  approved by the
board.   However,   we  anticipate  that  compensation   benefits  will  include
competitive  salaries,  bonuses (cash and equity  based),  health  insurance and
stock option plans.

     Our compensation  committee will meet at least quarterly to assess the cost
and effectiveness of each executive benefit and the performance of our executive
officers in light of our revenues, expenses and profits.

OTHER CONTRACTS

     None.

OPTION/SAR GRANTS TABLE

     There were no stock  options/SARS  granted under the Company's stock option
plans to executive officers and directors during fiscal 2009 or 2008.

AGGREGATE OPTION/SAR EXERCISES AND FISCAL YEAR-END OPTION/SAR VALUE TABLE

     There were no exercises of stock  options/SAR by executive  officers during
fiscal 2009 or 2008.

LONG-TERM INCENTIVE PLAN AWARDS

     There were no long-term  incentive  plan awards made in the last two fiscal
years.

REPRICING OPTIONS

     During the fiscal year ended December 31, 2009, the Company did not reprice
any stock options.

ITEM 12. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND
         RELATED STOCKHOLDER MATTERS.

     To our  knowledge,  the following  table sets forth,  as of March 26, 2010,
information regarding the ownership of our common stock by:

     *    Persons who own more than 5% of our common stock
     *    each of our directors and each of our executive officers; and
     *    all directors and executive officers as a group.

(a) Security Ownership of Certain Beneficial Owners

     The Company has three (3) classes of voting securities  outstanding (Common
Stock,  Series A Preferred  Stock and Series C Preferred  Stock).  The following
table sets forth security  ownership  information as of the close of business on
March 26, 2010,  for any person or group,  known by the Company to own more than
five percent (5%) of the Company's common stock and Series C Preferred Stock. No
table is included  for the  Company's  Series A Preferred  Stock due to the fact
that only 96 shares  of same are  outstanding  and such  shares  represent  a de
minimus number of votes that could be cast on any matter presented for a vote of
stockholders.

                                       27
<PAGE>
<TABLE>
<CAPTION>
                                                                       Amount and
                                                                       Nature of
     Name and Address                         Title Of                 Beneficial    Percent of
   of Beneficial Owner                          Class                    Owner          Class
   -------------------                          -----                    -----          -----
<S>                                      <C>                          <C>            <C>
Kenneth Yeung                            Series C Preferred            2,000,000        100%(1)
17800 Castleton Street, Suite 638
City of Industry, CA 91748
</TABLE>

----------
1.   The Series C Preferred Stock has voting rights of 3,000 votes per share, so
     that Mr.  Yeung has the right to vote  6,000,000,000  of the  8,515,114,285
     votes  available to Mr. Yeung and the holders of our common stock,  thereby
     giving Mr. Yeung controlling voting rights in the Company.

(b) Security Ownership of Management

     The following  table sets forth  security  ownership  information as of the
close of business on March 26, 2010, of all directors and all executive officers
listed in the "Summary  Compensation  Table" set forth herein, and all directors
and executive officers as a group.

<TABLE>
<CAPTION>
                                                                       Amount and
                                                                       Nature of
     Name and Address                             Title Of             Beneficial    Percent of
   of Beneficial Owner                              Class                Owner          Class
   -------------------                              -----                -----          -----
<S>                                      <C>                          <C>            <C>

Kenneth Yeung                            Series C Preferred Stock      2,000,000       100.00%
17800 Castleton Street, Suite 638        Common Stock                          0            0%
City of Industry, CA 91748

Peter Chin
17800 Castleton Street, Suite 638        Series D Preferred Stock         50,000         24.1%
City of Industry, CA 91748               Common Stock                          0            0%

Officers and Directors as a              Series C Preferred Stock      2,000,000       100.00%
 Group (2 persons)                       Series D Preferred Stock         50,000         24.1%
                                         Common Stock                          0            0%
</TABLE>

(c) Securities Authorized for Issuance under Equity Compensation Plans: None.

     There  are  no  arrangements  or  understandings  among  the  entities  and
individuals  referenced above or their respective associates concerning election
of directors or other any other matters which may require shareholder approval.

ITEM 13. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS AND DIRECTOR
         INDEPENDENCE.

     During 2009, the Company had no formal or standard compensation arrangement
with members of its Board of  Directors.  During 2009 and as of the date of this
annual report,  the Company's two directors,  Kenneth Yeung and Peter Chin, were
and are not independent directors. As discussed under Item 2, above, on February
20, 2009, the Company entered into a sublease agreement with Allied Consultants,
Inc., a company owned by Nelson  Yeung,  the brother of our  President,  Kenneth
Yeung.  Our  board of  directors  believes  the  sublease  is on terms  fair and
favorable to the Company.

                                       28
<PAGE>
ITEM 14. PRINCIPAL ACCOUNTING FEES AND SERVICES.

INDEPENDENT PUBLIC ACCOUNTANTS

     The Company has renewed the engagement of HJ Associates & Consultants,  LLP
to serve  as the  independent  accounting  firm  responsible  for  auditing  our
financial statements for the fiscal year ended December 31, 2009.

     (1) Audit  Fees.  During  the fiscal  year ended  December  31,  2009,  the
aggregate fees billed by the Company's  auditors,  for services rendered for the
audit  of our  annual  financial  statements  and the  review  of the  financial
statements  included  in our  quarterly  reports  on Form 10-Q and for  services
provided in connection with the statutory and regulatory  filings or engagements
for 2009,  was $42,000.  During the fiscal year ended  December  31,  2008,  the
aggregate fees billed by the Company's  auditors,  for services rendered for the
audit  of our  annual  financial  statements  and the  review  of the  financial
statements  included in our  quarterly  reports on Form 10-QSB and for  services
provided in connection with the statutory and regulatory  filings or engagements
for 2008, was $36,000.

     (2)  Audit-Related  Fees.  During fiscal years ended  December 31, 2009 and
2008, our auditors did not receive any fees for any audit-related services other
than as set forth in paragraph (1) above.

     (3) Tax Fees. Tax fees billed by HJ Associates & Consultants,  LLP for 2009
and 2008 were $4,306 and $3,463, respectively.

     (4) All Other Fees. None.

     (5) Audit Committee's Pre-Approval Policies and Procedures.

     Effective May 6, 2003, the Securities and Exchange Commission adopted rules
that require that before  Principal  Accountants are engaged by us to render any
auditing or permitted  non-audit related service,  the engagement be:

     *    approved by our audit committee (which consists of our entire board of
          directors); or
     *    entered  into  pursuant  to   pre-approval   policies  and  procedures
          established  by the board of  directors,  provided  the  policies  and
          procedures  are detailed as to the  particular  service,  the board of
          directors  is  informed  of  each  service,   and  such  policies  and
          procedures  do not  include  delegation  of the  board  of  directors'
          responsibilities to management.

     The  board  of  directors   pre-approves  all  services   provided  by  our
independent  auditors.  All of the above  services  and fees were  reviewed  and
approved  by the  board of  directors  either  before  or after  the  respective
services were rendered.

     The board of directors has  considered the nature and amount of fees billed
by our  principal  accountants  and believes  that the provision of services for
activities  unrelated to the audit is compatible with  maintaining our principal
accountants' independence.

     During the 2009 and 2008  fiscal  years,  the  Company  used the  following
pre-approval procedures related to the selection of our independent auditors and
the  services  they  provide:  unanimous  consent of all  directors  via a board
resolution.

                                       29
<PAGE>
ITEM 15. EXHIBITS, FINANCIAL STATEMENT SCHEDULES.

(a) (1) Financial Statements

     Financial  statements for International  Building  Technologies Group, Inc.
     listed in the Index to Financial  Statements and Supplementary Data on page
     F-1 are filed as part of this Annual Report.

(a) (2) Financial Statement Schedule

     Financial Statement Schedule for International Building Technologies Group,
     Inc. listed in the Index to financial  Statements and Supplementary Data on
     page F-1 are filed as part of this Annual Report.

(a) (3) See the "Index to Exhibits" set forth below.

(b) See Exhibit Index below for exhibits required by Item 601 of Regulation S-K

                                       30
<PAGE>
                                  EXHIBIT INDEX

     List of Exhibits attached or incorporated by reference pursuant to Item 601
of Regulation S-B

Exhibit                                   Description
-------                                   -----------

2(i)*      Agreement and Plan of Merger (Appendix D of the Company's  Definitive
           Proxy Statement on Form DEF 14A filed with the Commission on June 25,
           2004).

3(i)(1)*   Restated Articles of Incorporation  filed with the Secretary of State
           of  Colorado  on  August  10,  2004  (Appendix  A  of  the  Company's
           Definitive  Proxy Statement on Form DEF 14A filed with the Commission
           on June 25, 2004).

3(i)(2)*   Articles of  Incorporation of Ten Stix, Inc. filed with the Secretary
           of State of  Nevada  on May 28,  2004  (Appendix  F of the  Company's
           Definitive  Proxy Statement on Form DEF 14A filed with the Commission
           on June 25, 2004).

3(i)(3)*   Certificate  of Amendment to Articles of  Incorporation  of Ten Stix,
           Inc.  filed with the Secretary of State of Nevada on December 1, 2004
           (Exhibit 3.1 to the Company's  Current  Report on Form 8-K filed with
           the Commission on December 6, 2004).

3(i)(4)*   Certificate  of  Amendment to the  Articles of  Incorporation  of the
           Company  filed with the  Secretary  of State of Nevada on October 12,
           2006 (Exhibit 3 (1) to the Company's  Quarterly report on Form 10-QSB
           filed with the Commission on November 14, 2006).

3(i)(5)*   Certificate  of  Amendment to the  Articles of  Incorporation  of the
           Company  filed with the Secretary of State of Nevada on July 17, 2007
           (Exhibit 3 (i) (5) to the Company's form 10-KSB Annual Report for the
           Fiscal Year Ended  December 31, 2007,  filed with the  Commission  on
           April 3, 2008).

3(i)(6)*   Certificate  of  Amendment to the  Articles of  Incorporation  of the
           Company  filed with the Secretary of State of Nevada on May 22, 2008,
           changing  par value of common  stock to $.00001  (Exhibit  3.1 to the
           Company's  Quarterly Report for the Period Ended June 30, 2008, filed
           with the Commission on August 13, 2008).

3(i)(7)*   Certificate of Amendment to Articles of  Incorporation  to change the
           total authorized  shares and conversion terms of the Company's Series
           E Preferred Stock filed with the Secretary of State of Nevada on July
           28, 2008 (Exhibit 4.2 to the Company's  Quarterly Report on Form 10-Q
           for the Period  Ended June 30,  2008,  filed with the  Commission  on
           August 13, 2008).

3(i)(8)*   Certificate of Amendment to Articles of  Incorporation  to change the
           total  authorized  capital  stock  of  the  Company  filed  with  the
           Secretary  of State of Nevada on August 11, 2008  (Exhibit 4.3 to the
           Company's Quarterly Report on Form 10-Q for the Period Ended June 30,
           2008, filed with the Commission on August 13, 2008).

3(i)(9)*   Certificate of Amendment to Articles of  Incorporation  to change the
           total  authorized  capital  stock  of the  Company,  filed  with  the
           Secretary  of state of Nevada on October 13, 2009  (Exhibit 3 (i) (9)
           to the Company's  Quarterly  report on Form 10-Q for the Period Ended
           September 30, 2009, filed with the Commission on November 16, 2009).

                                       31
<PAGE>
3(ii)*     By-laws of the Company  (Exhibit 3. II to the Company's  Registration
           Statement  on Form 10-SB  filed with the  Commission  on  February 8,
           2001).

4(i)*      Certificate of  Designation of Series A Preferred  Stock of Ten Stix,
           Inc. (Appendix G of the Company's  Definitive Proxy Statement on Form
           DEF 14A filed with the Commission on June 25, 2004).

4(ii)*     Certificate of Designation of Series C Preferred Stock of the Company
           (Exhibit 99.1 to the Company's  Current report on Form 8-K filed with
           the Commission on September 14, 2006).

4(iii)*    Certificate  of Amendment to  Certificate  of Designation of Series B
           Preferred  Stock of the Company  filed with the Secretary of State of
           Nevada  on May 30,  2007  (Exhibit  4 (iii) to the  Company's  Annual
           Report on Form 10-KSB for the Fiscal Year Ended  December  31,  2007,
           filed with the Commission on April 3, 2008).

4(iv)*     Certificate  of Amendment to  Certificate  of Designation of Series C
           Preferred  Stock of  Company  filed  with the  Secretary  of State of
           Nevada on May 30, 2007 (Exhibit 4 (iv) to the Company's Annual Report
           on Form 10-KSB for the Fiscal Year Ended  December  31,  2007,  filed
           with the Commission on April 3, 2008).

4(v)*      Certificate  of Amendment to  Certificate  of Designation of Series D
           Preferred  Stock of the Company  filed with the Secretary of State of
           Nevada on December 10, 2007  (Exhibit 4 (v) to the  Company's  Annual
           Report on Form 10-KSB for the Fiscal Year Ended  December  31,  2007,
           filed with the Commission on April 3, 2008).

4(vi)*     Certificate of Designation of Series E Preferred Stock of the Company
           filed with the  Secretary  of State of Nevada on  December  10,  2007
           (Exhibit 4 (vi) to the Company's Annual Report on Form 10-KSB for the
           Fiscal Year Ended  December 31, 2007,  filed with the  Commission  on
           April 3, 2008).

4(vii)*    Certificate of Designation of Series F Preferred Stock of the Company
           filed  with the  Secretary  of  State of  Nevada  on April  23,  2008
           (Exhibit 4.1 to the Company's  Quarterly  Report on Form 10-Q for the
           Period Ended June 30, 2008,  filed with the  Commission on August 13,
           2008).

4(viii)*   Amendment to Certificate  of  Designation  After Issuance of Class or
           Series to change the total authorized  shares and conversion terms of
           the  Company's  Series E Preferred  Stock filed with the Secretary of
           State of Nevada on August  28,  2008  (Exhibit  4.4 to the  Company's
           Quarterly  Report on Form 10-Q for the Period  Ended  June 30,  2008,
           filed with the Commission on August 13, 2008).

                                       32
<PAGE>
10.1*      Stock Sale and Purchase  Agreement  dated March 14, 2007, by, between
           David  Keaveney,  Kenneth Yeung and the Company  (Exhibit 10.1 to the
           Company's  Current  Report on Form 8-K filed with the  Commission  on
           March 27, 2007).

10.2*      Asset Sale and Purchase  Agreement dated July 8, 2007, by and between
           International  Building  Technologies  Co.,  Ltd.  and Suining  Yinfa
           Construction & Engineering  Co., Ltd.  (Exhibit 10.1 to the Company's
           Current  Report on Form 8-K  filed  with the  Commission  on July 23,
           2007).

10.3*      Amendment  to Asset Sale and  Purchase  Agreement  by and between the
           Company  and  Suining  Yinfa  Construction  and  Engineering,   Ltd.,
           executed on December 5, 2007 (Exhibit  10.2 to the Company's  Current
           Report on Form 8-K, filed with the Commission on April 29, 2008).

10.4*      Rescission  to the Asset Sale and  Purchase  Agreement by and between
           the Company and Suining Yinfa  Construction  and  Engineering,  Ltd.,
           executed on April 23, 2008  (Exhibit  10.1 to the  Company's  Current
           Report on Form 8-K, filed with the Commission on April 29, 2008).

10.5*      Twelve Month Convertible Note Amendment dated March 14, 2007 (Exhibit
           10.2 to the  Company's  Current  Report  on Form 8-K  filed  with the
           Commission on March 27, 2007).

10.6*      Employment  Agreement between the Company and Kenneth Yeung dated May
           21, 2007, effective May 1, 2007 (Exhibit 10.8 to the Company's Annual
           Report on Form 10-KSB for the Fiscal Year Ended  December  31,  2007,
           filed with the Commission on April 3, 2008).

10.7**     Employment  Agreement  between the  Company  and Kenneth  Yeung dated
           February 1, 2010, effective May 1, 2010.

10.8*      Stock Sale and  Purchase  Agreement  by and  between  the Company and
           Wuhan  Intepower Co., Ltd.,  executed on April 17, 2008 (Exhibit 10.1
           to  the  Company's  Current  Report  on  Form  8-K,  filed  with  the
           Commission on April 21, 2008).

10.9**     Compensation  Agreement  between  the  Company  and Peter  Chin dated
           September 30, 2009.

14*        Code of Ethics  (Exhibit 14 to the  Company's  Annual  Report on Form
           10-KSB for the Fiscal Year Ended  December 31,  2007,  filed with the
           Commission on April 3, 2008).

21**       Subsidiaries of the Company

31.1**     Certification  of Principal  Executive  Officer Pursuant to 18 U.S.C.
           Section 1350

31.2**     Certification  of Principal  Financial  Officer Pursuant to 18 U.S.C.
           Section 1350

32.1**     906 Certification of Principal Executive Officer

32.2**     906 Certification of Principal Financial Officer

----------
*  Exhibits incorporated herein by reference. File No. 0-32323.
** Filed herewith

                                       33
<PAGE>
                                   SIGNATURES

     In accordance  with Section 13 or 15(d) of the  Securities  Exchange Act of
1934,  the  Registrant has duly caused this report to be signed on its behalf by
the undersigned, thereunto duly authorized.

                                 International Building Technologies Group, Inc.


Dated: March 30, 2010                 /s/ Kenneth Yeung
                                      -----------------------------------------
                                 By:  Kenneth Yeung
                                 Its: President and Chief Executive Officer

         In accordance with the Securities Exchange Act of 1934, this report has
been signed below by the following  persons on behalf of the  Registrant  and in
the capacities and on the dates indicated.


Dated: March 30, 2010                 /s/  Kenneth Yeung
                                      -----------------------------------------
                                 By:  Kenneth Yeung
                                 Its: President, Chief Executive Officer, and
                                      Director (Principal Executive Officer)
                                      Chief Financial Officer
                                      (Principal Financial Officer and Principal
                                      Accounting Officer)


Dated: March 30, 2010                 /s/ Peter Chin
                                      -----------------------------------------
                                 By:  Peter Chin
                                 Its: Corporate Secretary and Director


                                       34
<PAGE>
             REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM


To the Board of Directors
(A Development Stage Company)
International Building Technologies Group, Inc.

We have audited the  accompanying  consolidated  balance sheets of International
Building Technologies Group, Inc. and Subsidiaries (A Development Stage Company)
as of December 31, 2009 and 2008,  and the related  consolidated  statements  of
operations,  stockholders' equity (deficit),  and cash flows for the years ended
December 31, 2009 and 2008 and since  re-entering the development stage on April
1,  2007  through  December  31,  2009.  These  financial   statements  are  the
responsibility of the Company's management.  Our responsibility is to express an
opinion on these financial statements based on our audits.

We conducted our audits in accordance  with the standards of the Public  Company
Accounting Oversight Board (United States). Those standards require that we plan
and perform the audit to obtain reasonable assurance about whether the financial
statements are free of material misstatement.  An audit includes examining, on a
test basis,  evidence  supporting  the amounts and  disclosures in the financial
statements.  An audit also includes assessing the accounting principles used and
significant  estimates  made by  management,  as well as evaluating  the overall
financial  statement  presentation.   We  believe  that  our  audits  provide  a
reasonable basis for our opinion.

In our opinion, the consolidated  financial statements referred to above present
fairly,  in all  material  respects,  the  financial  position of  International
Building Technologies Group, Inc. and Subsidiaries (A Development Stage Company)
as of December 31, 2009 and 2008, and the results of their  operations and their
cash  flows  for  each  of the  years  then  ended  and  since  re-entering  the
development stage on April 1, 2007 through December 31, 2009, in conformity with
U.S. generally accepted accounting principles.

We were not engaged to examine  management's  assessment of the effectiveness of
International  Building  Technologies  Group,  Inc. and  Subsidiaries'  internal
control over financial reporting as of December 31, 2009, and accordingly, we do
not express an opinion thereon.

The accompanying  consolidated  financial statements have been prepared assuming
that the Company will continue as a going concern. As discussed in Note 3 to the
consolidated financial statement,  the Company has suffered recurring losses and
has experienced  negative cash flows from operations,  which raises  substantial
doubt about the Company's  ability to continue as a going concern.  Management's
plans  in  regard  to  those  matters  are  also  described  in  Note  3 to  the
consolidated  financial statement.  The consolidated financial statements do not
include any adjustments that might result from the outcome of this uncertainty.



/s/ HJ Associates & Consultants, LLP
--------------------------------------------
HJ Associates & Consultants, LLP
Salt Lake City, Utah
March 30, 2010

                                      F-1
<PAGE>
                 INTERNATIONAL BUILDING TECHNOLOGIES GROUP, INC.
                          (A DEVELOPMENT STAGE COMPANY)
                           CONSOLIDATED BALANCE SHEETS


                                                  December 31,      December 31,
                                                     2009              2008
                                                   --------          --------
                                     ASSETS

Cash                                               $ 12,514          $  1,567
Deposit on Wuhan Wufeng Machinery Company                --           161,500
Other current assets                                  1,011             2,874
                                                   --------          --------
      Total current assets                           13,525           165,941
                                                   --------          --------

Other assets                                          2,000             2,000
                                                   --------          --------

      Total assets                                 $ 15,525          $167,941
                                                   ========          ========


           See accompanying notes to consolidated financial statements

                                      F-2
<PAGE>
                 INTERNATIONAL BUILDING TECHNOLOGIES GROUP, INC.
                          (A DEVELOPMENT STAGE COMPANY)
                           CONSOLIDATED BALANCE SHEETS
                                   (CONTINUED)

<TABLE>
<CAPTION>
                                                                                        December 31,      December 31,
                                                                                           2009              2008
                                                                                        -----------       -----------
<S>                                                                                     <C>               <C>
                  LIABILITIES & STOCKHOLDERS' (DEFICIT) EQUITY

LIABILITIES
  Accounts payable and accrued expenses                                                 $   305,897       $   176,550
  Accrued expenses - related parties                                                        207,321            43,716
  Derivative liability                                                                    2,105,829         2,137,962
  Notes payable                                                                             145,175            71,335
  Notes payable to shareholders                                                             668,411           566,942
                                                                                        -----------       -----------
      Total current liabilities                                                           3,432,633         2,996,505
                                                                                        -----------       -----------

COMMITMENTS & CONTINGENCIES                                                                      --                --

STOCKHOLDERS' (DEFICIT) EQUITY
  Preferred A stock, $250 par value, 10,000 shares authorized;
   96 shares issued and outstanding                                                          24,000            24,000
  Preferred C stock, $.001 par value, 3,000,000 shares authorized;
   2,000,000 and 1,000,000 shares issued and outstanding                                      2,000             1,000
  Preferred D stock,  $.001 par value, 10,000,000 shares authorized;
   207,500 and 35,000 shares issued and outstanding                                             208                35
  Preferred E stock, $.001 par value, 50,000,000 shares authorized;
   28,000 shares issued and outstanding                                                          25                25
  Preferred F stock, $.001 par value, 3,000,000 shares authorized;
   20,000 and 0 shares issued and outstanding                                                    20                20
  Common stock; $.00001 par value, 3,950,000,000 shares authorized;
   2,307,177,093 and 747,853,494 issued and outstanding                                      23,072             7,478
  Additional paid-in capital                                                              9,882,383         8,556,173
  Accumulated deficit - Prior to reentering development stage                            (5,534,336)       (5,534,336)
  Accumulated deficit - From inception of reentering development stage on 4/1/2007       (7,813,920)       (5,882,785)
  Other comprehensive income/(loss)                                                            (560)             (174)
  Noncontrolling interest                                                                        --                --
                                                                                        -----------       -----------
      Total stockholders' (deficit) equity                                               (3,417,108)       (2,828,564)
                                                                                        -----------       -----------

      Total liabilities and stockholders' (deficit) equity                              $    15,525       $   167,941
                                                                                        ===========       ===========
</TABLE>


           See accompanying notes to consolidated financial statements

                                      F-3
<PAGE>
                 INTERNATIONAL BUILDING TECHNOLOGIES GROUP, INC.
                          (A DEVELOPMENT STAGE COMPANY)
                      CONSOLIDATED STATEMENTS OF OPERATIONS


<TABLE>
<CAPTION>
                                                                                               Cumulative Since
                                                           Year Ended December 31,               Reentering
                                                     ---------------------------------        Development Stage
                                                        2009                  2008           4/1/2007 - 12/31/2009
                                                     -----------           -----------       ---------------------
<S>                                                  <C>                   <C>                   <C>
Retail sales                                         $        --           $        --            $        --
Cost of sales                                                 --                    --                     --
                                                     -----------           -----------            -----------
Revenues                                                      --                    --                     --
                                                     -----------           -----------            -----------
Operating expenses:
  Selling, general and administrative                    480,513               601,350              1,748,470
  Depreciation and amortization                               --             1,303,431              1,306,935
                                                     -----------           -----------            -----------
Total operating expenses                                 480,513             1,904,781              3,055,405
                                                     -----------           -----------            -----------
Operating loss                                          (480,513)           (1,904,781)            (3,055,405)
                                                     -----------           -----------            -----------
Other income (expense):
  Interest income                                             --                    17                    374
  Interest expense                                    (1,402,005)             (705,535)            (2,498,323)
  Loss on settlement                                          --               (23,500)               (23,500)
  Loss on investment                                     (80,750)              (35,000)              (115,750)
  Gain/(Loss) on extinguishment of debt                       --                   943                 11,297
  Gain on disposal of assets                                  --                 2,565                  2,565
  Change in fair value of derivative liability            32,133            (2,137,962)            (2,105,829)
  Minority interest in net loss of subsidiary                 --                    --                 15,000
  Other income (expense)                                      --                   759                  3,810
                                                     -----------           -----------            -----------
Total other income (expense)                          (1,450,622)           (2,897,713)            (4,710,356)
                                                     -----------           -----------            -----------
Loss from continuing operations                      $(1,931,135)          $(4,802,494)           $(7,765,761)
                                                     -----------           -----------            -----------
</TABLE>


           See accompanying notes to consolidated financial statements

                                      F-4
<PAGE>
                INTERNATIONAL BUILDING TECHNOLOGIES GROUP, INC.
                          (A DEVELOPMENT STAGE COMPANY)
                      CONSOLIDATED STATEMENTS OF OPERATIONS
                                   (CONTINUED)

<TABLE>
<CAPTION>
                                                                                                     Cumulative Since
                                                                  Year Ended December 31,               Reentering
                                                            ----------------------------------      Development Stage
                                                                 2009                2008         4/1/2007 - 12/31/2009
                                                            --------------      --------------    ---------------------
<S>                                                         <C>                 <C>                 <C>

Loss from continuing operations                             $   (1,931,135)     $   (4,802,494)        $   (7,765,761)
                                                            --------------      --------------         --------------
Discontinued operations:
  Income (loss) from operations of discontinued business                --                  --                (20,063)
  Income (loss) on disposal of assets                                   --                  --                 61,058
                                                            --------------      --------------         --------------
Income (loss) on discontinued operations                                --                  --                 40,995
                                                            --------------      --------------         --------------

Net loss                                                        (1,931,135)         (4,802,494)            (7,724,766)

Preferred dividend                                                      --             (39,154)               (89,154)
                                                            --------------      --------------         --------------
Net loss attributable to common shareholders                    (1,931,135)         (4,841,648)            (7,813,920)
                                                            --------------      --------------         --------------
Other comprehensive income
  Foreign currency translation                                        (386)               (101)                  (560)
                                                            --------------      --------------         --------------
Comprehensive loss                                          $   (1,931,521)     $   (4,841,749)        $   (7,814,480)
                                                            ==============      ==============         ==============

Net loss per common share - basic and diluted
  Continuing operations                                     $      (0.0013)     $      (0.0134)
                                                            ==============      ==============
  Discontinued operations                                   $           --      $           --
                                                            ==============      ==============
  Net Income (loss) per common share                        $      (0.0013)     $      (0.0135)
                                                            ==============      ==============
Weighted average common shares outstanding:
  Basic                                                      1,490,914,770         357,392,888
                                                            ==============      ==============
  Diluted                                                               --                  --
                                                            ==============      ==============
</TABLE>


           See accompanying notes to consolidated financial statements

                                      F-5
<PAGE>
                 INTERNATIONAL BUILDING TECHNOLOGIES GROUP, INC.
                          (A DEVELOPMENT STAGE COMPANY)
            CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (DEFICIT)

<TABLE>
<CAPTION>
                                                      Preferred Stock A           Preferred Stock C        Preferred Stock D
                                                    Shares        Amount         Shares       Amount      Shares       Amount
                                                    ------        ------         ------       ------      ------       ------
<S>                                                <C>         <C>            <C>          <C>          <C>         <C>
BALANCE, DECEMBER 31, 2007                               96     $  24,000        200,000     $   200       50,000     $    50
                                                   ========     =========     ==========     =======     ========     =======
2008
Common stock issued for services
Common stock issued for repayment of debt
Common stock issued for settlement
Sale of stock for cash                                                           800,000         800
Recievable of stock for cancelation of investment
Common stock issued for preferred stock                                                                   (15,000)        (15)
Beneficial conversion feature
Preferred Dividend
Stock offering cost
Other comprhensive income (loss)
Net loss
                                                   --------     ---------     ----------     -------     --------     -------
BALANCE, DECEMBER 31, 2008                               96        24,000      1,000,000       1,000       35,000          35

2009
Common stock issued for repayment of debt
Preferred stock for services                                                                               50,000          50
Sale of stock for cash                                                         1,000,000       1,000      122,500         123
Beneficial conversion feature
Other comprhensive loss
Net loss
                                                   --------     ---------     ----------     -------     --------     -------

BALANCE, DECEMBER 31, 2009                               96     $  24,000      2,000,000     $ 2,000      207,500     $   208
                                                   ========     =========     ==========     =======     ========     =======

                                                      Preferred Stock E         Preferred Stock F              Common Stock
                                                     Shares       Amount        Shares     Amount          Shares         Amount
                                                     ------       ------        ------     ------          ------         ------
BALANCE, DECEMBER 31, 2007                           350,000     $    350            --    $    --        68,198,914     $     682
                                                   =========     ========     =========    =======    ==============     =========
2008
Common stock issued for services                                                                          42,577,303           425
Common stock issued for repayment of debt                                                                434,791,958         4,348
Common stock issued for settlement                                                                         3,000,000            30
Sale of stock for cash                                                           20,000         20       161,673,076         1,617
Recievable of stock for cancelation of investment   (315,000)        (315)
Common stock issued for preferred stock               (7,000)         (10)                                37,612,243           376
Beneficial conversion feature
Preferred Dividend
Stock offering cost
Other comprhensive income (loss)
Net loss
                                                   ---------     --------     ---------    -------    --------------     ---------
BALANCE, DECEMBER 31, 2008                            28,000           25        20,000         20       747,853,494         7,478

2009
Common stock issued for repayment of debt                                                              1,559,323,599        15,594
Preferred stock for services
Sale of stock for cash
Beneficial conversion feature
Other comprhensive loss
Net loss
                                                   ---------     --------     ---------    -------    --------------     ---------

BALANCE, DECEMBER 31, 2009                            28,000     $     25        20,000    $    20     2,307,177,093     $  23,072
                                                   =========     ========     =========    =======    ==============     =========

                                                                                     Accumulated
                                                                    Accumulated     Deficit After
                                                                   Deficit Prior     Reentering
                                                                   to Reentering     Development       Other
                                                     Paid-In        Development         Stage       Comprehensive
                                                     Capital           Stage         on 4/1/2007        Loss           Total
                                                     -------           -----         -----------        ----           -----
BALANCE, DECEMBER 31, 2007                         $ 7,853,981      $ (5,534,336)    $ (1,041,137)    $    (73)    $  1,303,718
                                                   ===========      ============     ============     ========     ============
2008
Common stock issued for services                        75,924                                                           76,349
Common stock issued for repayment of debt              344,981                                                          349,329
Common stock issued for settlement                      13,470                                                           13,500
Sale of stock for cash                                 197,183                                                          199,620
Recievable of stock for cancelation of investment                                                                          (315)
Common stock issued for preferred stock               (301,459)                                                        (301,109)
Beneficial conversion feature                          429,793                                                          429,793
Preferred Dividend                                                                        (39,154)                      (39,154)
Stock offering cost                                    (57,700)                                                         (57,700)
Other comprhensive income (loss)                                                                          (101)            (101)
Net loss                                                                               (4,802,494)                   (4,802,494)
                                                   -----------      ------------     ------------     --------     ------------
BALANCE, DECEMBER 31, 2008                           8,556,173        (5,534,336)      (5,882,785)        (174)      (2,828,564)

2009
Common stock issued for repayment of debt              188,716                                                          204,310
Preferred stock for services                            49,950                                                           50,000
Sale of stock for cash                                 122,377                                                          123,500
Beneficial conversion feature                          965,167                                                          965,167
Other comprhensive loss                                                                                   (386)            (386)
Net loss                                                                               (1,931,135)                   (1,931,135)
                                                   -----------      ------------     ------------     --------     ------------

BALANCE, DECEMBER 31, 2009                         $ 9,882,383      $ (5,534,336)    $ (7,813,920)    $   (560)    $ (3,417,108)
                                                   ===========      ============     ============     ========     ============
</TABLE>

       See accompanying footnotes to the consolidated financial statements

                                      F-6
<PAGE>
                 INTERNATIONAL BUILDING TECHNOLOGIES GROUP, INC.
                          (A DEVELOPMENT STAGE COMPANY)
                      CONSOLIDATED STATEMENTS OF CASH FLOWS

<TABLE>
<CAPTION>
                                                                                                           Cumulative Since
                                                                            Year Ended December 31,           Reentering
                                                                       -----------------------------       Development Stage
                                                                          2009              2008         4/1/2007 - 12/31/2009
                                                                       -----------       -----------     ---------------------
<S>                                                                    <C>               <C>                   <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
  Net Income/(loss) from continuing operations                         $(1,931,135)      $(4,841,749)          $(7,813,920)
  Adjustments to reconcile net income to net cash
   used by operating activities:
     Depreciation                                                               --               155                 3,660
     Impairment of goodwill                                                     --         1,303,277             1,303,277
     Amortization of debt discounts                                             --            44,926               128,933
     Loss/(Gain) on extinguishment of debt                                      --                --               (70,843)
     Loss on Investments                                                    80,750            35,000               115,750
     Interest expense associated with beneficial conversion feature      1,312,770           565,896             2,162,587
     Change in fair value of derivative liability                          (32,133)        2,137,962             2,105,829
     Director stock based compensation                                      50,000                --               100,000
     Common stock issued for services                                           --            76,350               394,519
     Common stock issued for settlement                                         --            13,500                13,500
     Gain on disposal of equipment                                              --            (2,565)               (2,565)
     Minority interest in net loss of subsidiary                                --                --               (15,000)
  Changes in assets and liabilities:
     Prepaid expenses and other assets                                       1,863             2,271                   529
     Accounts payable and accrued expenses                                 324,967           195,323               693,717
                                                                       -----------       -----------           -----------
      Net cash used in continuing operations                              (192,918)         (469,654)             (934,027)
      Net income (loss) from discontinued operations                            --                --                40,995
      Net cash provided by (used in) discontinued operations                    --                --               (83,796)
                                                                       -----------       -----------           -----------
      Net cash used in operating activities                               (192,918)         (469,654)             (976,828)
                                                                       -----------       -----------           -----------
CASH FLOWS FROM INVESTING ACTIVITIES:
  Deposit on investment                                                     80,750          (161,500)              (80,750)
                                                                       -----------       -----------           -----------
      Net cash used in continuing operations                                80,750          (161,500)              (80,750)
                                                                       -----------       -----------           -----------
      Net cash provided by in investing activities                     $    80,750       $  (161,500)          $   (80,750)
                                                                       -----------       -----------           -----------
</TABLE>


           See accompanying notes to consolidated financial statements

                                      F-7
<PAGE>
                 INTERNATIONAL BUILDING TECHNOLOGIES GROUP, INC.
                          (A DEVELOPMENT STAGE COMPANY)
                      CONSOLIDATED STATEMENTS OF CASH FLOWS
                                   (CONTINUED)

<TABLE>
<CAPTION>
                                                                                                           Cumulative Since
                                                                            Year Ended December 31,           Reentering
                                                                       -----------------------------       Development Stage
                                                                          2009              2008         4/1/2007 - 12/31/2009
                                                                       -----------       -----------     ---------------------
<S>                                                                    <C>               <C>                   <C>
CASH FLOWS FROM FINANCING ACTIVITIES:
  Proceeds from related party notes payable                                     --                --                80,000
  Proceeds from notes payable                                                   --           414,500               628,876
  Repayments of notes payable                                                   --           (14,448)              (34,448)
  Proceeds from issuance of preferred stock                                123,501            20,800               144,301
  Proceeds from issuance of common stock                                        --           179,000               180,464
  Proceeds from issuance of common stock for asset purchase                     --                --                 6,206
  Proceeds from exercise of stock options                                       --                --                 4,375
                                                                       -----------       -----------           -----------
      Net cash provided by financing activities                            123,501           599,852             1,009,774
                                                                       -----------       -----------           -----------

Effect of exchange rate changes on cash                                       (386)             (101)                 (560)

Cash and cash equivalents:
  Increase (decrease) in cash                                               10,947           (31,403)              (48,364)

CASH, beginning of period                                                    1,567            32,970                60,878
                                                                       -----------       -----------           -----------
CASH, end of period                                                    $    12,514       $     1,567           $    12,514
                                                                       ===========       ===========           ===========

SUPPLEMENTAL DISCLOSURES:
  Tax paid                                                             $     1,600       $     1,600           $     4,800
                                                                       ===========       ===========           ===========
  Cash paid for interest                                               $       108       $     2,629           $     1,031
                                                                       ===========       ===========           ===========
Non-cash discontinued operation activities:
  Employee stock based compensation                                    $        --       $        --           $    30,698
  Issuance of common stock for debt                                    $        --       $   352,826           $   389,360

Non-cash financing and investing activities:
  Issuance of note for accrued expenses                                $        --       $   157,228           $   201,026
  Issuance of common stock for services                                $        --       $    76,350           $    76,350
  Issuance of common stock for payment of debt                         $   204,310       $   349,329           $   649,138
  Issuance of common stock for settlement                              $        --       $    13,500           $    13,500
  Issuance of Preferred Stock for director fees                        $    50,000       $        --           $   400,000
  Cancelation of Rosetop project and related Preferred E Stock         $        --       $  (315,000)          $  (315,000)
  Issuance of common stock for Purchase of Company                     $        --       $        --           $ 1,300,000
</TABLE>


           See accompanying notes to consolidated financial statements

                                      F-8
<PAGE>
                 INTERNATIONAL BUILDING TECHNOLOGIES GROUP, INC.
                          (A DEVELOPMENT STAGE COMPANY)
                 Notes to the Consolidated Financial Statements
                           December 31, 2009 and 2008


NOTE 1: ORGANIZATION, BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES

ORGANIZATION

International  Building  Technologies Group, Inc. (OTCBB:  INBG) (the "Company")
has  four  total   subsidiaries,   two  active   subsidiaries  and  two  dormant
subsidiaries.

Active Subsidiaries:

     *    International  Building  Technologies  Co., Ltd. ("IBT Hong Kong") - a
          Hong Kong Corporation with equity interest of 100%

Dormant Subsidiaries:

     *    Scottsdale  Diecast,  Inc. - a Nevada Corporation with equity interest
          of 100%
     *    Quadriga Motorsports, Inc. - a Nevada Corporation with equity interest
          of 100%
     *    International   Building   Technologies,   Inc.  ("IBT")  -  a  Nevada
          Corporation with equity interest of 80%

Currently  the  Company is focusing  its  attention  on the rapidly  growing and
developing China building material market through its subsidiaries.  The Company
plans to manufacture  and sell light weight building panels used in construction
industries all over the world.  The building  panels can be used in a variety of
ways to erect buildings up to six stories tall without the need of a traditional
wood or steel frame  structure.  It is also versatile in its use and can be used
to create unique  architectural  design elements.  Management  believes that the
Company's panel based building  technology  allows for the rapid, cost effective
construction  of  residential,  commercial,  and high-rise  buildings  utilizing
materials  that  are  greater  in  strength  and   appearance,   economical  and
eco-friendly.  Based  on  standard  building  codes  prescribed  by  authorities
worldwide,   the  Company's   technology   will  meet  and  exceed  the  minimum
requirements.  Based  on the  panel  technologies,  the  Company  also  provides
customers with architectural  design,  panel supply,  installation  supervision,
engineering,  training,  and  technical  support to work together with the other
building  material  for  construction  applications.  IBT Hong Kong has  already
established  business  relationship in securing several contractual rights to do
business in China.

The  Company  had  offices in  Alameda,  CA,  and  Shanghai,  China in 2007.  In
December,  2008, the Company closed the office in Shanghai,  China.  In January,
2009,  the  Company  closed the office in  Alameda,  CA and has moved to City of
Industry, CA.

PRINCIPLES OF CONSOLIDATION

The accompanying  consolidated  financial statements include the accounts of the
Company and its  subsidiaries.  All intercompany  accounts and transactions have
been eliminated.

USE OF ESTIMATES

The preparation of financial statements in conformity with accounting principles
generally  accepted in the United States of America requires  management to make
estimates  and  assumptions  that  affect  the  reported  amounts  of assets and
liabilities  and disclosure of contingent  assets and liabilities at the date of
the  financial  statements  and the  reported  amounts of revenues  and expenses
during the reporting  period.  Actual results could differ from those  estimates
and assumptions.

                                      F-9
<PAGE>
                 INTERNATIONAL BUILDING TECHNOLOGIES GROUP, INC.
                          (A DEVELOPMENT STAGE COMPANY)
                 Notes to the Consolidated Financial Statements
                           December 31, 2009 and 2008


RECLASSIFICATION

Certain reclassifications,  which have no effect on net income (loss), have been
made  in the  prior  period  financial  statements  to  conform  to the  current
presentation.

CASH EQUIVALENTS AND MARKETABLE SECURITIES

The Company considers all highly-liquid investment instruments purchased with an
original  maturity of three months or less to be cash  equivalents.  The Company
had no cash equivalents at December 31, 2009 and 2008.

FIXED ASSETS

Property  and   equipment  are  stated  at  cost  and   depreciated   using  the
straight-line  method over their estimated  useful lives of three to five years.
Leasehold  improvements  are  being  depreciated  over  the  term of the  lease,
excluding option periods.  When assets are disposed of, the cost and accumulated
depreciation  (net book value of the assets) are  eliminated  and any  resultant
gain or loss reflected  accordingly.  Upgrades and  improvements are capitalized
over their estimated  useful lives whereas repairs and maintenance  expenditures
on the assets are  charged  to  expense as  incurred.  Please see Note 4 - Fixed
Assets for further detail.  Total  depreciation  expense was $0 and $155 for the
years ended December 31, 2009 and 2008, respectively.  The costs and accumulated
depreciation of assets retired,  sold, or otherwise  disposed of were eliminated
from the  accounts  and any  resulting  gain or loss was  credited or charged to
income, or applied to equity, as appropriate.

INTANGIBLE ASSETS

The  license   agreement  was  abandoned  in  accordance  with  FASB  Accounting
Codification  Standards 360-10-20 (previous guidance Statement of Accounting No.
144,  "Accounting  for the  Impairment  or Disposal of Long Lived  Assets")  and
consequently the remaining value of the asset was fully amortized as of December
31, 2009 and December 31, 2008.

IMPAIRMENT OF LONG-LIVED ASSETS

The Company  evaluates its long-lived  assets in accordance with FASB Accounting
Codification  Standards  360-10-20 by measuring  the carrying  amounts of assets
against the estimated  undiscounted  future cash flows  associated with them. At
the time  the  carrying  value of such  assets  exceeds  the fair  value of such
assets, impairment is recognized.

GOODWILL

Goodwill  represents  the  excess of  purchase  price  over  tangible  and other
intangible  assets  acquired  less  liabilities  assumed  arising from  business
combinations.  As of December  31,  2008,  the  management  has  identified  the
impairment of the goodwill  because of the business  plans have not been carried
out in a timely manner.  The impairment was evaluated as $1,303,277 for the year
ended  December 31, 2008. As of December 31, 2009, the net value of the goodwill
was zero.  Accordingly,  the Company's  annual goodwill  impairment test did not
identify  any  impairment  in  accordance  with  FASB  Accounting   Codification
Standards 350 - "Intangibles - Goodwill and Other" (previous  guidance Statement
of  Financial  Accounting  Standard  No.  142,  "Goodwill  and Other  Intangible
Assets.")

                                      F-10
<PAGE>
                 INTERNATIONAL BUILDING TECHNOLOGIES GROUP, INC.
                          (A DEVELOPMENT STAGE COMPANY)
                 Notes to the Consolidated Financial Statements
                           December 31, 2009 and 2008


INCOMES TAXES

The Company  accounts for income taxes under the liability  method of accounting
for  income  taxes  in  accordance   with  the  provisions  of  FASB  Accounting
Codification  Standards 740 - "Income Taxes"  (previous  guidance  Statements of
Financial  Accounting  Standards No. 109,  "Accounting  for Income Taxes," ("FAS
109") and related interpretations and guidance including FASB Interpretation No.
48,  "Accounting  for  Uncertainty  in Income  Taxes-an  interpretation  of FASB
Statement  No. 109" ("FIN 48")).  Deferred  income taxes are provided  using the
liability  method  whereby  deferred tax assets are  recognized  for  deductible
temporary  differences  and  operating  loss and tax credit  carry-forwards  and
deferred tax  liabilities  are  recognized  for taxable  temporary  differences.
Temporary differences are the differences between the reported amounts of assets
and  liabilities  and their tax bases.  Deferred  tax  assets  are  reduced by a
valuation  allowance when, in the opinion of management,  it is more likely than
not that some  portion or all of the  deferred  tax assets will not be realized.
Deferred tax assets and  liabilities are adjusted for the effects of the changes
in tax laws and rates of the date of enactment.

When tax returns are filed, it is highly certain that some positions taken would
be  sustained  upon  examination  by the taxing  authorities,  while  others are
subject to  uncertainty  about the merits of the position taken or the amount of
the position that would be ultimately  sustained.  The benefit of a tax position
is recognized in the financial  statements in the period during which,  based on
all available evidence,  management believes it is more likely than not that the
position will be sustained upon examination, including the resolution of appeals
or  litigation  processes,  if  any.  Tax  positions  taken  are not  offset  or
aggregated    with   other    positions.    Tax   positions    that   meet   the
more-likely-than-not recognition threshold are measured as the largest amount of
tax  benefit  that is  more  than 50  percent  likely  of  being  realized  upon
settlement  with the applicable  taxing  authority.  The portion of the benefits
associated  with tax  positions  taken  that  exceeds  the  amount  measured  as
described above is reflected as a liability for unrecognized tax benefits in the
accompanying balance sheet along with any associated interest and penalties that
would be payable to the taxing authorities upon examination.

Interest and penalties  associated with unrecognized tax benefits are classified
as additional income taxes in the statement of income.

TRANSLATION OF NON-U.S. CURRENCY AMOUNTS

Assets and liabilities of non-U.S. subsidiaries that operate in a local currency
environment are translated to U.S.  dollars at year-end  exchange rates.  Income
and  expense  items  are  translated  at  weighted-average   rates  of  exchange
prevailing  during  the year.  Translation  adjustments  are  recorded  in Other
Comprehensive  Income  not  affecting  retained  earnings  within  Stockholders'
equity.

Inventories,   plant,  rental  machines  and  other   property-net,   and  other
non-monetary  assets and liabilities of non-U.S.  subsidiaries and branches that
operate in U.S. dollars, or whose economic  environment is highly  inflationary,
are  translated  at  approximate  exchange  rates  prevailing  when the  company
acquired  the  assets or  liabilities.  All other  assets  and  liabilities  are
translated  at  year-end  exchange  rates.  Cost of sales and  depreciation  are
translated at historical  exchange rates. All other income and expense items are
translated at the weighted-average rates of exchange prevailing during the year.

Current and historical exchange rates are not indicative of what future exchange
rates will be and should not be construed as such.

                                      F-11
<PAGE>
                 INTERNATIONAL BUILDING TECHNOLOGIES GROUP, INC.
                          (A DEVELOPMENT STAGE COMPANY)
                 Notes to the Consolidated Financial Statements
                           December 31, 2009 and 2008


Relevant  exchange rates used in the preparation of the financial  statements of
the  subsidiary  are as follows for the years ended  December  31, 2009 and 2008
(denoted in Hong Kong dollars per one U.S. dollar):

                                                        2009           2008
                                                       ------         ------
Current exchange rate at December 31, HKD              7.7551         7.7507
Weighted average exchange rate                         7.7522         7.7874


FAIR VALUE OF FINANCIAL INSTRUMENTS

The carrying amounts of cash, accounts payable, and accrued expenses approximate
fair value because of the short maturity of these items.

LOSS PER COMMON SHARE

Basic  net loss per  share is  computed  by  dividing  net loss by the  weighted
average number of shares of common stock outstanding during the period.  Diluted
net loss per share is  computed  by dividing  net loss by the  weighted  average
number of shares of common stock and common stock equivalents outstanding during
the period.  As the Company incurred net losses for the years ended December 31,
2009 and 2008,  common stock equivalents were excluded from diluted net loss per
share as their  effect  would be  anti-dilutive.  As a result,  for all  periods
presented, the Company's basic and diluted net loss per share is the same.

STOCK-BASED COMPENSATION

FASB Accounting  Codification  Standards (ACS) Topic 825,  "Compensation - Stock
Compensation"  (previous  guidance  Statement of Accounting  Standards  SFAS No.
123R,  "Share-Based  Payment")  requires all share-based  payments to employees,
including  grants of employee  stock options to be  recognized  as  compensation
expense in the financial  statements based on their fair values. That expense is
recognized  over the period  during  which an  employee  is  required to provide
services  in  exchange  for the award,  known as the  requisite  service  period
(usually  the  vesting  period).  During the years ended  December  31, 2009 and
December 31, 2008,  the Company did not  recognize any of  compensation  expense
associated with stock-based compensation.  Under FASB ACS Topic 825, the expense
recognition  for variable  awards is the same under the intrinsic  value and the
fair value methods.

RECENT ACCOUNTING PRONOUNCEMENTS

On July 1,  2009,  Financial  Accounting  Standards  Board  ("FASB")  Accounting
Standards  Codification(TM)  ("ASC")  became  the sole  source of  authoritative
Generally Accepted Accounting  Principles ("GAAP") literature  recognized by the
Financial Accounting Standards Board for financial statements issued for interim
and annual  periods  ending after  September  15, 2009.  Rules and  interpretive
releases of the Security Exchange  Commission ("SEC") under authority of federal
securities  laws are also  sources of  authoritative  GAAP for SEC  registrants.
Except  for  applicable  SEC  rules  and  regulations  and a  limited  number of
grandfathered  standards, all other sources of GAAP for nongovernmental entities
were  superseded  by the issuance of ASC.  ASC did not change  GAAP,  but rather
combined the sources of GAAP and the framework for selecting among those sources
into a single  source.  Accordingly,  the  adoption  of ASC had no impact on the
financial results of the Company.

                                      F-12
<PAGE>
                 INTERNATIONAL BUILDING TECHNOLOGIES GROUP, INC.
                          (A DEVELOPMENT STAGE COMPANY)
                 Notes to the Consolidated Financial Statements
                           December 31, 2009 and 2008


NOTE 2: MATERIAL EVENTS

CHANGE IN PAR VALUE

On May 22, 2008, the Company amended the articles of  incorporation by adjusting
the par value of the  common  stock from  $0.001 to  $0.00001.  All  shareholder
equity accounts have been restated to reflect the adjustment to the par value as
of the earliest date presented in the financial statements.

On August 11, 2008,  the Company  increased the  authorized  number of shares of
preferred  stock to  50,000,000  shares and amended  the par value of  preferred
stock to $0.001.

AMENDMENT OF THE CONVERSION RATES OF THE CONVERTIBLE PROMISSORY NOTES

On February  27, 2009,  the Company  amended the  conversion  feature of certain
promissory notes. The original conversion features are summarized in Note 4. The
amended conversion feature states that at any time, the Payee may convert all or
part of the remaining  principal balance and accrued interest into shares of the
Company's  Common Stock based on 75% of the average of the twenty closing prices
in the past 20 trading days  immediately  preceding  such  conversion so long as
such conversions shall not exceed 4.99% of the then outstanding  common stock of
the Company.

AMENDMENT OF THE CONVERSION RATES OF THE CONVERTIBLE PROMISSORY NOTES

On July 10,  2009,  the Company  made the decision to rescind the Stock Sale and
Purchase  Agreement that signed with Wuhan Interpower Co. Ltd on April 17, 2008.
The Company  believes  that the decision  was made for the best  interest of the
company and the investors.  The Company has requested that Wuhan Interpower Co.,
Ltd.  immediately refund the US$161,500.  According to the correspondence  being
exchanged recently,  as of July 31, 2009, Wuhan Interpower Co., Ltd. has neither
agreed to fully refund of US$161,500  nor refused to do so,  despite our several
requests in writings.  The Company is going to seek legal assistance in China to
recover the said amount plus interest.

In November,  2009, Wuhan Interpower Co., Ltd agreed to pay 50%, $80,750, of the
investment  deposit back to the Company.  In  considering  the cost  involved in
lawsuit or  arbitration  in China,  the Company has  accepted  this  settlement.
Accordingly, the loss on investment increased by $80,750 in the current year and
the  investment  deposit  decreased  to  $80,750.  The return of the deposit was
received in December, 2009.

AMENDMENT ON THE ARTICLE OF INCORPORATION TO INCREASE THE AUTHORIZED SHARES

The Company had  authorized  capital stock of  2,000,000,000  shares,  including
1,950,000,000  shares of Common Stock and 50,000,000  shares of Preferred Stock.
On August  10,  2009,  our Board of  Directors  and the  shareholders  holding a
majority  of the voting  rights in the  Company  approved  an  amendment  to the
Articles of  Incorporation  to increase the number of outstanding  shares of our
capital stock to 4,000,000,000  including  3,950,000,000  shares of Common Stock
and 50,000,000 shares of Preferred Stock.

NOTE 3:  GOING CONCERN

The Company's  financial  statements  are prepared using  accounting  principles
generally  accepted  in the  United  States  of  America  applicable  to a going
concern,  which  contemplates  the  realization  of assets and  satisfaction  of
liabilities in the normal course of business.  The Company's  continuation  as a
going  concern is dependent  upon its ability to generate  sufficient  cash flow
from  operations  to meet  its  obligations  on a  timely  basis  and/or  obtain
financing as may be required.  As of December 31, 2009, the Company has incurred

                                      F-13
<PAGE>
                 INTERNATIONAL BUILDING TECHNOLOGIES GROUP, INC.
                          (A DEVELOPMENT STAGE COMPANY)
                 Notes to the Consolidated Financial Statements
                           December 31, 2009 and 2008


net losses from operations  prior to reentering the development  stage and has a
stockholders'  deficit of  $5,534,336.  Since the  inception of  reentering  the
development  stage on April 1, 2007, the Company has a stockholders'  deficit of
$7,813,920 as of December 31, 2009. The Company has a working capital deficit of
$3,419,108 as of December 31, 2009. These factors raise  substantial doubt about
the Company's ability to continue as a going concern.

During the next 12 months,  the Company's  foreseeable  cash  requirements  will
relate to continual  development of the operations of its business,  maintaining
its good  standing  and making the  requisite  filings with the  Securities  and
Exchange  Commission,  and the payment of expenses  associated with reviewing or
investigating any potential business ventures. The Company may experience a cash
shortfall  and be required to raise  additional  capital.  Historically,  it has
relied  upon  internally  generated  funds and funds  from the sale of shares of
stock and loans from its  shareholders  and  private  investors  to finance  its
operations and growth.  Management may raise  additional  capital through future
public or private offerings of the Company's stock or through loans from private
investors,  although  there can be no  assurance  that it will be able to obtain
such financing. The Company's failure to do so could have a material and adverse
affect upon it and its shareholders.

The Company has entered into  negotiation  with a private owned company in China
for a  possible  merger  and  joint  venture  and will  announce  the  terms and
condition of such merger or joint venture if the  transaction  proceeds and when
there is a signed LOI, MOU or a binding agreement.

In the past 12 months, the Company funded operations through debt and securities
issuances.  For the coming 12 months,  the Company plans to continue to fund the
Company  through debt and securities  sales and  issuances,  focus on a possible
joint  venture  or merger  until the  company  generates  revenues  through  the
operations of such merged company or joint venture as stated above.

NOTE 4: FIXED ASSETS

Fixed assets consist of the following:

                                                  12/31/2009       12/31/2008
                                                  ----------       ----------
Furniture, fixtures and equipment (at cost)         $   --           $   --
Less accumulated depreciation                           --               --
                                                    ------           ------
Fixed assets, net                                   $   --           $   --
                                                    ======           ======

The Company  disposed all the fixed office  equipment  and furniture in Shanghai
office in  exchange  for two months  rent in 2008.  The gain on  disposal of the
equipment and furniture was $2,565 for the year ended December 31, 2008.

Depreciation expense for continuing  operations for the years ended December 31,
2009 and 2008 was $0. Total depreciation expense, including depreciation expense
on discontinued operations $0 for the years ended December 31, 2009 and 2008.

                                      F-14
<PAGE>
                 INTERNATIONAL BUILDING TECHNOLOGIES GROUP, INC.
                          (A DEVELOPMENT STAGE COMPANY)
                 Notes to the Consolidated Financial Statements
                           December 31, 2009 and 2008


NOTE 5: NOTES PAYABLE & DEBT DISCOUNTS

The chart below  summarizes the Notes Payable & Debt Discounts of the Company as
of December 31, 2009.  The Company is  technically  in default of its promissory
notes to the above persons or entities,  most of which notes matured on December
31, 2009. The Company is currently  working with the note holders to restructure
the terms of such notes and extend the maturity  dates.  The  interest  rate for
these loans will be at 12% in 2010 since they were default at the year end.

Terms                                                                     Amount
-----                                                                     ------
SHORT TERM NOTES PAYABLE TO SHAREHOLDERS:
-    10% Interest;  principal of $6,597;  convertible  to common
     stock based on 75% of average price;  due on 9/3/2009,  net
     of unamortized  discount related to the debt discount of $0           6,597
-    10% Interest; principal of $104,757;  convertible to common
     stock based on 75% of average price; due on 12/31/2009, net
     of unamortized  discounted  related to the debt discount of
     $0                                                                  104,757
-    10% Interest;  principal of $11,000;  convertible to common
     stock based on 75% of average price; due on 10/9/2009,  net
     of unamortized  discount related to the debt discount of $0          11,000
-    10% Interest;  principal of $31,925;  convertible to common
     stock based on 75% of average price; due on 12/31/2009, net
     of unamortized  discounted  related to the debt discount of
     $0                                                                   31,925
-    10% Interest;  principal of $10,269;  convertible to common
     stock based on 75% of average price; due on 12/31/2009, net
     of unamortized  discounted  related to the debt discount of
     $0                                                                   10,269
-    10% Interest;  principal of $12,500;  convertible to common
     stock based on 75% of average price; due on 12/31/2009, net
     of unamortized  discount related to the debt discount of $0          12,500
-    10% Interest;  principal of $15,000;  convertible to common
     stock based on 75% of average price;  due on 8/1/2009,  net
     of unamortized  discount related to the debt discount of $0          15,000
-    10% Interest;  principal of $32,017;  convertible to common
     stock based on 75% of average price; due on 12/31/2009, net
     of unamortized  discount related to the debt discount of $0          32,017
-    10% Interest;  principal of $28,326;  convertible to common
     stock based on 75% of average price; due on 12/31/2009, net
     of unamortized  discounted  related to the debt discount of
     $0                                                                   28,326
-    10% Interest;  principal of $10,642;  convertible to common
     stock based on 75% of average price; due on 12/31/2009, net
     of unamortized  discount related to the debt discount of $0          10,642
-    10% Interest;  principal of $9,458;  convertible  to common
     stock based on 75% of average price; due on 12/31/2009, net
     of unamortized  discounted  related to the debt discount of
     $0                                                                    9,458
-    10% Interest;  principal of $37,133;  convertible to common
     stock based on 75% of average price; due on 12/31/2009, net
     of unamortized  discounted  related to the debt discount of
     $0                                                                   37,133
-    10% Interest;  principal of $5,000;  convertible  to common
     stock based on 75% of average price; due on 10/28/2009, net
     of unamortized  discount related to the debt discount of $0           5,000
-    10% Interest;  principal of $10,000;  convertible to common
     stock based on 75% of average price; due on 12/31/2009, net
     of  unamortized  discount  related to the debt  discount of
     $3,271                                                               10,000

                                      F-15
<PAGE>
                 INTERNATIONAL BUILDING TECHNOLOGIES GROUP, INC.
                          (A DEVELOPMENT STAGE COMPANY)
                 Notes to the Consolidated Financial Statements
                           December 31, 2009 and 2008


-    10% Interest;  principal of $13,000;  convertible to common
     stock based on 75% of average price;  due on 8/1/2009,  net
     of unamortized  discount related to the debt discount of $0          13,000
-    10% Interest;  principal of $7,209;  convertible  to common
     stock based on 75% of average price; due on 12/31/2009, net
     of unamortized  discounted  related to the debt discount of
     $0                                                                    7,209
-    10% Interest;  principal of $23,847;  convertible to common
     stock based on 75% of average price; due on 12/31/2009, net
     of unamortized  discounted  related to the debt discount of
     $0                                                                   23,847
-    10% Interest;  principal of $20,000;  convertible to common
     stock based on 75% of average price; due on 12/31/2009, net
     of unamortized  discount related to the debt discount of $0          20,000
-    10% Interest;  principal of $25,000;  convertible to common
     stock based on 75% of average price; due on 12/31/2009, net
     of unamortized  discount related to the debt discount of $0          25,000
-    10% Interest;  principal of $70,000;  convertible to common
     stock based on 75% of average price; due on 12/31/2009, net
     of unamortized  discount related to the debt discount of $0          70,000
-    10% Interest;  principal of $36,867;  convertible to common
     stock based on 75% of average price; due on 12/31/2009, net
     of unamortized  discounted  related to the debt discount of
     $0                                                                   36,867
-    5% Interest;  principal of $73,975;  convertible  to common
     stock based on 75% of average price;  due on 7/1/2009,  net
     of unamortized  discount related to the debt discount of $0          73,975
-    10% Interest;  principal of $1,112;  convertible  to common
     stock based on 75% of average price; due on 12/31/2009, net
     of unamortized  discounted  related to the debt discount of
     $0                                                                    1,112
-    10% Interest;  principal of $10,000;  convertible to common
     stock based on 75% of average price; due on 12/31/2009, net
     of unamortized  discount related to the debt discount of $0          10,000
-    10% Interest;  principal of $15,000;  convertible to common
     stock based on 75% of average price; due on 10/29/2009, net
     of  unamortized  discount  related to the debt  discount of
     $2,463                                                               12,537
-    10% Interest;  principal of $50,240;  convertible to common
     stock based on 75% of average price; due on 12/31/2009, net
     of unamortized  discount related to the debt discount of $0          50,240
                                                                      ----------
  TOTAL SHORT TERM NOTES PAYABLE TO SHAREHOLDERS                      $  668,411
                                                                      ==========

SHORT TERM NOTES PAYABLE:
-    10% Interest;  principal of $50,000;  convertible to common
     stock based on 75% of average price; due on 12/31/2009, net
     of unamortized  discount related to the debt discount of $0          50,000
-    10% Interest;  principal of $50,000;  convertible to common
     stock based on 75% of average price; due on 12/31/2009, net
     of unamortized  discount related to the debt discount of $0          50,000
-    10% Interest;  principal of $15,000;  convertible to common
     stock based on 75% of average price; due on 12/31/2009, net
     of unamortized  discount related to the debt discount of $0          15,000
-    10% Interest;  principal of $10,000;  convertible to common
     stock based on 75% of average price; due on 12/31/2009, net
     of  unamortized  discount  related to the debt  discount of
     $325                                                                  9,675

                                      F-16
<PAGE>
                 INTERNATIONAL BUILDING TECHNOLOGIES GROUP, INC.
                          (A DEVELOPMENT STAGE COMPANY)
                 Notes to the Consolidated Financial Statements
                           December 31, 2009 and 2008


-    10% Interest;  principal of $20,500;  convertible to common
     stock based on 75% of average price; due on 12/31/2009, net
     of unamortized  discount related to the debt discount of $0          20,500
                                                                      ----------
  TOTAL SHORT TERM NOTES PAYABLE                                      $  145,175
                                                                      ==========

The chart below  summarizes the Notes Payable & Debt Discounts of the Company as
of December 31, 2008.

Terms                                                                     Amount
-----                                                                     ------
SHORT TERM NOTES PAYABLE TO SHAREHOLDERS:
-    10% Interest;  principal of $10,000;  convertible to common           4,571
     stock based on 60% of average price;  due on 9/3/2009,  net
     of  unamortized  discount  related to the debt  discount of
     $5,429
-    10% Interest; principal of $115,878;  convertible to common          84,028
     stock based on 50% of average price; due on 12/31/2009, net
     of unamortized  discounted  related to the debt discount of
     $31,850
-    10% Interest;  principal of $11,000;  convertible to common           3,311
     stock based on 60% of average price; due on 10/9/2009,  net
     of  unamortized  discount  related to the debt  discount of
     $7,689
-    10% Interest;  principal of $31,925;  convertible to common          31,925
     stock based on 60% of average price; due on 12/31/2009, net
     of unamortized  discounted  related to the debt discount of
     $0
-    10% Interest;  principal of $13,735;  convertible to common          12,826
     stock based on 60% of average price; due on 12/31/2009, net
     of unamortized  discounted  related to the debt discount of
     $909
-    10% Interest;  principal of $12,500;  convertible to common           6,119
     stock based on 60% of average price; due on 12/31/2009, net
     of  unamortized  discount  related to the debt  discount of
     $6,381
-    10% Interest;  principal of $15,000;  convertible to common           6,247
     stock based on 60% of average price;  due on 8/1/2009,  net
     of  unamortized  discount  related to the debt  discount of
     $8,753
-    10% Interest;  principal of $32,016;  convertible to common          21,870
     stock based on 50% of average price; due on 12/31/2009, net
     of  unamortized  discount  related to the debt  discount of
     $10,146
-    10% Interest;  principal of $64,810;  convertible to common          50,788
     stock based on 50% of average price; due on 12/31/2009, net
     of unamortized  discounted  related to the debt discount of
     $14,022
-    10% Interest;  principal of $10,642;  convertible to common           5,328
     stock based on 50% of average price; due on 12/31/2009, net
     of  unamortized  discount  related to the debt  discount of
     $5,314
-    10% Interest;  principal of $9,458;  convertible  to common           6,353
     stock based on 60% of average price; due on 12/31/2009, net
     of unamortized  discounted  related to the debt discount of
     $3,105
-    10% Interest;  principal of $37,133;  convertible to common          25,712
     stock based on 60% of average price; due on 12/31/2009, net
     of unamortized  discounted  related to the debt discount of
     $11,421
-    10% Interest;  principal of $5,000;  convertible  to common           1,768
     stock based on 65% of average price; due on 10/28/2009, net
     of  unamortized  discount  related to the debt  discount of
     $3,232
-    10% Interest;  principal of $10,000;  convertible to common           4,270
     stock based on 60% of average price; due on 12/31/2009, net
     of  unamortized  discount  related to the debt  discount of
     $5,730
-    10% Interest;  principal of $78,324;  convertible to common          77,774
     stock based on 75% of average price; due on 6/30/2009,  net
     of unamortized  discounted  related to the debt discount of
     $550
-    10% Interest;  principal of $13,000;  convertible to common           5,414
     stock based on 60% of average price;  due on 8/1/2009,  net
     of  unamortized  discount  related to the debt  discount of
     $7,586
-    10% Interest;  principal of $7,209;  convertible  to common           4,174
     stock based on 60% of average price; due on 12/31/2009, net
     of unamortized  discounted  related to the debt discount of
     $3,035
-    10% Interest;  principal of $23,847;  convertible to common          11,581
     stock based on 60% of average price; due on 12/31/2009, net
     of unamortized  discounted  related to the debt discount of
     $12,266
-    10% Interest;  principal of $20,000;  convertible to common           8,906
     stock based on 60% of average price; due on 12/31/2009, net
     of  unamortized  discount  related to the debt  discount of
     $11,094
-    10% Interest;  principal of $25,000;  convertible to common          10,697
     stock based on 60% of average price; due on 12/31/2009, net
     of  unamortized  discount  related to the debt  discount of
     $14,303

                                      F-17
<PAGE>
                 INTERNATIONAL BUILDING TECHNOLOGIES GROUP, INC.
                          (A DEVELOPMENT STAGE COMPANY)
                 Notes to the Consolidated Financial Statements
                           December 31, 2009 and 2008


-    10% Interest;  principal of $70,000;  convertible to common          44,077
     stock based on 60% of average price; due on 12/31/2009, net
     of  unamortized  discount  related to the debt  discount of
     $25,923
-    10% Interest;  principal of $39,337;  convertible to common          22,236
     stock based on 60% of average price; due on 12/31/2009, net
     of unamortized  discounted  related to the debt discount of
     $17,101
-    5%  Interest;  principal  of $73,977;  monthly  payments of          63,901
     $4,387; convertible to common stock based on 70% of average
     price; due on 7/1/2009, net of unamortized discount related
     to the debt discount of $10,076
-    10% Interest;  principal of $39,048;  convertible to common          19,424
     stock based on 50% of average price; due on 12/31/2009, net
     of unamortized  discounted  related to the debt discount of
     $19,624
-    10% Interest;  principal of $10,000;  convertible to common           4,701
     stock based on 60% of average price; due on 12/31/2009, net
     of  unamortized  discount  related to the debt  discount of
     $5,299
-    10% Interest;  principal of $15,000;  convertible to common           2,589
     stock based on 65% of average price; due on 10/29/2009, net
     of  unamortized  discount  related to the debt  discount of
     $12,411
-    10% Interest;  principal of $50,240;  convertible to common          26,352
     stock based on 60% of average price; due on 12/31/2009, net
     of  unamortized  discount  related to the debt  discount of
     $23,888
                                                                        --------
TOTAL SHORT TERM NOTES PAYABLE TO SHAREHOLDERS                          $566,942
                                                                        ========
SHORT TERM NOTES PAYABLE :
-    10% Interest;  principal of $50,000;  convertible to common          21,260
     stock based on 60% of average price; due on 12/31/2009, net
     of  unamortized  discount  related to the debt  discount of
     $28,740
-    10% Interest;  principal of $50,000;  convertible to common          21,260
     stock based on 60% of average price; due on 12/31/2009, net
     of  unamortized  discount  related to the debt  discount of
     $28,740
-    10% Interest;  principal of $15,000;  convertible to common           4,880
     stock based on 60% of average price; due on 12/31/2009, net
     of  unamortized  discount  related to the debt  discount of
     $10,120
-    10% Interest;  principal of $10,000;  convertible to common           4,252
     stock based on 60% of average price; due on 12/31/2009, net
     of  unamortized  discount  related to the debt  discount of
     $5,748
-    10% Interest;  principal of $20,500;  convertible to common          19,683
     stock based on 65% of average price; due on 12/31/2009, net
     of  unamortized  discount  related to the debt  discount of
     $817
                                                                        --------
TOTAL SHORT TERM NOTES PAYABLE                                          $ 71,335
                                                                        ========

NOTE 6: RELATED PARTY TRANSACTIONS

ACCRUED EXPENSES - SHAREHOLDERS

During the year ended  December 31, 2009 and December 31, 2008, the accrued wage
and reimbursement to the officer related to traveling  expenses was $207,321 and
$43,716 respectively.

                                      F-18
<PAGE>
                 INTERNATIONAL BUILDING TECHNOLOGIES GROUP, INC.
                          (A DEVELOPMENT STAGE COMPANY)
                 Notes to the Consolidated Financial Statements
                           December 31, 2009 and 2008


PAYMENT OF DEBT

During the year ended December 31, 2009, the Company issued 1,559,323,599 common
shares  valued at  $204,310  to a  stockholder  for  payment  of  principal  and
interest. See Note 6 - Notes Payable & Debt Discounts.

STOCK ISSUANCE

During the year ended  December 31, 2009,  the Company  issued  50,000 shares of
preferred  stock  series D at $1 per  share  to the  director  for the  director
service fee. See Note 8 - Stockholders' Equity.

During the year ended December 31, 2009, an officer  purchased  1,000,000 shares
of  preferred  stock  series C at $0.001 per share.  See Note 8 -  Stockholders'
Equity.

NOTE 7: STOCKHOLDERS' EQUITY

PREFERRED STOCK

On August 11, 2008,  the Company  increased the  authorized  number of shares of
preferred  stock to  50,000,000  shares and amended  the par value of  preferred
stock to $0.001.

AMENDMENTS TO SERIES D, E, AND F PREFERRED STOCK

On April 20, 2009,  amendments were made to the market price for series D, E and
F preferred stock. The market price shall be computed as the arithmetic  average
of the 20  closing  prices  for such  security  during  the last 20  consecutive
trading  days  immediately  preceding  such  date  of  determination.  All  such
determinations to be appropriately adjusted for any stock dividend,  stock split
or other similar transaction during such period.

SERIES C PREFERRED STOCK

On August 28, 2008, the Company amended Series C Preferred stock to increase the
authorized  shares to  3,000,000  shares  par value  $0.001  and  decreased  the
conversion  rights to state that upon  written  request  from the Company and at
management's  discretion,  holders of Series C stock agree to convert each share
of Series C stock into $2.00 worth of the Company's  common stock.  On September
15, 2008 and October 5, 2009,  the Company sold 800,000 and 1,000,000  shares of
Series C stock to its CEO, Kenneth Yeung, for $800 and $1,000 cash respectively.
At this time  management  does not  intend on  converting  any  shares of Series
Preferred C into common stock of the company.

The Series C shares have the following voting powers, designations, preferences,
limitations, restrictions and relative rights:

     a.   Designation: Series C Preferred Stock
     b.   Authorized Shares: 3,000,000
     c.   Liquidation Rights: None
     d.   Mandatory  Redemption  Rights:  Upon written request from the Company,
          Holder agrees to convert each Preferred  Series C Stock to $5.00 worth
          of INBG stock on a mandatory basis.
     e.   Each  share  can be  converted  into $2 worth of  common  stock at the
          market  price.  The market  price shall be computed as the  arithmetic
          average of the 20 closing prices for such security  during the last 20
          consecutive   trading  days   immediately   preceding   such  date  of
          determination.  All such  determinations to be appropriately  adjusted
          for any  stock  dividend,  stock  split or other  similar  transaction
          during such period.

                                      F-19
<PAGE>
                 INTERNATIONAL BUILDING TECHNOLOGIES GROUP, INC.
                          (A DEVELOPMENT STAGE COMPANY)
                 Notes to the Consolidated Financial Statements
                           December 31, 2009 and 2008


SERIES D PREFERRED STOCK

On July 11, 2008,  15,000 shares of Series D Preferred stock were converted into
30,612,243 shares of the Company's common stock valued at $15,000.

On August 1, 2008,  700 shares of Series D preferred  stock were  converted into
7,000,000 shares of the Company's common stock valued at $7,000.

On April 20, 2009, the Company issued 50,000 shares of Series D Preferred  Stock
at $50,000.

On August 6, 2009, the Company issued 50,000 shares of Series D Preferred  Stock
at $50,000.  On September 21, 2009, the Company issued 22,500 shares of Series D
Preferred  Stock at $22,500.  On September 30, 2009,  the Company  issued 50,000
shares of Series D Preferred Stock at $50,000 for the director service fee.

     a.   Authorized Shares: 10,000,000
     b.   Dividends: Yes, at management's discretion
     c.   Liquidation Rights: Yes
     d.   Voting Rights: None
     e.   Each  share  can be  converted  into $1 worth of  common  stock at the
          market  price.  The market  price shall be computed as the  arithmetic
          average of the 20 closing prices for such security  during the last 20
          consecutive   trading  days   immediately   preceding   such  date  of
          determination.  All such  determinations to be appropriately  adjusted
          for any  stock  dividend,  stock  split or other  similar  transaction
          during such period.

SERIES E PREFERRED STOCK

On November 4, 2008,  3,500  shares of Series E Preferred  stock were  converted
into 8,203,000 shares of the Company's common stock valued at $3,500.

Effective  March 31,  2008,  the  Company  and Suining  Yinfa  Construction  and
Engineering Co., Ltd., both agreed that it was in their best interest to rescind
the Asset Sale and Purchase  Agreement of the Rose Top Grade  Project due to the
underperformance  of the  assets  and the  inability  of the  sellers  to record
transactions  as necessary to permit  preparation  of  financial  statements  in
conformity  with US GAAP.  Suining Yinfa agreed to return all 350,000  shares of
the Company's Series E Preferred Stock as part of the rescission and the Company
agreed to compensate  Suining  Yinfa for their work and time in connection  with
this  transaction  with 35,000 shares of the Company's Series E Preferred Stock.
The Company  issued the 35,000  shares of Series E Preferred  Stock on April 22,
2008. Since the Series E Preferred Stock has a convertible  feature, a Preferred
Dividend of $35,000  was  calculated  in  accordance  with ASC 470-20  (previous
guidance EITF 00-27. See Note 7 - Acquisitions and Investments).

On July 25,  2008,  the Company  amended  Series E Preferred  stock to amend the
conversion  terms  of the  series  and to  decrease  the  authorized  shares  to
50,000,000  shares.  Due  to the  amendment  of the  conversion  feature  of the
existing  35,000  shares of Series E Preferred  Stock,  a Preferred  Dividend of
29,862 was  calculated in  accordance  with ASC 470-20  (previous  guidance EITF
00-27. See Note 7 - Acquisitions and Investments).

                                      F-20
<PAGE>
                 INTERNATIONAL BUILDING TECHNOLOGIES GROUP, INC.
                          (A DEVELOPMENT STAGE COMPANY)
                 Notes to the Consolidated Financial Statements
                           December 31, 2009 and 2008


On August 1, 2008,  7,000 shares of Series E Preferred stock were converted into
7,000,000 shares of the Company's common stock valued at $7,000.

     a.   Authorized Shares: 50,000,000
     b.   Dividends: Yes, at management's discretion
     c.   Liquidation Rights: Yes
     d.   Voting Rights: None
     e.   Each  share  can be  converted  into $1 worth of  common  stock at the
          market  price.  The market  price shall be computed as the  arithmetic
          average of the 20 closing prices for such security  during the last 20
          consecutive   trading  days   immediately   preceding   such  date  of
          determination.  All such  determinations to be appropriately  adjusted
          for any  stock  dividend,  stock  split or other  similar  transaction
          during such period.

The  Company  originally  issued a  $350,000  Convertible  Promissory  Note as a
deposit to purchase 51% of the Rose Top Project from Suining Yinfa  Construction
and  Engineering  Co.,  Ltd. On December 12,  2007,  the Company  converted  the
Promissory Note into 350,000 shares of the Company's  Series E Preferred  Stock.
Even though the Series E Preferred Stock has a convertible feature the preferred
shares are not convertible until December 2008.

SERIES F PREFERRED STOCK

On April 23, 2008, the Company designated a new series of preferred stock called
the Series F Preferred stock with the following attributes:

     a.   Authorized Shares: 3,000,000
     b.   Dividends: 8% annual dividends, at management's discretion
     c.   Liquidation Rights: Yes
     d.   Voting Rights: None
     e.   Each  share  can be  converted  into $1 worth of  common  stock at the
          market  price.  The market  price shall be computed as the  arithmetic
          average of the 20 closing prices for such security  during the last 20
          consecutive   trading  days   immediately   preceding   such  date  of
          determination.  All such  determinations to be appropriately  adjusted
          for any  stock  dividend,  stock  split or other  similar  transaction
          during such period.

On June 30,  2008,  the  Company  issued a total of  20,000  shares  of Series F
Preferred Stock for $20,000 cash paid as consideration for the shares. Since the
Series F Preferred  Stock has a  convertible  feature,  a Preferred  Dividend of
$4,154 was calculated in accordance with EITF 00-27.

                                      F-21
<PAGE>
                 INTERNATIONAL BUILDING TECHNOLOGIES GROUP, INC.
                          (A DEVELOPMENT STAGE COMPANY)
                 Notes to the Consolidated Financial Statements
                           December 31, 2009 and 2008


COMMON STOCK

CONSULTING SERVICES

The  Company  issued  42,577,182  shares  of  common  stock  valued  $76,349  to
consultants  for  contracted  services  rendered for the year ended December 31,
2008. There were no common stocks issued for services during 2009.

COMMON STOCK ISSUED FOR REPAYMENT OF DEBT

During  the  year  ended  December  31,  2009,  the  Company  issued  a total of
1,559,323,599  shares of common stock  valued at $204,310 for  repayment of debt
detailed in the following chart:

<TABLE>
<CAPTION>
                        Number of         Aggregate
Date of Issue         Shares Issued      Sales Price              Nature of Transaction
-------------         -------------      -----------              ---------------------
<S>                 <C>                 <C>                 <C>
1/12/2009              37,389,530          $  7,478          In exchange for debt repayment
1/19/2009              35,000,000          $  5,250          In exchange for debt repayment
2/12/2009              39,900,000          $  3,990          In exchange for debt repayment
2/18/2009              35,000,000          $  2,625          In exchange for debt repayment
2/23/2009              45,000,000          $  4,500          In exchange for debt repayment
3/2/2009               45,000,000          $  3,375          In exchange for debt repayment
3/24/2009              40,000,000          $  4,000          In exchange for debt repayment
3/24/2009              40,000,000          $  4,000          In exchange for debt repayment
3/24/2009              46,000,000          $  3,450          In exchange for debt repayment
4/6/2009               40,000,000          $  4,000          In exchange for debt repayment
4/20/2009              48,000,000          $  3,600          In exchange for debt repayment
4/20/2009              55,557,150          $ 11,459          In exchange for debt repayment
5/29/2009              62,000,000          $ 12,400          In exchange for debt repayment
5/29/2009              62,000,000          $  9,300          In exchange for debt repayment
6/26/2009              64,867,747          $ 11,676          In exchange for debt repayment
6/26/2009              65,000,000          $  6,825          In exchange for debt repayment
7/20/2009              67,500,000          $ 11,897          In exchange for debt repayment
8/5/2009               68,000,000          $ 10,200          In exchange for debt repayment
8/18/2009              75,000,000          $ 11,850          In exchange for debt repayment
9/11/2009              82,000,000          $ 11,480          In exchange for debt repayment
9/18/2009              78,431,372          $ 10,000          In exchange for debt repayment
9/30/2009              75,000,000          $  9,000          In exchange for debt repayment
10/9/2009              85,000,000          $  9,563          In exchange for debt repayment
11/9/2009              90,000,000          $ 12,375          In exchange for debt repayment
12/10/2009            112,500,000          $  6,517          In exchange for debt repayment
12/17/2009             65,177,800          $ 13,500          In exchange for debt repayment
  TOTAL             1,559,323,599          $204,310
</TABLE>

The details of the issuance of common stock are summarized as follows:

During  the  year  ended  December  31,  2008,  the  Company  issued  a total of
434,791,958 shares of common stock valued $352,826 for payment and settlement of
debt.

                                      F-22
<PAGE>
                 INTERNATIONAL BUILDING TECHNOLOGIES GROUP, INC.
                          (A DEVELOPMENT STAGE COMPANY)
                 Notes to the Consolidated Financial Statements
                           December 31, 2009 and 2008


During the quarter ended December 31, 2008, the company issued 13,356,000 shares
of common  stock  valued at $8,456 for  consulting  services.  The Company  also
issued 126,041,571 shares of common stock valued at $60,695 for the repayment of
debt.

During the quarter ended September 30, 2008, the company issued 7,465,007 shares
of common  stock  valued at $11,198 for  consulting  services.  The Company also
issued  191,414,386  shares of common stock valued at $161,615 for the repayment
of debt and  117,587,550  shares of common  stock valued at $122,000 in exchange
for cash payment.

On August 11,  2008,  the Company  amended  its  articles  of  incorporation  to
increase its authorized  capital stock to two billion shares,  consisting of (a)
one billion nine hundred  fifty million  (1,950,000,000)  shares of common stock
par  value  $0.00001  per share and (b)  fifty  million  (50,000,000)  shares of
preferred stock par value $0.001 per share issuable in one or more series.

On August  10,  2009,  our Board of  Directors  and the  shareholders  holding a
majority  of the voting  rights in the  Company  approved  an  amendment  to the
Articles of  Incorporation  to increase the number of outstanding  shares of our
capital stock to 4,000,000,000  including  3,950,000,000  shares of Common Stock
and 50,000,000 shares of Preferred Stock.

During the quarter ended June 30, 2008, the company issued  12,910,053 shares of
common stock valued at $24,413 for consulting services.  The Company also issued
84,287,855  shares of common stock  valued at $68,480 for the  repayment of debt
and  44,085,526  shares of common  stock  valued at $57,000 in exchange for cash
payment.

During the quarter ended March 31, 2008, the Company issued  8,846,122 shares of
common stock valued at $32,283 for consulting services.  The Company also issued
33,048,146 shares of common stock valued at $62,036 for repayment of debt.

On January 14,  2008,  the Company  signed a  settlement  agreement  whereby the
Company  agreed to pay a  previous  shareholder  $10,000  in cash and  3,000,000
shares of the Company's common stock (without  registration under the Securities
Act of 1933) as additional  and final  consideration  for the Series B Preferred
shares  he sold  back to the  Company.  The  value of the  shares at the date of
issuances is $13,500.  Total  Settlement cost of $23,500 was expensed during the
period ended March 31, 2008.

AMENDMENT TO COMMON STOCK PAR VALUE
On May 22, 2008, the Company amended the articles of  incorporation by adjusting
the par value of the  common  stock from  $0.001 to  $0.00001.  All  shareholder
equity accounts have been restated to reflect the adjustment to the par value as
of the earliest date presented in the financial statements.

NOTE 8: DISCONTINUED OPERATIONS

As of  December  31,  2009 and 2008  there  were $0 of  assets  and  liabilities
included in Assets Held for Sale and  Liabilities  Held for Sale that relates to
our motor sports business.

NOTE 9: INCOME TAXES

The Company  and its  subsidiaries  file income tax returns in the U.S.  Federal
Jurisdiction,  and various  states and foreign  jurisdictions.  No provision for
Hong Kong Profits Tax has been made for the periods presented as the Company and

                                      F-23
<PAGE>
                 INTERNATIONAL BUILDING TECHNOLOGIES GROUP, INC.
                          (A DEVELOPMENT STAGE COMPANY)
                 Notes to the Consolidated Financial Statements
                           December 31, 2009 and 2008


its  subsidiaries  operating in Hong Kong have no assessable  profits during the
years being reported.

The Company believes sufficient  uncertainty exists regarding the realization of
net operating loss  carry-forwards  and other timing differences for the periods
presented.  Accordingly,  a valuation allowance has been provided for the entire
amount  related  thereto.  The valuation  allowance  increased by  approximately
$444,305  and  $1,655,267  during the years  ended  December  31, 2009 and 2008,
respectively.

The income tax  provision  differs from the amount of income tax  determined  by
applying the U.S. Federal and State income tax rates of 39% to pretax income for
the years ended December 31, 2009 and 2008 due to the following:

                                                    Year Ended December 31,
                                              ---------------------------------
                                                  2009                  2008
                                              -----------           -----------
Book income                                   $  (753,293)          $(1,886,834)
Change in derivative liability                    (12,532)              820,155
Stock for services/option expense                  19,500                    --
Accrued expenses - related party                   77,512                16,270
Settlement                                             --                13,650
Amortization of beneficial conversion
feature                                           511,980                    --
Warrant amortization                                   --                    --
Minority interest                                      --                    --
Other                                                 189                  (122)
Valuation Allowance                               156,644             1,036,881
                                              -----------           -----------
Total Income tax provision                    $        --           $        --
                                              ===========           ===========

At December 31,  2009,  the Company had net  operating  loss  carry-forwards  of
approximately  $3,500,000  that may be offset against future taxable income from
the year 2009 through 2029. No tax benefit has been reported in the December 31,
2009 consolidated financial statements since the potential tax benefit is offset
by a valuation allowance of the same amount.

Due to the change in  ownership  provisions  of the Tax Reform Act of 1986,  net
operating  loss  carry-forwards  for Federal  income tax reporting  purposes are
subject to annual limitations. Should a change in ownership occur, net operating
loss carry-forwards may be limited as to use in future years.

Net deferred tax assets  consist of the following  components as of December 31,
2009 and 2008:
                                                    Year Ended December 31,
                                              ---------------------------------
                                                  2009                  2008
                                              -----------           -----------
Deferred tax assets:
  NOL carryover                               $ 1,378,500           $ 2,030,310
  Accrued expenses - related party                107,122                16,270
Deferred tax liabilities
  Depreciation                                         --                (4,485)
                                              -----------           -----------
Valuation Allowance                            (1,485,622)           (2,042,095)
                                              -----------           -----------
Total Income tax provision                    $        --           $        --
                                              ===========           ===========

The Company files income tax returns in the United States  federal  jurisdiction
and certain states in the United States and certain foreign jurisdictions.  With
a few exceptions,  the company is no longer subject to U. S. federal,  state, or

                                      F-24
<PAGE>
                 INTERNATIONAL BUILDING TECHNOLOGIES GROUP, INC.
                          (A DEVELOPMENT STAGE COMPANY)
                 Notes to the Consolidated Financial Statements
                           December 31, 2009 and 2008


non-U.S.  Income tax  examination by tax authorities on tax returns filed before
January 31, 2004. The Company  recently filed an extension for the U. S. Federal
return for the year ended December 31, 2009. The company has filed its 2008 U.S.
Federal return.  These U. S. federal returns are considered open tax years as of
the  date  of  these  consolidated  financial  statements.  No tax  returns  are
currently under examination by any tax authorities.

NOTE 10: ACQUISITIONS AND INVESTMENTS

ACQUISITION OF WUHAN WUFENG MACHINERY MANUFACTURING COMPANY, LTD.

On April 16, 2008, the Company entered into a definitive  agreement to acquire a
92% stake in Wuhan Wufeng  Machinery  Manufacturing  Company,  Ltd.  ("Machinery
Co.")  from  Wuhan  Intepower  Company,  Ltd.,  a China  Corporation  ("Seller")
pursuant to a Stock Sale and Purchase  Agreement.  After transferring a 4% stake
to  certain  management  personnel  of the  Machinery  Co.  at the  close of the
transaction, the Company will own a net interest of 88% of the equity securities
of the Machinery Company.  The closing of this acquisition will occur as soon as
the audit of the books and  accounts of the  Machinery  Co. is  completed to the
satisfaction of the Company and requisite  governmental  approvals are obtained.
On June 24,  2008,  the Company  received  requisite  governmental  approvals to
proceed with this transaction and during the third quarter,  the Company engaged
PCAOB  approved SEC  auditors  Albert Wong & Company to perform the audit of the
Machinery  Company.  Currently,  the  auditors are  performing  the audit of the
Machinery Company and the audit is expected to be completed soon. As of December
31, 2008, the Company has paid the 10% cash down payment on the acquisition. The
convertible  notes for the balance of the acquisition will be finalized  pending
the completion of the audit.

The Machinery Co.  currently  offers several lines of machineries and equipments
which can be retooled to manufacture the panel  production  machineries that the
Company  endeavors to sell and utilize in several planned  projects in China and
other  countries.  The  Machinery  Co.  currently  has  state of the art  tools,
experienced engineers,  capability to design new lines of equipment,  as well as
strong customer service and after-sales support. Strategically, this acquisition
will strongly  support the  Company's  ability to supply the market for building
panels and panel machineries in China and throughout the world.

The  purchase  consideration  to be paid by the  Company to the  Seller  will be
approximately  U.S.  $1,500,000,  consisting  of cash  for  10% of the  purchase
consideration,  and three (3)  Convertible  Promissory  Notes  representing  the
balance of the  purchase  consideration.  At the  Seller's  option the notes are
convertible  into shares of the Company's  common stock at a value equivalent to
the notes.

However,  on July 10,  2009,  the Company made the decision to rescind the Stock
Sale and Purchase Agreement. The Company believes that the decision was made for
the best  interest of the company and the  investors.  The Company has requested
that Wuhan Intepower Co., Ltd.  immediately  refund the US$161,500.  The Company
will seek legal assistance in China to recover the said amount plus interest for
the Company.

In November,  2009, Wuhan Interpower Co., Ltd agreed to pay 50%, $80,750, of the
investment  deposit back to the Company.  In  considering  the cost  involved in
lawsuit or arbitration in China, the Company is going to accept this settlement.
Accordingly,  the loss on investment  increased by $80,750 in the current period
and the investment deposit decreased to $80,750.  Wuhan Interpower Co., Ltd paid
the Company back the deposit of $80,750 in December 2009.

NOTE 11: DERIVATIVE LIABILITY

As of December 31,  2009,  the common  stock  equivalents  of the Company on all
convertible  debentures  and  preferred  stock  exceeded  the total common stock

                                      F-25
<PAGE>
                 INTERNATIONAL BUILDING TECHNOLOGIES GROUP, INC.
                          (A DEVELOPMENT STAGE COMPANY)
                 Notes to the Consolidated Financial Statements
                           December 31, 2009 and 2008


available for issuance by approximately by 54,520,869,200  shares. The Company's
Chief  Executive  Officer,  Kenneth Yeung,  holds  2,000,000  shares of Series C
Preferred Stock that are convertible  into  43,956,043,956  common shares of the
Company.

Unless and until there is enough  authorized common stock available to cover all
common  stock  equivalents,  Mr.  Yeung will not  convert  any of his  preferred
shares. Furthermore, the stock is only convertible upon management's discretion.
Management  currently does not intend on converting  such stock.  Also,  warrant
options are not included in common stock equivalents although the exercise price
of $0.25 for the warrant is less than the fair value of common  stock of $0.0002
per share on December  31,  2009.  The  remaining  common  stock  equivalent  of
10,564,825,244  shares  has  been  accounted  for  as  a  derivative  liability.
Accordingly,  the excess  common stock  equivalents  exceeding  the total common
stock  available  for issue is marked to market  through  earnings at the end of
each  reporting  period.  Utilizing the  Black-Scholes  valuation  model and the
following  assumptions:  estimated  volatility of 564.36% a contractual  life of
approximately  one year, a zero dividend  rate,  0.45% risk free interest  rate,
exercise  price of  $0.0002  and the fair value of common  stock of $0.0002  per
share as of December 31, 2009,  the Company  determined the allocated fair value
of the derivative liability. The Company reflected a gain of $32,133 in the year
ended  December 31, 2009 to adjust the  derivative  liability as of December 31,
2009,  representing  the initial fair value of excess  common stock  equivalents
exceeding the total common stock available for issuance.

NOTE 12: COMMITMENTS AND CONTINGENCIES

ROYALTIES

Under  the  terms of the  license  agreement  described  in Note 5 -  Intangible
Assets,  the Company is obligated to pay Michael  Wachholz a royalty equal to 7%
of all  revenues  generated  through the sale of GS610 brake  fluid.  Due to the
change in business from the motor sports  industry to the  manufacture  of light
weight building  panels,  the license was abandoned in accordance with Statement
of Financial  Accounting  Standard No. 144,  "Accounting  for the  Impairment or
Disposal of Long Lived  Assets." As a result no royalties were generated in 2009
or 2008.

LITIGATION

As of December 31, 2009 there was no  threatened or pending  litigation  against
the Company.

The Company issued  1,500,000 shares and 1,500,000 shares common stock valued at
$7,500 and $6,000 to former  director on January 21, 2008 and  February 25, 2008
respectively.   The  issuance  of  common  stock  to  her  was  to  resolve  the
non-litigated  dispute.  In addition,  the Company  also paid him  approximately
$10,000 to settle the dispute during the year ended December 31, 2008.

NOTE 13: STOCK OPTIONS AND WARRANTS

EMPLOYEE STOCK OPTIONS

The Company's  stock options  awarded to employees  contain a variable  exercise
price that is dependent  upon the market price of the Company's  common stock at
the date of exercise  and,  therefore,  are  accounted  for as variable  awards.
During the years ended December 31, 2009 and 2008, the Company did not recognize
any of  compensation  expense  associated with stock an option of which has been
reclassified to discontinue Operation.

As of December 31, 2009 and 2008 the Company had no stock options outstanding.

                                      F-26
<PAGE>
                 INTERNATIONAL BUILDING TECHNOLOGIES GROUP, INC.
                          (A DEVELOPMENT STAGE COMPANY)
                 Notes to the Consolidated Financial Statements
                           December 31, 2009 and 2008


The following chart  summarizes the Stock Options  activity of the Company as of
period ended December 31, 2009 and 2008.

                                                          Weighted Average
Date                                     Shares            Exercise Price
----                                     ------            --------------
Outstanding 12/31/2008                     --                    --
Granted                                    --                    --
Exercised                                  --                    --
Expired                                    --                    --
                                        -----                 -----
Outstanding at 12/31/2009                  --                    --
                                        =====                 =====

WARRANTS

The Company  issued  warrants in  connection  with the  promissory  notes signed
during the year ended December 31, 2007. Each warrant gives the holder the right
to subscribe to and purchase from the Company one share of the Company's  common
stock,  par value of $0.001,  exercisable at $0.25 per share any time after date
of issuance and is set to expire five years after date of  issuance.  There were
no warrants granted during year ended December 31, 2008 and 2009.

The fair value of each warrant award is estimated on the date of grant using the
Black-Scholes  option  valuation  model that uses the  assumptions  noted in the
following  table.  Expected  volatilities  are  based on  volatilities  from the
Company's  traded  common stock.  The expected  term of the warrants  granted is
estimated at the contractual term as noted in the individual  option  agreements
and represents  the period of time that the warrants  granted are expected to be
outstanding.  The risk-free rate for the periods within the contractual  life of
the  option  is based on the U.S.  Treasury  bond  rate in effect at the time of
grant for bonds with maturity dates at the estimated term of the options.

                                                      Year Ended
                                                   December 31, 2007
                                                   -----------------

Expected volatility                                211.36% - 332.74%
Weighted-average volatility                                   30.16%
Expected dividends                                 $             --
Expected term (in years)                                          5
Risk-free rate                                        3.4% -   4.76%

The following  table  summarizes the warrants the Company issued as of the years
ended December 31, 2008 and 2009:

<TABLE>
<CAPTION>
                                                                          Weighted-
                                                            Weighted-      Average
                                                             Average      Remaining     Aggregate
                                          Warrant           Exercise     Contractual    Intrinsic
Warrants                                   Shares             Price         Term          Value
--------                                   ------             -----         ----          -----
<S>                                      <C>                <C>                <C>      <C>
Outstanding at December 31, 2008         2,104,000            $0.25          5           $128,931
Exercisable at December 31, 2008         2,104,000            $0.25          5           $128,931
Outstanding at December 31, 2009         2,104,000            $0.25          5           $128,931
Exercisable at December 31, 2009         2,104,000            $0.25          5           $128,931
</TABLE>

                                      F-27
<PAGE>
                 INTERNATIONAL BUILDING TECHNOLOGIES GROUP, INC.
                          (A DEVELOPMENT STAGE COMPANY)
                 Notes to the Consolidated Financial Statements
                           December 31, 2009 and 2008


NOTE 14: SUBSEQUENT EVENTS

STOCK ISSUANCES

Management has reviewed  material  subsequent events in accordance with FASB ASC
855 "Subsequent Events". No additional disclosures required.

The Company  issued the  following  Common  Stocks  after the end of the quarter
ended December 31, 2009 and prior to the filing of these financial statements.

     *    The Company issued 88,000,000 shares of common stock valued at $12,320
          for repayment of debt in January 8, 2010.

     *    The  Company  issued  120,000,000  shares  of common  stock  valued at
          $13,080 for repayment of debt in January 19, 2010


                                      F-28