UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, D.C. 20549

                                    FORM 20-F
(Mark One)
[ ]    Registration Statement Pursuant to Section 12(b) or (g) of the Securities
       Exchange Act of 1934

                                       or

[X]    Annual  Report  Pursuant  to  Section  13 or  15(d)  of the  Securities
       Exchange Act of 1934 FOR THE FISCAL YEAR ENDED DECEMBER 31, 2004

                                       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: 0-28879

                 CHINA PHARMACEUTICALS INTERNATIONAL CORPORATION
             (Exact name of Registrant as specified in its charter)

                 CHINA PHARMACEUTICALS INTERNATIONAL CORPORATION
                 (Translation of Registrant's name into English)

                             BRITISH VIRGIN ISLANDS
                 (Jurisdiction of incorporation or organization)

                  UNIT 3611, 36/F, WEST TOWER, SHUN TAK CENTRE
                    168-200 CONNAUGHT ROAD CENTRAL, HONG KONG
                    (Address of principal executive offices)

 Securities registered or to be registered pursuant to Section 12(b) of the Act.
                                      NONE

               Securities registered or to be registered pursuant
                          to Section 12(g) of the Act.
                           COMMON STOCK, NO PAR VALUE
                                (Title of Class)

              Securities for which there is a reporting obligation
                     pursuant to Section 15(d) of the Act.
                                 NOT APPLICABLE
                                (Title of Class)

Indicate the number of  outstanding  shares of each of the  issuer's  classes of
capital  or common  stock as of the close of the  period  covered  by the annual
report.

                46,160,733 COMMON SHARES AS OF DECEMBER 31, 2004

Indicate by check mark whether the registrant (1) has filed all reports required
to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during
the  preceding 12 months (or for such  shorter  period that the  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 which financial statement item the registrant has elected
to follow.

[ ] Item 17      [X] Item 18



<PAGE>


GENERAL INFORMATION:

UNLESS OTHERWISE INDICATED, ALL REFERENCES HEREIN ARE TO US DOLLARS.

FORWARD LOOKING STATEMENTS

The Company cautions readers regarding  forward looking  statements found in the
following  discussion  and  elsewhere  in this  annual  report  and in any other
statement  made by, or on the  behalf of the  Company,  whether or not in future
filings  with  the  Securities  Exchange  Commission  ("SEC").  Forward  looking
statements are statements not based on historical  information  and which relate
to future  operations,  strategies,  financial  results  or other  developments.
Forward looking  statements are necessarily based upon estimates and assumptions
that are inherently  subject to significant  business,  economic and competitive
uncertainties and contingencies,  many of which are beyond the Company's control
and many of which,  with respect to future  business  decisions,  are subject to
change.  See "Item 3. Key Information - Risk Factors." These  uncertainties  and
contingencies can affect actual results and could cause actual results to differ
materially from those expressed in any forward looking  statements made by or on
behalf of the Company.  The Company  disclaims any  obligation to update forward
looking statements.


                                     PART I

ITEM 1.  IDENTITY OF DIRECTORS, SENIOR MANAGEMENT AND ADVISORS.
================================================================================

Not applicable.


ITEM 2.  OFFER STATISTICS AND EXPECTED TIMETABLE.
================================================================================

Not applicable.


ITEM 3.  KEY INFORMATION.
================================================================================

SELECTED FINANCIAL DATA

The selected financial data of the Company for the fifteen months ended December
31, 2004 and year ended  September 30, 2003,  was derived from the  consolidated
financial  statements  of the Company  which have been audited by  Bongiovanni &
Associates,  as indicated  in their  report which is included  elsewhere in this
report.  The selected financial data set forth for the years ended September 30,
2002, 2001 and 2000 is derived from the Company's audited consolidated financial
statements, not included herein.

The  information  in the following  table was  extracted  from the more detailed
consolidated  financial  statements and related notes included herein and should
be read in conjunction  with such financial  statements and with the information
appearing  under  the  heading  "Item 5.  Operating  and  Financial  Review  and
Prospects."

<TABLE>
<CAPTION>
----------------------------------------------------------------------------------------------------------------------
                                      FIFTEEN MONTHS                         YEAR ENDED SEPTEMBER 30,
                                         ENDED        ----------------------------------------------------------------
                                       DECEMBER 31,         2003            2002             2001             2000
                                          2004
----------------------------------------------------------------------------------------------------------------------
<S>                                  <C>              <C>             <C>              <C>              <C>
Revenues                             $           -    $   1,517,822   $   2,014,696    $   2,139,804    $     665,075
----------------------------------------------------------------------------------------------------------------------
Loss from operations                 $    (643,448)   $    (460,465)  $  (1,115,911)   $  (2,211,204)   $    (811,156)
----------------------------------------------------------------------------------------------------------------------
Loss from continuing
Operations                           $    (643,448)   $    (460,465)  $  (1,115,911)   $  (2,211,204)   $    (811,156)
----------------------------------------------------------------------------------------------------------------------
Net loss                             $    (643,448)   $    (460,465)  $  (1,115,911)   $  (2,211,204)   $    (811,156)
----------------------------------------------------------------------------------------------------------------------
Comprehensive loss                   $    (651,220)   $    (623,056)  $  (1,099,915)   $  (2,211,204)   $    (811,156)
----------------------------------------------------------------------------------------------------------------------
Net loss from per share              $       (0.02)   $       (0.98)  $       (4.22)   $       (8.94)   $     (294.17)
----------------------------------------------------------------------------------------------------------------------

                                       2
<PAGE>


<CAPTION>
----------------------------------------------------------------------------------------------------------------------
                                      FIFTEEN MONTHS                         YEAR ENDED SEPTEMBER 30,
                                         ENDED        ----------------------------------------------------------------
                                       DECEMBER 31,         2003            2002             2001             2000
                                          2004
----------------------------------------------------------------------------------------------------------------------
<S>                                  <C>              <C>             <C>              <C>              <C>
Total assets                         $       1,000    $     318,808   $     940,408    $   1,465,659    $   3,090,476
----------------------------------------------------------------------------------------------------------------------
Stockholders' equity (deficit)       $    (710,797)   $    (358,389)  $      37,714    $     954,621    $   2,814,075
----------------------------------------------------------------------------------------------------------------------
Weighted average number of
Shares                                  28,249,500          636,514         260,633          247,279            3,973
----------------------------------------------------------------------------------------------------------------------
Dividends per share                  $           -    $           -   $           -    $           -    $           -
----------------------------------------------------------------------------------------------------------------------
</TABLE>

RISK FACTORS

THE  COMPANY  HAS LIMITED  FINANCIAL  RESOURCES  AND IF THE COMPANY IS UNABLE TO
SECURE ADDITIONAL FUNDING AND/OR A BUSINESS OPPORTUNITY, THE COMPANY MAY FAIL.

As of December 31, 2004, the Company had no cash and a working  capital  deficit
of $710,797. It currently has no business operations. Without additional funding
and/or a business opportunity, the Company may not continue to exist.

IF THE  COMPANY  ISSUES  SHARES OR OPTIONS  TO ITS  OFFICERS,  DIRECTORS  OR KEY
EMPLOYEES,  OR IF THE COMPANY  OBTAINS  FUNDING  THROUGH THE SALE OF  ADDITIONAL
COMMON SHARES, THE SHAREHOLDERS WILL EXPERIENCE DILUTION.

The Company may in the future grant to some or all of its  directors,  officers,
insiders and key employees  options to purchase the  Company's  common shares as
non-cash incentives to those employees.  Such options may be granted at exercise
prices equal to market prices.  To the extent that  significant  numbers of such
options  may  be  granted  and   exercised,   the  interests  of  then  existing
shareholders of the Company will be subject to additional dilution.

The  Company is  currently  without a source of revenue  and will most likely be
required  to issue  additional  shares to finance its  operations  and acquire a
business opportunity. The issuance of additional shares will cause the Company's
existing shareholders to experience dilution of their ownership interests.

THE PRICE OF THE COMPANY'S  COMMON SHARES IS SUBJECT TO MARKET  FLUCTUATIONS AND
VOLATILITY  WHICH  MAY NOT BE  RELATED  TO THE  COMPANY'S  OPERATIONS  AND  SUCH
FLUCTUATIONS MAY IMPACT THE COMPANY'S ABILITY TO COMPLETE EQUITY FINANCINGS;  IF
THE COMPANY CANNOT COMPLETE ADDITIONAL EQUITY FINANCINGS,  IT MAY NOT BE ABLE TO
CONTINUE ITS OPERATIONS.

The trading  volume of the  Company's  stock is low,  thereby  making the market
price of the  stock  subject  to wide  fluctuations  in  price,  which  have not
necessarily been related to the operating  performance,  underlying asset values
or  prospects  of such  companies.  In  particular,  the per share  price of the
Company's common shares fluctuated from a low of $0.06 to a high of $3.90 during
the 12-month period ending June 30, 2005. Continued price fluctuations will have
a significant impact on the Company's ability to complete equity financings.

CONFLICTS  OF INTEREST  MAY ARISE AMONG THE  MEMBERS OF THE  COMPANY'S  BOARD OF
DIRECTORS AND SUCH CONFLICTS MAY CAUSE THE COMPANY TO ENTER INTO TRANSACTIONS ON
TERMS, WHICH ARE NOT BENEFICIAL TO THE COMPANY.

Several of the Company's directors are also directors,  officers or shareholders
of other  companies.  Some of the  directors  and  officers are engaged and will
continue to be engaged in the search for additional  business  opportunities  on
behalf of other corporations, and situations may arise where these directors and
officers will be in direct  competition with the Company.  Such associations may
give rise to conflicts of interest from time to time.  Such a conflict poses the
risk that the Company may enter into a transaction on terms that could place the
Company in a worse position than if no conflict existed. Conflicts, if any, will
be dealt with in accordance  with the relevant  provisions of the  INTERNATIONAL
BUSINESS  COMPANIES ACT (British Virgin  Islands).  The directors of the Company
are  required by law to act  honestly  and in good faith with a view to the best
interests of the Company and to disclose  any  interest  which they many have in
any project or opportunity of the Company.  However, each director has a similar
obligation to other  companies  for which such director  serves as an officer or
director.


                                       3
<PAGE>


THE COMPANY DOES NOT PAY DIVIDENDS ON ITS COMMON  SHARES;  THEREFORE,  INVESTORS
SEEKING DIVIDEND INCOME SHOULD NOT PURCHASE THE COMMON SHARES.

The Company has never  declared or paid cash  dividends on its common shares and
does  not  anticipate  doing so in the  foreseeable  future.  Additionally,  the
determination as to the declaration of dividends is within the discretion of the
Company's  Board of  Directors,  which may never  declare cash  dividends on the
Company's  common  stock.  Investors  cannot expect to receive a dividend on the
Company's common shares in the foreseeable future, if at all.

THE  COMPANY  IS  DEPENDENT  UPON  ITS  MANAGEMENT  AND  THE  LOSS OF ANY OF ITS
MANAGEMENT AND/OR IF THE COMPANY IS UNABLE TO RECRUIT ADDITIONAL  MANAGERS COULD
NEGATIVELY IMPACT THE COMPANY'S ABILITY TO CONTINUE ITS OPERATIONS.

The success of the  operations  and  activities of the Company is dependent to a
significant extent on the efforts and abilities of its key officers, Dr. FAN Di,
a director and the President and Chief Executive  Officer of the Company and Mr.
ZHOU Li Yang, a director and Chief Financial Officer of the Company. The loss of
services of either Dr. Fan or Mr. Zhou could have a material  adverse  effect on
the Company.  The Company has not obtained  key-man life insurance on any of its
officers  or  directors.  The  Company's  ability to recruit  and retain  highly
qualified management personnel is critical to its success; if it is unable to do
so this may materially affect the Company's financial performance.

THE  COMPANY'S  SHARES ARE  SUBJECT TO THE SEC'S PENNY  STOCK  RULES,  WHICH MAY
RESTRICT  THE  ABILITY  OF BROKERS TO SELL THE  COMPANY'S  COMMON  STOCK AND MAY
REDUCE THE SECONDARY MARKET FOR THE COMMON STOCK.

The SEC has adopted  rules that regulate  broker-dealer  practices in connection
with  transactions  in  "penny  stock."  Generally,   penny  stocks  are  equity
securities with a price of less than US $5.00 (other than securities  registered
on certain national securities exchanges or quoted on the NASDAQ system). If the
Company's  shares are traded  for less than US $5 per share,  as they  currently
are,  the shares will be subject to the SEC's  penny stock rules  unless (1) the
Company's net tangible  assets exceed US $5,000,000  during the Company's  first
three years of continuous  operations or US $2,000,000 after the Company's first
three years of continuous operations; or (2) the Company has had average revenue
of at least US  $6,000,000  for the last  three  years.  The penny  stock  rules
require a  broker-dealer,  prior to a transaction in a penny stock not otherwise
exempt  from the  rules,  to deliver a  standardized  risk  disclosure  document
prescribed  by the SEC that  provides  information  about  penny  stocks and the
nature and level of risks in the penny stock market. The broker-dealer also must
provide the customer with current bid and offer  quotations for the penny stock,
the compensation of the broker-dealer and its salesperson in the transaction and
monthly account  statements showing the market value of each penny stock held in
the customer's account. In addition, the penny stock rules require that prior to
a  transaction  in a penny  stock not  otherwise  exempt from those  rules,  the
broker-dealer must make a special written  determination that the penny stock is
a suitable  investment  for the  purchaser and receive the  purchaser's  written
agreement to the transaction. These requirements may have the effect of reducing
the level of trading  activity in the secondary  market for a stock that becomes
subject to the penny stock rules. Since the Company's shares are traded for less
than US $5.00 per  share,  the  Company's  common  stock is subject to the penny
stock rules. Therefore, the holders of the common stock may find it difficult to
sell the common  stock of the  Company.  These rules may restrict the ability of
brokers to sell the common  stock and may  reduce the  secondary  market for the
common stock. A limited  secondary  market may result in a decrease in the value
of the shares and/or a partial or total loss of an investor's investment.

THIS ANNUAL REPORT CONTAINS  STATEMENTS ABOUT FUTURE EVENTS AND RESULTS THAT MAY
NOT BE ACCURATE.

Statements  contained in this annual  report that are not  historical  facts are
forward-looking statements that involve risks and uncertainties. Such statements
may not prove to be accurate as actual  results and future  events  could differ
materially from those anticipated in such statements.

INVESTORS  IN THE  UNITED  STATES  MAY  NOT  BE  ABLE  TO  ENFORCE  THEIR  CIVIL
LIABILITIES AGAINST THE COMPANY OR ITS DIRECTORS AND OFFICERS.

It may be difficult to bring and enforce suits against the Company.  The Company
is a  corporation  domiciled in British  Virgin  Islands.  None of the Company's
directors  and  officers  are  residents  of the  United  States,  and  all or a
substantial portion of their assets are located outside of the United States. As
a result, it may be difficult for U.S. holders of the Company's common shares to
effect  service  of  process on these  persons  within  the United  States or to
enforce

                                       4

<PAGE>

judgments  obtained in the U.S. based on the civil  liability  provisions of the
U.S. federal  securities laws against the Company or its officers and directors.
In addition,  a shareholder should not assume that the courts outside the United
States (i) would enforce  judgments of U.S.  courts  obtained in actions against
the  Company,  its  officers or directors  predicated  upon the civil  liability
provisions  of the U.S.  federal  securities  laws or other  laws of the  United
States,  or (ii) would enforce,  in original  actions,  liabilities  against the
Company,  its officers or directors  predicated upon the U.S. federal securities
laws or other laws of the United States.


ITEM 4.  INFORMATION ON THE COMPANY.
================================================================================

HISTORY AND DEVELOPMENT OF THE COMPANY

The Company was  incorporated  in the State of Colorado on June 17, 1996,  under
the name Minas Novas Gold Corp., to engage in mining operations.  From inception
to  January  1999,  the  Company  obtained  options to  acquire  various  mining
properties. On January 29, 1999, the Company abandoned all mining operations and
proceeded  to acquire all of the issued and  outstanding  capital  stock of Cool
Entertainment, Inc., a Washington corporation, in exchange solely for 65% of its
outstanding  common stock.  The  acquisition of the Washington  corporation  was
completed  March 1, 1999, and effective  February 22, 1999, the Company  changed
its name to Cool Entertainment, Inc.

From March 1, 1999 to November  2000,  the  Company was able to generate  only a
minimal amount of revenues. Realizing that it was undercapitalized and unable to
market  its  services  properly,  the  Company  searched  for  another  business
opportunity.  On February 21, 2001,  the Company  acquired all of the issued and
outstanding capital stock of E-Trend Networks,  Inc., a Nevada  corporation,  in
exchange solely for  approximately  92% of its common stock. The Company changed
its name to E-Trend  Networks,  Inc.,  changed  its  domicile to  Delaware,  and
effected a  1-for-100  reverse  split of its issued  and  outstanding  shares of
common  stock.  On December 26, 2001,  an  agreement  was reached  whereby a new
organization  and  management  team led by  eAngels  Equity,  LLC would  acquire
controlling  interest in E-Trend Networks,  Inc. Effective February 19, 2002,the
Company  changed  its name to  Wilmington  Rexford,  Inc.  Prior  to the  fourth
calendar  quarter  of 2003,  the  Company  operated  an  online  retail  website
www.EntertainMe.com  and through its  fulfillment and  distribution  subsidiary,
Langara Entertainment,  it offered distribution and fulfillment services to both
traditional retail and online merchants.

In October  2003,  the Company  entered  into  agreements  to exchange  its 100%
ownership in Langara Entertainment, Inc. and EntertainMe.com for a equity stakes
in Langara Group, Inc. and Fly.com, Inc.

On February 13, 2004, the Company entered into an agreement with China Merchants
DiChain Investment Holdings Limited, pursuant to which the Company spun out as a
dividend  to  the  shareholders  on  a  1  for  1  share  basis  shares  of  its
wholly-subsidiary,  E-Trend  Networks,  Inc.  The  agreement  provided  for  the
acquisition of a company to be identified by China Merchants DiChain  Investment
Holdings Limited and a 1-for-20 reverse stock split. The reverse stock split and
the  change of the  Company's  name to China  Pharmaceuticals  Corporation  were
effected March 25, 2004.

On May 24,  2004,  the  Company  closed its  acquisition  of 87.475% of Zhejiang
University Pharmaceutical Co., Ltd., a Sino-foreign equity joint venture ("Zheda
Pharmacy"),  pursuant to the terms of an agreement dated as of May 24, 2004 with
the owners of Sheung Tai  Investments  Limited.  The Company  issued  13,848,220
shares of its common stock to the owners of Sheung Tai  Investments  Limited for
100% ownership of that entity.  Sheung Tai  Investments  Limited owns 87.475% of
Zheda Pharmacy.

Also on May 24, 2004, the Company issued  31,151,780  shares to China  Merchants
DiChain Investment Holdings Limited and its designees for approximately $290,000
in debt conversion and assumption of costs of the transaction.

Shortly  after the  acquisition  of Zheda  Pharmacy,  the Company  realized that
management of Sheung Tai Investments  refused to turn over day-to-day control of
the  operations of Zheda  Pharmacy to  management  of the Company.  The disputes
between  management  of the  Company  and  management  of Sheung Tai  Investment
resulted in litigation and



                                       5

<PAGE>

protracted negotiations. In January 2005, the Company relinquished its ownership
of Sheung Tai  Investments  (and therefore  Zheda  Pharmacy) in exchange for the
13,848,220  shares of the Company's common stock that originally had been issued
to the owners of Sheung Tai Investments.

Effective  August 26,  2004,  the Company  changed  its  domicile to the British
Virgin Islands and its name to China Pharmaceuticals  International Corporation.
It is governed by the  International  Business  Companies  Act, Cap. 291, of the
Territory of the British Virgin Islands.

The Company's registered agent is Equity Trust (BVI) Limited,  Palm Grove House,
P.O. Box 438, Road Town, Tortola, British Virgin Islands. Its principal business
office is located at Unit 3611,  36/F,  West  Tower,  Shun Tak  Centre,  168-200
Connaught Road Central,  Hong Kong. The telephone  number is (852) 2255 0688 and
the facsimile  number is (852) 2851 3660. The Company does not have a registered
agent in the United States.


BUSINESS OVERVIEW

For the financial years ended September 30, 2002 and 2003, the Company  operated
an online entertainment media retail website www.EntertainMe.com and through its
fulfillment  and  distribution  subsidiary,  Langara  Entertainment,  it offered
distribution  and  fulfillment  services to both  traditional  retail and online
merchants.  The Company has not engaged in  business  activities  since  October
2003.

ORGANIZATIONAL STRUCTURE

As of the date of this annual report, the Company has no subsidiaries.

PROPERTY, PLANTS AND EQUIPMENT

The Company's  corporate office is located at Unit 3611, 36/F, West Tower,  Shun
Tak Centre,  168-200  Connaught Road Central,  Hong Kong. The Company shares the
offices of China Merchants  DiChain and is allocated  HK$10,000  (US$1,287 as of
August 15, 2005) as its pro rata share of the cost of the facility.


ITEM 5.  OPERATING AND FINANCIAL REVIEW AND PROSPECTS.
================================================================================

The  following  discussion  of the results of  operations of the Company for the
fifteen months ended December 31, 2004 and year ended  September 30, 2003 should
be read in conjunction with the consolidated financial statements of the Company
and related notes included therein.

From  February  21,  2001 to  October  2003,  the  Company  operated  an  online
entertainment   media  retail  website   www.EntertainMe.com   and  through  its
fulfillment  and  distribution   subsidiary,   Langara  Entertainment,   offered
distribution  and  fulfillment  services to both  traditional  retail and online
merchants.  In October 2003, the Company entered into agreements to exchange its
100% ownership in Langara  Entertainment,  Inc. and EntertainMe.com for a equity
stakes in Langara Group, Inc. and Fly.com, Inc.

On February 13, 2004, the Company entered into an agreement with China Merchants
DiChain Investment Holdings Limited, pursuant to which the Company spun out as a
dividend  to  the  shareholders  on  a  1  for  1  share  basis  shares  of  its
wholly-subsidiary,  E-Trend  Networks,  Inc.  The  agreement  provided  for  the
acquisition of a company to be identified by China Merchants DiChain  Investment
Holdings Limited and a 1-for-20 reverse stock split. The reverse stock split and
the  change of the  Company's  name to China  Pharmaceuticals  Corporation  were
effected March 25, 2004.

On February 20, 2004, the Company changed its fiscal year end to December 31.


                                       6
<PAGE>


OPERATING RESULTS

FIFTEEN MONTHS ENDED DECEMBER 31, 2004 COMPARED TO YEAR ENDED SEPTEMBER 30, 2003

Due to the  disposal  of Langara  Entertainment,  Inc.  and  EntertainMe.com  in
October  2003,  the  Company  did not have any  business  operations  during the
fifteen  months  ended  December  31,  2004.  Despite the  disposition  of these
business  operations,  the Company continued to incur general and administrative
expenses to maintain the  Company's  existence  as a reporting  company with the
Securities  and  Exchange  Commission  whose stock is traded on the OTC Bulletin
Board.  In  addition,  legal  expenses  were  incurred  in  connection  with the
acquisition and subsequent  disposition of Sheung Tai Investments,  as described
in  "Item 4.  Information  on the  Company  -  History  and  Development  of the
Company."

YEAR ENDED SEPTEMBER 30, 2003 COMPARED TO YEAR ENDED SEPTEMBER 30, 2002

The  Company  experienced  a nominal  decrease  in  revenues  for the year ended
September  30,  2003 as  compared  to  previous  fiscal  year.  The  decrease is
primarily due to decreased unit sales of the Company's  EntertainMe.com website.
The  decrease,  both as a percentage  of revenues and in absolute  dollars,  was
primarily  attributable to the reduction of the Company's  advertising  campaign
consistent with cost cutting  initiatives  implemented  during earlier  periods.
Sales for the 2003 fiscal year were  $1,517,822,  compared to $2,014,696 for the
2002 fiscal year.

Gross profit was $345,232 and $364,767 for the twelve months ended September 30,
2003 and 2002,  respectively,  representing  a decrease  of 5.3%.  Gross  margin
increased to 22.7% from 18.1% for the year ended  September 30, 2003 as compared
to the  previous  fiscal year.  The  decrease in the  absolute  dollars of gross
profit  for the  twelve-month  period  corresponds  with the  decrease  in sales
revenue  but  the   increase  in  gross  margin  is  due  to   improvements   in
transportation and inventory management,  improved product sourcing,  suspension
of the Company's discount reward program,  as well as increased product sales of
VHS movies and DVD videos,  through the EntertainMe.com  website,  which carry a
higher gross profit margin.

Operating  expenses  decreased  to  $757,189  for  the  2003  fiscal  year  from
$1,247,727 for the 2002 fiscal year,  representing  49.8% and 61.9% of net sales
for the corresponding periods,  respectively. The decline in absolute dollars of
operating  expenses for the twelve month period  corresponds  with the Company's
operational  restructuring plan, which reduced the number of headcount positions
in finance and  administration  within the Company, a reduction in its marketing
budget,   website   development    expenditures,    technology   and   operating
infrastructure expenditures

Net losses were $460,465 and  $1,115,911  for the twelve months ended  September
30, 2003 and 2002,  respectively,  a decrease of 58.7%.  The  improvement in net
loss in  comparison  with the prior year was  primarily  due to increases in the
Company's  gross  profit  margin,  and  decline in  marketing,  technology,  and
administrative-related  expenditures.  In  addition  to the net loss of $460,465
there was also a one time write down of Goodwill  amounting to additional losses
of $135,638  and a foreign  currency  translation  adjustment  of  $26,953.  The
Company's total comprehensive loss was $623,056 or $0.05 per share.

Although  the  Company  incurred  significant  losses  prior  to  the  Company's
announced   strategic  shift  in  business  model,   the  Company   initiated  a
restructuring  plan in December  2001,  instigated by the new  management  team,
which  encompassed a series of  cost-cutting  initiatives.  Consistent  with its
plan, the Company intended to reduce its marketing budget, its discount program,
web site  development  activities,  and technology and operating  infrastructure
development.  Furthermore,  a series of  operating  expenses  pertaining  to the
Company's new business model and  associated  costs have been accounted for, and
expensed during the current year.

LIQUIDITY AND CAPITAL RESOURCES

At December 31, 2004,  the Company had no cash, as compared to $526 at September
30, 2003. The Company used cash of $359,976 for operating  activities.  Cash was
provided by advances  from related  parties in the same amount.  In  comparison,
operating  activities provided cash of $212,250 for the year ended September 30,
2003 and $235,827 was used to repay a note payable owed to a stockholder.


                                       7
<PAGE>


The Company also anticipates spending  approximately $140,000 during fiscal 2005
for  administrative  and  other  operating  expenditures.  It will  depend  upon
advances from related parties to fund these expenditures.

The Company  does not have any loans or bank debt and there are no  restrictions
on the use of its cash resources.

There are no material commitments for capital expenditures during fiscal 2005.

Other than the intercompany  advances from China Technology  Global  Corporation
and  China  Merchants  DiChain  (Asia)  Limited,  which  have  been  made  on an
interest-free basis, with no fixed term or repayment date, there is no debt owed
by the Company.

TREND INFORMATION

The Company is not aware of any trends that might affect its  financial  results
or business.

OFF BALANCE SHEET ARRANGEMENTS

The Company does not have any material off balance sheet  arrangements that have
or are  reasonably  likely to have a current or future  effect on the  Company's
financial  condition,  changes in  financial  condition,  revenues or  expenses,
results of operations, liquidity, capital expenditures or capital resources.

CONTRACTUAL OBLIGATIONS

The Company does not have any contractual obligations.


ITEM 6.  DIRECTORS, SENIOR MANAGEMENT AND EMPLOYEES.
================================================================================

DIRECTORS AND SENIOR MANAGEMENT

The names,  positions held with the Company and terms of office of each director
and officer of the Company as of the date of this annual report, are as follows:

<TABLE>
<CAPTION>
NAME                                  POSITION WITH THE COMPANY                  TERM OF OFFICE (FOR EACH OFFICE HELD)
----                                  -------------------------                  -------------------------------------
<S>                                   <C>                                        <C>
FAN Di                                President, Chief Executive Officer         July 2004 to present
                                      Director                                   February 2004 to present

ZHOU Li Yang                          Chief Financial Officer                    August 2005 to present
                                      Director                                   October 2004 to present

YU Wai Kit                            Corporate Secretary                        November 2004 to present
</TABLE>

Each officer's and director's  term of office shall expire at the Company's next
annual general meeting. The Company does not have an executive committee,  audit
committee, or a compensation committee.

There are no family relationships between any directors or executive officers of
the Company. To the best of the Company's  knowledge,  there are no arrangements
or understandings  with major  shareholders or others,  pursuant to which any of
the  Company's  officers or directors  was selected as an officer or director of
the Company.

Set forth  below are  brief  descriptions  of  recent  employment  and  business
experience  of the  Company's  officers  and  directors,  each of whom devote on
average approximately 15 hours per week to the business of the Company.

DR. FAN DI

Since July 2004, Dr. Fan has served as the Company's President,  Chief Executive
Officer and a Director. Dr. Fan is


                                       8
<PAGE>

responsible  for overseeing  the Company's  strategic  development.  Since April
2003,  Dr.  Fan has  served as the  Chairman,  Chief  Executive  Officer  and an
Executive  Director of China  Technology  Global  Corporation,  a British Virgin
Islands  corporation  whose  stock  is  traded  on the OTC  Bulletin  Board  and
registered under the Securities  Exchange Act of 1934. Since April 2002, Dr. Fan
has  served as the  Chairman  and Chief  Executive  Officer  of China  Merchants
DiChain  (Asia)  Limited,  a company  listed on the Stock Exchange of Hong Kong,
Limited.  From December  1999 to April 2002, he served as an Executive  Director
and Chief Financial  Officer of China Merchants  Group.  Dr. Fan has substantial
experience in financial management and business management.  He holds a Ph.D. in
Business Administration from the Southern University of California.

MR. ZHOU LI YANG

Since  October  2004,  Mr.  Zhou has served as a Director of the Company and Mr.
Zhou was  appointed as the  Company's  Chief  Financial  Officer in August 2005.
Since  February  2002,  Mr. Zhou has worked for China  Merchants  DiChain group,
which is the ultimate  controlling  shareholder  of the Company.  Since February
2004, Mr. Zhou has served as an Executive  Directors of China Technology  Global
Corporation.  Since September 2004, Mr. Zhou has served as the Managing Director
of China  Merchants  DiChain  (Asia)  Limited,  a  company  listed  on the Stock
Exchange of Hong Kong,  engaging in the business of logistics.  From May 2000 to
August 2001,  Mr. Zhou served as the Investment  Manager of Tianjin  Development
Holdings Ltd., a window company of Tianjin government in Hong Kong listed on the
Stock Exchange of Hong Kong with businesses in manufacturing  and selling winery
and beverage  products and elevator and  investment  and  operation of container
terminal,  highway and gas supply in China.  From February 1995 to October 1999,
Mr. Zhou served as an Assistant  Manager to Ka Wah Capital  Ltd.,  an investment
banking arm of CITIC Kawah Bank, which is a bank listed on the Stock Exchange of
Hong  Kong.  Mr.  Zhou  has  substantial  experience  in  management  of  listed
companies, mergers and acquisitions, direct investment and corporate finance. He
obtained a Bachelor degree in Physics from Central-South University, China and a
Master of Science degree in Business/Finance from the University of Baltimore in
the United States.

MR. YU WAI KIT

Since November 2004, Mr. Yu has served as the Secretary.  Mr. Yu has also served
as the secretary of China Technology Global Corporation since November 2004. Mr.
Yu is currently the  Secretary of China  Merchants  DiChain  (Asia)  Limited,  a
holding  company listed on the Stock Exchange of Hong Kong,  Limited.  From July
2002 to August  2004,  Mr. Yu served as the  Financial  Controller  and  Company
Secretary of Matsunichi  Communication  Holdings Limited,  an investment holding
company listed on the Stock Exchange of Hong Kong,  Limited.  From April 1997 to
June 2002, Mr. Yu served as the Group Chief  Accountant of  Continental  Jewelry
(MFG.)  Limited,  a company listed on the Stock Exchange of Hong Kong,  Limited.
Mr. Yu is  currently  a member of  Australian  Society of  Certified  Practising
Accountants and a member of Hong Kong Institute of Certified Public Accountants.

COMPENSATION

During the fiscal year ended  December 31, 2004,  the  directors and officers of
the Company,  as a group, had received or charged the Company a total of $31,410
for services  rendered by the directors  and officers or companies  owned by the
individuals.  No amounts  were set aside or  accrued  by the  Company to provide
pension, retirement or similar benefits.

EMPLOYEES

As at December 31, 2004,  the Company had no full-time  employees in the area of
management and administration.

SHARE OWNERSHIP

The following table sets forth certain  information  regarding  ownership of the
Company's common shares by the Company's officers and directors as of August 15,
2005.


                                       9
<PAGE>

<TABLE>
<CAPTION>
                                                             SHARES AND RIGHTS BENEFICIALLY
TITLE OF CLASS        NAME AND ADDRESS OF OWNER                  OWNED OR CONTROLLED (1)<F1>    PERCENT OF CLASS (1)<F1>
<S>                   <C>                                              <C>                             <C>

Common Stock          FAN Di (2)<F2>                                   20,772,330                      64.3%
                      Unit 3611, 36/F, West Tower, Shun Tak
                      Centre, 168-200 Connaught Road
                      Central, Hong Kong

Common Stock          ZHOU Li Yang                                          0                           0%

Common Stock          YU Wai Kit                                            0                           0%

----------------------
<FN>
(1)<F1>  Where persons listed on this table have the right to obtain  additional
         shares of common stock through the exercise of  outstanding  options or
         warrants within 60 days from August 15, 2005, these  additional  shares
         are  deemed  to  be  outstanding  for  the  purpose  of  computing  the
         percentage of common stock owned by such persons, but are not deemed to
         be outstanding for the purpose of computing the percentage owned by any
         other person. Based on 32,312,513 shares of common stock outstanding as
         of August 15, 2005.

(2)<F2>  These shares are held of record by China Merchants  DiChain  Investment
         Holdings  Limited.  As Dr. FAN is a director of China Merchants DiChain
         Investment  Holdings  Limited  and a director  of the sole  controlling
         shareholder of China Merchants DiChain Investment  Holdings Limited, he
         is deemed to be beneficial owner of these shares.
</FN>
</TABLE>


ITEM 7.  MAJOR SHAREHOLDERS AND RELATED PARTY TRANSACTIONS.
================================================================================

PRINCIPAL HOLDERS OF VOTING SECURITIES

The following table sets forth certain  information  regarding  ownership of the
Company's common shares by the beneficial  owners of 5% or more of each class of
the Company's voting securities as of August 15, 2005.

<TABLE>
<CAPTION>
                                                              SHARES AND RIGHTS BENEFICIALLY
  TITLE OF CLASS          NAME AND ADDRESS OF OWNER             OWNED OR CONTROLLED (1)<F1>     PERCENT OF CLASS (1)<F1>
<S>                   <C>                                              <C>                           <C>
Common Stock          China Merchants DiChain Investment               20,772,330                    64.3%
                      Holdings Limited (2)<F2>
                      Unit 3611, 36/F, West Tower, Shun Tak
                      Centre, 168-200 Connaught Road
                      Central, Hong Kong

Common Stock          Dr. FAN Di (2)<F2>                               20,772,330                    64.3%
                      Unit 3611, 36/F, West Tower, Shun Tak
                      Centre, 168-200 Connaught Road
                      Central, Hong Kong

Common Stock          Gush Intelligence Limited                         2,000,000                    6.2%
                      C/o 16/F Chinese Bank Bldg.
                      61 Des Veoux Road
                      Central, Hong Kong

Common Stock          Poly Crown Limited                                1,929,450                    6.0%
                      C/o 16/F Chinese Bank Bldg.
                      61 Des Veoux Road
                      Central, Hong Kong
-------------------
<FN>
(1)<F1>  Where persons listed on this table have the right to obtain  additional
         shares of common stock through the exercise of  outstanding  options or
         warrants within 60 days from August 15, 2005, these  additional  shares
         are  deemed  to  be  outstanding  for  the  purpose  of  computing  the
         percentage of common stock owned by such persons, but are not deemed to
         be outstanding for

                                       10
<PAGE>
         the purpose of  computing  the  percentage  owned by any other  person.
         Based on 32,312,513 shares of common stock outstanding as of August 15,
         2005.

(2)<F2>  These shares are held of record by China Merchants  DiChain  Investment
         Holdings  Limited.  As Dr. FAN is a director of China Merchants DiChain
         Investment  Holdings  Limited  and a director  of the sole  controlling
         shareholder of China Merchants DiChain Investment  Holdings Limited, he
         is deemed to be beneficial owner of these shares.
</FN>
</TABLE>

CONTROL BY FOREIGN GOVERNMENT OR OTHER PERSONS

As of August  15,  2005,  the  Company  was 64.3%  indirectly  owned by  DiChain
Holdings Limited, a investment holding company located in Hong Kong.

None of the Company's  common  shareholders has different voting rights than any
of the Company's other common shareholders.

CHANGES IN SHAREHOLDINGS

China Merchants DiChain  Investment  Holdings Limited acquired its shares in May
2004. Prior to that date, it did not own any shares of the Company.

CHANGE OF CONTROL

As of the date of this annual  report,  there are no  arrangements  known to the
Company  that may at a  subsequent  date  result in a change of  control  of the
Company.

UNITED STATES SHAREHOLDERS

As of August 15, 2005, there were 75 registered  holders of the Company's common
shares  in  the  United  States,  with  combined  holdings  of  456,857  shares,
representing  1.4% of the issued shares of the Company.  In addition,  CEDE & Co
held 4,119,346 shares of record,  representing 12.7% of the issued shares of the
Company.  The Company does not know how many  beneficial  shareholders it has in
the  United  States,  but  management  believes  there  are  less  than 300 such
shareholders.

RELATED PARTY TRANSACTIONS

Other than as  disclosed  below,  for the period  from  October 1, 2003  through
December 31, 2004,  the Company has not entered into any  transactions  or loans
between the Company and any (a) enterprises that directly or indirectly  through
one or more  intermediaries,  control or are  controlled by, or are under common
control with, the Company; (b) associates;  (c) individuals owning,  directly or
indirectly,  an  interest  in the voting  power of the  Company  that gives them
significant   influence  over  the  Company,  and  close  members  of  any  such
individuals'  family;  (d) key  management  personnel  and close members of such
individuals' families; or (e) enterprises in which a substantial interest in the
voting power is owned, directly or indirectly, by any person described in (c) or
(d) or over which such a person is able to exercise significant influence.

The Company's  corporate office is located at Unit 3611, 36/F, West Tower,  Shun
Tak Centre,  168-200  Connaught Road Central,  Hong Kong. The Company shares the
offices of China Merchants  DiChain and is allocated  HK$10,000  (US$1,287 as of
August 15, 2005) as its pro rata share of the cost of the facility.  There is no
written agreement regarding this office sharing arrangement.

China  Technology  Global  Corporation,  a company  indirectly  owned by DiChain
Holdings  Limited,  and China  Merchants  DiChain  (Asia)  Limited have advanced
$203,273 and $89,059 to the Company, respectively,  since October 1, 2003. These
advances  have  been  made on an  interest-free  basis,  with no  fixed  term or
repayment date.

INDEBTEDNESS OF DIRECTORS, OFFICERS, PROMOTERS AND OTHER MANAGEMENT

No executive  officers,  directors,  employees or former executive  officers and
directors  of the Company are indebted to


                                       11
<PAGE>

the Company.  None of the directors,  executive officers or proposed nominees of
the Company, nor any associate or affiliate of these individuals, is or has been
indebted to the Company since October 1, 2003.


ITEM 8.  FINANCIAL INFORMATION.
================================================================================

CONSOLIDATED STATEMENTS AND OTHER FINANCIAL INFORMATION

DESCRIPTION                                                            PAGE

Audited Financial Statements for the Fifteen Months Ended
December 31, 2004, and the Year Ended September 30, 2003             F-1 to F-16


LEGAL PROCEEDINGS

The  Company  knows of no  material,  active  or  pending  legal or  arbitration
proceedings  against  it; nor is the  Company  involved  as a  plaintiff  in any
material  proceeding or pending  litigation.  There are no legal or  arbitration
proceedings  (including   governmental   proceedings  pending  or  known  to  be
contemplated)  which  may  have,  or have had in the  recent  past,  significant
effects on the Company's financial position or profitability.

DIVIDEND POLICY

The Company has not paid any  dividends on its common shares and does not intend
to pay dividends on its common shares in the immediate  future.  Any decision to
pay  dividends  on its common  shares in the future will be made by the board of
directors on the Company on the basis of earnings,  financial  requirements  and
other such conditions that may exist at that time.

SIGNIFICANT CHANGES

None.


ITEM 9.  THE OFFER AND LISTING.
================================================================================

PRICE HISTORY

The  common  stock  has been  trading  on the  Over-The-Counter  Bulletin  Board
("OTCBB") since June 9, 1998 under the following symbols:

     o   MNGD  - June 9, 1998 to March 1, 1999;
     o   CULE  - March 1, 1999 to February  22, 2001;
     o   ETDN  - February  22, 2001 to February  19,  2002;
     o   WREX  - February 19, 2002 to March 25, 2004;
     o   CPCL  - March 25, 2004 to August 26, 2004;  and
     o   CPICF - since August 26, 2004.

There  have  been no  trading  suspensions  imposed  by the  OTCBB or any  other
regulatory authorities in the past three years.

The following table sets forth the market price ranges and the aggregate  volume
of trading of the common  shares of the  Company on the OTCBB,  and  predecessor
exchanges, for the periods indicated:


                                       12

<PAGE>

                          OTCBB STOCK TRADING ACTIVITY

                                                              SALES PRICE

YEAR ENDED                        VOLUME                  HIGH            LOW

December 31, 2004               4,633,887                $8.95         $0.0265
September 30, 2003*               936,022                $0.149         $0.02
September 30, 2002              3,645,100                $1.02          $0.10
September 30, 2001              6,107,200                $2.50          $0.02
September 30, 2000             40,835,000               $1.8438         $0.08
------------------
* Fifteen-months ended September 30, 2003

                                                              SALES PRICE

QUARTER ENDED                     VOLUME                  HIGH            LOW

June 30, 2005                     754,155                $0.15          $0.055
March 31, 2005                  1,576,396                $0.60          $0.10
December 31, 2004                 318,371                $3.90          $0.40
September 30, 2004                 57,303                $3.25          $1.27
June 30, 2004                      66,522                $6.75          $2.00
March 31, 2004                  4,191,691                $8.95          $0.0265
December 31, 2003                  36,422                $0.03          $0.025
September 30, 2003                 56,100                $0.05          $0.03
June 30, 2003                     195,700                $0.11          $0.026
March 31, 2003                    159,600                $0.04          $0.03
December 31, 2002                 488,200               $0.149          $0.02
September 30, 2002              1,019,300                $0.29          $0.10

                                                              SALES PRICE

MONTH ENDED                       VOLUME                  HIGH            LOW

June 30, 2005                     161,202               $0.095          $0.06
May 31, 2005                      148,700                $0.09          $0.055
April 30, 2005                    444,253                $0.15          $0.06
March 31, 2005                    287,294                $0.23          $0.13
February 28, 2005                 432,180                $0.25          $0.155
January 31, 2005                  856,922                $0.60          $0.10
December 31, 2004                 178,523                $1.40          $0.40
November 30, 2004                 118,163                $2.25          $1.30
October 31, 2004                   21,685                $3.90          $2.25
September 30, 2004                 24,850                $2.85          $1.27
August 31, 2004                     8,643                $1.95          $1.27
July 31, 2004                      23,810                $3.25          $1.90

These above  quotations  reflect  inter-dealer  prices without  retail  mark-up,
markdown, or commissions and may not necessarily represent actual transactions.


ITEM 10.  ADDITIONAL INFORMATION.
================================================================================

MEMORANDUM AND ARTICLES OF ASSOCIATION

The Company is incorporated in the Territory of the British Virgin Islands under
the  International  Business  Companies  Act,  Cap.  291,  IBC No.  569163.  The
Company's  objects  and  purposes,  found in  paragraph 4 of the  Memorandum  of


                                       13
<PAGE>

Association,  are  general in nature  and  permit  the  Company to engage in any
business,  acts, or activities  which are not  prohibited  under any law for the
time being in force in the British Virgin Islands.

There are no provisions in the Company's  Articles of  Association  that limit a
director's  power to vote on a matter in which he is materially  interested,  to
vote  compensation  to  himself  or any  other  director  in the  absence  of an
independent  quorum, or to vote on matters regarding  borrowings by the Company.
There  are no  retirement  age  requirements,  and  there  are  no  shareholding
requirements to qualify as a director.

The  Company  has only one class of stock:  ordinary  (or  common)  shares.  The
holders of ordinary shares do not have dividend rights, are entitled to one vote
for each share held of record on all matters submitted to the  stockholders,  do
not have rights to share in the Company's  profits,  have rights to share in any
surplus in the event of  liquidation,  do not have  redemption  or sinking  fund
provisions,  are not liable to further capital calls by the Company, and are not
subject to any  provisions  discriminating  against any existing or  prospective
holder of such securities as a result of such  shareholder  owning a substantial
number of shares.

In order to change the rights of  holders of any class of the  Company's  stock,
the  Memorandum  of  Association  must  be  amended  by a  majority  vote of the
Company's shareholders and of the holders of any class of stock whose rights are
changed.

Annual or  special  meetings  of the  Company's  shareholders  are called by the
directors  at any time or place of their  choosing  and must be called  upon the
written  request  of  shareholders  holding  ten  percent  (10%)  or more of the
outstanding  shares of the Company's common stock. At least seven days notice of
a  shareholders'  meeting must be given.  A shareholder  may be represented at a
meeting by a proxy who may speak and vote on behalf of the shareholder.

There are no  limitations  on the rights to own the Company's  securities or the
rights of  non-residents  or foreign  shareholders  to hold or  exercise  voting
rights on the  securities  imposed by foreign law or the  Company's  constituent
documents.

There are no provisions in the Company's  Memorandum or Articles of  Association
that would  have an effect on  delaying,  deferring  or  preventing  a change in
control of the Company  and that would  operate  only with  respect to a merger,
acquisition  or  corporate  restructuring  involving  the  Company or any of its
subsidiaries.

There are no provisions in the Company's  Articles of  Association  governing an
ownership threshold above which shareholder ownership must be disclosed.

With regard to the foregoing matters, the laws in the British Virgin Islands are
not significantly different than those in the United States.

There are no conditions in the Memorandum and Articles of Association  governing
changes  in the  Company's  capital  or  changes in the rights of holders of any
class of its stock that are more stringent than is required by law.

MATERIAL CONTRACTS

The following are material  contracts entered into by the Company during the two
years preceding the date of this annual report:

1.       Share  Exchange  Agreement  with Langara  Group,  Inc. dated October 6,
         2003,  relating  to the  sale of  Langara  Entertainment,  Inc.  by the
         Company  for 25% of the then  issued and  outstanding  stock of Langara
         Group, Inc.

2.       Share  Exchange  Agreement  with Fly.com,  Inc.  dated October 1, 2003,
         relating to the sale of  EntertainMe.com,  an e-commerce  portal by the
         Company for 250,000 preferred shares of Fly.com, Inc..

3.       Share  Exchange  Agreement  with  China  Merchants  DiChain  Investment
         Holdings  Limited dated February 13, 2004,  relating to the acquisition
         of 100% of a company to be approved by the Company's board of directors
         in exchange for 45,000,000  post-reverse  split shares of the Company's
         common stock.


                                       14
<PAGE>


4.       Sale and  Purchase  Agreement  in relation to the entire  issued  share
         capital of Sheung Tai  Investments  Limited  dated May 24, 2004,  which
         provided for the acquisition of Sheung Tai  Investments  Limited by the
         Company in exchange  for  13,848,220  post-reverse  split shares of the
         Company's common stock.

5.       Agreement  Dated  January 19, 2005  Between  Good  Achieve  Investments
         Limited,  Profit Spring International  Limited,  Anmer Capital Limited,
         Dunkley International Limited, and Nation Express Limited (As Vendors);
         Han Hong Lu, Ma Leung,  Alan Li,  Chen Ming You,  and Guo  Jianjun  (As
         Warrantors);   China  Pharmaceuticals   International  Corporation  (As
         Purchaser); and Dichain Holdings Limited (As Guarantor), which provided
         for the sale of Sheung Tai  Investments  Limited  back to the  original
         owners  thereof in exchange for the return of  13,848,220  post-reverse
         split shares of the Company's common stock.

EXCHANGE CONTROLS

The  Company's  business  is  conducted  in and from Hong  Kong and the  People'
Republic  of China  (the  "PRC")  in Hong  Kong  dollars  and the PRC  Renminbi.
Periodic  reports made to U.S.  shareholders are expressed in U.S. dollars using
the then-current exchange rates.

The PRC  Government  imposes  foreign  currency  control in part through  direct
regulation  of the  conversion  of Renminbi  into  foreign  exchange and through
foreign trade  restrictions.  The  conversion of the Renminbi into U.S.  dollars
must be based on the People's Bank of China  ("PBOC") Rate. The PBOC Rate is set
based on the previous day's PRC interbank  foreign exchange market rate and with
reference to current exchange rates on the world financial markets. In line with
the  unification  of the two  exchange  rates,  the  Renminbi  was  revalued  at
HK$1.00=RMB1.12 and  US$1.00=RMB8.70 on January 3, 1994. Since revaluation,  the
exchange rate has fluctuated  between a range of US$1.00 = RMB8.30 and US$1.00 =
RMB8.70.

The Hong Kong dollar is freely  convertible into the U.S. dollar.  Since October
17, 1983, the Hong Kong dollar has been pegged to the U.S.  dollar at HK$7.80 to
US$1.00.  The central  element in the  arrangements  for the peg is an agreement
between the Hong Kong government and the three Hong Kong banknote issuing banks,
HSBC,  Standard  Chartered  Bank and the Bank of  China.  Under  the  agreement,
certificates  of  indebtedness,  which are  issued  by the Hong Kong  Government
Exchange  Fund to the  banknote  issuing  bank to be held  as  cover  for  their
banknote issues,  are issued and redeemed only against payment in U.S.  dollars,
at the  fixed  exchange  rate of  US$1.00  =  HK$7.80.  When the bank  notes are
withdrawn  from   circulation,   the  banknote   issuing  banks   surrender  the
certificates of  indebtedness to the Hong Kong Government  Exchange Fund and are
paid the  equivalent of U.S.  dollars at the fixed rate.  Exchange rates between
the Hong Kong  dollar and other  currencies  are  influenced  by the linked rate
between the U.S. dollar and the Hong Kong dollar.

The  market  exchange  rate of the Hong  Kong  dollar  against  the U.S.  dollar
continues  to be  determined  by the forces of supply and demand in the  foreign
exchange market. However,  against the background of the fixed rate system which
applies  to the  issue  of Hong  Kong  currency  in the form of bank  notes,  as
described  above, the market exchange rate has not deviated  significantly  from
HK$7.80 to  US$1.00.  See  "Selected  Financial  Data" in Item 3 of this  annual
report.  The Hong Kong  government has stated its intention to maintain the link
at that rate.  The Hong Kong  government  has stated that is has no intention of
imposing  exchange  controls  in Hong  Kong and that the Hong Kong  dollar  will
remain freely convertible into other currencies (including the U.S. dollar). The
PRC and the United Kingdom  agreed in 1984 pursuant to the Joint  Declaration of
the Government of the United  Kingdom of Great Britain and Northern  Ireland and
the  Government  of the People's  Republic of China on the Question of Hong Kong
("the Joint Declaration") that, after Hong Kong became a special  administrative
region  of the PRC (the  "SAR")  on July 1,  1997,  the Hong  Kong  dollar  will
continue to circulate and remain freely  convertible.  However, no assurance can
be given that the SAR government will maintain the peg at HK$7.80 to US$1.00, if
at all.

TAXATION

There are no  British  Virgin  Islands  ("BVI")  governmental  laws,  decrees or
regulations   affecting  the  remittance  of  dividends  or  other  payments  to
nonresident holders of the Company's  securities.  U.S. holders of the Company's
securities are subject to no taxes or withholding  provisions under existing BVI
laws and  regulations.  By  reason  of the

                                       15

<PAGE>

fact  that the  Company  conducts  no  business  within  the BVI,  there  are no
applicable  reciprocal  tax  treaties  between  the BVI and the U.S.  that would
affect  the  preceding  statement  that  there  are  no  BVI  taxes,   including
withholding  provisions,  to which  U.S.  security  holders  are  subject  under
existing laws and regulations of the BVI.

DOCUMENTS ON DISPLAY

The constituent documents concerning the Company may be inspected at the offices
of its U.S.  counsel,  Dill Dill Carr Stonbraker & Hutchings,  P.C., 455 Sherman
Street, Suite 300, Denver, Colorado 80203, Attn.: Fay M. Matsukage, Esq.

The  Company's  documents  publicly  filed  with  the  Securities  and  Exchange
Commission  may also be viewed and inspected at the SEC's Public  Reference Room
located at 100 F Street, N.E., Room 1580, Washington,  DC 20549. Copies may also
be obtained from the SEC at prescribed rates.


ITEM 11.  QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK.
================================================================================

Not applicable.


ITEM 12.  DESCRIPTION OF SECURITIES OTHER THAN EQUITY SECURITIES.
================================================================================

Not applicable.


                                     PART II

ITEM 13.  DEFAULTS, DIVIDEND ARREARAGES AND DELINQUENCIES.
================================================================================

Not applicable.


ITEM 14.  MATERIAL MODIFICATIONS TO THE RIGHTS OF SECURITY HOLDERS AND USE OF
          PROCEEDS.
================================================================================

The Company has changed its domicile.  See "Item 4. Information on the Company -
History and  Development  of the Company",  "Item 10.  Additional  Information -
Memorandum and Articles of Association."  These actions have affected the rights
of the Company's common shareholders.


ITEM 15.  CONTROLS AND PROCEDURES
================================================================================

An evaluation was performed under the supervision and with the  participation of
the Company's  management,  including Dr. FAN Di and ZHOU Li Yang, the Company's
Chief  Executive  Officer  and Chief  Financial  Officer,  respectively,  of the
effectiveness of the design and operation of the Company's  disclosure  controls
and procedures  pursuant to Rule 13a-15 of the  Securities  Exchange Act of 1934
(the "Exchange Act") as of December 31, 2004.  Based upon that  evaluation,  Dr.
Fan and Mr. Zhou concluded that the Company's disclosure controls and procedures
are effective to ensure that information required to be disclosed by the Company
in  reports  that it  files or  submits  under  the  Exchange  Act is  recorded,
processed,  summarized  and  reported  within  the  time  periods  specified  in
Securities and Exchange Commission's rules and forms.

During the fiscal year ended  December  31,  2004,  there were no changes in the
Company's  internal  control  over  financial  reporting  that  have  materially
affected,  or are reasonably likely to materially affect, the Company's internal
control over financial reporting.


                                       16

<PAGE>

ITEM 16.  [RESERVED]
================================================================================

Not applicable.


ITEM 16A.  AUDIT COMMITTEE FINANCIAL EXPERT.
================================================================================

The Board of Directors has  determined  that the Company has at least one member
who is a financial expert, Mr. ZHOU Li Yang. Mr. ZHOU is not considered to be an
"independent  director"  as that  term is  defined  in Rule  4200(a)(15)  of the
National Association of Securities Dealers.


ITEM 16B.  CODE OF ETHICS.
================================================================================

The Company has not yet adopted a code of ethics that  applies to the  Company's
principal executive officer,  principal financial officer,  principal accounting
officer,  or controller,  or persons  performing  similar  functions.  Given the
Company's  current  operations,  management does not believe a code of ethics is
necessary at this stage of the Company's development.


ITEM 16C.  PRINCIPAL ACCOUNTANT FEES AND SERVICES.
================================================================================

AUDIT FEES

For the fiscal  years  ended  September  30, 2003 and  December  31,  2004,  the
Company's principal accountant billed $40,500 and $40,000, respectively, for the
audit of the Company's annual financial statements or services that are normally
provided by the accountant in connection  with statutory and regulatory  filings
or engagements for those fiscal years.

AUDIT-RELATED FEES

For the fiscal  years  ended  September  30, 2003 and  December  31,  2004,  the
Company's principal accountant billed $nil and $nil, respectively, for assurance
and related  services that were  reasonably  related to the  performance  of the
audit or review of the  Company's  financial  statements  outside  of those fees
disclosed above under "Audit Fees".

TAX FEES

For the fiscal  years  ended  September  30, 2003 and  December  31,  2004,  the
Company's  principal  accountant billed $5,000 and $nil,  respectively,  for tax
compliance, tax advice, and tax planning services.

ALL OTHER FEES

For the fiscal  years  ended  September  30, 2003 and  December  31,  2004,  the
Company's principal accountant billed $nil and $nil, respectively,  for products
and services other than those set forth above.

PRE-APPROVAL POLICIES AND PROCEDURES

Prior to engaging the Company's accountants to perform a particular service, the
Company's  board  of  directors  obtains  an  estimate  for  the  service  to be
performed.  The Company's board of directors  reviews and pre-approves all audit
and audit-related  services and the fees and other compensation related thereto,
and any non-audit  services  provided by the Company's  external  auditors.  The
board of directors in accordance with procedures for the Company approved all of
the services described above.

                                       17

<PAGE>


At no time since the  commencement  of the  Company's  most  recently  completed
financial year has the Company relied on the waiver in paragraph (c)(7)(i)(C) of
Rule 2-01 of Regulation S-X.

PRINCIPAL ACCOUNTANT SERVICES

To the best of the Company's knowledge,  the percentage of hours expended on the
Company's  principal  accountant's  engagement to audit the Company's  financial
statements for the fiscal year ended December 31, 2004,  that were attributed to
work  performed  by persons  other  than the  principal  accountant's  full-time
permanent employees was less than fifty percent (50%).


ITEM 16D.  EXEMPTIONS FROM THE LISTING STANDARDS FOR AUDIT COMMITTEES.
================================================================================

Not applicable.


ITEM 16E.  PURCHASES OF EQUITY SECURITIES BY THE ISSUER AND AFFILIATED PERSONS.
================================================================================

Not applicable.


                                    PART III

ITEM 17.  FINANCIAL STATEMENTS.
================================================================================

Not applicable.


ITEM 18.  FINANCIAL STATEMENTS.
================================================================================

See page F-1 to F-16.


ITEM 19.  EXHIBITS.
================================================================================

EXHIBIT
NUMBER                             DESCRIPTION                            PAGE

  1.1        Memorandum and Articles of Association (1)                    N/A

  4.1        Share Exchange Agreement with Langara Group, Inc. (2)         N/A

  4.2        Share Exchange Agreement with Fly.com, Inc. for
             EntertainMe.com e-Commerce portal (2)                         N/A

  4.3        Share Exchange Agreement with China Merchants DiChain
             Investment Holdings Limited (2)                               N/A

  4.4        Sale and Purchase Agreement in relation to the entire
             issued share capital of Sheung Tai Investments Limited
             dated May 24, 2004 (3)                                        N/A

  4.5        Agreement Dated January 19, 2005 Between Good Achieve
             Investments Limited, Profit Spring International Limited,
             Anmer Capital Limited, Dunkley International Limited, and
             Nation  Express Limited (As Vendors); Han Hong Lu, Ma
             Leung, Alan Li, Chen Ming You, and Guo Jianjun (As
             Warrantors); China Pharmaceuticals International
             Corporation (As

                                       18
<PAGE>

EXHIBIT
NUMBER                             DESCRIPTION                            PAGE

             Purchaser); and Dichain Holdings Limited (As Guarantor)

 12.1        Certification of Chief Executive Officer Pursuant to
             Rule 13a-14(a)

 12.2        Certification of Chief Financial Officer Pursuant to
             Rule 13a-14(a)

 13.1        Certification of Chief Executive Officer Pursuant to
             18 U.S.C. Section 1350

 13.2        Certification of Chief Financial Officer Pursuant to
             18 U.S.C. Section 1350

(1)  Incorporated  by reference to the exhibits to the  registrant's  definitive
     information  statement filed July 20, 2004.
(2)  Incorporated by reference to the exhibits to the registrant's annual report
     on Form 10-KSB for the fiscal year ended September 30, 2003.
(3)  Incorporated  by  reference to  the exhibits  to the  registrant's  current
     report on Form 8-K dated May 24, 2004, filed May 27, 2004.













                                       19
<PAGE>




                                   SIGNATURES

The registrant hereby certifies that it meets all of the requirements for filing
on Form 20-F and that it has duly caused and authorized the  undersigned to sign
this annual report on its behalf.


                                       CHINA PHARMACEUTICALS INTERNATIONAL
                                       CORPORATION



Dated:  August 17, 2005                /S/ FAN DI
                                       -----------------------------------------
                                       FAN Di, Chief Executive Officer



















                                       20

<PAGE>
BONGIOVANNI & ASSOCIATES
CERTIFIED PUBLIC ACCOUNTANTS
                                                 17111 Kenton Drive, Suite 100-B
                                                 Cornelius, North Carolina 28031
================================================================================


To the Board of Directors and Stockholders:
China Pharmaceuticals International Corporation
Units 3207-8, 32/F.,
West Tower, Shun Tak Centre
168-200 Connaught Road Central, Hong Kong

We  have  audited  the   accompanying   consolidated   balance  sheet  of  China
Pharmaceuticals International Corporation (a British Virgin Islands corporation)
and it's  wholly  owned  subsidiary  as of  December  31,  2004 and the  related
consolidated statements of operations, stockholders' deficit, and cash flows for
the fifteen months ended December 31, 2004 and the twelve months ended September
30, 2003. These consolidated  financial statements are the responsibility of the
Company's  management.  Our  responsibility  is to  express  an opinion on these
consolidated 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  audits to  obtain  reasonable  assurance  about  whether  the
consolidated financial statements are free from material misstatement.  An audit
includes  examining,  on a test  basis,  evidence  supporting  the  amounts  and
disclosures in the  consolidated  financial  statements.  An audit also includes
assessing the  accounting  principles  used and  significant  estimates  made by
management,  as well as evaluating the overall consolidated  financial statement
presentation.  We believe  that our audits  provide a  reasonable  basis for our
opinion.

In our  opinion,  the  consolidated  balance  sheet  referred to above  presents
fairly, in all material respects,  the consolidated  financial position of China
Pharmaceuticals International Corporation and it's wholly owned subsidiary as of
December 31, 2004, and the  consolidated  results of its operations and its cash
flows for the fifteen months ended December 31, 2004 and the twelve months ended
September  30,  2003 in  conformity  with  U.S.  generally  accepted  accounting
principles.

The accompanying  financial  statements have been prepared  assuming the Company
will continue as a going concern. The Company has suffered recurring losses, has
negative working capital,  has a stockholders'  deficit, and has yet to generate
an  internal  cash flow that  raises  substantial  doubt  about its  ability  to
continue as a going concern.  Management's  plans in regard to these matters are
described in Note 2. The  financial  statements  do not include any  adjustments
that might result from the outcome of this uncertainty.



/s/ BONGIOVANNI & ASSOCIATES

August 17, 2005




                                       F-1

<PAGE>

        CHINA PHARMACEUTICALS INTERNATIONAL CORPORATION AND SUBSIDIARIES
                                  BALANCE SHEET
                                DECEMBER 31, 2004

                                     ASSETS
<TABLE>
<CAPTION>
<S>                                                                             <C>
CURRENT ASSET
Investment                                                                      $             1,000
                                                                                --------------------

TOTAL ASSET                                                                     $             1,000
                                                                                ====================




                      LIABILITIES AND STOCKHOLDERS' DEFICIT

CURRENT LIABILITIES
Other payables and accrued liabilities                                          $           419,464
Advances from related parties                                                               292,333
                                                                                --------------------

TOTAL LIABILITIES                                                                           711,797
                                                                                --------------------

STOCKHOLDERS' DEFICIT
Preferred stock, par value $0.0001 per share,
    1,000,000 shares authorized, zero issued and outstanding                                    -
Common stock, par value $0.0001 per share,
    50,000,000 shares authorized, 46,160,733 issued and outstanding                           4,616
Additional paid-in capital                                                                4,907,673
Retained Deficit                                                                         (5,623,086)
                                                                                --------------------

TOTAL STOCKHOLDERS' DEFICIT                                                                (710,797)
                                                                                --------------------

TOTAL LIABILITIES AND STOCKHOLDERS' DEFICIT                                     $             1,000
                                                                                ====================
</TABLE>

             See the accompanying notes to the financial statements

                                      F-2

<PAGE>
        CHINA PHARMACEUTICALS INTERNATIONAL CORPORATION AND SUBSIDIARIES
                 STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS
                 FOR THE FIFTEEN MONTHS ENDED DECEMBER 31, 2004
                        AND YEAR ENDED SEPTEMBER 30, 2003


<TABLE>
<CAPTION>
                                                                   2004                 2003
<S>                                                      <C>                           <C>
SALES                                                    $              -              1,517,822

COST OF SALES                                                           -              1,172,590
                                                         ------------------------------------------

GROSS PROFIT                                                            -                345,232
                                                         ------------------------------------------

OPERATING EXPENSES
General and administrative expenses                                (366,004)            (757,189)
Depreciation and amortization                                       (19,717)             (98,672)
Loss on disposal of subsidiaries                                   (257,727)                 -
Interest expense and Other income, net                                  -                 50,164
                                                         ------------------------------------------

TOTAL OPERATING EXPENSES                                           (643,448)            (805,697)
                                                         ------------------------------------------

NET LOSS                                                 $         (643,448)            (460,465)
                                                         ==========================================

OTHER COMPREHENSIVE (LOSS)
Write down due to impairment of goodwill                 $              -                (135,638)
                                                         ------------------------------------------
Foreign currency translation adjustment                              (7,772)              (26,953)
                                                         ------------------------------------------

COMPREHENSIVE (LOSS)                                     $         (651,220)             (623,056)
                                                         ==========================================


NET LOSS PER SHARE, BASIC AND DILUTED                    $           (0.023)               (0.979)
                                                         ==========================================

WEIGHTED AVERAGE COMMON SHARES
OUTSTANDING, BASIC AND DILUTED                                   28,249,500               636,514
                                                         ==========================================

</TABLE>

             See the accompanying notes to the financial statements

                                      F-3
<PAGE>

        CHINA PHARMACEUTICALS INTERNATIONAL CORPORATION AND SUBSIDIARIES
             STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (DEFICIT)
FOR THE FIFTEEN MONTHS ENDED DECEMBER 31, 2004 AND YEAR ENDED SEPTEMBER 30, 2003

<TABLE>
<CAPTION>
                                                                                                                         Total
                                                      Common Stock        Additional                   Cumulative     Stockholders'
                                                                           Paid-in       Retained      Translation       Equity
                                                 Number        Amount      Capital        Deficit       Adjustment     (Deficit)
<S>                                           <C>              <C>       <C>            <C>              <C>          <C>

BALANCES
- SEPTEMBER 30, 2002                             260,733       $   26    $ 4,421,223    $(4,348,810)     $(34,725)    $     37,714

Issuance of shares for exchange
of note payable to stockholder                   500,000           50        199,950            -             -            200,000

Net loss for the year                                -            -              -         (623,056)          -           (623,056)

Foreign currency
translation adjustment                               -            -              -               -         26,953           26,953
                                         -------------------------------------------------------------------------------------------
BALANCES
- SEPTEMBER 30, 2003                             760,733       $   76    $ 4,621,173    $(4,971,866)     $ (7,772)    $   (358,389)
                                         ===========================================================================================

Foreign currency
translation adjustment                               -            -              -              -           7,772            7,772

Issuance of shares for
an investment                                 13,848,220        1,385           (385)           -             -              1,000

Issuance of shares for exchange
of related party payable to stockholder       31,151,780        3,115        286,885            -             -            290,000

Issuance of shares                               400,000           40            -              -             -                40

Net loss for the 15 months                           -            -              -         (651,220)          -           (651,220)
                                         -------------------------------------------------------------------------------------------

BALANCES
- DECEMBER 31, 2004                           46,160,733       $4,616    $ 4,907,673    $(5,623,086)     $    -       $   (710,797)
                                         ===========================================================================================
</TABLE>
NOTE:  The effects of a 20 for 1 reverse split in 2004 are retroactively
       applied above to all periods.

             See the accompanying notes to the financial statements

                                      F-4
<PAGE>


        CHINA PHARMACEUTICALS INTERNATIONAL CORPORATION AND SUBSIDIARIES
                            STATEMENTS OF CASH FLOWS
FOR THE FIFTEEN MONTHS ENDED DECEMBER 31, 2004 AND YEAR ENDED SEPTEMBER 30, 2003

<TABLE>
<CAPTION>
                                                                                             2004                2003
<S>                                                                                  <C>                 <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
    Net loss                                                                         $    (643,448)      $    (623,056)
    Adjustments to reconcile net loss to net cash
      provided by (used in) operating activities:
      Depreciation and amortization                                                         19,717              98,672
      Loss on disposal of subsidiaries                                                     257,727                 -
      Impairment to goodwill                                                                   -               135,638
      Cumulative translation adjustment                                                      7,772              26,953
    Changes in operating assets and liabilities:
      Accounts receivable                                                                      -                (7,496)
      Due from related parties                                                                 -               121,890
      Inventory                                                                                -               247,793
      Prepaid expenses and other current assets                                                -                 1,590
      Accounts payable and accrued liabilities                                              (1,044)            210,266
                                                                                     --------------      --------------
    Total adjustments                                                                      283,472             835,306
                                                                                     --------------      --------------

NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES                                       (359,976)            212,250
                                                                                     --------------      --------------

CASH FLOWS FROM INVESTING ACTIVITIES:
    Purchase of property and equipment                                                         -                (2,159)
                                                                                     --------------      --------------

NET CASH (USED IN) INVESTING ACTIVITIES                                                        -                (2,159)
                                                                                     --------------      --------------

CASH FLOWS FROM FINANCING ACTIVITIES:
    Repayment on note payable - stockholder                                                    -              (235,827)
    Repayment to related parties                                                          (166,134)                -
    Advances from related parties                                                          525,584                -
                                                                                     --------------      --------------

NET CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES                                        359,450            (235,827)
                                                                                     --------------      --------------

NET DECREASE IN CASH                                                                          (526)            (25,736)

CASH AT BEGINNING OF PERIOD                                                                    526              26,262
                                                                                     --------------      --------------
CASH AT END OF PERIOD                                                                $         -                   526
                                                                                     ==============      ==============

Supplemental disclosures of non-cash investing and financing activities:

    During the quarter ended December 31, 2002,  the Company  issued  10,000,000
    shares of common stock in exchange for a $200,000
    reduction to its note payable-stockholder                                        $         -         $     200,000
                                                                                     ==============      ==============

    During the quarter ended June 30, 2004, the Company issued 31,151,780 shares
    of common stock in exchange for a $290,000
    reduction to its related party payable to stockholder                            $     290,000       $         -
                                                                                     ==============      ==============
</TABLE>

             See the accompanying notes to the financial statements
                                      F-5

<PAGE>

CHINA PHARMACEUTICALS INTERNATIONAL CORPORATION AND SUBSIDIARIES
NOTES TO CONSOLIDATED AUDITED FINANCIAL STATEMENTS
DECEMBER 31, 2004 AND SEPTEMBER 30, 2003
================================================================================

--------------------------------------------------------------------------------
NOTE 1.  SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
--------------------------------------------------------------------------------

         BASIS OF PRESENTATION

         The consolidated  audited financial  statements include the accounts of
         China  Pharmaceuticals  International  Corporation  and its  subsidiary
         prepared  under  the  accrual  basis  of  accounting.  All  significant
         intercompany   balances  and  transactions   have  been  eliminated  in
         consolidation.


         BUSINESS ACTIVITY

         China  Pharmaceuticals  International  Corporation  (the "Company") was
         incorporated  on November 25, 2003 in the British  Virgin  Islands.  On
         September  8, 2004,  the  Company  merged  with  China  Pharmaceuticals
         Corporation  ("CPC")  and the Company is the  surviving  company of the
         merger.  CPC was  incorporated  on June 17,  1996 under the laws of the
         State of  Colorado  and changed  its  domicile in February  2001 to the
         State of Delaware.  E-Trend Networks,  Inc (E-Trend) and its subsidiary
         Langara Entertainment,  Inc. a former subsidiary was spun off by way of
         a dividend distribution to the shareholders of record on April 22, 2004
         and now operates  independent of the Company.  E-Trend was incorporated
         on April 29,  1999  under  the laws of the  State of  Nevada  and is an
         online "entertainment superstore",  specializing in the sale of movies,
         music,  and  electronics.  The Company at the  completion of its recent
         reorganization, has changed its fiscal  year end from  September  30 to
         December 31.


         REVENUE RECOGNITION

         Revenues  derived from product sales are  recognized on delivery of the
         product.  Wholesale  sales are  subject  to  potential  returns  by the
         customer;  however any such returns can be passed back to the Company's
         supplier.  Sales  returns from retail  customers  are not  significant.
         Revenue includes  shipping  charges billed to customers,  which charges
         are based substantially on third-party shipping costs incurred.

         The Company  derives  revenues from  providing  consulting  services to
         entities  that are  related by virtue of common  control.  The  Company
         recognizes  revenue  from  these  services  at  such  time  the  entity
         receiving the service has the ability to pay from funds  generated from
         operations  or received  from  independent  sources and  collection  is
         reasonably  assured.  No  revenue  has been  recognized  for any period
         presented.


                                      F-6
<PAGE>


CHINA PHARMACEUTICALS INTERNATIONAL CORPORATION AND SUBSIDIARIES
NOTES TO CONSOLIDATED AUDITED FINANCIAL STATEMENTS
DECEMBER 31, 2004 AND SEPTEMBER 30, 2003
================================================================================
--------------------------------------------------------------------------------
NOTE 1.  SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
--------------------------------------------------------------------------------

         PROPERTY AND EQUIPMENT

         Property  and  equipment  is recorded at cost.  Expenditures  for major
         betterments  and  additions  are charged to the asset  accounts,  while
         replacements,  maintenance and repairs which do not extend the lives of
         the respective assets are charged to expense currently.

         Long-lived  assets  are  reviewed  for  impairment  whenever  events or
         changes in  circumstances  indicate that the carrying amount may not be
         recoverable.  If the sum of the expected future undiscounted cash flows
         is less than the carrying amount of the asset, a loss is recognized for
         the difference between the fair value and carrying value of the asset.

         DEPRECIATION AND AMORTIZATION

         Depreciation   of  property  and   equipment  is  computed   using  the
         straight-line  method over the  estimated  useful  lives of the assets.
         Amortization  of  leasehold  improvements  and property  under  capital
         leases is  computed  on a  straight-line  basis over the shorter of the
         estimated  useful  lives of the  assets or the term of the  lease.  The
         range of useful lives is between 3 and 10 years.

         INCOME TAXES

         The  Company  accounts  for income  taxes  according  to  Statement  of
         Financial  Accounting  Standards  No. 109,  which  requires a liability
         approach to calculating  deferred income taxes.  Under this method, the
         Company records deferred taxes based on temporary  differences  between
         the tax  bases  of the  Company's  assets  and  liabilities  and  their
         financial reporting bases. A valuation allowance is established when it
         is more  likely  than not that some or all of the  deferred  tax assets
         will not be realized.

         STOCK BASED COMPENSATION

         The Company accounts for stock-based  compensation using the fair value
         method of  Financial  Accounting  Standard No. 123.  Shares  issued for
         services  rendered by a third  party are  recorded at the fair value of
         the shares  issued or  services  rendered,  whichever  is more  readily
         determinable.  The Company accounts for options and warrantrs under the
         same  authoritative  guidance  using the  Black-Scholes  Option Pricing
         Model


                                      F-7
<PAGE>

CHINA PHARMACEUTICALS INTERNATIONAL CORPORATION AND SUBSIDIARIES
NOTES TO CONSOLIDATED AUDITED FINANCIAL STATEMENTS
DECEMBER 31, 2004 AND SEPTEMBER 30, 2003
================================================================================
--------------------------------------------------------------------------------
NOTE 1.  SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
--------------------------------------------------------------------------------

         FAIR VALUE OF FINANCIAL INSTRUMENTS

         Statement of Financial Accounting Standards No. 107, "Disclosures about
         Fair Value of Financial Instruments" requires that the Company disclose
         estimated  fair values for its  financial  instruments.  The  following
         methods and assumptions were used by the Company in estimating the fair
         values of each class of financial instruments disclosed herein:

               CASH - The carrying amount approximates fair value because of the
               short maturity of those instruments.

               ADVANCES  FROM RELATED  PARTIES - The fair value of advances from
               related  parties are determined by calculating  the present value
               of the  instruments  using a current  market  rate of interest as
               compared to the stated rate of interest and giving effect for the
               right to offset with the note payable to stockholder in the event
               of  non-performance.   At  December  31,  2004,  the  fair  value
               approximates the carrying value.

         CONCENTRATION OF REVENUE

         No revenues  were  recorded for the fifteen  months ended  December 31,
         2004 since there was no business  activity in 2004.  Revenues  from VHQ
         Entertainment,  Inc.  ("VHQ"),  a  former  shareholder,  accounted  for
         approximately  28% of total  revenue for the year ended  September  30,
         2003.

         NET LOSS PER SHARE

         The Company  applies  Statement of Financial  Accounting  Standards No.
         128, "Earnings Per Share" (FAS 128) which requires dual presentation of
         net earnings (loss) per share: Basic and Diluted. Basic earnings (loss)
         per share are  computed  using the  weighted  average  number of common
         shares  outstanding  during the period.  Diluted  earnings per share is
         computed using the weighted average number of common shares outstanding
         during  the period  adjusted  for the  effect of  dilutive  outstanding
         options and warrants.  Outstanding  stock options and warrants were not
         considered  in the  calculation  of diluted net loss per share as their
         effect was anti-dilutive.


                                      F-8
<PAGE>


CHINA PHARMACEUTICALS INTERNATIONAL CORPORATION AND SUBSIDIARIES
NOTES TO CONSOLIDATED AUDITED FINANCIAL STATEMENTS
DECEMBER 31, 2004 AND SEPTEMBER 30, 2003
================================================================================
--------------------------------------------------------------------------------
NOTE 1.  SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
--------------------------------------------------------------------------------

         SEGMENT REPORTING

         The Company  applies  Financial  Accounting  Standards  Boards ("FASB")
         statement No. 131,  "Disclosure  about  Segments of an  Enterprise  and
         Related Information". Since there was no business activity in 2004, the
         Company  determined  that  it did not  have  any  material,  separately
         reportable  operating  segments as of December  31,  2004.  The Company
         considered  its  operations  and  determined  that it operated in three
         operating segments for purposes of presenting financial information and
         evaluating  performance  in 2003. As such, the  accompanying  financial
         statements present  information in a format that is consistent with the
         financial information used by management for internal use.

         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  respective
         reporting period. Actual results could differ from those estimates.

         FOREIGN CURRENCY TRANSLATION

         The  functional  currency of the Company is the Hong Kong  dollar.  The
         functional currency of the former subsidiaries,  E-Trend and Langara is
         the  Canadian  dollar.  Accordingly  all  assets  and  liabilities  are
         translated  into United States ("US") dollars at the year-end  exchange
         rate and  revenues  and expenses  are  translated  at average  exchange
         rates.  Gains and losses arising from the  translation of the financial
         statements  of the Company are  recorded in a  "Cumulative  Translation
         Adjustment" account in stockholders' equity.

         Transactions denominated in other than US dollars are translated at the
         exchange rate on the transaction date.  Monetary assets and liabilities
         denominated  in other than US dollars are  translated  at the  exchange
         rate in effect on the balance sheet date. The resulting  exchange gains
         and losses on these items are included in operations.

         CASH AND CASH EQUIVALENTS

         For purposes of the  Statements  of Cash Flows,  the Company  considers
         liquid investments with an original maturity of three months or less to
         be cash equivalents.


                                      F-9
<PAGE>


CHINA PHARMACEUTICALS INTERNATIONAL CORPORATION AND SUBSIDIARIES
NOTES TO CONSOLIDATED AUDITED FINANCIAL STATEMENTS
DECEMBER 31, 2004 AND SEPTEMBER 30, 2003
================================================================================
--------------------------------------------------------------------------------
NOTE 1.  SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
--------------------------------------------------------------------------------

         NEW ACCOUNTING PRONOUNCEMENTS

         In November  2002,  the FASB issued  Interpretation  No. 45 ("FIN 45"),
         "Guarantor's  Accounting  and  Disclosure  Requirements  for Guarantee,
         Including  Indirect  Guarantees  or  Indebtedness  of  Others",   which
         addresses the  disclosures to be made by a guarantor in its interim and
         annual financial statements about its obligations under guarantees. FIN
         45 also requires the  recognition  of a liability by a guarantor at the
         inception of certain guarantees that are entered into or modified after
         December 31, 2002.

         In  December  2002,  the FASB  issued  SFAS No.  148,  "Accounting  for
         Stock-Based  Compensation - Transition and Disclosure - an amendment to
         SFAS No. 123" ("SFAS No. 148"), which provides  alternative  methods of
         transition for companies  voluntarily planning on implementing the fair
         value recognition provisions of SFAS No. 123. SFAS No. 148 also revises
         the  disclosure  provisions  of SFAS No. 123 to require more  prominent
         disclosure of the method of accounting  for  stock-based  compensation,
         and requiring disclosure of pro forma net income and earnings per share
         as if the fair value  recognition  provisions  of SFAS No. 123 had been
         applied from the original  effective  date of SFAS No. 123. The Company
         adopted  the  disclosure  provisions  of SFAS No. 148 for the  quarters
         ending after December 15, 2002.

         In January 2003, the FASB issued FIN No. 46, "Consolidation of Variable
         Interest  Entities".  FIN No. 46 requires the consolidation of entities
         that  cannot  finance  their  activities  without  the support of other
         parties  and  that  lack  certain   characteristics  of  a  controlling
         interest,  such as the  ability to make  decisions  about the  entity's
         activities  via  voting  rights or  similar  rights.  The  entity  that
         consolidates the variable interest entity is the primary beneficiary of
         the entity's  activities.  FIN No. 46 applies  immediately  to variable
         interest  entities  created after January 31, 2003, and must be applied
         in the first period beginning after June 15, 2003 for entities in which
         an enterprise holds a variable  interest entity that it acquired before
         February 1, 2003. The adoption of this standard did not have any impact
         on the Company's financial statements.

         In January 2003,  the EITF released  Issue No. 00-21,  ("EITF  00-21"),
         "Revenue  Arrangements  with  Multiple  Deliveries",   which  addressed
         certain  aspects of the  accounting by a vendor for  arrangement  under
         which  it  will   perform   multiple   revenue-generating   activities.
         Specifically, EITF 00-21 addresses whether an arrangement contains more
         than one unit of accounting and the  measurement  and allocation to the
         separate  units  of  accounting  in  the  arrangement.  EITF  00-21  is


                                      F-10

<PAGE>


CHINA PHARMACEUTICALS INTERNATIONAL CORPORATION AND SUBSIDIARIES
NOTES TO CONSOLIDATED AUDITED FINANCIAL STATEMENTS
DECEMBER 31, 2004 AND SEPTEMBER 30, 2003
================================================================================
--------------------------------------------------------------------------------
NOTE 1.  SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
--------------------------------------------------------------------------------

         NEW ACCOUNTING PRONOUNCEMENTS(CONT.)

         effective  for  revenue  arrangements  entered  into in fiscal  periods
         beginning  after June 15, 2003.  The adoption of this standard did  not
         have an impact on the Company's financial statements.

         In May 2003, the FASB issued SFAS No. 149,  "Amendment of Statement 133
         on Derivative  Instruments and Hedging Activities." SFAS No. 149 amends
         and clarifies accounting for derivative instruments,  including certain
         derivative  instruments  embedded in other  contracts,  and for hedging
         activities  under SFAS No. 133. SFAS No. 149 is effective for contracts
         entered  into  or  modified   after  June  30,  2003  and  for  hedging
         relationships  designated  after June 30,  2003.  The  adoption of this
         standard did not have any impact on its financial statements.

         In May 2003,  the FASB  issued SFAS No.  150,  "Accounting  for Certain
         Financial  Instruments  with  Characteristics  of both  Liabilities and
         Equity." SFAS No. 150 establishes  standards for how companies classify
         and measure certain financial  instruments with characteristics of both
         liabilities and equity.  It requires  companies to classify a financial
         instrument that is within its scope as a liability (or an asset in some
         circumstances).  SFAS No. 150 is effective  for  financial  instruments
         entered  into or modified  after May 31, 2003.  The  standard  did  not
         impact the Company's financial statements.

         In December  2004,  the FASB issued SFAS No.  123(R),  "Accounting  for
         Stock-Based  Compensation".  SFAS No. 123(R) establishes  standards for
         the accounting for transactions in which an entity exchanges its equity
         instruments for goods or services.  This Statement focuses primarily on
         accounting  for  transactions  in  which  an  entity  obtains  employee
         services in share-based payment transactions. SGAS 123(R) requires that
         the fair value of such equity  instruments  be recognized as expense in
         the historical financial statements as services are performed. Prior to
         SFAS 123(R),  only  certain  pro-forma  disclosures  of fair value were
         required.  SFAS  123(R)  shall be  effective  for the Company as of the
         beginning of the first interim or annual  reporting  period that begins
         after   December  15,  2005.   The  adoption  of  this  new  accounting
         pronouncement  is expected to have a material  impact on the  financial
         statements of the Company commencing with the third quarter of the year
         ending  September 30, 2006. Small business issuers need not comply with
         the new standard  until fiscal  periods  beginning  after  December 15,
         2005. The Company already records the expense of employee stock options
         for annual and quarterly periods on fair value calculation according to
         SFAS No.123.


                                      F-11

<PAGE>


CHINA PHARMACEUTICALS INTERNATIONAL CORPORATION AND SUBSIDIARIES
NOTES TO CONSOLIDATED AUDITED FINANCIAL STATEMENTS
DECEMBER 31, 2004 AND SEPTEMBER 30, 2003
================================================================================
--------------------------------------------------------------------------------
NOTE 1.  SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
--------------------------------------------------------------------------------

         NEW ACCOUNTING PRONOUNCEMENTS(CONT.)

         In November 2004, the FASB issued SFAS No. 151, "Inventory Costs" (SFAS
         151).  This  Statement  amends the  guidance in ARB No. 43,  Chapter 4,
         "Inventory  Pricing," to clarify the accounting for abnormal amounts of
         idle facility  expense,  freight,  handling costs,  and wasted material
         (spoilage).  SFAS  151  requires  that  those  items be  recognized  as
         current-period  charges.  In addition,  this  Statement  requires  that
         allocation of fixed production  overheads to the costs of conversion be
         based  on  the  normal  capacity  of  the  production  facilities.  The
         provisions of SFAS No. 151 are effective for inventory  costs  incurred
         in fiscal years beginning after June 15, 2005.

         In December 2003, the issued Staff Accounting Bulletin ("SAB") No. 104,
         "Revenue  Recognition,"  rescinded the accounting guidance contained in
         SAB  No.  101,  "Revenue  Recognition  in  Financial  Statements,"  and
         incorporated  the  body  of  previously   issued  guidance  related  to
         multiple-element  revenue  arrangements.  The Company's adoption of SAB
         No.  104  did  not  have  any  impact  on  its  consolidated  financial
         statements.

         In March 2004,  the FASB ratified EITF Issue No. 03-1,  "The Meaning of
         Other-Than-Temporary   Impairment   and  its   Application  to  Certain
         Investments" ("EITF 03-1"), but delayed the recognition and measurement
         provisions  of EITF  03-1 in  September  2004.  For  reporting  periods
         beginning  after June 14, 2004,  only the disclosure  requirements  for
         available-for-sale securities and cost method investments are required.
         The Company's  adoption of the  requirements did not have a significant
         impact on the Company's consolidated disclosures.

         In July  2004,  the FASB  issued  EITF  Issue No.  02-14,  "Whether  an
         Investor  Should Apply the Equity Method of  Accounting to  Investments
         Other  than  Common  Stock"  ("EITF   02-14").   EITF  02-14   requires
         application of the equity method of accounting when an investor is able
         to exert significant influence over operating and financial policies of
         an investee  through  ownership of common stock or in-substance  common
         stock.  EITF 02-14 is effective for reporting  periods  beginning after
         September  15,  2004.  The  adoption  of EITF  02-14  will  not  have a
         significant impact on the Company's consolidated financial statements.


                                      F-12
<PAGE>

CHINA PHARMACEUTICALS INTERNATIONAL CORPORATION AND SUBSIDIARIES
NOTES TO CONSOLIDATED AUDITED FINANCIAL STATEMENTS
DECEMBER 31, 2004 AND SEPTEMBER 30, 2003
================================================================================
--------------------------------------------------------------------------------
NOTE 2.  GOING CONCERN (LIQUIDITY AND CAPITAL RESOURCES)
--------------------------------------------------------------------------------

         The accompanying  consolidated  financial statements have been prepared
         in conformity  with  accounting  principles  generally  accepted in the
         United  States  of  America,  which  contemplates  continuation  of the
         Company as a going concern. Going concern assumes that the Company will
         continue in operations for the  foreseeable  future and will be able to
         realize its assets and discharge its  liabilities  in the normal course
         of operations.

         The Company has incurred  substantial  losses and  negative  cash flows
         from inception  through  December 31, 2004. In the absence of achieving
         positive  cash flows from  operations or obtaining  additional  debt or
         equity financing,  the Company may have difficulty meeting  obligations
         as they become due, and may be forced to discontinue operations.

--------------------------------------------------------------------------------
NOTE 3.  RELATED PARTY TRANSACTIONS
--------------------------------------------------------------------------------

         RELATED PARTIES PAYABLE STOCKHOLDER

         China  Technology  Global  Corporation,  a company  indirectly owned by
         DiChain Holdings  Limited,  and China Merchants  DiChain (Asia) Limited
         ("China  Merchants  DiChain") have advanced $203,274 and $89,059 to the
         Company, respectively,  since October 1, 2003. These advances have been
         made on an interest-free basis, with no fixed term or repayment date.

         On May 24, 2004, the Company issued  31,151,780  shares of common stock
         to  China  Merchants  DiChain  Investment   Holdings  Limited  and  its
         designees for approximately  $290,000 in debt conversion and assumption
         of costs of the transaction.

         At September 30, 2003,  the Company owed a total of $268,108 to eAngels
         EquiDebt  Partners V  ("eAngels").  The notes bear  interest at 10% per
         year and are due on July 1,  2004.  For the year  ended  September  30,
         2003,  interest expense related to these notes totaled  $60,563.  These
         notes are not required to be repaid to the extent that the advances due
         from related parties discussed below are not collected.

         On December 24, 2002,  the Company issued  10,000,000  shares of common
         stock to  eAngels in  exchange  for a  $200,000  reduction  to its note
         payable balance.



                                      F-13

<PAGE>


CHINA PHARMACEUTICALS INTERNATIONAL CORPORATION AND SUBSIDIARIES
NOTES TO CONSOLIDATED AUDITED FINANCIAL STATEMENTS
DECEMBER 31, 2004 AND SEPTEMBER 30, 2003
================================================================================
--------------------------------------------------------------------------------
NOTE 2.  RELATED PARTY TRANSACTIONS
--------------------------------------------------------------------------------

         ACCOUNTS PAYABLE OFFICERS AND DIRECTORS

         At December 31, 2004, no executive  officers,  directors,  employees or
         former executive  officers and directors of the Company are indebted to
         the Company.

         SHARE OF BUSINESS OFFICES

         The  Company  shares the  offices  of China  Merchants  DiChain  and is
         allocated  HK$10,000 per month  (US$1,287 as of August 15, 2005) as its
         pro  rata  share  of the  cost of the  facility.  There  is no  written
         agreement regarding this office sharing arrangement.

--------------------------------------------------------------------------------
NOTE 4.  BUSINESS SEGMENT INFORMATION
--------------------------------------------------------------------------------

         No business  segment  information  has been provided for 2004,  because
         there was no business activity of the Company in 2004.

         In 2003, principally all operations of Langara are conducted in Canada.
         Information about operating segments is as follows:

<TABLE>
<CAPTION>
         September 30, 2003              Parent           E-Trend           Langara            Total
         ------------------------------------------------------------------------------------------------
<S>                                 <C>               <C>               <C>              <C>
         Revenues from external
            customers                $      5,887      $    300,772      $ 1,211,173      $  1,517,832
         Intersegment revenues            120,000                 -          240,633           360,633
         Segment loss               (     146,779)    (     361,157)    (    115,120)    (     623,056)
         ------------------------------------------------------------------------------------------------
</TABLE>

--------------------------------------------------------------------------------
NOTE 5.  SUBSEQUENT EVENTS
--------------------------------------------------------------------------------

         Subsequent  to year-end,  the Company  entered into an agreement  dated
         January 19, 2005  between  Good  Achieve  Investments  Limited,  Profit
         Spring   International   Limited,   Anmer  Capital   Limited,   Dunkley
         International  Limited,  and Nation Express  Limited (As Vendors);  Han
         Hong Lu,  Ma  Leung,  Alan Li,  Chen  Ming  You,  and Guo  Jianjun  (As
         Warrantors);   China  Pharmaceuticals   International  Corporation  (As
         Purchaser); and Dichain Holdings Limited (As Guarantor), which provided
         for the sale of Sheung Tai  Investments  Limited  back to the  original
         owners  thereof in exchange for the return of  13,848,220  post-reverse
         split shares of the Company's  common stock.  The transaction from 2004
         was officially rescinded and control never actually occurred.


                                      F-14

<PAGE>


CHINA PHARMACEUTICALS INTERNATIONAL CORPORATION AND SUBSIDIARIES
NOTES TO CONSOLIDATED AUDITED FINANCIAL STATEMENTS
DECEMBER 31, 2004 AND SEPTEMBER 30, 2003
================================================================================
--------------------------------------------------------------------------------
NOTE 6.  LEASE COMMITMENTS
--------------------------------------------------------------------------------

         The Company has no lease commitments at of December 31, 2004.

         The  Company  shares the  offices  of China  Merchants  DiChain  and is
         allocated  HK$10,000 per month  (US$1,287 as of August 15, 2005) as its
         pro rata share of the cost of the  facility.  Rent expense for the year
         ended September 30, 2003 was $33,000.

--------------------------------------------------------------------------------
NOTE 7.  INCOME TAXES
--------------------------------------------------------------------------------

         The components of income taxes were as follows:

<TABLE>
<CAPTION>
                                                                          2004                2003
         ----------------------------------------------------------------------------------------------
<S>                                                                 <C>                 <C>
         Income Tax Benefit

         Income tax benefit at combined statutory rate
           of 42.62%                                                 $     263,050       $     246,800
         Change in Valuation Allowance                              (      263,050)     (      246,800)
         ----------------------------------------------------------------------------------------------

         Income Tax Benefit                                          $         -         $         -
         ==============================================================================================
</TABLE>

         The  income tax  benefit  for the years  ended  December  31,  2004 and
         September 30, 2003,  differed from the combined  federal and provincial
         statutory  rates due  principally  to the  increase in the deferred tax
         asset valuation allowance.

         Due to mainly operating losses and the inability to recognize an income
         tax benefit there from,  there is no provision  for current  federal or
         state income taxes for the years ended  December 31, 2004 and September
         30, 2003.

         Deferred  income  taxes  reflect  the  net  tax  effects  of  temporary
         differences  between the carrying amounts of assets and liabilities for
         financial  reporting purposes and the amount used for federal and state
         income tax purposes.

         At December  31,  2004,  the  approximate  deferred  tax assets were as
         follows:

         Non-capital loss carryforwards                          $    1,928,050
         Capital assets                                                  45,000
         -----------------------------------------------------------------------
            Total deferred tax assets                                 1,973,050
            Less valuation allowance                            (     1,973,050)
         -----------------------------------------------------------------------
                                                                 $            -
         =======================================================================


                                      F-15
<PAGE>

CHINA PHARMACEUTICALS INTERNATIONAL CORPORATION AND SUBSIDIARIES
NOTES TO CONSOLIDATED AUDITED FINANCIAL STATEMENTS
DECEMBER 31, 2004 AND SEPTEMBER 30, 2003
================================================================================
--------------------------------------------------------------------------------
NOTE 8.  INVESTMENT
--------------------------------------------------------------------------------

         The  Company's   investment  in  Sheung  Tai  Investments  Limited  was
         originally recorded at $1,384,  reflecting the 13,848,220 shares issued
         to acquire that company at $0.0001 per share. The Company later reduced
         this  amount  to $1,000 to  reflect a write  down to fair  value of the
         transaction. See Note 5. Subsequent Events.


--------------------------------------------------------------------------------
NOTE 9.  STOCK OPTIONS
--------------------------------------------------------------------------------

         Upon the disposition of E-Trend Networks, Inc. in February 2004, all of
         the stock options that had been granted to its employees, officers, and
         directors were terminated.  There have been no option grants during the
         fifteen  months  ended  December 31, 2004 or year ended  September  30,
         2003.


--------------------------------------------------------------------------------
NOTE 10.          LOSS ON DISPOSAL OF SUBSIDIARIES
--------------------------------------------------------------------------------

         In October  2003,  E-Trend  Networks,  Inc.,  then a subsidiary  of the
         Company,  disposed  of its  operating  subsidiary  and  asset,  Langara
         Entertainment,  Inc. and EntertainMe.com,  for equity stakes in Langara
         Group, Inc. and Fly.com, Inc. In February 2004, the Company spun out as
         a dividend  to the  shareholders  on a 1-for-1  share  basis  shares of
         E-Trend Networks,  Inc. As a result of these dispositions,  the Company
         recognized a loss of $257,727.









                                      F-16