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, 2005

                                       or

[ ]    Transition Report Pursuant to Section 13 or 15(d) of the Securities
       Exchange Act of 1934
       For the transition period from _________ to  _________

                                       or

[ ]    Shell Company Report Pursuant to Section 13 or 15(d) of the Securities
       Exchange Act of 1934
       Date of event requiring this shell company report .  . . . . . . . .

                         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)

         ROOM A, 22/F, NOBLE CENTER, 3RD FU ZHONG ROAD, FU TIAN DISTRICT
                  518026, SHEN ZHEN, GUANG DONG PROVINCE, CHINA
                    (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.

                79,758,837 COMMON SHARES AS OF DECEMBER 31, 2005

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

<PAGE>


If this report is an annual or transition report,  indicate by check mark if the
registrant  is not required to file  reports  pursuant to Section 13 or 15(d) of
the Securities Exchange Act of 1934. [ ] Yes [X] No

Note - Checking the box above will not relieve any  registrant  required to file
reports  pursuant to Section 13 or 15(d) of the Securities  Exchange Act of 1934
from their obligations under those Sections.

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 whether the registrant is a large  accelerated  filer, an
accelerated  filer, or a  non-accelerated  filer. See definition of "accelerated
filer and large  accelerated  filer" in Rule 12b-2 of the Exchange  Act.  (Check
one):
Large accelerated filer [ ]  Accelerated filer [ ]   Non-accelerated filer [X]

Indicate by check mark which financial statement item the registrant has elected
to follow. [ ] Item 17 [X] Item 18

If this is an annual report,  indicate by check mark whether the registrant is a
shell  company (as defined in Rule 12b-2 of the  Exchange  Act).  [X] Yes [ ] No


<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 and 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 year ended December 31, 2005
and  the  fifteen   months  ended  December  31,  2004,  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, 2003,  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>
------------------------------------------------------------------------------------------------------------------------------
                                                                                   YEAR ENDED SEPTEMBER 30,
------------------------------------------------------------------------------------------------------------------------------
                                   YEAR ENDED       FIFTEEN
                                  DECEMBER 31,    MONTHS ENDED       2003            2002            2001            2000
                                      2005            2004
------------------------------------------------------------------------------------------------------------------------------
<S>                                <C>            <C>             <C>             <C>             <C>             <C>
Revenues                           $         -    $         -     $ 1,517,822     $ 2,014,696     $ 2,139,804     $   665,075
------------------------------------------------------------------------------------------------------------------------------
Loss from operations               $  (714,335)   $  (715,438)    $  (699,856)    $(1,115,911)    $(2,211,204)    $  (811,156)
------------------------------------------------------------------------------------------------------------------------------
Loss from continuing operations    $  (714,335)   $  (715,438)    $  (699,856)    $(1,115,911)    $(2,211,204)    $  (811,156)
------------------------------------------------------------------------------------------------------------------------------
Net loss                           $  (714,335)   $  (715,438)    $  (699,856)    $(1,115,911)    $(2,211,204)    $  (811,156)
------------------------------------------------------------------------------------------------------------------------------
Comprehensive loss                 $  (714,335)   $  (723,210)    $  (726,809)    $(1,099,915)    $(2,211,204)    $  (811,156)
------------------------------------------------------------------------------------------------------------------------------
Net loss per share                 $    (0.015)   $    (0.026)    $    (1.142)    $     (4.22)    $     (8.94)    $   (294.17)
------------------------------------------------------------------------------------------------------------------------------
Total assets                       $         -    $     1,000     $   318,808     $   940,408     $ 1,465,659     $ 3,090,476
------------------------------------------------------------------------------------------------------------------------------

                                       3
<PAGE>

<CAPTION>
------------------------------------------------------------------------------------------------------------------------------
                                                                                   YEAR ENDED SEPTEMBER 30,
------------------------------------------------------------------------------------------------------------------------------
                                   YEAR ENDED       FIFTEEN
                                  DECEMBER 31,    MONTHS ENDED       2003            2002            2001            2000
                                      2005            2004
------------------------------------------------------------------------------------------------------------------------------
<S>                                <C>            <C>             <C>             <C>             <C>             <C>
Stockholders' equity (deficit)     $(1,082,485)   $  (886,540)    $  (358,389)    $    37,714     $   954,621     $ 2,814,075
------------------------------------------------------------------------------------------------------------------------------
Weighted average number of
Shares                              47,973,021     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, 2005, the Company had no cash and a working  capital  deficit
of  $1,082,485.  It currently  has no business  operations.  Without  additional
funding and/or a business opportunity, the Company may not continue to exist. As
a result, for the year ended December 31, 2005, the Company's auditors,  in Note
2 of the Financial Statements,  have noted that there is substantial doubt about
the Company's ability to continue as a going concern. The Company's existence is
dependent upon management funding operations and raising sufficient  capital. At
this point in time, it is  impossible  to state an amount of additional  funding
which the Company believes would remove the going concern opinion.

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 the company. In particular, the per share price of the Company's
common  shares  fluctuated  from a low of $0.02 to a high of  $0.28  during  the
12-month period ending June 30, 2006.  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


                                       4
<PAGE>

and in good  faith  with a view to the  best  interests  of the  Company  and to
disclose any interest  which they may 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.

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 officer,  Dr. FAN Di,
a director,  and President,  Chief Executive  Officer and acting Chief Financial
Officer of the  Company.  The loss of  services of Dr. Fan 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  stocks."  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 $5.00 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.


                                       5
<PAGE>

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  is a  resident  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 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 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
shares of its wholly owned subsidiary,  E-Trend Networks,  Inc. as a dividend to
the  shareholders  on a 1 for 1 share  basis.  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.  The  distribution  of Langara  Entertainment,  Inc.,
E-Trend Networks,  Inc. and the discontinued  operations of Wilmington  Rexford,
Inc. qualified for treatment as discontinued  operations in accordance with FASB
Statement No. 144 ("SFAS No. 144"), Accounting for the Impairment or Disposal of
Long-Lived Assets. Because the operating results of Langara Entertainment, Inc.,
E-Trend Networks,  Inc. and the discontinued  operations of Wilmington  Rexford,
Inc. represent 100% of operations of the Company,  they were included in results
from continuing operations.

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 owned 87.475% of
Zheda Pharmacy.

                                       6
<PAGE>


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 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) Ltd, Palm Grove House, P.O.
Box 438, Road Town,  Tortola,  British Virgin  Islands.  Its principal  business
office has been located at Room A, F/22,  Noble  Center,  3 rd Fu Zhong Road, Fu
Tian District, Shen Zhen, 518026, Guang Dong Province, P. R. China since October
1, 2005. The telephone  number is 86.755.  3398 3366 and the facsimile number is
86.755.3398  3368.  The Company does not have a  registered  agent in the United
States.

On September 21, 2005,  the Company  issued a total of 45,200,000  shares of its
common stock to six buyers.  As of the date of this filing,  the buyers have not
settled the subscription money and $452,000 is still owed to the Company.  It is
uncertain whether the Company will be able to collect the subscription money. As
a result,  management has recorded an allowance for doubtful stock subscriptions
receivable of $452,000 to reflect this uncertainty.  Pursuant to its Articles of
Association,  the Company may, upon written notice to the six buyers,  treat the
unpaid for shares as cancelled shares, but has not opted to do so as of the date
of this  filing.  Furthermore,  pursuant  to the  subscription  agreements,  the
Company accrued interest on the Subscription Receivable at the rate of Hong Kong
Prime plus 2% from September 28, 2005 through  December 31, 2005, for a total of
$11,350.  However, in estimating uncollectible accounts,  management recorded an
allowance for doubtful accounts of $11,350.

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.  Since  October  2003,  the  Company  has  not  engaged  in  business
activities.  As of the time of this  filing,  the Company has not created a plan
for future operations.

ORGANIZATIONAL STRUCTURE

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

PROPERTY, PLANTS AND EQUIPMENT

The Company's  corporate office was located at Unit 3611, 36/F, West Tower, Shun
Tak Centre,  168-200  Connaught Road Central,  Hong Kong from January 1, 2005 to
September 30, 2005.  The Company  shared this office space with China  Merchants
DiChain and its portion of the monthly lease costs was  HK$10,0000  (US$1,282 at
August 15, 2005).  There was no written agreement  regarding this office sharing
arrangement.

Since October 1, 2005, the Company has maintained a corporate  office located at
Room A, F/22,  Noble  Center,  3rd Fu Zhong Road, Fu Tian  District,  Shen Zhen,
518026,  Guang Dong Province,  P. R. China. The Company shares the offices of DC
Capital  Management,  Inc. and is allocated HK$13,400 (US$1,718 as of October 1,
2005) as its pro rata share of the cost of the facility.


                                       7
<PAGE>

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

The  following  discussion  of the results of  operations of the Company for the
year ended  December  31, 2005 and the fifteen  months  ended  December 31, 2004
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 an 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
shares of its wholly owned subsidiary,  E-Trend Networks,  Inc. as a dividend to
the  shareholders  on a 1 for 1 share  basis.  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.

For the year ended December 31, 2005, the Company's  auditors,  in Note 2 of the
Financial  Statements,  have  noted that there is  substantial  doubt  about the
Company's  ability to continue as a going  concern.  The Company's  existence is
dependent upon management funding operations and raising sufficient  capital. At
this point in time it is  impossible  to state an amount of  additional  funding
which the Company believes would remove the going concern opinion.

OPERATING RESULTS

Retained  deficit at October 1, 2003 has been  restated to reflect an unrecorded
note payable of $100,000 and interest expense of $3,753. Had the errors not been
made,  net loss for the year ended  September  30, 2003 would have  increased by
$103,753.  Basic and diluted net loss per share would have increased by ($0.003)
to ($0.026).

Retained  deficit at January 1, 2004 has been  restated to reflect the aggregate
of the  unrecorded  note  payable  and  interest  expense  from the  year  ended
September 30, 2003, of interest  expense of $50,045,  legal expenses of $17,511,
consulting  expenses  of $2,000,  and  promotion  expenses  of  $1,046,  foreign
currency  exchange  adjustments  of $1,010,  other  expenses  of $279 and travel
expenses of $99. Had the errors not been made, a net loss for the fifteen months
ended December 31, 2004 would have increased by $71,990. Basic and fully diluted
net loss per share for the same  period  would have  increased  by  ($0.163)  to
($1.142).

YEAR ENDED  DECEMBER 31, 2005 COMPARED TO THE FIFTEEN  MONTHS ENDED DECEMBER 31,
2004

The Company did not have any business  operations during the twelve months ended
December 31, 2005.  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  issuance  to  shares  to six
independent  companies on September 21, 2005.  Total operating  expenses and net
loss were each $714,335 for the year ended December 31, 2005 versus $715,438 for
the fifteen months ended December 31, 2004.

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

                                       8
<PAGE>

Sheung Tai  Investments,  as described in "Item 4.  Information on the Company -
History and Development of the Company."

LIQUIDITY AND CAPITAL RESOURCES

At December 31, 2005 and December 2004,  respectively,  the Company had no cash.
The Company used cash of $126,347 for operating activities. Cash was provided by
advances  from related  parties in the same  amount.  In  comparison,  operating
activities used cash of $382,196 for the year ended December 31, 2004.

The Company anticipates spending  approximately  $150,000 during fiscal 2006 for
administrative and other operating  expenditures.  The Company intends to obtain
advances  from  related  parties  to fund  these  expenditures;  however,  it is
uncertain that the Company will be able to obtain sufficient  financing to cover
its administrative and operating expenditures.

As of December 31, 2005, the Company owed a total of $100,000 on a note payable.
The note bears  interest at 10% per year and is in  default.  For the year ended
December 31, 2005 and fifteen months ended December 31, 2004,  accrued  interest
was $26,274 and $16,274,  respectively. The Company has disputed their liability
for this debt.

There are no material  commitments for capital  expenditures during fiscal 2006.
Other than the inter company advances from China Technology Global  Corporation,
China  Merchants  DiChain (Asia)  Limited,  DiChain  Holdings Ltd and DC Capital
Management,  Inc. 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                                   Chief Executive Officer              July 2004 to present
                                         President
                                         Acting Chief Financial Officer       August 2006 to present
                                         Director                             February 2004 to present
--------------------------------------------------------------------------------------------------------------------
LI Xinggui                               Director                             August 2005 to present
--------------------------------------------------------------------------------------------------------------------
TAI Ching Nam                            Executive Vice President             August 2005 to present
--------------------------------------------------------------------------------------------------------------------
FU Li                                    Assistant President                  August 2005 to present
                                         Corporate Secretary                  July 2006 to present
--------------------------------------------------------------------------------------------------------------------
</TABLE>


                                       9
<PAGE>


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 devotes 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  and Chief
Executive  Officer.  He has been a Director since February 2004. Dr. Fan assumed
the  role  of  acting  Chief  Financial  Officer  in  August  2006.  Dr.  Fan is
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 University of Southern California.

MR. LI XINGGUI

Since  August  2005,  Mr. Li has  served as a  Director  of the  Company.  Since
December 2000, Mr. Li has worked for China Merchants DiChain Group, which is the
ultimate  controlling  shareholder of the Company, as the Executive Director and
President.  Prior to joining DICHAIN, Mr. Li was executive vice president of S-T
Anda,  the first modern  logistics  company in China serving  Fortune Global 500
companies in China. He also served as Director of Enterprise Management at China
Merchants Group. He has extensive operation management  experience in China. Mr.
Li has a Master's Degree in Economics from Sichuan University of China.

TAI CHING NAM

Since  August  2005,  Mr.  Tai has served as  Executive  Vice  President  of the
Company. Since August 2001, Mr. Tai has worked in China Merchants DiChain Group,
which is the ultimate  controlling  shareholder  of the Company.  His previously
experiences include: Senior Manager of China Merchants Group Research Department
& Reform Center,  Project  Manager of China  Merchants  Group joint project with
McKinsey & Company in corporate strategy development and transformation. Mr. Tai
has a Master Degree of Business Economics from Chinese University of Hong Kong.

FU LI

Since August 2005, Ms. Fu has served as Assistant President of the Company.  Ms.
Fu has  worked  for  China  Merchants  DiChain  Group,  which  is  the  ultimate
controlling shareholder of the Company since October, 2002. Since July 2006, she
has served as the secretary of the Company, and she also served as the secretary
of China Technology Global Corporation since July 2006. She obtained a Bachelors
Degree  and  Masters  Degree  from the  Foreign  Language  Institute  of Newport
University.

COMPENSATION

During the fiscal year ended  December 31, 2005,  the  directors and officers of
the Company,  as a group, had received or charged the Company a total of $44,229
for services  rendered by the directors  and officers or companies  owned by


                                       10
<PAGE>

the individuals.  No amounts were set aside or accrued by the Company to provide
pension, retirement or similar benefits.

EMPLOYEES

The Company shared the office staff of China Merchants  DiChain (Asia) Ltd. from
January 2005 to September  2005, and allocated  HK$35,000 per month (US$4,478 as
of August  15,  2005) as its pro rata  share of the cost.  There was no  written
agreement regarding this staff sharing arrangement.

The Company shared the office staff of DC Capital Management,  Inc. from October
2005 to December 2005, and allocated HK$10,000 per month (US$1,282 as of October
1,  2005) as its pro rata  share of the  cost.  There was no  written  agreement
regarding this office sharing arrangement.

As at December 31, 2005,  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 July 31,
2006.

<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                   26.04%

                      Room A, F/22, Noble Center, 3 rd Fu
                      Zhong Road, Fu Tian District, Shen
                      Zhen, 518026, Guang Dong Province, P.
                      R. China

Common Stock          LI Xinggui                                           -0-                        0%

                      Room A, F/22,  Noble  Center,  3 rd Fu
                      Zhong  Road,  Fu Tian  District,  Shen
                      Zhen, 518026, Guang Dong Province,  P.
                      R. China

Common Stock          TAI Ching Nam                                        -0-                        0%

                      Room A, F/22,  Noble  Center,  3 rd Fu
                      Zhong  Road,  Fu Tian  District,  Shen
                      Zhen, 518026, Guang Dong Province,  P.
                      R. China

Common Stock          FU Li                                                -0-                        0%

                      Room A, F/22,  Noble  Center,  3 rd Fu
                      Zhong  Road,  Fu Tian  District,  Shen
                      Zhen, 518026, Guang Dong Province,  P.
                      R. China

-------------------------
<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 July 31, 2006, 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

                                       11
<PAGE>

         the purpose of  computing  the  percentage  owned by any other  person.
         Based on 79,758,837  shares of common stock  outstanding as of July 31,
         2006.

(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 the 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 July 31, 2006.

<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                   26.04%
                      Holdings Limited (2)<F2>

                      Room A, F/22, Noble Center, 3 rd Fu
                      Zhong Road, Fu Tian District, Shen
                      Zhen, 518026, Guang Dong Province, P.
                      R. China

Common Stock          Dr. FAN Di (2)<F2>                               20,772,330                   26.04%
                      Room A, F/22, Noble Center, 3 rd Fu
                      Zhong Road, Fu Tian District, Shen
                      Zhen, 518026, Guang Dong Province, P.
                      R. China

Common Stock          Sino Castle Holdings Ltd                          7,500,000                    9.40%
                      R2908, 29/F, Guo Ji Ming Yuan, You Yi
                      Road, Luo Hu District, Shen Zhen
                      Province, 518000, Guang Dong
                      Province, P. R. China

Common Stock          Mart Burkit Limited                               7,500,000                    9.40%
                      R2908, 29/F, Guo Ji Ming Yuan, You Yi
                      Road, Luo Hu District, Shen Zhen
                      Province, 518000, Guang Dong
                      Province, P. R. China

Common Stock          Rich Gush Limited                                 7,500,000                    9.40%

                      R2908, 29/F, Guo Ji Ming Yuan, You Yi
                      Road, Luo Hu District, Shen Zhen
                      Province, 518000, Guang Dong
                      Province, P. R. China

Common Stock          Mart Express Limited                              7,500,000                    9.40%

                      R2908, 29/F, Guo Ji Ming Yuan, You Yi
                      Road, Luo Hu District, Shen Zhen
                      Province, 518000, Guang Dong
                      Province, P. R. China



                                       12
<PAGE>

<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          Fivestar International Limited                    7,700,000                    9.65%

                      R2908, 29/F, Guo Ji Ming Yuan, You Yi
                      Road, Luo Hu District, Shen Zhen
                      Province, 518000, Guang Dong
                      Province, P. R. China

Common Stock          Global China Enterprises Limited                  7,500,000                    9.40%

                      R2908, 29/F, Guo Ji Ming Yuan, You Yi
                      Road, Luo Hu District, Shen Zhen
                      Province, 518000, Guang Dong
                      Province, P. R. China
---------------------
<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 July 31, 2006, 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 79,758,837 shares of common stock outstanding as
         of July 31, 2006.

(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 the beneficial owner of these shares.
</FN>
</TABLE>

CONTROL BY FOREIGN GOVERNMENT OR OTHER PERSONS

As of July 31, 2006, the Company was 26.04% indirectly owned by DiChain Holdings
Limited,  an  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

On September 21, 2005,  the Company  issued a total of 45,200,000  shares of its
common stock at US$0.01 to six companies.  As a result,  China Merchants DiChain
Investment  Holdings  Limited's  shareholding  has been  diluted to 26.04%  from
64.3%.

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 July 31, 2006,  there were 79 registered  holders of the Company's  common
shares in the  United  States,  with  combined  holdings  of  6,823,109  shares,
representing 8.55% of the issued shares of the Company.  In addition,  CEDE & Co
held 4,119,919 shares of record,  representing 5.17% 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  January 1, 2005  through
December 31, 2005,  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


                                       13
<PAGE>


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 Room A, F/22, Noble Center, 3rd Fu
Zhong Road, Fu Tian District,  Shen Zhen,  518026,  Guang Dong  Province,  P. R.
China. The Company shared the offices of China Merchants DiChain (Asia) Ltd from
January 2005 to September 2005, and was allocated  HK$10,000 per month (US$1,282
as of August 15, 2005) as its pro rata share of the cost of the facility.  There
was no written agreement regarding this office sharing arrangement.

The Company shared the offices of DC Capital Management,  Inc. from October 2005
to December 2005, and was allocated  HK$13,400 per month (US$1,718 as of October
1, 2005) as its pro rata share of the cost of the facility. There was no written
agreement regarding this office sharing arrangement.

The Company shared the office staff of China Merchants  DiChain (Asia) Ltd. from
January 2005 to September  2005, and allocated  HK$35,000 per month (US$4,478 as
of August  15,  2005) as its pro rata  share of the cost.  There was no  written
agreement regarding this staff sharing arrangement.

The Company shared the office staff of DC Capital Management,  Inc. from October
2005 to December 2005, and allocated HK$10,000 per month (US$1,282 as of October
1,  2005) as its pro rata  share of the  cost.  There was no  written  agreement
regarding this staff sharing arrangement.

China  Technology  Global  Corporation,  a company  indirectly  owned by DiChain
Holdings  Limited,  and China Merchants DiChain (Asia) Limited ("China Merchants
DiChain") have advanced $205,708 and $87,059 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.

DiChain  Holdings Limited and DC Capital  Management,  Inc.,  companies  sharing
mutual  ownership  with the  Company,  have  advanced  $26,790 and $9,000 to the
Company,  respectively,  since January 1, 2005. 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.

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 the Company.  No  directors,  executive
officer or  proposed  nominee of  neither  the  Company,  nor any  associate  or
affiliate of these  individuals,  is or has been  indebted to the Company  since
January 1, 2005.

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

CONSOLIDATED STATEMENTS AND OTHER FINANCIAL INFORMATION

DESCRIPTION                                                          PAGE

Audited Financial Statements for the Year Ended
December 31, 2005, and the Fifteen Months Ended December 31, 2004    F-1 to F-19

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


                                       14
<PAGE>

(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:

OTCBB STOCK TRADING ACTIVITY

                                                          SALES PRICE
YEAR ENDED                         VOLUME             HIGH           LOW

December 31, 2005                7,157,335            $0.60         $0.02
December 31, 2004                4,633,887            $8.95         $0.03
September 30, 2003*                936,022            $0.15         $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            $1.84         $0.08
------------------
*  Fifteen-months ended September 30, 2003

                                                          SALES PRICE
QUARTER ENDED                      VOLUME             HIGH           LOW

June 30, 2006                      554,245            $0.17         $0.08
March 31, 2006                   3,493,082            $0.28         $0.02
December 31, 2005                  767,783            $0.05         $0.02
September 30, 2005               4,059,001            $0.15         $0.02


                                       15
<PAGE>

                                                          SALES PRICE
QUARTER ENDED                      VOLUME             HIGH           LOW

June 30, 2005                      754,155            $0.15         $0.06
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         $0.03
December 31, 2003                   36,422            $0.03         $0.03
September 30, 2003                  56,100            $0.05         $0.03
June 30, 2003                      195,700            $0.11         $0.03
March 31, 2003                     159,600            $0.04         $0.03
December 31, 2002                  488,200            $0.15         $0.02
September 30, 2002               1,019,300            $0.29         $0.10

                                                          SALES PRICE
MONTH ENDED                        VOLUME             HIGH           LOW

July 31, 2006                       26,750            $0.11         $0.06
June 30, 2006                       61,385            $0.11         $0.08
May 31, 2006                       301,086            $0.16         $0.11
April 30, 2006                     191,774            $0.17         $0.12
March 31, 2006                   3,206,101            $0.28         $0.03
February 28, 2006                   98,829            $0.04         $0.03
January 31, 2006                   188,152            $0.04         $0.02
December 31, 2005                  121,775            $0.05         $0.02
November 30, 2005                  382,235            $0.04         $0.02
October 31, 2005                   263,773            $0.04         $0.02
September 30, 2005               3,520,496            $0.08         $0.02
August 31, 2005                    524,905            $0.15         $0.03
July 31, 2005                       13,600            $0.10         $0.05

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
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


                                       16
<PAGE>

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 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.

2.    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.

3.    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.

4.    Subscription  Agreement  dated  September 21, 2005 between the Company and
      Global China Enterprises Limited for 7,500,000 shares of the Company.

5.    Subscription  Agreement  dated  September 21, 2005 between the Company and
      Fivestar International Limited for 7,700,000 shares of the Company.


                                       17
<PAGE>

6.    Subscription  Agreement  dated  September 21, 2005 between the Company and
      Mart Express Limited for 7,500,000 shares of the Company.

7.    Subscription  Agreement  dated  September 21, 2005 between the Company and
      Rich Gush Limited for 7,500,000 shares of the Company.

8.    Subscription  Agreement  dated  September 21, 2005 between the Company and
      Mart Burkit Limited for 7,500,000 shares of the Company.

9.    Subscription  Agreement  dated  September 21, 2005 between the Company and
      Sino Castle Holdings Limited for 7,500,000 shares of the Company.

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 = RMB7.90 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


                                       18
<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  changed  its  domicile  effective  August 26,  2004.  See "Item 4.
Information on the Company - History and Development of the Company",  and "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, the Company's  Chief Executive
Officer and acting Chief Financial  Officer,  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,  2005.  Based upon that  evaluation,  Dr. Fan  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,  2005,  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.


                                       19
<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,  Dr.  Fan Di. Dr.  Fan 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  December  31,  2004 and  December  31,  2005,  the
Company's principal accountant billed $40,000 and $23,500, 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  December  31,  2004 and  December  31,  2005,  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  December  31,  2004 and  December  31,  2005,  the
Company's  principal  accountant  billed  $nil and $nil,  respectively,  for tax
compliance, tax advice, and tax planning services.

ALL OTHER FEES

For the fiscal  years  ended  December  31,  2004 and  December  31,  2005,  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.


                                       20
<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, 2005,  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 pages F-1 to F-19.


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

 EXHIBIT NUMBER                      DESCRIPTION

      1.1        Memorandum and Articles of Association (1)

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

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

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

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

      4.5        Form of Subscription Agreements dated September 21, 2005
                 between the Company and each of Global China Enterprises
                 Limited, Fivestar International Limited, Mart Express Limited,
                 Rich Gush Limited, Mart Burkit Limited and Sino Castle
                 Holdings Limited.

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


                                       21
<PAGE>
 EXHIBIT NUMBER                      DESCRIPTION

     13.1        Certification of Chief Executive Officer and 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.




















                                       22

<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, 2006            /s/ FAN DI
                                   ---------------------------------------------
                                   FAN Di
                                   Chief Executive Officer and Acting Chief
                                   Financial Officer



















                                       23

<PAGE>

BONGIOVANNI & ASSOCIATES, P.A.
                                                17111 KENTON DRIVE - SUITE 100-B
                                                 CORNELIUS, NORTH CAROLINA 28031

================================================================================
PHONE (704) 892-8733



             REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM



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  sheets  of  China
Pharmaceuticals International Corporation (a British Virgin Islands corporation)
as of December  31,  2004 and  December  31,  2005 and the related  consolidated
statements  of  operations  and  comprehensive  loss,  changes in  stockholders'
deficit,  and cash flows for the year ended  September  30,  2003,  the  fifteen
months  ended  December 31, 2004 and the year ended  December  31,  2005.  These
financial  statements are the  responsibility of the Company's  management.  Our
responsibility  is to express an opinion on these financial  statements based on
our audits.

We conducted  our audits in  accordance  with  auditing  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
financial  statements  are free from material  misstatement.  An audit  includes
examining,  on a test basis,  evidence supporting the amounts and disclosures in
the  financial  statements.  An audit also  includes  assessing  the  accounting
principles  used  and  significant  estimates  made  by  management,  as well as
evaluating the overall  financial  statement  presentation.  We believe that our
audits provide a reasonable basis for our opinion.

In our opinion,  the financial  statements  referred to above present fairly, in
all  material  respects,   the  financial  position  of  China   Pharmaceuticals
International Corporation as of December 31, 2004 and December 31, 2005, and the
results of its  operations  and its cash flows for the year ended  September 30,
2003, the fifteen months ended December 31, 2004 and the year ended December 31,
2005, in conformity with accounting  principles generally accepted in the United
States of America.

The accompanying  financial  statements have been prepared  assuming the Company
will continue as a going concern.  The Company has suffered recurring losses 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, P.A.


Cornelius, NC
July 7, 2006

                                      F-1
<PAGE>
                 CHINA PHARMACEUTICALS INTERNATIONAL CORPORATION
                                 BALANCE SHEETS

<TABLE>
<CAPTION>
                                     ASSETS
                                                                                             December 31,
                                                                                --------------------------------------
                                                                                       2004                2005
                                                                                ------------------  ------------------
<S>                                                                             <C>                 <C>
CURRENT ASSETS                                                                  $               -   $               -
                                                                                ------------------  ------------------
Investment                                                                                  1,000                   -
                                                                                ------------------  ------------------

TOTAL ASSETS                                                                    $           1,000   $               -
                                                                                ==================  ==================

                     LIABILITIES AND STOCKHOLDERS' DEFICIT

CURRENT LIABILITIES
Other payables and accrued liabilities                                          $         475,262   $         543,860
Advances from related parties                                                             312,278             438,625
Note payable                                                                              100,000             100,000
                                                                                ------------------  ------------------

TOTAL LIABILITIES                                                                         887,540           1,082,485
                                                                                ------------------  ------------------

STOCKHOLDERS' DEFICIT
Paid-in Capital, no par value, 500,000,000 shares authorized
   46,160,733 and 79,758,837 shares issued and outstanding                              4,912,289           5,430,679
Stock subscriptions receivable                                                                  -            (452,000)
Allowance for doubtful stock subscriptions receivable                                           -             452,000
Retained deficit                                                                       (5,798,829)         (6,513,164)
                                                                                ------------------  ------------------

TOTAL STOCKHOLDERS' DEFICIT                                                              (886,540)         (1,082,485)
                                                                                ------------------  ------------------

TOTAL LIABILITIES AND STOCKHOLDERS' DEFICIT                                     $           1,000   $               -
                                                                                ==================  ==================

</TABLE>

              See accompanying notes to the financial statements.

                                      F-2
<PAGE>
                 CHINA PHARMACEUTICALS INTERNATIONAL CORPORATION
                 STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS
  FOR THE YEAR ENDED SEPTEMBER 30, 2003, FIFTEEN MONTHS ENDED DECEMBER 31, 2004
                      AND THE YEAR ENDED DECEMBER 31, 2005

<TABLE>
<CAPTION>
                                                                    2003             2004              2005
                                                             -----------------------------------------------------
<S>                                                          <C>                <C>                <C>
SALES                                                        $    1,517,822     $            -     $            -

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

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

OPERATING EXPENSES
General and administrative expenses                                (857,189)          (387,949)          (214,804)
Bad debts                                                                 -                  -           (463,350)
Depreciation and amortization                                       (98,672)           (19,717)                 -
Impairment of goodwill                                             (135,638)                 -                  -
Loss on disposal of subsidiaries                                          -           (257,727)                 -
                                                             ---------------    ---------------    ---------------

TOTAL OPERATING EXPENSES                                         (1,091,499)          (665,393)          (678,154)
                                                             ---------------    ---------------    ---------------

INCOME FROM CONTINUING OPERATIONS                                  (746,267)          (665,393)          (678,154)

Interest and other (expense) income, net                             46,411            (50,045)           (36,181)
                                                             ---------------    ---------------    ---------------

NET LOSS                                                     $     (699,856)    $     (715,438)    $     (714,335)
                                                             ===============    ===============    ===============

OTHER COMPREHENSIVE (LOSS) INCOME
Foreign currency translation adjustment                      $      (26,953)    $       (7,772)    $            -
                                                             ---------------    ---------------    ---------------

COMPREHENSIVE LOSS                                           $     (726,809)    $     (723,210)    $     (714,335)
                                                             ===============    ===============    ===============

NET LOSS PER SHARE, BASIC AND DILUTED                        $       (1.142)    $       (0.026)    $       (0.015)
                                                             ===============    ===============    ===============

WEIGHTED AVERAGE COMMON SHARES
OUTSTANDING, BASIC AND DILUTED                                      636,514         28,249,500         47,973,021
                                                             ===============    ===============    ===============

</TABLE>

              See accompanying notes to the financial statements.

                                      F-3

<PAGE>
                 CHINA PHARMACEUTICALS INTERNATIONAL CORPORATION
                STATEMENTS OF CHANGES IN STOCKHOLDERS' (DEFICIT)
  FOR THE YEAR ENDED SEPTEMBER 30, 2003, FIFTEEN MONTHS ENDED DECEMBER 31, 2004
                      AND THE YEAR ENDED DECEMBER 31, 2005
<TABLE>
<CAPTION>
                                                                                Allowance
                                                                                   for                                     Total
                                                                                 Doubtful                                  Stock-
                                                                   Stock        Stock Sub-                 Cumulative     holders'
                                    Common Stock     Paid-in    Supscriptions   scriptions    Retained     Translation     Equity
                                       Number        Capital     Receivable     Receivable     Deficit      Adjustment    (Deficit)
<S>                                <C>            <C>           <C>             <C>          <C>           <C>          <C>
BALANCES
- SEPTEMBER 30, 2002                    260,733   $ 4,421,249   $          -    $       -    $(4,348,810)  $  (34,725)  $    37,714

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

Net loss for the year                         -             -              -            -       (726,809)           -      (726,809)

Foreign currency translation
adjustment                                    -             -              -            -              -       26,953        26,953
                                   -------------------------------------------------------------------------------------------------

- SEPTEMBER 30, 2003                    760,733   $ 4,621,249   $          -    $       -    $(5,075,619)  $   (7,772)  $  (462,142)
                                   =================================================================================================

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

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

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

Issuance of shares                      400,000            40                                          -            -            40

Net loss for the fifteen months               -             -              -            -       (723,210)           -      (723,210)
                                   -------------------------------------------------------------------------------------------------

BALANCES
- DECEMBER 31, 2004                  46,160,733   $ 4,912,289   $          -    $       -    $(5,798,829)  $        -   $  (886,540)
                                   =================================================================================================

Cancellation of shares on March
4, 2005                             (13,848,220)       (1,000)             -            -              -            -        (1,000)

Issuance of shares for payment
of consulting services                2,246,324        67,390              -            -              -            -        67,390

Common stock issued for stock        45,200,000       452,000       (452,000)     452,000              -            -       452,000

Net loss for the year                         -             -              -            -       (714,335)           -      (714,335)

BALANCES
                                   -------------------------------------------------------------------------------------------------
- DECEMBER 31, 2005                  79,758,837   $ 5,430,679   $   (452,000)   $ 452,000    $(6,513,164)  $        -   $(1,082,485)
                                   =================================================================================================

</TABLE>

              See accompanying notes to the financial statements.

                                      F-4
<PAGE>
                 CHINA PHARMACEUTICALS INTERNATIONAL CORPORATION
                            STATEMENTS OF CASH FLOWS
  FOR THE YEAR ENDED DECEMBER 31, 2003, FIFTEEN MONTHS ENDED DECEMBER 31, 2004
                      AND THE YEAR ENDED DECEMBER 31, 2005

<TABLE>
<CAPTION>
                                                                           2003                2004               2005
<S>                                                                <C>               <C>                 <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
    Net loss                                                       $      (726,809)  $        (723,210)  $       (714,335)
    Adjustments to reconcile net loss to net cash used in
    operating activities:
      Depreciation and amortization                                         98,672              19,717                  -
      Bad debt                                                                   -                   -            463,350
      Interest income                                                            -                   -            (11,350)
      Loss on disposal of subsidiaries                                           -             257,727                  -
      Issuance of common shares for consulting services rendered                 -                   -             67,390
      Impairment to goodwill                                               135,638                   -                  -
      Cumulative translation adjustment                                     26,953               7,772                  -
    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                             214,019              55,798             68,598
                                                                   ----------------  ------------------  -----------------
    Total adjustments                                                      839,059             341,014            587,988
                                                                   ----------------  ------------------  -----------------

NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES                        112,250            (382,196)          (126,347)
                                                                   ----------------  ------------------  -----------------

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:
    Proceeds from notes payable                                            100,000                   -                  -
    Repayment on note payable - stockholder                               (235,827)                  -                  -
    Repayment to related parties                                                 -            (163,859)                 -
    Advances from related parties                                                -             545,529            126,347
                                                                   ----------------  ------------------  -----------------

NET CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES                       (135,827)            381,670            126,347
                                                                   ----------------  ------------------  -----------------

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

CASH AT BEGINNING OF PERIOD                                                 26,262                 526                  -
                                                                   ----------------  ------------------  -----------------

CASH AT END OF PERIOD                                              $           526   $               -   $              -
                                                                   ================  ==================  =================

SUPPLEMENTAL DISCLOSURE OF
NON-CASH FINANCING ACTIVITIES:
    Common stock issued for note payable-stockholder               $       200,000   $               -   $              -
                                                                   ================  ==================  =================
    Common stock issued for related party payable                  $             -   $         290,000   $              -
                                                                   ================  ==================  =================
    Common stock issued for stock subscriptions receivable         $             -   $               -   $        452,000
                                                                   ================  ==================  =================
    Common stock cancelled for reversal of investment              $             -   $               -   $          1,000
                                                                   ================  ==================  =================
</TABLE>

              See accompanying notes to the financial statements.

                                      F-5
<PAGE>

CHINA PHARMACEUTICALS INTERNATIONAL CORPORATION
NOTES TO AUDITED FINANCIAL STATEMENTS
DECEMBER 31, 2005 AND DECEMBER 31, 2004
================================================================================

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

         BASIS OF PRESENTATION

         The  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. This distribution has been
         accounted for as Discontinued  Operations.  (See NOTE 10.  DISCONTINUED
         OPERATIONS.)  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.

                                      F-6
<PAGE>

CHINA PHARMACEUTICALS INTERNATIONAL CORPORATION
NOTES TO AUDITED FINANCIAL STATEMENTS
DECEMBER 31, 2005 AND DECEMBER 31, 2004
================================================================================

--------------------------------------------------------------------------------
NOTE 1.  SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
--------------------------------------------------------------------------------

         ACCOUNT RECEIVABLE AND ALLOWANCE FOR DOUBTFUL ACCOUNTS

         The Company  provides an allowance for doubtful  accounts  equal to the
         estimated  uncollectible  amounts.  The Company's  estimate is based on
         historical  collection experience and a review of the current status of
         trade  accounts  receivable.  It is  reasonably  possible the Company's
         estimate of the  allowance for doubtful  accounts will change.  For the
         period ended December 31, 2005 and 2004, accounts receivable of $11,350
         and $0 are  presented  net of an  allowance  for  doubtful  accounts of
         $11,350 and $0, respectively.

         PROPERTY AND EQUIPMENT

         Property  and  equipment  is  recorded at cost.  For the periods  ended
         December 31, 2005 and 2004,  all property and  equipment has been fully
         depreciated.  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.


                                      F-7
<PAGE>
CHINA PHARMACEUTICALS INTERNATIONAL CORPORATION
NOTES TO AUDITED FINANCIAL STATEMENTS
DECEMBER 31, 2005 AND DECEMBER 31, 2004
================================================================================

--------------------------------------------------------------------------------
NOTE 1.  SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
--------------------------------------------------------------------------------

         STOCK BASED COMPENSATION

         The Company accounts for stock-based  compensation using the fair value
         method of Financial  Accounting  Standard No. 123R.  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 warrants under the
         same  authoritative  guidance  using the  Black-Scholes  Option Pricing
         Model. The Company issued  2,246,324 shares of Common Stock,  valued at
         $67,390,  to a consultant in payment for consulting  services performed
         during the period ended  December 31, 2005.  See NOTE 3. RELATED  PARTY
         TRANSACTIONS  and NOTE 4.  INVESTMENT for a discussion of shares issued
         for the conversion of debt and for investment.

         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 DUE 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, 2005, the fair value approximates
             the carrying value.

         CONCENTRATION OF REVENUE

         No revenues  were  recorded for the year ended  December 31, 2005 since
         there was no business  activity in 2005.  No revenues were recorded for
         fifteen  months  ended  December  31,  2004 since there was no business
         activity in 2004.


                                      F-8
<PAGE>
CHINA PHARMACEUTICALS INTERNATIONAL CORPORATION
NOTES TO AUDITED FINANCIAL STATEMENTS
DECEMBER 31, 2005 AND DECEMBER 31, 2004
================================================================================

--------------------------------------------------------------------------------
NOTE 1.  SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
--------------------------------------------------------------------------------

         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.

         The Company made  adjustments  to two prior  reporting  periods in this
         report (See NOTE 9. PRIOR PERIOD ADJUSTMENT for more information).  The
         effect  of these  changes  was to  increase  net loss by  $103,753  and
         $71,990 for the periods ended September 30, 2003 and December 31, 2004,
         respectively.  As a result of this  adjustment,  basic and diluted loss
         per share  increased to ($1.142)  and  ($0.026)  for the periods  ended
         September 30, 2003 and December 31, 2004,  respectively.  The financial
         statements for these periods have been  retroactively  restated for the
         change,  which  resulted in the increased net loss per share.  Retained
         deficit has been adjusted for the effect of retroactive  application of
         the prior period adjustment.

         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 2005 and
         2004,  the  Company  determined  that it did  not  have  any  material,
         separately  reportable  operating  segments as of December 31, 2005 and
         December 31,  2004.  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.


                                      F-9

<PAGE>
CHINA PHARMACEUTICALS INTERNATIONAL CORPORATION
NOTES TO AUDITED FINANCIAL STATEMENTS
DECEMBER 31, 2005 AND DECEMBER 31, 2004
================================================================================

--------------------------------------------------------------------------------
NOTE 1.  SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
--------------------------------------------------------------------------------


         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.

         NEW ACCOUNTING PRONOUNCEMENTS

         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-10
<PAGE>
CHINA PHARMACEUTICALS INTERNATIONAL CORPORATION
NOTES TO AUDITED FINANCIAL STATEMENTS
DECEMBER 31, 2005 AND DECEMBER 31, 2004
================================================================================

--------------------------------------------------------------------------------
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. The adoption of SFAS No.
         151 is not  expected  to have a  significant  impact  on its  financial
         statements.

         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 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 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 financial statements.


                                      F-11
<PAGE>
CHINA PHARMACEUTICALS INTERNATIONAL CORPORATION
NOTES TO AUDITED FINANCIAL STATEMENTS
DECEMBER 31, 2005 AND DECEMBER 31, 2004
================================================================================

--------------------------------------------------------------------------------
NOTE 1.  SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
--------------------------------------------------------------------------------

         NEW ACCOUNTING PRONOUNCEMENTS (CONT.)

         In February  2006,  FASB issued SFAS No. 155,  "Accounting  for Certain
         Hybrid  Financial  Instruments."  SFAS No.  155  amends  SFAS No.  133,
         "Accounting  for Derivative  Instruments and Hedging  Activities,"  and
         SFAS No. 140,  "Accounting  for  Transfers  and  Servicing of Financial
         Assets and  Extinguishments  of Liabilities." SFAS No. 155 permits fair
         value  remeasurement for any hybrid financial  instrument that contains
         an  embedded  derivative  that  otherwise  would  require  bifurcation,
         clarifies which interest-only strips and principal-only  strips are not
         subject to the requirements of SFAS No. 133,  establishes a requirement
         to  evaluate  interest  in  securitized  financial  assets to  identify
         interests  that  are  freestanding   derivatives  or  that  are  hybrid
         financial  instruments  that contain an embedded  derivative  requiring
         bifurcation,  clarifies that  concentrations of credit risk in the form
         of subordination are not embedded derivatives,  and amends SFAS No. 140
         to eliminate the prohibition on the qualifying  special-purpose  entity
         from  holding a  derivative  financial  instrument  that  pertains to a
         beneficial interest other than another derivative financial instrument.
         This statement is effective for all financial  instruments  acquired or
         issued  after the  beginning  of the  Company's  first fiscal year that
         begins  after  September  15,  2006.   Management  believes  that  this
         statement will not have a significant impact on the Company's financial
         statements.

         In March 2006 FASB issued SFAS No. 156  "Accounting  for  Servicing  of
         Financial  Assets" this Statement amends SFAS No. 140,  "Accounting for
         Transfers  and  Servicing of Financial  Assets and  Extinguishments  of
         Liabilities," with respect to the accounting for separately  recognized
         servicing assets and servicing liabilities. This Statement:

         1.  Requires  an entity to  recognize a  servicing  asset or  servicing
         liability  each time it undertakes an obligation to service a financial
         asset by entering into a servicing contract.

         2.  Requires all separately recognized  servicing  assets and servicing
         liabilities to be initially measured at fair value, if practicable.

         3.  Permits  an entity to choose  `Amortization  method'  or Fair value
         measurement method' for each class of separately  recognized  servicing
         assets and servicing liabilities.

         4.  At its  initial  adoption, permits a one-time  reclassification  of
         available-for-sale  securities  to trading  securities by entities with
         recognized   servicing  rights,   without  calling  into  question  the
         treatment of other  available-for-sale  securities  under SFAS No. 115,
         provided that the


                                      F-12
<PAGE>
CHINA PHARMACEUTICALS INTERNATIONAL CORPORATION
NOTES TO AUDITED FINANCIAL STATEMENTS
DECEMBER 31, 2005 AND DECEMBER 31, 2004
================================================================================

--------------------------------------------------------------------------------
NOTE 1.  SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
--------------------------------------------------------------------------------

         NEW ACCOUNTING PRONOUNCEMENTS (CONT.)

         available-for-sale   securities   are  identified  in  some  manner  as
         offsetting the entity's  exposure to changes in fair value of servicing
         assets or servicing  liabilities that a servicer elects to subsequently
         measure at fair value.

         5.  Requires separate  presentation  of servicing  assets and servicing
         liabilities  subsequently  measured at fair value in the  statement  of
         financial  position  and  additional  disclosures  for  all  separately
         recognized servicing assets and servicing liabilities.

         This Statement is effective as of the beginning of the Company's  first
         fiscal year that begins after September 15, 2006.  Management  believes
         that this statement will not have a significant impact on the Company's
         financial statements.


--------------------------------------------------------------------------------
NOTE 2.  GOING CONCERN (LIQUIDITY AND CAPITAL RESOURCES)
--------------------------------------------------------------------------------

         The accompanying  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, 2005. 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 $205,708 and $87,059 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.

         DiChain Holdings  Limited and DC Capital  Management,  Inc.,  companies
         sharing mutual  ownership with the Company,  have advanced  $26,790 and
         $9,000 to the


                                      F-13
<PAGE>
CHINA PHARMACEUTICALS INTERNATIONAL CORPORATION
NOTES TO AUDITED FINANCIAL STATEMENTS
DECEMBER 31, 2005 AND DECEMBER 31, 2004
================================================================================

--------------------------------------------------------------------------------
NOTE 3.  RELATED PARTY TRANSACTIONS (CONTINUED)
--------------------------------------------------------------------------------

         RELATED PARTIES PAYABLE STOCKHOLDER (CONT.)

         Company, respectively,  since January 1, 2005. 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.

         ACCOUNTS PAYABLE OFFICERS AND DIRECTORS

         At  December  31,  2005 and 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 shared the offices of China  Merchants  DiChain (Asia) Ltd.
         from January 2005 to September  2005,  and was allocated  HK$10,000 per
         month  (US$1,282  as of August  15,  2005) as its pro rata share of the
         cost of the facility.  There was no written  agreement  regarding  this
         office sharing arrangement.

         The Company  shared the  offices of DC Capital  Management,  Inc.  from
         October 2005 to December  2005,  and was allocated  HK$13,400 per month
         (US$1,718  as of  October 1, 2005) as its pro rata share of the cost of
         the  facility.  There was no written  agreement  regarding  this office
         sharing arrangement.

         SHARE OF OFFICE STAFF

         The Company shared the office staff of China  Merchants  DiChain (Asia)
         Ltd. from January 2005 to September  2005, and was allocated  HK$35,000
         per month (US$4,478 as of August 15, 2005) as its pro rata share of the
         cost.  There was no written  agreement  regarding  this  staff  sharing
         arrangement.

         The Company  shared the offices  staff of DC Capital  Management,  Inc.
         from October 2005 to December  2005,  and was  allocated  HK$10,000 per
         month  (US$1,282  as of  October  1, 2005) as its pro rata share of the
         cost.  There was no written  agreement  regarding  this office  sharing
         arrangement.


                                      F-14
<PAGE>
CHINA PHARMACEUTICALS INTERNATIONAL CORPORATION
NOTES TO AUDITED FINANCIAL STATEMENTS
DECEMBER 31, 2005 AND DECEMBER 31, 2004
================================================================================

--------------------------------------------------------------------------------
NOTE 4.  INVESTMENT
--------------------------------------------------------------------------------

         The  Company's   investment  in  Sheung  Tai  Investments  Limited  was
         originally recorded at $1,385,  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.

         On January 19, 2005, the Company entered into an agreement 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.


--------------------------------------------------------------------------------
NOTE 5.  CONTINGENCIES
--------------------------------------------------------------------------------

         As of  December  31,  2005,  the  Company  owed a total of  $375,244 to
         eAngels EquiDebt Partners  ("eAngels").  The balance due bears interest
         at 10% per year.  For the year  ended  December  31,  2005 and  fifteen
         months ended  December 31, 2004,  accrued  interest was $75,049 and the
         $37,524,  respectively.  The Company has disputed  their  liability for
         this debt.

         As of December 31, 2005, the Company owed a total of $100,000 on a note
         payable. The note bears interest at 10% per year and is in default. For
         the year ended  December 31, 2005 and fifteen months ended December 31,
         2004,  accrued  interest  was $26,274 and  $16,274,  respectively.  The
         Company has disputed their liability for this debt.

         As of  December  31,  2005,  the  Company  owed a total of  $2,000  for
         consulting  services  provided  by  FutureVest,  Inc.  The  Company has
         disputed their liability for this amount.

         As of  December  31,  2005,  the  Company  owed a total of $24,000  for
         consulting  services  provided by Alexis  Global,  Inc. The Company has
         disputed their liability for this amount.

--------------------------------------------------------------------------------
NOTE 6.  NOTES PAYABLE
--------------------------------------------------------------------------------

         The  Company  has  issued an  unsecured  note  payable in the amount of
         $100,000  which bears  interest of 10% with a maturity  date of May 16,
         2004. As of December 31, 2005 and 2004, the outstanding  balance on the
         note  is  $100,000  with  accrued  interest  of  $26,274  and  $16,274,
         respectively.


                                      F-15
<PAGE>
CHINA PHARMACEUTICALS INTERNATIONAL CORPORATION
NOTES TO AUDITED FINANCIAL STATEMENTS
DECEMBER 31, 2005 AND DECEMBER 31, 2004
================================================================================

--------------------------------------------------------------------------------
NOTE 7.  STOCK SUBSCRIPTIONS RECEIVABLE
--------------------------------------------------------------------------------

         The Company issued 45,200,000 shares on September 21, 2005 at $0.01 per
         share as follows:

                     COMPANY                         SHARES            US$
         ---------------------------------        -----------       ---------

         Global China Enterprises Limited           7,500,000          75,000
         Fivestar International Limited             7,700,000          77,000
         Mart Express Limited                       7,500,000          75,000
         Rich Gush Limited                          7,500,000          75,000
         Mart Burkit Limited                        7,500,000          75,000
         Sino Castle Holdings Limited               7,500,000          75,000
                                                  -----------       ----------
         TOTAL                                     45,200,000         452,000

         As of December  31, 2005,  the  investing  companies  have not paid the
         subscription   amount  of   $452,000.   Pursuant  to  its  Articles  of
         Incorporation,  the Company may, upon written notice to these investing
         companies,  treat the unpaid shares as canceled  shares,  but has opted
         not to do so as of  December  31,  2005.  Furthermore,  pursuant to the
         subscription   agreements   the   Company   accrued   interest  on  the
         Subscription  Receivable  at the rate of Hong Kong  Prime  plus 2% from
         September  28, 2005 through  December 31, 2005,  or a total of $11,350.
         However, in estimating  uncollectible accounts,  management recorded an
         allowance for doubtful accounts of $11,350.


--------------------------------------------------------------------------------
NOTE 8.  INCOME TAXES
--------------------------------------------------------------------------------

         The components of income taxes were as follows:


                                                          2005          2004
         =======================================================================

         Income Tax Benefit

         Income tax benefit at combined statutory
           rate of 42.62%                              $  111,807    $  263,050
         Change in Valuation Allowance                (   111,807)  (   263,050)
         -----------------------------------------------------------------------

         Income Tax Benefit                            $        -    $        -
         =======================================================================

         The income tax benefit for the year ended December 31, 2005 and fifteen
         months ended December 31, 2004,  differed from the combined federal and
         provincial  statutory  rates due  principally  to the  decrease  in the
         deferred tax asset valuation allowance.


                                      F-16
<PAGE>
CHINA PHARMACEUTICALS INTERNATIONAL CORPORATION
NOTES TO AUDITED FINANCIAL STATEMENTS
DECEMBER 31, 2005 AND DECEMBER 31, 2004
================================================================================

--------------------------------------------------------------------------------
NOTE 8.  INCOME TAXES (CONTINUED)
--------------------------------------------------------------------------------

         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 year ended  December  31, 2005 and fifteen
         months ended December 31, 2004.

         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,  2005,  the  approximate  deferred  tax assets were as
         follows:

            Non-capital loss carryforwards                       $    2,215,601
            Capital assets                                               45,000
         -----------------------------------------------------------------------
              Total deferred tax assets                               2,260,601
              Less valuation allowance                               (2,260,601)
         -----------------------------------------------------------------------

                                                                 $            -
         =======================================================================


--------------------------------------------------------------------------------
NOTE 9.  PRIOR PERIOD ADJUSTMENTS
--------------------------------------------------------------------------------

         Retained  deficit at October  1, 2003 has been  restated  to reflect an
         unrecorded note payable of $100,000 and interest expense of $3,753. Had
         the  errors not been made,  net loss for the year ended  September  30,
         2003 would have  increased by $103,753.  Basic and diluted net loss per
         share would have increased by ($0.003) to ($0.026).

         Retained  deficit at January 1, 2004 has been  restated  to reflect the
         aggregate of the unrecorded note payable and interest  expense from the
         year ended  September 30, 2003, of interest  expense of $50,045,  legal
         expenses  of $17,511,  consulting  expenses  of $2,000,  and  promotion
         expenses of $1,046,  foreign currency  exchange  adjustments of $1,010,
         other  expenses of $279 and travel  expenses of $99. Had the errors not
         been made, a net loss for the fifteen  months  ended  December 31, 2004
         would have  increased by $71,990.  Basic and fully diluted net loss per
         share for the same period would have increased by ($0.163) to ($1.142).


                                      F-17
<PAGE>
CHINA PHARMACEUTICALS INTERNATIONAL CORPORATION
NOTES TO AUDITED FINANCIAL STATEMENTS
DECEMBER 31, 2005 AND DECEMBER 31, 2004
================================================================================

--------------------------------------------------------------------------------
NOTE 10. DISCONTINUED OPERATIONS
--------------------------------------------------------------------------------

         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 1-for-1 share basis shares of E-Trend
         Networks,  Inc.  On  February  5, 2004,  the  Company  entered  into an
         agreement  for the exchange of common stock  whereby the Company  would
         issue 45,000,000 new post reverse split common shares thus transferring
         majority  control of the Company to the purchaser.  The distribution of
         Langara   Entertainment,   Inc.,   E-Trend   Networks,   Inc.  and  the
         discontinued  operations  of  Wilmington  Rexford,  Inc.  qualified for
         treatment as discontinued  operations in accordance with FASB Statement
         No. 144 ("SFAS No. 144"),  Accounting for the Impairment or Disposal of
         Long-Lived   Assets.   Because   the   operating   results  of  Langara
         Entertainment,  Inc.,  E-Trend  Networks,  Inc.  and  the  discontinued
         operations of Wilmington Rexford,  Inc. represent 100% of operations of
         the Company, they were included in results from continuing  operations.
         The following is a summary of the net liabilities distributed as of the
         end of the  period immediately prior  to  the  effective  date  of  the
         Distribution Agreement:

<TABLE>
<CAPTION>
                                                                    September          December         December
                                                                     30, 2003          31, 2004         31, 2005
                                                                   -------------     -------------     ------------
<S>                                                                <C>               <C>               <C>
         Assets Distributed
           Cash and cash equivalents                               $        526      $          -      $         -
           Accounts receivable                                           24,926                 -                -
           Property and equipment, net                                  165,246                 -                -
           Advances due from related parties                            128,110                 -                -
                                                                   -------------     -------------     ------------
             Total assets of discontinued operations                    318,808                 -                -
                                                                   -------------     -------------     ------------

         Liabilities Distributed
           Accounts payable and accrued liabilities                     440,754                 -                -
           Notes payable - related parties                              236,443                 -                -
                                                                   -------------     -------------     ------------
             Total liabilities of discontinued operations               677,197                 -                -
                                                                   -------------     -------------     ------------

         Net liabilities of discontinued operations distributed    $   (358,389)     $          -      $         -
                                                                   =============     =============     ============
</TABLE>

                                      F-18
<PAGE>
CHINA PHARMACEUTICALS INTERNATIONAL CORPORATION
NOTES TO AUDITED FINANCIAL STATEMENTS
DECEMBER 31, 2005 AND DECEMBER 31, 2004
================================================================================

--------------------------------------------------------------------------------
NOTE 10. DISCONTINUED OPERATIONS (CONTINUED)
--------------------------------------------------------------------------------

         Net (loss) from  discontinued  operations as reported on the statements
         of operations, including the (loss) on the distribution of discontinued
         operations, consists of the following:

<TABLE>
<CAPTION>
                                                              For the year         For the fifteen         For the year
                                                                 ended               months ended             ended
                                                             September 30,           December 31,          December 31,
                                                                  2003                   2004                  2005
                                                          --------------------    ------------------    ------------------
<S>                                                       <C>                     <C>                   <C>
Summary of (Loss)
Revenues                                                  $         1,517,822     $               -     $               -
Cost of revenues                                                   (1,172,590)                    -                     -
                                                          --------------------    ------------------    ------------------
Gross profit                                                          345,232                     -                     -

Total operating expenses                                           (1,091,499)                    -                     -
Total other (income) expenses                                          46,411                     -                     -
Foreign currency translation adjustment                               (26,953)                    -                     -
Provision for income tax                                                    -                     -                     -

Comprehensive loss, net of tax                            $          (729,809)    $               -     $               -
                                                          ====================    ==================    ==================

Summary of (Loss) on Distribution
Net liabilities distributed                                           358,389                     -                     -

Costs and expenses of distribution                                          -                     -                     -
                                                          --------------------    ------------------    ------------------

Gain on distribution of liabilities, net of tax           $           358,389     $               -     $               -
                                                          ====================    ==================    ==================

Net (loss) from discontinued operations                   $          (371,420)    $               -     $               -
                                                          ====================    ==================    ==================
</TABLE>

         As a result of the  foregoing  distribution  of Langara  Entertainment,
         Inc.,  E-Trend  Networks,  Inc.  and  the  discontinued  operations  of
         Wilmington   Rexford,   Inc.,  the  Company   recognized  a  loss  from
         discontinued operations for the fiscal year ended September 30, 2003 of
         $1,058,245.  There  were no sales  from  Langara  Entertainment,  Inc.,
         E-Trend Networks,  Inc. and Wilmington  Rexford,  Inc., included in the
         periods from October 1, 2003 to December 31, 2005.





                                      F-19