| Nevada                          |   | 84-0928627                        |
|---------------------------------|--------|-----------------------------------|
| (State or other jurisdiction of |   | (I.R.S. employer                  |
| incorporation or organization)  |   | identification  number) |

|   | Large Accelerated Filer o                |   | Accelerated Filer o              |
|--------|------------------------------------------|--------|----------------------------------|
|   | Non-Accelerated Filer   o |   | Smaller Reporting Company þ |

----

| PART I – FINANCIAL INFORMATION                                                 |                                                       |                                                     | Page No. |
|--------------------------------------------------------------------------------------|------------------------------------------------------------|----------------------------------------------------------|----------|
|                                                                                 |                                                       |                                                     |     |   |   |   |   |   |   |
| Item 1. Consolidated Financial Statements                                            |                                                       |                                                     |     |
|                                                                                 |                                                       |                                                     |     |   |   |   |   |   |   |
|                                                                                 | Consolidated Balance Sheets – September 30, 2010 and |                                                     |     |   |
|                                                                                 |                                                       | December 31, 2009                                        |     |   | 1 |
|                                                                                 |                                                       |                                                     |     |   |   |   |   |   |   |
|                                                                                 | Consolidated Statements of Operations -                    |                                                     |     |   |
|                                                                                 |                                                       | Three and Nine Months Ended September 30, 2010 and 2009  |     | 2 |
|                                                                                 |                                                       |                                                     |     |   |   |   |   |   |   |
|                                                                                 | Consolidated Statement of Changes in Equity –        |                                                     |     |
|                                                                                 |                                                       | December 31, 2009 through September 30, 2010             |     |   | 3 |
|                                                                                 |                                                       |                                                     |     |   |   |   |   |   |   |
|                                                                                 | Consolidated Statements of Cash Flows –              |                                                     |     |
|                                                                                 |                                                       | Nine Months Ended September  30, 2010 and 2009 |     | 4 |
|                                                                                 |                                                       |                                                     |     |   |   |   |   |   |   |
|                                                                                 | Notes to Condensed Consolidated Financial Statements       |                                                     | 5        |
|                                                                                 |                                                       |                                                     |     |   |   |   |   |   |   |
| Item 2.  Management’s Discussion and Analysis of Financial Condition |                                                       |                                                     |
|                                                                                 | and Results of Operations                                  |                                                     |     |   |   |   |   | 11 |
|                                                                                 |                                                       |                                                     |     |   |   |   |   |   |   |
| Item 3. Quantitative and Qualitative Disclosures about Market Risk                   |                                                       | 13                                                       |
|                                                                                 |                                                       |                                                     |     |   |   |   |   |   |   |
| Item 4T. Controls and Procedures                                                     |                                                       | 13                                                       |
|                                                                                 |                                                       |                                                     |     |   |   |   |   |   |   |
|                                                                                 |                                                       |                                                     |     |   |   |   |   |   |   |
| PART II – OTHER INFORMATION                                                    |                                                       |                                                     |
|                                                                                 |                                                       |                                                     |     |   |   |   |   |   |   |
| Item 1.  Legal Proceedings – Not Applicable                          |                                                       | 14                                                       |
|                                                                                 |                                                       |                                                     |     |   |   |   |   |   |   |
| Item 1a. Risk Factors                                                                |                                                       | 14                                                       |
|                                                                                 |                                                       |                                                     |     |   |   |   |   |   |   |
| Item 2.  Unregistered Sales of Equity Securities and Use of Proceeds       |                                                       | 14                                                       |
|                                                                                 |                                                       |                                                     |     |   |   |   |   |   |   |
| Item 3.  Defaults Upon Senior Securities – Not Applicable            |                                                       | 14                                                       |
|                                                                                 |                                                       |                                                     |     |   |   |   |   |   |   |
| Item 4.  Submission of Matters to a Vote of Security Holders               |                                                       | 14                                                       |
|                                                                                 |                                                       |                                                     |     |   |   |   |   |   |   |
| Item 5.  Other Information – Not Applicable                          |                                                       | 14                                                       |
|                                                                                 |                                                       |                                                     |     |   |   |   |   |   |   |
| Item 6.  Exhibits                                                          |                                                       | 14                                                       |
|                                                                                 |                                                       |                                                     |     |   |   |   |   |   |   |
|                                                                                 |                                                       |                                                     |     |   |   |   |   |   |   |
| SIGNATURES                                                                           |                                                       | 15                                                       |

----

| China Crescent Enterprises, Inc.                                                                                |
|-----------------------------------------------------------------------------------------------------------------|
| Consolidated Balance Sheet                                                                                      |
|                                                                                                            |   |   |   |   |   |   |
| ASSETS                                                                                                          |   | September 30, 2010 |   |   | December 31, 2009 |   |
|                                                                                                            |   | (Unaudited) |   |   |   |   |
| CURRENT ASSETS                                                                                                  |   |   |   |   |   |   |
|     Cash and cash equivalents                                                                    |   | $ | 4,147,924 |   |   | $ | 3,977,382 |   |
|     Accounts receivable                                                                          |   |   | 10,371,994 |   |   |   | 6,950,902 |   |
|     Inventory                                                                                    |   |   | 2,993,001 |   |   |   | 2,751,131 |   |
|     Supplier advances and prepaid expenses                                                       |   |   | 3,860,895 |   |   |   | 1,804,015 |   |
|     Advances to affiliate                                                                        |   |   | 3,000,000 |   |   |   | 2,000,000 |   |
|     Assets of discontinued operations                                                            |   |   | 9,377 |   |   |   | 9,377 |   |
|     Other current assets                                                                         |   |   | 162,721 |   |   |   | 147,613 |   |
|         Total current assets                                                 |   |   | 24,545,912 |   |   |   | 17,640,420 |   |
|                                                                                                            |   |   |   |   |   |   |   |   |
| PROPERTY AND EQUIPMENT, NET                                                                                     |   |   | 203,714 |   |   |   | 160,907 |   |
| INTANGIBLE ASSETS                                                                                               |   |   | 2,597 |   |   |   | 2,597 |   |
|                                                                                                            |   |   |   |   |   |   |   |   |
| Total assets                                                                                                    |   | $ | 24,752,223 |   |   | $ | 17,803,924 |   |
|                                                                                                            |   |   |   |   |   |   |   |   |
| LIABILITIES AND EQUITY                                                                                          |   |   |   |   |   |   |   |   |
| CURRENT LIABILITIES                                                                                             |   |   |   |   |   |   |   |   |
|     Accounts payable                                                                             |   | $ | 1,785,743 |   |   | $ | 1,204,616 |   |
|     Short-term borrowing                                                                         |   |   | 1,310,040 |   |   |   | 1,897,069 |   |
|     Accrued expenses and other liabilities                                                       |   |   | 928,920 |   |   |   | 563,661 |   |
|     Income taxes payable                                                                         |   |   | 9,966 |   |   |   | - |   |
|     Liabilities of discontinued operations                                                       |   |   | 308,683 |   |   |   | 308,683 |   |
|         Total current liabilities                                            |   |   | 4,343,352 |   |   |   | 3,974,029 |   |
|                                                                                                            |   |   |   |   |   |   |   |   |
| Long-term debt                                                                                                  |   |   | 625,260 |   |   |   | 500,000 |   |
|                                                                                                            |   |   |   |   |   |   |   |   |
| Total liabilities                                                                                               |   |   | 4,968,612 |   |   |   | 4,474,029 |   |
|                                                                                                            |   |   |   |   |   |   |   |   |
| EQUITY                                                                                                          |   |   |   |   |   |   |   |   |
| China Crescent Enterprises, Inc. shareholders' equity:                                                          |   |   |   |   |   |   |   |   |
|     Common stock; $.001 par value; 1,000,000,000 shares authorized;                              |   |   |   |   |   |   |   |   |
|         888,159,583 and 234,370,600 shares issued and outstanding            |   |   |   |   |   |   |   |   |
|         at September 30, 2010 and December  31, 2009, respectively |   |   | 888,160 |   |   |   | 234,371 |   |
|     Preferred stock; $.001 par value; 20,000,000 shares authorized;                              |   |   |   |   |   |   |   |   |
|         Series C 10,000 and 10,000; Series D 5,000 and 5,000 shares          |   |   |   |   |   |   |   |   |
|         issued and outstanding at September 30, 2010 and                     |   |   |   |   |   |   |   |   |
|         December  31, 2009, respectively                           |   |   | 15 |   |   |   | 15 |   |
| Additional paid-in capital                                                                                      |   |   | 8,019,103 |   |   |   | 5,950,581 |   |
| Accumulated comprehensive income                                                                                |   |   | 1,048,842 |   |   |   | 739,511 |   |
| Retained earnings                                                                                               |   |   | 7,047,246 |   |   |   | 3,755,468 |   |
|         Total China Crescent Enterprises, Inc. stockholders' equity          |   |   | 17,003,366 |   |   |   | 10,679,946 |   |
| Noncontrolling interest in consolidated subsidiary                                                              |   |   | 2,780,245 |   |   |   | 2,649,949 |   |
|         Total equity                                                         |   |   | 19,783,611 |   |   |   | 13,329,895 |   |
|                                                                                                            |   |   |   |   |   |   |   |   |
| Total liabilities and equity                                                                                    |   | $ | 24,752,223 |   |   | $ | 17,803,924 |   |
|                                                                                                            |   |   |   |   |   |   |   |   |
| See accompanying notes to consolidated financial statements.                                                    |   |   |   |   |   |   |   |   |

----

China Crescent Enterprises, Inc.

|                                                                       |   |                             |        |   |                            |   |       |   |   |   |        |   |
|----------------------------------------------------------------------------|--------|----------------------------------|-------------|--------|---------------------------------|--------|------------|--------|--------|--------|-------------|--------|
|                                                                       |   | Three Months Ended September 30, |        |   | Nine Months Ended September 30, |   |
|                                                                       |   | 2010                             |        |   | 2009                            |   |       | 2010   |   |   | 2009        |   |
| REVENUE                                                                    |   | $                                | 19,207,832  |   |                            | $      | 13,344,273 |   |   | $      | 50,914,146  |   |   | $ | 30,330,147 |   |
|                                                                       |   |                             |        |   |                            |   |       |   |   |   |        |   |   |   |   |   |
| COST OF SALES                                                              |   |                             | 17,315,476  |   |                            |   | 12,072,141 |   |   |   | 46,109,690  |   |   |   | 27,005,003 |   |
|                                                                       |   |                             |        |   |                            |   |       |   |   |   |        |   |   |   |   |   |
|     Gross Margin                                            |   |                             | 1,892,356   |   |                            |   | 1,272,132  |   |   |   | 4,804,456   |   |   |   | 3,325,144 |   |
|                                                                       |   |                             |        |   |                            |   |       |   |   |   |        |   |   |   |   |   |
| OPERATING EXPENSES                                                         |   |                             |        |   |                            |   |       |   |   |   |        |   |   |   |   |   |
|     Selling, general and administrative expenses            |   |                             | 320,847     |   |                            |   | 285,020    |   |   |   | 1,181,515   |   |   |   | 814,344 |   |
|     Depreciation and amortization                           |   |                             | 16,790      |   |                            |   | 5,270      |   |   |   | 44,720      |   |   |   | 11,662 |   |
|         Total expenses                  |   |                             | 337,637     |   |                            |   | 290,290    |   |   |   | 1,226,235   |   |   |   | 826,006 |   |
|                                                                       |   |                             |        |   |                            |   |       |   |   |   |        |   |   |   |   |   |
| Income (loss) from operations                                              |   |                             | 1,554,719   |   |                            |   | 981,842    |   |   |   | 3,578,221   |   |   |   | 2,499,138 |   |
|                                                                       |   |                             |        |   |                            |   |       |   |   |   |        |   |   |   |   |   |
| OTHER INCOME (EXPENSE)                                                     |   |                             |        |   |                            |   |       |   |   |   |        |   |   |   |   |   |
|     Interest income                                         |   |                             | -           |   |                            |   | -          |   |   |   | -           |   |   |   | 902 |   |
|     Interest expense                                        |   |                             | (40,873     | )      |                            |   | (38,401    | )      |   |   | (106,194    | )      |   |   | (140,341 | ) |
|     Other income                                            |   |                             | 33,012      |   |                            |   | 73,525     |   |   |   | 199,520     |   |   |   | 163,107 |   |
|     Other expense                                           |   |                             | (1,763      | )      |                            |   | (1,424     | )      |   |   | (4,593      | )      |   |   | (4,775 | ) |
|         Total other income (expense)    |   |                             | (9,624      | )      |                            |   | 33,700     |   |   |   | 88,733      |   |   |   | 18,893 |   |
|                                                                       |   |                             |        |   |                            |   |       |   |   |   |        |   |   |   |   |   |
|                                                                       |   |                             |        |   |                            |   |       |   |   |   |        |   |   |   |   |   |
| Net income before income tax  and non-controlling interest       |   |                             | 1,545,095   |   |                            |   | 1,015,542  |   |   |   | 3,666,954   |   |   |   | 2,518,031 |   |
| Foreign income tax                                                         |   |                             | (164,497    | )      |                            |   | (13,060    | )      |   |   | (379,167    | )      |   |   | (13,060 | ) |
| Non-controlling interest in consolidated subsidiary                        |   |                             | 138,278     |   |                            |   | (258,600   | )      |   |   | 3,991       |   |   |   | (626,017 | ) |
|                                                                       |   |                             |        |   |                            |   |       |   |   |   |        |   |   |   |   |   |
| Net income                                                                 |   |                             | 1,518,876   |   |                            |   | 743,882    |   |   |   | 3,291,778   |   |   |   | 1,878,954 |   |
|                                                                       |   |                             |        |   |                            |   |       |   |   |   |        |   |   |   |   |   |
| Other comprehensive income (loss):                                         |   |                             |        |   |                            |   |       |   |   |   |        |   |   |   |   |   |
|     Unrealized gain (loss) on available-for-sale securities |   |                             | -           |   |                            |   | (139       | )      |   |   | -           |   |   |   | (1,162 | ) |
|     Gain (loss)  on foreign currency translation  |   |                             | 262,447     |   |                            |   | 148,213    |   |   |   | (309,331    | )      |   |   | (314,384 | ) |
| Total other comprehensive income                                           |   |                             | 262,447     |   |                            |   | 148,074    |   |   |   | (309,331    | )      |   |   | (315,546 | ) |
|                                                                       |   |                             |        |   |                            |   |       |   |   |   |        |   |   |   |   |   |
| Comprehensive income                                                       |   | $                                | 1,781,323   |   |                            | $      | 891,956    |   |   | $      | 2,982,447   |   |   | $ | 1,563,408 |   |
|                                                                       |   |                             |        |   |                            |   |       |   |   |   |        |   |   |   |   |   |
| Earnings per share-basic and diluted:                                      |   |                             |        |   |                            |   |       |   |   |   |        |   |   |   |   |   |
|                                                                       |   |                             |        |   |                            |   |       |   |   |   |        |   |   |   |   |   |
|     Net income per weighted-average share-basic             |   | $                                | 0.00        |   |                            | $      | 0.08       |   |   | $      | 0.01        |   |   | $ | 0.28 |   |
|                                                                       |   |                             |        |   |                            |   |       |   |   |   |        |   |   |   |   |   |
|     Net income per weighted-average share-diluted           |   | $                                | 0.00        |   |                            | $      | 0.05       |   |   | $      | 0.01        |   |   | $ | 0.19 |   |
|                                                                       |   |                             |        |   |                            |   |       |   |   |   |        |   |   |   |   |   |
| Number of weighted average common shares o/s-basic                         |   |                             | 720,273,615 |   |                            |   | 9,378,599  |   |   |   | 499,039,244 |   |   |   | 6,610,607 |   |
| Number of weighted average common shares o/s-diluted                       |   |                             | 745,273,615 |   |                            |   | 14,067,899 |   |   |   | 524,039,244 |   |   |   | 9,915,911 |   |
|                                                                       |   |                             |        |   |                            |   |       |   |   |   |        |   |   |   |   |   |
| See accompanying notes to consolidated financial statements.               |   |                             |        |   |                            |   |       |   |   |   |        |   |   |   |   |   |

----

China Crescent Enterprises, Inc.

|                                 |   |             |   |                |        |       |   |          |   |            |    |          |   |      |   |   |      |
|--------------------------------------|--------|------------------|--------|---------------------|-------------|------------|--------|---------------|--------|-----------------|---------|---------------|--------|-----------|--------|--------|-----------|
|                                 |   |             |   |                |        |       |   |          |   |            |    | Accumulated   |   |      |   |   |      |
|                                 |   | Number of Shares |   | Par Value of Shares |        | Additional |   | Comprehensive |   | Retained        |    | Stockholders' |   |
|                                 |   | Preferred        |   | Common              |        | Preferred  |   | Common        |   | Paid-In Capital |    | Income        |   | Earnings  |   | Equity |      |
|                                 |   |             |   |                |        |       |   |          |   |            |    |          |   |      |   |   |      |
| STARTINGBALANCE,12/31/09             |   | 250,000          |   |                | 234,370,600 |       | $      | 15            |   | $               | 234,371 |          | $      | 5,950,581 |   | $      | 739,511   |   | $ | 3,755,468 |   | $ | 10,679,946 |   |
|                                 |   |             |   |                |        |       |   |          |   |            |    |          |   |      |   |   |      |   |   |   |   |   |   |   |
| Common stockissued to settledebt     |   |             |   |                | 301,153,509 |       |   |          |   |            | 301,154 |          |   | 824,392   |   |   |      |   |   |   |   |   | 1,125,546 |   |
|                                 |   |             |   |                |        |       |   |          |   |            |    |          |   |      |   |   |      |   |   |   |   |   |   |   |
| Common stockissued forconversion     |   |             |   |                |        |       |   |          |   |            |    |          |   |      |   |   |      |   |   |   |   |   |   |   |
| of note payable                      |   |             |   |                | 151,662,451 |       |   |          |   |            | 151,662 |          |   | 716,281   |   |   |      |   |   |   |   |   | 867,943 |   |
|                                 |   |             |   |                |        |       |   |          |   |            |    |          |   |      |   |   |      |   |   |   |   |   |   |   |
| Common stockissued for tradepayables |   |             |   |                | 200,973,023 |       |   |          |   |            | 200,973 |          |   | 527,849   |   |   |      |   |   |   |   |   | 728,822 |   |
|                                 |   |             |   |                |        |       |   |          |   |            |    |          |   |      |   |   |      |   |   |   |   |   |   |   |
| Othercomprehensiveincome             |   |             |   |                | 0           |       |   |          |   |            | 0       |          |   | 0         |   |   | 309,331   |   |   | 0 |   |   | 309,331 |   |
|                                 |   |             |   |                |        |       |   |          |   |            |    |          |   |      |   |   |      |   |   |   |   |   |   |   |
| Net income                           |   |             |   |                | 0           |       |   |          |   |            | 0       |          |   | 0         |   |   | -         |   |   | 3,291,778 |   |   | 3,291,778 |   |
|                                 |   |             |   |                |        |       |   |          |   |            |    |          |   |      |   |   |      |   |   |   |   |   |   |   |
|                                 |   |             |   |                |        |       |   |          |   |            |    |          |   |      |   |   |      |   |   |   |   |   |   |   |
| ENDINGBALANCE,9/30/10                |   | 250,000          |   |                | 888,159,583 |       | $      | 15            |   | $               | 888,160 |          | $      | 8,019,103 |   | $      | 1,048,842 |   | $ | 7,047,246 |   | $ | 17,003,366 |   |
|                                 |   |             |   |                |        |       |   |          |   |            |    |          |   |      |   |   |      |   |   |   |   |   |   |   |

| See accompanying notes to consolidated financial statements. |   |   |   |   |   |   |   |   |   |   |   |
|--------------------------------------------------------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|

----

China Crescent Enterprises, Inc.

|                                                                          |   |                            |       |   |   |   |
|-------------------------------------------------------------------------------|--------|---------------------------------|------------|--------|--------|--------|
|                                                                          |   | Nine Months Ended September 30, |       |
|                                                                          |   | 2010                            |       |   | 2009   |   |
| CASH FLOWS FROM OPERATING ACTIVITIES:                                         |   |                            |       |   |   |   |
| Net income                                                                    |   | $                               | 3,291,778  |   |   | $      | 1,878,954 |   |
| Adjustments to  reconcile net earnings to net cash                  |   |                            |       |   |   |   |   |   |
|     provided (used) by operating activities:                   |   |                            |       |   |   |   |   |   |
|     Noncontrolling interest in consolidated subsidiary         |   |                            | 130,296    |   |   |   | 626,017 |   |
|     Depreciation                                               |   |                            | 44,720     |   |   |   | 11,662 |   |
| Changes in operating assets and liabilities:                                  |   |                            |       |   |   |   |   |   |
|     (Increase) decrease in accounts receivable                 |   |                            | (2,421,092 | )      |   |   | (2,529,886 | ) |
|     (Increase) decrease in advances and other assets           |   |                            | (1,571,988 | )      |   |   | (981,122 | ) |
|     (Increase) decrease in inventory                           |   |                            | (241,870   | )      |   |   | (538,213 | ) |
|     Increase (decrease) in accounts payable                    |   |                            | 581,127    |   |   |   | (243,675 | ) |
|     Increase (decrease) in accrued expenses and other payables |   |                            | 365,259    |   |   |   | 271,184 |   |
| Net cash provided by operating activities                                     |   |                            | 178,230    |   |   |   | (1,505,079 | ) |
|                                                                          |   |                            |       |   |   |   |   |   |
| CASH FLOWS FROM INVESTING ACTIVITIES:                                         |   |                            |       |   |   |   |   |   |
|                                                                          |   |                            |       |   |   |   |   |   |
|     Sale of property and equipment                             |   |                            | -          |   |   |   | 10,116 |   |
| Net cash provided by investing activities                                     |   |                            | -          |   |   |   | 10,116 |   |
|                                                                          |   |                            |       |   |   |   |   |   |
| CASH FLOWS FROM FINANCING ACTIVITIES:                                         |   |                            |       |   |   |   |   |   |
|     Advances to affiliates                                     |   |                            | (1,000,000 | )      |   |   | (272,433 | ) |
|     Proceeds from  short-term borrowings             |   |                            | 1,000,000  |   |   |   | 262,897 |   |
|     Payments on short-term borrowings                          |   |                            | (587,029   | )      |   |   | - |   |
|     Proceeds from long-term debt                               |   |                            | 125,260    |   |   |   | 585,122 |   |
| Net cash used in financing activities                                         |   |                            | (461,769   | )      |   |   | 575,586 |   |
|                                                                          |   |                            |       |   |   |   |   |   |
| Effect of exchange rates on cash                                              |   |                            | 454,081    |   |   |   | 665,897 |   |
|                                                                          |   |                            |       |   |   |   |   |   |
| Net increase (decrease) in cash and equivalents                               |   |                            | 170,542    |   |   |   | (253,480 | ) |
|                                                                          |   |                            |       |   |   |   |   |   |
| CASH, beginning of period                                                     |   |                            | 3,977,382  |   |   |   | 2,600,498 |   |
|                                                                          |   |                            |       |   |   |   |   |   |
| CASH, end of period                                                           |   | $                               | 4,147,924  |   |   | $      | 2,347,018 |   |
|                                                                          |   |                            |       |   |   |   |   |   |
| See accompanying notes to consolidated financial statements.                  |   |                            |       |   |   |   |   |   |

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CHINA CRESCENT ENTERPRISES, INC. AND SUBSIDIARIES

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|   | ● | Clipper Technology, Ltd. (“CLPTEC”):  A Wholly Owned Foreign Entity (“WOFE”) registered in Shanghai, China, which provides consulting, development, implementation, and maintenance of technology systems which include both software and hardware peripherals for computing, communication, and data exchanges related to general business applications as well as the specialty fields of medical, security, military and homeland defense applications.  CLPTEC may also engage in  project management oversight of technology product manufacturing related to the above business activities on an Original Equipment Manufacturer (“OEM”) and Original Design Manufacturer (“ODM”) basis. |
|--------|---------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | ● | Clipper Huali Co., Ltd. (“Clipper-Huali”).  Clipper-Huali was originally formed as a collaborative business enterprise between ClpTec and a consortium of Chinese technology firms called The Huali Group, Ltd. (“Huali”). Clipper-Huali is registered in the City of Ningbo, China. Effective April 1, 2009, Clipper-Huali is owned 76% by ClpTec and 24% by Huali. Clipper-Huali is engaged in the sales, distribution and integration of IT products including notebook and desktop computers, printers, servers, network equipment, and peripheral devices from a number of global brand partners and is also an authorized reseller of operating systems, database, middleware and other software applications. |
|--------|---------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | ● | Dalian Aoyuan Electronic Technology Services Co., Ltd. (“DAETS”). DAETS is a wholly-owned subsidiary that was acquired by CLPTEC in December 2009 from Aoyuan Electronic Company, Ltd., located in Dalian, China, which was established in March 1995. Aoyuan is one of the top 500 computer hardware suppliers in China and is listed as one of the “Top 100 Northeast Regional Computer Suppliers” by First Chinese Computer Vendors.  In 2004, Aoyuan was awarded “Best IT Distributor of Northeast China” and received ISO9001 certification by SGS in the United Kingdom.  Aoyuan’s staff operates several business segments, including computer software and hardware sales, system integration, IT consulting services, IT product promotion and IT retail sales. |
|--------|---------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | ● | Shenzhen Newbao Technology Co., Ltd.  (“Newbao”). Newbao is a wholly-owned subsidiary that was acquired by CLPTEC in December 2009 from China Radio Technology Co., Ltd., an Original Design Manufacturer located in Shenzhen, China, that designs and manufactures a wide range of wireless products specified by customers throughout Asia.  The company’s primary product focus involves wireless communication terminals (GSM, GSM/GPRS modules, GPS modules, GPS trackers, and Personal Navigation Devices).  The core research and development staff averages more than 5 years of professional experience, and provides customers with industrial design (ID), mechanical design (MD), hardware design (HW), software design (SW), manufacturing, test and evaluation (T&E) , and quality assurance (QA) services covering the full range of wireless communication solutions for intelligent terminals. |
|--------|---------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|   Cash                                                                           |   | $      | 9,377   |   |
|--------------------------------------------------------------------------------------------|--------|--------|---------|--------|
|     Total assets     (all current)            |   | $      | 9,377   |   |
|                                                                                       |   |   |    |   |
|   Accounts payable                                                               |   | $      | 179,473 |   |
|   Related party payable                                                          |   |   | 25,035  |   |
|   Line of credit                                                                 |   |   | 10,735  |   |
|   Accrued payroll                                                                |   |   | 93,440  |   |
|     Total liabilities      (all current) |   | $      | 308,683 |   |

|   | ● | We issued 145,446,977 shares of common stock pursuant to several agreements to exchange $476,795 in short-term debt for equity. |
|--------|---------|---------------------------------------------------------------------------------------------------------------------------------|

|   | ● | We issued 123,837,555 shares of common stock pursuant to two agreements to exchange $402,000 in trade payables for equity. |
|--------|---------|----------------------------------------------------------------------------------------------------------------------------|

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| Options Outstanding     | Options Exercisable |
|-------------------------|---------------------|
| Range ofExercise Prices | Number ofOptions    | RemainingContractual Life | WeightedAverageExercise Price | Number ofOptions | Exercise Price |
| $3.50-12.75             | 190,000             |    3-4  years | $ 10.86 | 190,000 | $3.50-12.75 |

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

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Item 3.  Quantitative and Qualitative Disclosures About Market Risk

Item 4T.  Controls and Procedures

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PART II – OTHER INFORMATION

Item 1A.   Risk Factors

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

|   | ● | We issued 145,446,977 shares of common stock pursuant to several agreements to exchange $476,795 in short-term debt for equity. |
|--------|---------|---------------------------------------------------------------------------------------------------------------------------------|

|   | ● | We issued 123,837,555 shares of common stock pursuant to two agreements to exchange $402,000 in trade payables for equity. |
|--------|---------|----------------------------------------------------------------------------------------------------------------------------|

Item 3.  Defaults Upon Senior Securities

Item 4.  Submission of Matters to a Vote of Security Holders

Item 5.  Other Information

Item 6.  Exhibits

| Exhibit 31.1 | Certification of Chief Executive Officer pursuant to Rule 13a-14(a) of the Exchange Act, as enacted by Section 302 of the Sarbanes-Oxley Act of 2002 |
|--------------|------------------------------------------------------------------------------------------------------------------------------------------------------|

| Exhibit 31.2 | Certification of Chief Financial Officer pursuant to Rule 13a-14(a) of the Exchange Act, as enacted by Section 302 of the Sarbanes-Oxley Act of 2002 |
|--------------|------------------------------------------------------------------------------------------------------------------------------------------------------|

| Exhibit 32.1 | Certification of Chief Executive Officer and Chief Financial Officer, pursuant to 18 U.S.C. Section 1350 as enacted by Section 906 of the Sarbanes-Oxley Act of 2002 |
|--------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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SIGNATURES

|                    | CHINA CRESCENT ENTERPRISES, INC.                                                                                                                                |
|-------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                    | (Registrant)                                                                                                                                                    |
|                    |                                                                                                                                                            |
| Date: November 19, 2010 | /s/ James Jiang                         |
|                    | James Jiang, PhD                                                                                                                                                |
|                    | Chief Executive Officer                                                                                                                                         |
|                    |                                                                                                                                                            |
|                    |                                                                                                                                                            |
|                    | /s/  Philip J. Rauch                                        |
|                    | Philip J. Rauch,                                                                                                                                                |
|                    | Chief Financial Officer                                                                                                                                         |