UNITED STATESSECURITIES AND EXCHANGE
COMMISSIONWashington, D.C. 20549 FORM 10-KSB  RANNUAL REPORT UNDER SECTION
13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2007 £TRANSITION REPORT SECTION
13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR
THE TRANSITION PERIOD FROM ______ TO ______.  Commission File Number 000-51817  CHINA MULTIMEDIA, INC.(Name of small business
issuer in its charter) Nevada
(State or jurisdiction of incorporation
ororganization)

98-0507257
I.R.S. Employer Identification No.  Room
2213-14, 22nd Floor, Jardine House, 1
Connaught Place, Central, Hong Kong (Address of principal executive offices) Issuers telephone number (852) 2802-8663  Securities
registered under Section 12(b) of the Act: None Securities
registered under Section 12(g) of the Act: Common Stock, Par Value $0.001   Check whether the
issuer is not required to file reports pursuant to Section 13 or 15(d) of
the Exchange Act.  //  - 1 -  Check whether the issuer (1) filed all reports required to be
filed by sections 13 or 15(d) of the Exchange Act during the past 12 months (or
such shorter period that the issuer was required to file such reports), and
(2) has been subject to such filing requirements for the past 90
days.    Yes /x/ No // Check if there is
no disclosure of delinquent filers in response to Item 405 of Regulation
S-B in this form,and no disclosure will be contained, to the best of
registrants knowledge, in definitive proxy or information statements
incorporated by reference in Part III of this Form 10-KSB or any amendment to
this Form 10-KSB. // Indicate by check
mark whether the registrant is a shell company (as defined in rule 12b-2 of the
Exchange Act).    Yes // No /x/ The Registrants
revenues for its most recent fiscal year: $0. State the aggregate
market value of the voting and non-voting common equity held by non-affiliates
computed by reference to the price at which the common equity was sold, or the
average bid and asked price of such common equity, as of a specified date within
the past 60 days. (See definition of affiliate in Rule 12b-2 of the Exchange
Act.) N/A As of December 13,
2007, there were 1,000,000 shares of the issuer's Common Stock issued and
outstanding. Documents
incorporated by reference: None. Transitional Small Business Disclosure Format (Check
one):    Yes // No /x/                               - 2 -     Table of Contents  PART I 4 ITEM 1. DESCRIPTION OF BUSINESS 4 ITEM 2. DESCRIPTION OF PROPERTY 8 ITEM 3. LEGAL PROCEEDINGS 9 ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY
HOLDERS 9 PART II 9 ITEM 5. MARKET FOR COMMON EQUITY, RELATED STOCKHOLDER
MATTERS AND SMALL BUSINESS ISSUER PURCHASES OF EQUITY SECURITIES 9 ITEM 6. MANAGEMENTS DISCUSSION AND ANALYSIS OR PLAN OF
OPERATION 9 ITEM 7. FINANCIAL STATEMENTS 13 ITEM 8. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS
ON ACCOUNTING AND FINANCIAL DISCLOSURE 24 ITEM 8A. CONTROLS AND PROCEDURES 24 ITEM 8B. OTHER INFORMATION 24 PART III 24 ITEM 9. DIRECTORS, EXECUTIVE OFFICERS, PROMOTERS AND
CONTROL PERSONS; COMPLIANCE WITH SECTION 16(A) OF THE EXCHANGE
ACT 25 ITEM 10. EXECUTIVE COMPENSATION 26 ITEM 11. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL
OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS 27 ITEM 12. CERTAIN RELATIONSHIPS AND RELATED
TRANSACTIONS 27 ITEM 13. EXHIBITS 28 ITEM 14. PRINCIPAL ACCOUNTANT FEES AND
SERVICES 28 SIGNATURES 30          - 3 -     PART I    Item 1. Description of Business    THE BUSINESS  About China Multimedia, Inc.  China Multimedia, Inc. (hereinafter also referred to as we,
us, the Company, or CMI) was incorporated in the State of Nevada on August
16, 2006.  We are a development stage company established to: 1)provide web design solutions to companies; and 2)
introduce potential business opportunities to business partners. To date, the
Companys only activities have consisted of developing its business plan,
raising initial capital, and signing an agreement with a business partner. 
We have not commenced any commercial operations, nor have we earned revenue from
any business operations.  CMI plans to provide cost-effective web design solutions for small
and medium-sized business enterprises (SMEs) throughout Hong Kong. CMIs goal
is to assist potential clients with establishing or maintaining websites which
allow the clients to promote their Internet presence. Websites provide a vehicle
for businesses to post information about their company onto the Internet,
thereby reaching the global market. In the current market, many companies are
attempting to establish an online presence without spending or committing a
substantial amount of capital or time. Establishing an Internet presence is
particularly challenging for SMEs. Accordingly, CMI intends to identify SMEs
that may be in need of web services and provide them with a cost effective means
of meeting their website design and operational needs. CMI will focus on
locating potential clients (the T-Clients) who either do not maintain any form
of company website or maintain websites with outdated designs.  To meet the needs of T-Clients, CMI maintains a list of
professional freelance web designers (the Freelance Designers) who provide CMI
with a full range of website templates (the Templates) specifically designed
for different business sectors. Once we have located a potential T-Client, we
will attempt to provide them with an affordable website Template that is
suitable to their business needs. Additionally, if the T-Clients request
websites with more advanced functions than the Templates currently provide, we
will introduce the T-Clients to suitable Freelance Designers to meet the
T-Clients specific web design needs.  All of the Freelance Designers we
work with possess the relevant knowledge and necessary skill to provide such
customized services.   - 4 -  CMI is able to provide cost-effective web design solutions to SMEs
by maintaining a full range of Templates which are specific to different
business sectors. CMIs prices are not cost prohibitive to SMEs because we are
able to operate with a minimum amount of overhead by not employing any full time
software developers or web designers. CMI acts only as a bridge between
Freelance Designers and T-Clients. The Freelance Designers that we work with
have authorized us to use their professional designs while we attempt to locate
potential T-Clients.  CMI currently has an arrangement with its Freelance Designers
whereby CMI splits the fee charged to the T-Clients.  Under the fee
arrangement, CMI collects 60% of the fee charged to the T-Clients and
distributes the remaining 40% to the Freelance Designers.  CMI determines
the amount of the fee charged to the T-Clients. CMI and the Freelance Designers
agreed orally on the fee arrangement, and we have not signed any written
contracts with them.  CMIs Business Opportunities Program  In addition to our web design service, we will also attempt to
create new business opportunities for specific companies. On December 11, 2006,
CMI entered into an Agreement (the Agreement) with DNA Financial Systems
(DNAF), a Hong Kong corporation founded in 2005. DNAF is the regional solution
provider for the financial industry in the Asia Pacific Region. It provides
integrated solutions by offering online trading systems, Forex dealing room
management systems, and corporate treasury risk management systems to banks and
financial institutions. It also offers a service named Financial Web Portal
Design and Hosting (FWPDH). FWPDH is a customized service targeted at stock
exchange listed companies. Listed companies can add value to their websites by
providing instant stock information to their stockholders. The FWPDH service
allows stockholders to receive instant stock price information and delayed chart
information on the company website. Professional web designers of DNAF are
responsible for designing a tailor-made web portal to suit clients needs.   Pursuant to the terms of the Agreement, CMI will attempt to
establish new business opportunities for DNAF by identifying, locating, and
introducing potential clients (the D-Clients) in need of the FWPDH service, to
DNAF.  In our search for D-Clients, we will focus on the following areas:
Hong Kong, Macau, Singapore, Australia, Taiwan and China (collectively referred
to as the Territory). CMI plans to initially focus on the market in Hong Kong
as a starting point for its business opportunities program due to the fact that
management has a significant number of business connections in this area.
Pursuant to the terms of the Agreement, as compensation for CMIs efforts, CMI
is entitled to 40% of the initial commission that DNAF receives from any
D-Client or other business opportunity that CMI establishes for DNAF. DNAF
determines the amount of the fees charged to the D-Clients.  Background  Overview of DNA Financial Systems in the Financial
Industry   - 5 -  Various kinds of financial software products have been developed
to both improve the efficiency of daily operations and minimize operational
costs in the financial investment industry. Generally speaking, these financial
software products provide a variety of functions directed towards satisfying the
business needs of its users. Financial investment companies use financial
systems to incorporate several types of data. Forex Dealing Room Management
System refers to the dealing room that contains real-time international
financial information systems such as Reuters, Telrite and Blumberg,
computerized tools for analyzing transactions and a transactions management
system that serves as a data bank of all transactions carried out by each
customer and their position at any given moment. Online Trading System allows
you to conduct investment transactions over the internet. The accessibility of
the internet makes it possible for you to research and invest in opportunities
from any location at any time. It also reduces the amount of resources (time,
effort, and money) you have to devote to managing these accounts and
transactions. Corporate Treasury Risk Management System clearly captures all the
key risks and provides an understanding of risk exposures at all levels of the
financial institutions.  The relatively high cost of financial system, the high pace of
technological developments, differences in vendors invoicing procedures and the
ever-changing dealing room environment all contribute to the complexity in
managing market data. In order to support various investment decisions and
services, banks and financial institutions normally use a variety of information
services software, which provide market data, analysis software, dealing and
trading systems, and other specialized applications. The major users of this
software are financial professionals who perform deals in the trading room.
Other users include brokers, asset managers and wealth managers. Each company
uses several different types of software and information systems to gather the
information it needs.     OUR BUSINESS ACTIVITIES  Our president and director, Mr. Wilson Cheung, has a broad network
within the financial and banking industry.  During the development stage,
we will rely on him to contact top management personnel of local financial
institutions and advise them on merits and benefits of using the Product. We
plan to hire a professional salesman to assist Mr. Cheung to locate new
potential clients and perform follow-up duties. Furthermore, we will provide
market research reports and other marketing and promotional plans to DNAF.
Therefore, we plan to hire another staff who possesses the marketing and public
relations knowledge to offer services to DNAF.  CMI, as the exclusive consultant of DNAF, is responsible for the
following:  (a) Locating and introducing potential customers of the Product to
DNAF within the     Territory and to co-ordinate with DNAF
its approach to the potential customers;  (b) Preparing marketing and promotional plans to market the
Product and assisting in   organizing marketing events for DNAF;  (c) Preparing a memorandum of information to DNAF; and  (d) Conducting activities in a proper and efficient manner.   - 6 -  About DNA Financial Systems  DNA Financial Systems (DNAF, the Vendor) is a Hong Kong
corporation founded in 2005. It is a regional solution provider for the
financial and securities industry throughout the Asia Pacific Region. It also
provide a complete and technology integrated solution for Market Data, Online
Trading Systems for Equity Market, Forex Dealing Room Management Systems, and
Corporate Treasury Risk Management Systems.  CUSTOMER AND MARKETING  CMI employs two business models: 1) our website design services;
and 2) our business opportunities program. These models target different
customer bases.  Under our first business model, we will attempt to provide web
design solutions to SMEs throughout Hong Kong. Our goal is to provide the
T-Clients with suitable Templates for their businesses which will both enhance
and strengthen their corporate image. To accomplish this goal, we plan to form
strategic marketing relationships with web hosting companies throughout Hong
Kong, who in turn will promote our services through their networks. We also plan
to post advertisements in different online media channels, such as popular
search engines and local newspaper websites. In the next 12months,
we plan to hire a sales and marketing expert to locate potential T-Clients and
handle the coordination of work with the Freelance Designers.  Under our second business model, we will attempt to identify and
establish new business opportunities for various companies. As noted above, we
have signed one contract with DNAF, whereby we will attempt to identify and
locate D-Clients in need of the FWPDH service offered by DNAF. The corporations
that we target are stock exchange listed companies that want to provide instant
stock pricing and chart information to stockholders on their websites.
Initially, we will rely on our President, Mr. Wilson Cheung, to provide contact
information for listed companies owners within the Territory who may be in need
of FWPDH services.  Mr. Cheung will personally approach these companies in
an effort to engage them as clients of DNAF.  Additionally, CMI and DNAF plan to jointly organize conferences or
marketing events in the coming 18 months to promote the use of FWPDH services.
Together, we plan on joining the IT Outsourcing Conference & Expo (the
Expo) to be held in the Hong Kong Convention and Exhibition Centre in 2008. At
the Expo prospective customers will be able to learn about the benefits of the
FWPDH services of DNAF. The management of CMI and DNAF will retain the final
decision on whether to attend the conference based on their respective budgets.  COMPETITION  The Company will be involved in intense competition with other
business entities, many of whom have a competitive edge over CMI because of
their established market presence and strong financial resources. The market for
our web design services is competitive and has relatively low barriers to entry.
Our competitors vary in size and in the variety of services they offer. We
encounter competition from a wide variety of companies, including Internet
service providers, application service providers, Internet search engine
providers, and website hosting companies.   - 7 -  CMI also expects to encounter substantial competition in its
efforts to introduce new customers to DNAF. Because CMI is still in the
developmental stage, it has fewer resources and a more limited operating history
than other consulting firms. Our major competitor is AAStocks International
Limited, a Hong Kong company established by Tom Group in 2004. It has offices in
Hong Kong, Shanghai and Shenzhen.  Generally speaking, our competitors have greater resources and
managerial capabilities than CMI and are in a better position than the Company
to get in touch with potential customers. CMI will rely on the existence of
contacts of our director, Mr. Wilson Cheung, to locate potential customers.  EMPLOYEES  Currently, we do not have any full or part-time employees. The
Company is currently managed by Mr. Wilson Kin Cheung, the President and
Director of the Company. We have not signed an employment agreement with Mr.
Cheung. Mr. Cheung devotes approximately 25% of his time to our operations. We
presently do not have pension, health, annuity, insurance, stock options, profit
sharing and similar benefit plans; however, we may adopt such plans in the
future. There are presently no personal benefits available to any employees.  REPORTS TO SECURITY HOLDERS  We are subject to the reporting requirements of the Exchange Act
and the rules and regulations promulgated thereunder, and, accordingly file
reports, information statements or other information with the Securities and
Exchange Commission, including quarterly reports on Form 10-QSB, annual reports
on Form 10-KSB, reports of current events on Form 8-K, and proxy or information
statements with respect to stockholder meetings.  Although we may not be
obligated to deliver an annual report to our stockholders, we intend to
voluntarily send such a report, including audited financial statements, to our
stockholders each year. This prospectus is part of a Registration Statement that
we filed with the Securities and Exchange Commission in accordance with its
rules and regulations. The public may read and copy any materials we file with
the Securities and Exchange Commission at its Public Reference Room at 100 F
Street, NE, Washington, D.C. 20549. The public may obtain information on the
operation of the Public Reference Room by calling the Securities and Exchange
Commission at 1-800-SEC-0330. The Securities and Exchange Commission maintains
an Internet site that contains reports, proxy and information statements, and
other information regarding issuers that file electronically with the Securities
and Exchange Commission at http://www.sec.gov.     Item 2. Description of Property  We have no real property and currently operate from limited office
space provided by Easterly Financial Investment Limited (Easterly), for which
we pay no rent. Easterly is located at Room 2213-14, 22nd Floor, Jardine House,
1 Connaught Place, Central, Hong Kong. We have no plans to obtain additional
office space at this moment until our business is more developed.   - 8 -   Item 3. Legal Proceedings   China Multimedia, Inc. does not know of any material, active or
pending legal proceedings against them; nor is CMI involved as a plaintiff in
any material proceedings or pending litigation.   Item 4. Submission of Matters to a Vote of Security
Holders  No matters were submitted to a vote of the security holders of the
Company during the fiscal year which ended September 30, 2007.    PART II   Item 5. Market for Common Equity, Related Stockholder Matters
and Small Business Issuer Purchases of Equity Securities  There is no established market for our shares. Our stock is not
quoted on the OTC Bulletin Board or on any other public market. We intend to
apply for listing or quotation on the OTC Bulletin Board once various state
governments approve our blue sky filings, but we have not done so yet.  The Company's authorized capital is 50,000,000 shares of common
stock with $0.001 par value. As of September 30, 2007, we have a total of
1,000,000 shares outstanding.   Item 6. Managements Discussion and Analysis or Plan of
Operation   Forward Looking Statements  Certain
statements in this report include forward-looking statements that include risks
and uncertainties. We use words such as "anticipates," "believes," "plans,"
"expects," "future," "intends" and similar expressions to identify such
forward-looking statements. This Form also contains forward-looking statements
attributed to certain third parties relating to their estimates regarding the
operation and growth of our business and spending. You should not place undue
reliance on these forward-looking statements, which apply only as of the date
hereof. We have based these forward-looking statements on our current
expectations and projections about future events. Our actual results could
differ materially from those discussed in this registration as we are a
development stage company with no operations to date. Our ability to generate
revenue is subject to substantial risks.  Management's Discussion and Analysis or Plan of
Operation We are a development stage company established to: 1)provide web design solutions to companies; and 2)
introduce potential business opportunities to business partners. To date, the
Companys only activities have consisted of developing its business plan,
raising initial capital, and signing an agreement with a business partner.   - 9 -  CMIs Web Design Services  CMI plans to provide cost-effective web design solutions for small
and medium-sized business enterprises (SMEs) throughout Hong Kong.  CMIs
goal is to assist potential clients with establishing or maintaining websites
which allow the clients to promote their Internet presence.  Websites
provide a vehicle for businesses to post information about their company onto
the Internet, thereby reaching the global market. In the current market, many
companies are attempting to establish an online presence without spending or
committing a substantial amount of capital or time. Establishing an Internet
presence is particularly challenging for SMEs.   Accordingly, CMI
intends to identify SMEs that may be in need of web services and provide them
with a cost effective means of meeting their website design and operational
needs.  CMI will focus on locating potential clients (the T-Clients) who
either do not maintain any form of company website or maintain websites with
outdated designs.  To meet the needs of T-Clients, CMI maintains a list of
professional freelance web designers (the Freelance Designers) who provide CMI
with a full range of website templates (the Templates) specifically designed
for different business sectors. Once we have located a potential T-Client, we
will attempt to provide them with an affordable website Template that is
suitable to their business needs. Additionally, if the T-Clients request
websites with more advanced functions than the Templates currently provide, we
will introduce the T-Clients to suitable Freelance Designers to meet the
T-Clients specific web design needs.  All of the Freelance Designers we
work with possess the relevant knowledge and necessary skill to provide such
customized services.  CMI is able to provide cost-effective web design solutions to SMEs
by maintaining a full range of Templates which are specific to different
business sectors. CMIs prices are not cost prohibitive to SMEs because we are
able to operate with a minimum amount of overhead by not employing any full time
software developers or web designers. CMI acts only as a bridge between
Freelance Designers and T-Clients. The Freelance Designers that we work with
have authorized us to use their professional designs while we attempt to locate
potential T-Clients.  CMI currently has an arrangement with its Freelance Designers
whereby CMI splits the fee charged to the T-Clients.  Under the fee
arrangement, CMI collects 60% of the fee charged to the T-Clients and
distributes the remaining 40% to the Freelance Designers.  CMI determines
the amount of the fee charged to the T-Clients. CMI and the Freelance Designers
agreed orally on the fee arrangement, and we have not signed any written
contracts with them.  CMIs
Business Opportunities Program  In addition to our web design service, we will also attempt to
create new business opportunities for specific companies. On December 11, 2006,
CMI entered into an Agreement (the Agreement) with DNA Financial Systems
(DNAF), a Hong Kong corporation founded in 2005.  DNAF is a regional
solution provider for the financial industry in the Asia Pacific Region. It
provides integrated solutions by offering online trading systems, Forex dealing
room management systems, and corporate treasury risk management systems to banks
and financial institutions. It also offers a service named Financial Web Portal
Design and Hosting (FWPDH). FWPDH is a customized service targeted at stock
exchange listed companies. Listed companies can add value to their websites by
providing instant stock information to their stockholders. The FWPDH service
allows stockholders to receive instant stock price information and delayed chart  - 10 -  information on the company website. Professional web designers of
DNAF are responsible for designing a tailor-made web portal to suit clients
needs.  Pursuant to the terms of the Agreement, CMI will attempt to
establish new business opportunities for DNAF by identifying, locating, and
introducing potential clients (the D-Clients) in need of the FWPDH service, to
DNAF.  In our search for D-Clients, we will focus on the following areas:
Hong Kong, Macau, Singapore, Australia, Taiwan and China (collectively referred
to as the Territory). CMI plans to initially focus on the market in Hong Kong
as a starting point for its business opportunities program due to the fact that
management has a significant number of business connections in this area.
   Pursuant to the terms of the Agreement, as compensation for
CMIs efforts, CMI is entitled to 40% of the initial commission that DNAF
receives from any D-Client or other business opportunity that CMI establishes
for DNAF.  DNAF determines the amount of the fees charged to the
D-clients.  The Company has minimal cash and has not yet earned revenue from
any business operations.  There is no assurance that we will achieve or
sustain profitability on an annual or quarterly basis. Because the Company has
been a development stage company since inception and has not generated revenues,
the Company operates with minimal overhead.  The Company will need to raise
additional funds, either in the form of an advance or an equity investment by
the Company's President; or in the form of equity investment by outside
investors, or some combination of each.  Liquidity and Capital Resources As of September 30, 2007, the Company remains in the development
stage. For the period ended September 30, 2007, the Company's balance sheet
reflects current and total assets of $865 in the form of cash and cash
equivalent, net current liability and stockholders (deficit) of $22,077 and
accumulated (deficit) during the development stage of $23,009.  The Company does not have sufficient assets or capital resources
to pay its on-going expenses while it is seeking out business opportunities. The
Company has no agreement in place with its stockholders or other persons to pay
expenses on its behalf, but it is currently anticipated that the Company will
rely on loans from the major stockholder, Mr. Wilson Cheung, to pay any daily
operating expenses prior to any fund raising exercise. The Company anticipates
that this arrangement will not change until the Company is able to consummate a
business transaction.  Plan
of Operations in the next 12 months  The Company recorded a net loss of $18,762 for the year ended
September 30, 2007, compared to a net loss of $4,247 from inception on August
26, 2006 through September 30, 2006.  As the Company has minimal cash and has not yet earned revenue
from any business operations, we will rely on loans from the major stockholder,
Mr. Wilson Cheung, to pay any daily operating expenses prior to any fund raising
exercise.  Employees   - 11 -  CMI is currently managed by Mr. Wilson Kin Cheung, the President
and Director of the Company. At present, we have no full or part-time employees.
Mr. Cheung devotes approximately 25% of his time to our operations, and we have
not signed any employee agreement with Mr. Cheung.  We presently do not
have pension, health, annuity, insurance, stock options, profit sharing and
similar benefit plans; however, we may adopt such plans in the future. There are
presently no personal benefits available to any employees.  The funds allocated to working capital are intended to be used for
hiring three employees in the coming 12 months. Two of these employees will be
professional salespersons, and one will be responsible for organizing marketing
activities and handling administrative duties. If we do not obtain enough funds
from the sale of common stock, we may hire only one professional salesperson to
assist CMIs Director and President, Mr. Wilson Cheung. All the staff will be
located in the Hong Kong office.  Product research and development  We are not a developer of any products we provide to our T-Clients
or D-Clients, however, we act as a bridge between our clients, DNAF and the
Freelance Designers. We can communicate with our clients to understand their
needs and obtain their usage feedbacks on the products. DNAF and the Freelance
Designers can then improve their products based on these comments and provide
better services.                                       - 12 -                        Item 7. Financial Statements      CHINA MULTIMEDIA,
INC.  (A DEVELOPMENT STAGE
COMPANY)  FINANCIAL
STATEMENTS  SEPTEMBER 30,
2007                             - 13 -


CHINA MULTIMEDIA,
INC.  (A DEVELOPMENT STAGE
COMPANY)  FINANCIAL STATEMENTS  FOR THE YEAR ENDED
SEPTEMBER 30, 2007       INDEX      Page  Report of independent registered public accounting firm 15  Balance sheets 16  Statements of operations 17  Statements of stockholders (deficit) 18  Statements of cash flows 19  Notes to financial statements 20
- 23


- 14 -


REPORT OF
INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM   To the sole director
and stockholder of China Multimedia, Inc. (A Development Stage
Company)   We have audited the
accompanying balance sheets of the China Multimedia, Inc. (the Company) as of
September 30, 2007 and 2006, and the related statements of operations,
stockholders (deficit) and cash flows for the year ended September 30, 2007 for
the periods from August 16, 2006 (date of inception) to September 30, 2007 and
2006.  These financial statements are the responsibility of the Companys
management.  Our responsibility is to express an opinion of these financial
statements based on our audit.  We conducted our audits
in accordance with the standards of the Public Company Accounting Oversight
Board (United States of America).  Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether the financial
statements are free of material misstatement.  An audit includes examining,
on a test basis, evidence supporting the amounts and disclosures in the
financial statements.  An audit also includes assessing the accounting
principles used and significant estimates made by management, as well as
evaluating the overall financial statement presentation.  We believe that
our audit provides 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 Multimedia, Inc. as of September 30, 2007 and
2006, and the results of its operations and its cash flows for the year ended
September 30, 2007 and the periods from August 16, 2006 (date of inception) to
September 30, 2007 and 2006, in conformity with accounting principles generally
accepted in the United States of America.  The accompanying
financial statements have been prepared assuming that the Company will continue
as a going concern.  As described in Note 1 to the financial statements,
the Company is a development stage company and has an accumulated (deficit) as
of September 30, 2007, these factors raise substantial doubt about its ability
to continue as a going concern.  These financial statements do not include
any adjustments that might result from the outcome of this uncertainly.         PKF Certified Public
Accountants Hong Kong, China December 14, 2007  15





CHINA MULTIMEDIA,
INC.  (A DEVELOPMENT STAGE
COMPANY)   BALANCE SHEETS  AS OF SEPTEMBER 30, 2007
AND SEPTEMBER 30, 2006     As of


As ofSeptember 30,


September 30,2007


2006US$


US$ASSETSCurrent
assetsCash and cash equivalents
865


1,029Total
assets
865


1,029LIABILITIES
AND STOCKHOLDERS (DEFICIT)Current
liabilitiesAccrued audit fee
3,215


3,213Amount due to a stockholder (Note 7)
19,727


1,063Total
liabilities
22,942


4,276Stockholders
(deficit)Common stock - US$0.001 par value (Note 4) :authorized 50,000,000 shares; 1,000,000 shares
issued andoutstanding
1,000


1,000Accumulated (deficit) during the development stage
(23,009
)

(4,247
)Accumulated other comprehensive (loss)
(68
)

-Total
stockholders (deficit)
(22,077
)

(3,247
)Total liabilities
and stockholders (deficit)
865


1,029      See accompanying notes
to financial statements.


16





CHINA MULTIMEDIA,
INC.  (A DEVELOPMENT STAGE
COMPANY)   STATEMENTS OF
OPERATIONS  FOR THE YEAR ENDED
SEPTEMBER 30, 2007  AND FROM INCEPTION ON
AUGUST 16, 2006 THROUGH SEPTEMBER 30, 2007 and 2006     From August16, 2006(date ofCumulative

Year ended

inception) tototal since

September 30,

Septemberinception

2007

30, 2006US$

US$

US$Revenue
-

-

-ExpensesFormation
expenses
778

-

778General
and administrative expenses
22,244

18,774

3,470Loss from
operations
(23,022
)
(18,774
)
(4,248
)Interest
income
13

12

1Loss before
income taxes
(23,009
)
(18,762
)
(4,247
)Income
taxes (Note 2)
-

-

-Net
loss
(23,009
)
(18,762
)
(4,247
)Net loss
per share :Basic
and diluted (Note 3)
(0.02
)
(0.02
)
(0.00
)Weighted
average number of shares :Basic
and diluted
1,000,000

1,000,000

1,000,000      See accompanying notes
to financial statements.


17


CHINA MULTIMEDIA,
INC.  (A DEVELOPMENT STAGE
COMPANY)  STATEMENTS OF
STOCKHOLDERS (DEFICIT)  AND FROM INCEPTION ON
AUGUST 16, 2006 THROUGH SEPTEMBER 30, 2007 and 2006     Accumulated(deficit)

AccumulatedCommon Stock

during

otherNo. of



development

comprehensiveshares

Amount

period

loss

TotalUS$

US$

US$

US$Issuance of common stock onAugust 16, 2006 (Note 4)
1,000,000

1,000

-

-

1,000Net
loss from August 16, 2006(date of inception) toSeptember 30, 2006
-

-

(4,247
)
-

(4,247
)Balance, September 30, 2006
1,000,000

1,000

(4,247
)
-

(3,247
)Net
loss for the year
-

-

(18,762
)
-

(18,762
)Foreign currency translation






(68
)
(68
)Comprehensive (loss)






-

(18,830
)Balance, September 30, 2007
1,000,000

1,000

(23,009
)
(68
)
(22,077
)      See accompanying notes
to financial statements.  18





CHINA MULTIMEDIA,
INC.  (A DEVELOPMENT STAGE
COMPANY)   STATEMENTS OF CASH
FLOWS  FOR THE YEAR ENDED
SEPTEMBER 30, 2007  AND FROM INCEPTION ON
AUGUST 16, 2006 THROUGH SEPTEMBER 30, 2007 and 2006     From August16, 2006(date ofCumulative

Year ended

inception) tototal since

September 30,

Septemberinception

2007

30, 2006US$

US$

US$Cash flows from operating
activities :Net
loss
(23,009
)
(18,762
)
(4,247
)Change in
liabilities :Accrued
audit fee
3,215

2

3,213Net cash
used in operating activities
(19,794
)
(18,760
)
(1,034
)Cash flows from financing
activities :Proceeds
from issuance of common stock
1,000

-

1,000Advance from
a stockholder
19,727

18,664

1,063Net cash
provided by financing activities
20,727

18,664

2,063Effect of rate change on
cash
(68
)
(68
)
-Net change in cash and cash
equivalents
865

(164
)
1,029Cash and cash equivalents,
beginning of period
-

1,029

-Cash and cash equivalents, end
of period
865

865

1,029Cash paid for :Income taxes
paid
-

-

-Interest
paid
-

-

-      See accompanying notes
to financial statements.  19





CHINA MULTIMEDIA,
INC.  (A DEVELOPMENT STAGE
COMPANY)   NOTES TO FINANCIAL
STATEMENTS  FOR THE YEAR ENDED
SEPTEMBER 30, 2007     1. NATURE OF BUSINESS AND SIGNIFICANT ACCOUNTING POLICIES  Corporate information  China Multimedia, Inc. (the Company) was incorporated in the
State of Nevada on August 16, 2006 for the purpose of exploring new business
opportunities.    On
December 11, 2006, the Company entered into a service agreement with DNA
Financial Systems (DNAF) which is a regional solution provider for the
financial and securities industry throughout the Asia Pacific Region. Pursuant
to the agreement, the Company shall refer potential clients who wish to acquire
the financial web portal design and hosting service provided by DNAF.  The
Company has not introduced any clients to DNAF and is a development stage
company during the period.  Continuance of operations  These financial statements are prepared on a going concern basis,
which considers the realization of assets and satisfaction of liabilities in the
normal course of business.  As of September 30, 2007, the Company had cash
and cash equivalents of US$865, working (deficit) and stockholders (deficit) of
US$22,077 and accumulated (deficit) during the development stage of US$23,009
respectively.  These factors raise substantial doubt about the Companys
ability to continue as a going concern.  Management plans on the continuation of the Company as a going
concern include financing the Companys existing and future operations through
additional issuance of common stock and/or advances from the sole stockholder
and seeking for profitable business opportunities including a service agreement
with DNAF.  However, the Company has no assurance with respect to these
plans.  The accompanying financial statements do not include any
adjustments that might be necessary if the Company is unable to continue as a
going concern.  Cash and cash equivalents  Cash and cash equivalents comprise highly liquid investments with
original maturity of three months or less.  At September 30, 2007, cash and
cash equivalents consist of bank balance of US$865 denominated in Hong Kong
dollars (HKD).  Concentration of risk  The
Company maintains a HKD savings account with a commercial bank in Hong Kong,
which are financial instruments that are potentially subject to concentration of
credit risk.  During the reporting period, the Company has not engaged in
any hedging activities.   20





CHINA MULTIMEDIA,
INC.  (A DEVELOPMENT STAGE
COMPANY)  NOTES TO FINANCIAL
STATEMENTS  FOR THE YEAR ENDED
SEPTEMBER 30, 2007     1. NATURE OF BUSINESS AND SIGNIFICANT ACCOUNTING POLICIES
(CONTD)  Income taxes  The
Company accounts for income tax in accordance with Statement of Financial
Accounting Standards No. 109, which requires recognition of deferred tax assets
and liabilities for the expected future tax consequences of the events that have
been included in the financial statements or tax returns.  Deferred income
taxes are recognized for all significant temporary differences between tax and
financial statement bases of assets and liabilities.  A valuation allowance
is recognized on deferred tax assets when it is more likely than not that these
deferred tax assets will not be realized.  Foreign currency translation  The
Company keeps cash and cash equivalents and incurred expenses in HKD during the
reporting period and thus HKD is considered to be the functional currency.
 Transactions denominated in currencies other than HKD are translated into
HKD at the applicable rates of exchange prevailing at the dates of the
transactions.  Monetary assets and liabilities denominated in other
currencies are translated into HKD at the rates of exchange prevailing at the
balance sheet date.  Exchange gains and losses are included in the
determination of net income.  For
financial reporting purposes, HKD has been translated into United States dollars
(US$) as the reporting currency.  Assets and liabilities are translated
into US$ at the exchange rate in effect at the period end.  Income and
expenses are translated at average exchange rate prevailing during the period.
 Translation adjustments arising from the use of different exchange rates
from period to period are included as a component of stockholders (deficit) as
Accumulated other comprehensive (loss) - foreign currency translation
adjustments. Gains and losses resulting from foreign currency translated are
included in other comprehensive (loss).  Conversion of amounts from Hong Kong dollars into United States
dollars has been made at the exchange rate of US$1.00 = HK$7.776 for the year
ended September 30, 2007 and US$1.00 = HK$7.804 and HK$7.78 from inception on
August 16, 2006 to September 30, 2007 and 2006 respectively.  There is a
comprehensive loss of US$68 due to the effect of rate changes for the reporting
period.  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 amounts reported in these financial
statements and the accompanying notes during the reporting period.  Actual
results could differ from those estimates.  21





CHINA MULTIMEDIA,
INC.  (A DEVELOPMENT STAGE
COMPANY)  NOTES TO FINANCIAL
STATEMENTS  FOR THE YEAR ENDED
SEPTEMBER 30, 2007   1. NATURE OF BUSINESS AND SIGNIFICANT ACCOUNTING POLICIES
(CONTD)  Fair values of financial instruments  Financial instruments include cash and cash equivalents and
accrued audit fee.  Management of the Company does not believe that the
Company is subject to significant interest, currency or credit risks arising
from these financial instruments.  The respective carrying values of
financial instruments approximate their fair values.  Fair values were
assumed to approximate carrying values since they are short-term in nature or
they are receivable or payable on demand.   2. INCOME TAXES  A
reconciliation of income taxes at statutory rate is as follows:  From August16, 2006(date ofCumulative

Year ended

inception) tototal since

September 30,

Septemberinception

2007

30, 2006US$

US$

US$Loss before income taxes
(23,009
)
(18,762
)
(4,247
)Expected benefit at statutory rate of 15%
(3,451
)
(2,814
)
(637
)Valuation allowance
3,451

2,814

637-

-

-  Recognized deferred income tax asset is as follows: As of

As ofSeptember 30,

September 30,2007

2006US$

US$Operating losses available for future periods
3,451

637Valuation allowance
(3,451
)
(637
)-

-  At
September 30, 2007, the Company has incurred operating losses of US$23,009
which, if unutilized, will expire through to 2027.  Future tax benefits
arising as a result of these losses have been offset by a valuation
allowance.  22





CHINA MULTIMEDIA,
INC.  (A DEVELOPMENT STAGE
COMPANY)  NOTES TO FINANCIAL
STATEMENTS  FOR THE YEAR ENDED
SEPTEMBER 30, 2007   3. NET LOSS PER SHARE  During the reporting period, the Company did not issue any
dilutive instruments.  Accordingly, the reported basic and diluted loss per
share is the same.   4. COMMON STOCK  The
Company was incorporated on August 16, 2006 with authorized capital of
50,000,000 shares of common stock of US$0.001 par value.  On August 16,
2006, 1,000,000 shares of common stock of US$0.001 par value totaling US$1,000
was issued for cash.   5. STOCK INCENTIVE PLAN  The
Company has not established any stock incentive plan since its
incorporation.   6. COMMITMENTS AND CONTINGENCIES  The
Company had no commitments or contingent liabilities as of September 30,
2007.   7. RELATED PARTY TRANSACTIONS  The
sole stockholder, who is also the director, advanced US$1,063 and US$18,664 to
the Company financing its working capital for the period from inception on
August 16, 2006 through September 30, 2006 and for the year ended September
30, 2007, respectively.  The advance is interest-free, unsecured and
repayable on demand.                    23





Item 8. Changes in and Disagreements with Accountants on
Accounting and Financial Disclosure  During the Company's fiscal year ended September 30, 2007, the
Company has had no disagreements with its principal independent accountant.   Item 8A. Controls and Procedures  The Securities and Exchange Commission defines the term
disclosure controls and procedures to mean a company's controls and other
procedures of an issuer that are designed to ensure that information required to
be disclosed in the reports that it files or submits under the Securities
Exchange Act of 1934 is recorded, processed, summarized and reported, within the
time periods specified in the Securities and Exchange Commissions rules and
forms. Disclosure controls and procedures include, without limitation, controls
and procedures designed to ensure that information required to be disclosed by
an issuer in the reports that it files or submits under the Securities Exchange
Act of 1934 is accumulated and communicated to the issuers management,
including its principal executive and principal financial officers, or persons
performing similar functions, as appropriate to allow timely decisions regarding
required disclosure.  The Company maintains such a system of controls and
procedures in an effort to ensure that all information which it is required to
disclose in the reports it files under the Securities Exchange Act of 1934 is
recorded, processed, summarized and reported within the time periods specified
under the SEC's rules and forms and that information required to be disclosed is
accumulated and communicated to principal executive and principal financial
officers to allow timely decisions regarding disclosure.  As of the end of the period covered by this report, we carried out
an evaluation, under the supervision and with the participation of our chief
executive officer and principal accounting officer, of the effectiveness of the
design and operation of our disclosure controls and procedures.  Based on
this evaluation, our chief executive officer and principal accounting officer
concluded that our disclosure controls and procedures are designed to provide
reasonable assurance of achieving the objectives of timely alerting them to
material information required to be included in our periodic SEC reports and of
ensuring that such information is recorded, processed, summarized and reported
with the time periods specified.  Our chief executive officer and principal
accounting officer also concluded that our disclosure controls and procedures
were effective as of September 30, 2007 to provide reasonable assurance of the
achievement of these objectives.  There was no change in the Company's internal control over
financial reporting during the year ended September 30, 2007, that has
materially affected, or is reasonably likely to materially affect, the Company's
internal control over financial reporting.    Item 8B. Other Information  None     24





Part III      Item 9. Directors, Executive Officers, Promoters and Control
Persons; Compliance with Section 16(a) of the Exchange Act  DIRECTORS AND EXECUTIVE OFFICERS  The respective positions and ages of our directors and
executive officers and the year in which each director was first elected are
shown in the following table. Each director has been elected to hold office
until the next annual meeting of stockholders and thereafter until his successor
is elected and has qualified. Vacancies in the existing Board of Directors are
filling by majority vote of the remaining Directors. There are no agreements or
understandings for any officer or director to resign at the request of another
person and no officer or director is acting on behalf of or will act at the
direction of any other person.   Name
Age
PositionWilson Kin Cheung
33
President, Director, Secretary
August 2006   We have not had standing audit, nominating or compensation
committees of the Board of Directors or committees performing similar functions.
All such applicable functions have been performed by the Board of Directors as a
whole.  Biographical Information  Mr. Wilson Kin Cheung has been the President and Director of CMI
since August 2006 to the present. His responsibilities include general
management and financial management. Mr. Cheung also holds the positions of
Secretary, Treasurer and Chief Financial Officer.  Mr. Cheung has more
than ten years working experience in the investment banking and corporate
finance areas in Hong Kong markets. Mr. Cheung has been the Director and
President of Super Luck, Inc., a Delaware corporation that resells a financial
software product, since August 2005. In July 2005, he became a managing director
of Easterly Financial Investment Limited, a Hong Kong corporation, which
provides financial advisory services in the Asia Pacific region. Mr. Cheung was
with First Asia Finance Group Limited from December 2001 to July 2005. Mr.
Cheung worked as a junior executive officer in the corporate finance department
with Oriental Patron Asia Limited, an investment bank specializing in corporate
finance, from September 1999 to September 2000; as an Assistant Manager with
Kingsway Capital Limited, an investment bank specializing in corporate finance
from October 2000 to May 2001; and as a Manager with Core Pacific - Yamaichi
International (H.K.) Limited in Hong Kong from June 2001 to November 2001,
engaging in the provision of corporate finance, financial advisory, and
securities placement and underwriting services . Mr. Cheung holds a Bachelor of
Business degree from the Swinburne University of Technology in Melbourne,
Australia. He obtains an EMBA in the Chinese University of Hong Kong in 2006.
 Currently, Mr. Cheung devotes 25% of his time to  25





CMI.
He also devotes 75% of his time to Market Data Consultants, Inc, Super Luck, Inc
and Easterly Financial Investment Limited in even proportion. These companies
are not in the same business as CMI and there would be no conflicts among CMI
and these entities. Since July 2005, Mr. Cheung has been the managing director
of Easterly Financial Investment Limited.   Involvement in Certain Legal Proceedings There have been no events during the last five years that are
material to an evaluation of the ability or integrity of any director, person
nominated to become a director, executive officer, promoter or control person
including: 1.        any bankruptcy
petition filed by or against any business of which such person was a general
partner or executive officer either at the time of the bankruptcy or within two
years prior to that time; 2.        any conviction
in a criminal proceeding or being subject to a pending criminal proceeding
(excluding traffic violations and other minor offenses); 3.        being subject to
any order, judgment, or decree, not subsequently reversed, suspended or vacated,
of any court of competent jurisdiction, permanently enjoining, barring,
suspending or otherwise limiting his/her involvement in any type of business,
securities or banking activities; 4.        being found by a
court of competent jurisdiction (in a civil action), the Commission or the
Commodity Futures Trading Commission to have violated a federal or state
securities or commodities law, and the judgment has not been reversed,
suspended, or vacated.  Other Relationships or Arrangements There is no arrangement or understanding between any of the
directors or officers of the Company and any other person pursuant to which any
director or officer was or is to be selected as a director or officer. Directorships  Wilson Kin Cheung is director of Super Luck, Inc. and Market Data
Consultants, Inc.  He files reports under the Securities Exchange Act of
1934. Audit Committee Financial Expert The Company does not currently have an audit committee financial
expert.  Section 16(a) Beneficial Ownership Compliance The Companys officers, directors, and 10% owners have each filed
Initial Statements of Beneficial Ownership on Form 3.  Code of Ethics The Company did not have a code of ethics, and the current
management has not yet adopted a code of ethics. The Company intends to adopt a
code of ethics in the near future.    26





Item 10. Executive Compensation  At this time, no compensation has been scheduled for members of
the Board of Directors or officers of CMI and no compensation has been paid for
the last year.  Future compensation of officers will be determined by the Board of
Directors based upon the financial condition, financial requirements and
performance of CMI, and individual performance of each officer.  No retirement, pension, profit sharing, stock option or insurance
programs or other similar programs have been adopted by CMI for the benefit of
its employees.    Item 11. Security Ownership of Certain Beneficial Owners and
Management and Related Stockholder Matters  The following table sets forth, as of September 30, 2007, the
ownership of each executive officer and director of CMI, of all executive
officers and directors of the CMI as a group, and of each person known by CMI to
be a beneficial owner of 5% or more of its Common Stock. Except as otherwise
noted, each person listed below a sole beneficial owner of the shares and has
sole investment and voting power as to such shares.  No person listed below
has any options, warrant or other right to acquire additional securities of CMI
except as may be otherwise noted.  Title of Class
Name
Number of Shares Beneficially Owned
Percent of ClassCommon
Wilson Kin Cheung (1)
1,000,000
100%0.Common
All Officers and Directors as a Group (1 in number)
1,000,000
100% (1) Mr. Wilson Kin Cheung is a director and
executive officer of China Multimedia Inc.   Item 12. Certain Relationships and Related Transactions  No officer, director, promoter, or affiliate of CMI has or
proposes to have any direct or indirect material interest in any asset proposed
to be acquired by CMI through security holdings, contracts, options, or
otherwise.  We have adopted a policy under which any consulting or finder's
fee that may be paid to a third party for consulting services to assist
management in evaluating a prospective business opportunity would be paid in
stock rather than in cash.  Any such issuance of stock would be made on an
adhoc basis.  Accordingly, we are unable to predict whether, or in what
amount, such a stock issuance might be made. CMI may seek to acquire a business
that has experience in marketing and promoting the use of different kinds of
financial software and has established a professional sales team with personnel
who are knowledgeable in reselling a variety of financial software products. In
the event that an acquisition candidate purchases the shares of CMI, it is more
likely than not that such a candidate would pay a price higher than the price
originally paid  27





by
our current stockholders.  However, there is no guarantee that the
stockholders will make a profit on such a transaction.  Any decision to
sell the shares of CMI could be made at the sole discretion of the current
majority stockholder without the vote of the purchasers in this offering.   It is not currently anticipated that any salary, consulting
fee, or finder's fee shall be paid to any of CMI's directors or executive
officers or to any other affiliate of us except as described under "Executive
Compensation" above.  CMI does not maintain an office, but it does maintain a mailing
address at the office of its President, for which it pays no rent and for which
it does not anticipate paying rent in the future. It is likely that we will not
establish an office until it has completed a business acquisition transaction,
but it is not possible to predict what arrangements will actually be made with
respect to future office facilities.   Although management has no current plans to cause us to do so, it
is possible that we may enter into an agreement with an acquisition candidate
requiring the sale of all or a portion of the Common Stock held by CMIs current
stockholder to the acquisition candidate or principals thereof, or to other
individuals or business entities, or requiring some other form of payment to our
current stockholders, or requiring the future employment of specified officers
and payment of salaries to them.  A sale of securities by our current
stockholders to an acquisition candidate might be at a price higher than that
originally paid by current stockholder but may or may not be higher than the
price paid by subscribers to this offering.  Any payment to current
stockholder in the context of an acquisition involving CMI would be determined
entirely by the largely unforeseeable terms of a future agreement with an
unidentified business entity.  Any decision to sell the shares of CMI could
be made at the sole discretion of the current majority stockholder without the
vote of the purchasers in this offering.      Item 13. Exhibits  (a)
Exhibits   3.1 Articles of Incorporation (herein incorporated by reference from
filing on Form 10SB12G/A filed by CMI on April 25, 2007.)  3.2 Bylaws (herein incorporated by reference from filing on Form
10SB12G/A filed by CMI on April 25, 2007.)  5.1 Opinion of Corporate Counsel*  10.1 Contract with DNA Financial Systems signed on December 11, 2006.
*  23.1 Consent of Certified Public Accountants*  23.2 Consent of Corporate Counsel (included in Exhibit 5.1)  Filed herewith  28





Item 14. Principal Accountant Fees and Services  Audit Fees  The aggregate fees billed and billable by PKF Certified Public
Accountants, CMIs independent auditors, for the audit of CMIs annual financial
statements and reviews of quarterly financial statements for the year ended
September 30, 2007 were $6,855 and $3,215 during the period ended September
30, 2006. Tax Fees  The aggregate fees billed and billable by PKF Certified Public
Accountants, CMIs principal accountants for tax compliance, advice, and
planning, were $0 for the year ended September 30, 2007 and $0 for the period
ended September 30, 2006, respectively.                                        29





SIGNATURES  In
accordance with Section 12 of the Securities Exchange Act of 1934, the
registrant caused this registration statement to be signed on its behalf by the
undersigned, thereunto duly authorized.  CHINA MULTIMEDIA, INC.  By: /s/
Wilson Cheung Wilson
Cheung, President and Director  Date:
December 31, 2007   By: /s/
Wilson Cheung Wilson
Cheung, Chief Financial Officer  Date:
December 31, 2007   30