| Nevada                                                              |   | 20-1204606                             |
|---------------------------------------------------------------------|--------|----------------------------------------|
| (State      or other jurisdiction of incorporation or organization) |   | (IRS      Employer Identification No.) |

----

| PART I - FINANCIAL      INFORMATION |                                                                           |
|-------------------------------------|--------------------------------------------------------------------------------|
|                                |                                                                           |   |   |
|                                | ITEM      1 - FINANCIAL STATEMENTS                                             |   |
|                                |                                                                           |   |   |
|                                |                                                                           | Unaudited      Condensed Consolidated Statements of Operations and Other Comprehensive      Income for the three-month and six-month periods ended June 30, 2010      and 2009 | 3 |
|                                |                                                                           |   |   |
|                                |                                                                           | Unaudited      Condensed Consolidated Balance Sheet as of June 30, 2010 and      Audited Condensed Consolidated Balance Sheet as of December 31,      2009 | 4 |
|                                |                                                                           |   |   |
|                                |                                                                           | Unaudited      Condensed Consolidated Statements of Cash Flows for the six-month periods      ended June 30, 2010 and 2009 | 5 |
|                                |                                                                           |   |   |
|                                |                                                                           | Notes      to the Unaudited Condensed Consolidated Financial    Statements | 6 -      9 |
|                                |                                                                           |   |   |
|                                | ITEM      2 - MANAGEMENT'S DISCUSSION AND ANALYSIS OR PLAN OF    OPERATION     | 10-14 |
|                                |                                                                           |   |   |
|                                | ITEM      3 - QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET    RISK    | 15 |
|                                |                                                                           |   |   |
|                                | ITEM      4 - CONTROLS AND PROCEDURES                                          | 15 |
|                                |                                                                           |   |   |
| PART II - OTHER      INFORMATION    |                                                                           |
|                                |                                                                           |   |   |
|                                | ITEM      1 - LEGAL PROCEEDINGS                                                |  16 |
|                                |                                                                           |   |   |
|                                | ITEM      2 - UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF      PROCEEDS |  16 |
|                                |                                                                           |   |   |
|                                | ITEM      3 - DEFAULTS UPON SENIOR SECURITIES                                  |  16 |
|                                |                                                                           |   |   |
|                                | ITEM      4 - SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS              |  16 |
|                                |                                                                           |   |   |
|                                | ITEM      5 - OTHER INFORMATION                                                |  16 |
|                                |                                                                           |   |   |
|                                | ITEM      6 - EXHIBITS AND REPORTS ON FORM 8-K                                 |  16 |
|                                |                                                                           |   |   |
|                                |                                                                           | SIGNATURES |  17 |

----

|                                                                                             |   |   |   |   | Three      months ended June      30, |                   |      | Six      months ended June      30, |                     |
|--------------------------------------------------------------------------------------------------|--------|--------|--------|--------|--------------------------------------------|------------------------|-----------|------------------------------------------|--------------------------|
|                                                                                             |   |   |   |   | 2010                             |                   |      | 2009                           |                     |   | 2010   |   |   | 2009   |   |
|                                                                                             |   | Note   |   |   | US$                                   |                   |      | US$                                 |                     |   | US$  |   |   | US$  |   |
| Continuing      operations                                                                       |   |   |   |   |                                       |                   |      | (Restated)                          |                     |   |   |   |   | (Restated)  |   |
|                                                                                             |   |   |   |   |                                       |                   |      |                                     |                     |   |   |   |   |   |   |
| Operating      revenues                                                                          |   |   |   |   |                                       |                   |      |                                     |                     |   |   |   |   |   |   |
| Service      income                                                                              |   |   |   |   |                                       | 460,153                |      |                                     |                     | 126,062 |   |   |   | 1,004,460 |   |   |   | 225,106 |   |
| Sale      of mobile phones                                                                       |   |   |   |   |                                       | -                      |      |                                     |                     | 929,785 |   |   |   | - |   |   |   | 929,785 |   |
|                                                                                             |   |   |   |   |                                       |                   |      |                                     |                     |   |   |   |   |   |   |   |   |   |   |
| Operating      expenses                                                                          |   |   |   |   |                                       |                   |      |                                     |                     |   |   |   |   |   |   |   |   |   |   |
| Subcontracting      and other service costs                                                      |   |   |   |   |                                       | (241,040               | )         |                                     |                     | (33,762 | ) |   |   | (556,339 | ) |   |   | (83,634 | ) |
| Purchase      of mobile phones                                                                   |   |   |   |   |                                       | -                      |      |                                     |                     | (891,180 | ) |   |   | - |   |   |   | (891,180 | ) |
| Staff      costs                                                                                 |   |   |   |   |                                       | (108,228               | )         |                                     |                     | (75,036 | ) |   |   | (133,517 | ) |   |   | (131,193 | ) |
| Depreciation      of property, plant and equipment                                               |   |   |   |   |                                       | (4,343                 | )         |                                     |                     | (3,521 | ) |   |   | (8,094 | ) |   |   | (7,020 | ) |
| Amortization      of intangible assets                                                           |   |   |   |   |                                       | (51,412                | )         |                                     |                     | (51,359 | ) |   |   | (102,825 | ) |   |   | (102,718 | ) |
| Other      general and administrative expenses                                                   |   |   |   |   |                                       | (81,793                | )         |                                     |                     | (206,026 | ) |   |   | (146,969 | ) |   |   | (437,509 | ) |
|                                                                                             |   |   |   |   |                                       |                   |      |                                     |                     |   |   |   |   |   |   |   |   |   |   |
| Income      (Loss) from operations                                                               |   |   |   |   |                                       | (26,663                | )         |                                     |                     | (205,037 | ) |   |   | 56,716 |   |   |   | (498,363 | ) |
|                                                                                             |   |   |   |   |                                       |                   |      |                                     |                     |   |   |   |   |   |   |   |   |   |   |
| Non-operating      income (expenses)                                                             |   |   |   |   |                                       |                   |      |                                     |                     |   |   |   |   |   |   |   |   |   |   |
| Interest      income                                                                             |   |   |   |   |                                       | 62                     |      |                                     |                     | 1,134 |   |   |   | 3,296 |   |   |   | 1,875 |   |
| Other      income                                                                                |   |   |   |   |                                       | 6,939                  |      |                                     |                     | - |   |   |   | 6,939 |   |   |   | - |   |
| Amortization      of loans from a related party                                                  |   |   |   |   |                                       | -                      |      |                                     |                     | (2,859 | ) |   |   | - |   |   |   | (11,333 | ) |
| Share      of result of an associate                                                             |   |   |   |   |                                       | -                      |      |                                     |                     | 10,803 |   |   |   | - |   |   |   | - |   |
| Interest      expenses                                                                           |   |   |   |   |                                       | (12,301                | )         |                                     |                     | (12,684 | ) |   |   | (27,512 | ) |   |   | (12,684 | ) |
| Compensation      payment                                                                        |   |   |   |   |                                       | -                      |      |                                     |                     | (18,118 | ) |   |   | - |   |   |   | (18,118 | ) |
| Gain      on disposal of interest in a subsidiary                                                |   |   | 8      |   |                                       |                   | 607,525   |                                     |                     |   | - |   |   |   | 607,525 |   |   |   | - |   |
| Loss      on early termination of loans from a related party                                     |   |   |   |   |                                       |                   | -         |                                     |                     |   | (26,461 | ) |   |   | - |   |   |   | (15,658 | ) |
|                                                                                             |   |   |   |   |                                       |                   |      |                                     |                     |   |   |   |   |   |   |   |   |   |   |   |
| Income      (Loss) before income tax and noncontrolling interests                                |   |   |   |   |                                       |                   | 575,562   |                                     |                     |   | (253,222 | ) |   |   | 646,964 |   |   |   | (554,281 | ) |
|                                                                                             |   |   |   |   |                                       |                   |      |                                     |                     |   |   |   |   |   |   |   |   |   |   |   |
| Income      tax                                                                                  |   |   | 4      |   |                                       |                   | -         |                                     |                     |   | - |   |   |   | - |   |   |   | - |   |
|                                                                                             |   |   |   |   |                                       |                   |      |                                     |                     |   |   |   |   |   |   |   |   |   |   |   |
| Net      income (loss) from continuing operations                                                |   |   |   |   |                                       |                   | 575,562   |                                     |                     |   | (253,222 | ) |   |   | 646,964 |   |   |   | (554,281 | ) |
|                                                                                             |   |   |   |   |                                       |                   |      |                                     |                     |   |   |   |   |   |   |   |   |   |   |   |
| Discontinued      operations                                                                     |   |   |   |   |                                       |                   |      |                                     |                     |   |   |   |   |   |   |   |   |   |   |   |
| Loss      from discontinued operations                                                           |   |   | 5      |   |                                       |                   | -         |                                     |                     |   | (32,918 | ) |   |   | (8,472 | ) |   |   | (89,032 | ) |
|                                                                                             |   |   |   |   |                                       |                   |      |                                     |                     |   |   |   |   |   |   |   |   |   |   |   |
| Net      income (loss) including noncontrolling interests                                        |   |   |   |   |                                       |                   | 575,562   |                                     |                     |   | (286,140 | ) |   |   | 638,492 |   |   |   | (643,313 | ) |
|                                                                                             |   |   |   |   |                                       |                   |      |                                     |                     |   |   |   |   |   |   |   |   |   |   |   |
| Add:      net loss from continuing operations attributable to noncontrolling      interests |   |   |   |   |                                       |                   | -         |                                     |                     |   | 13,673 |   |   |   | 834 |   |   |   | 29,902 |   |
|                                                                                             |   |   |   |   |                                       |                   |      |                                     |                     |   |   |   |   |   |   |   |   |   |   |   |
| Add:      net loss from discontinued operations attributable to noncontrolling      interests    |   |   |   |   |                                       |                   | -         |                                     |                     |   | 2,534 |   |   |   | 131 |   |   |   | 22,582 |   |
|                                                                                             |   |   |   |   |                                       |                   |      |                                     |                     |   |   |   |   |   |   |   |   |   |   |   |
| Net      income (loss) attributable to SPYE common stockholders                                  |   |   |   |   |                                       |                   | 575,562   |                                     |                     |   | (269,933 | ) |   |   | 639,457 |   |   |   | (590,829 | ) |
|                                                                                             |   |   |   |   |                                       |                   |      |                                     |                     |   |   |   |   |   |   |   |   |   |   |   |
| Other      comprehensive income                                                                  |   |   |   |   |                                       |                   |      |                                     |                     |   |   |   |   |   |   |   |   |   |   |   |
| -      Foreign currency translation adjustment                                                   |   |   |   |   |                                       |                   | -         |                                     |                     |   | - |   |   |   | - |   |   |   | 15,669 |   |
|                                                                                             |   |   |   |   |                                       |                   |      |                                     |                     |   |   |   |   |   |   |   |   |   |   |   |
| Total      comprehensive income (loss)                                                           |   |   |   |   |                                       |                   | 575,562   |                                     |                     |   | (269,933 | ) |   |   | 639,457 |   |   |   | (575,160 | ) |
|                                                                                             |   |   |   |   |                                       |                   |      |                                     |                     |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                             |   |   |   |   |                                       |                   |      |                                     |                     |   |   |   |   |   |   |   |   |   |   |   |
| Basic      and diluted earnings (loss) per share                                                 |   |   |   |   |                                       |                   |      |                                     |                     |   |   |   |   |   |   |   |   |   |   |   |
|     Earnings      (loss) per share from continuing operations                |   |   |   |   |                                       | 44.54      cents       |      |                                     | (18.54)      cents       |   |   | 50.14      cents |   |   | (40.58)      cents |   |
|     Loss      per share from discontinued operations                         |   |   |   |   |                                       |                   | -         |                                     |                     | (2.35)      cents |   |   | (0.65)      cents |   |   | (5.14)      cents |   |
|                                                                                             |   |   |   |   |                                       |                   |      |                                     |                     |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                             |   |   |   |   |                                       | 44.54      cents  |      |                                     | (20.89)      cents  |   |   | 49.49      cents  |   |   | (45.72)      cents  |   |
|                                                                                             |   |   |   |   |                                       |                   |      |                                     |                     |   |   |   |   |   |   |   |   |   |   |   |
| Weighted      average number of shares of common stock outstanding                               |   |   |   |   |                                       |                   | 1,292,166 |                                     |                     |   | 1,292,166 |   |   |   | 1,292,166 |   |   |   | 1,292,166 |   |

----

|                                       |   |     |    |   | As      of              |    |
|--------------------------------------------|--------|----------|---------|--------|-------------------------|---------|
|                                       |   |     |    |   | June      30, 2010 |    |   | December      31, 2009 |   |
|                                       |   | Note     |    |   | US$           |    |   | US$   |   |
|                                       |   |     |    |   |                    |    |   | (Audited) |   |
| ASSETS                                     |   |     |    |   |                    |    |   |   |   |
|                                       |   |     |    |   |                    |    |   |   |   |
| Current      assets                        |   |     |    |   |                    |    |   |   |   |
| Trade      receivables from third parties  |   |     |    |   |                    | 389,753 |   |   |   | 194,865 |   |
| Trade      receivable from a related party |   |     | 6(b)(i) |   |                    |    | 5,821 |   |   |   | 5,821 |   |
| Prepayments      and deposits              |   |     |    |   |                    |    | 4,445 |   |   |   | 125,913 |   |
| Other      debtors                         |   |     |    |   |                    |    | 609,824 |   |   |   | 52,771 |   |
| Amounts      due from related parties      |   | 6(b)(ii) |    |   |                    | 13,576  |   |   |   | - |   |
| Income      tax recoverable                |   |     |    |   |                    |    | 28,882 |   |   |   | 3,829 |   |
| Inventories                                |   |     |    |   |                    |    | 30,950 |   |   |   | 40,385 |   |
| Cash      and cash equivalents             |   |     |    |   |                    |    | 503,892 |   |   |   | 378,671 |   |
| Bank      deposits, collateralized         |   |     | 7       |   |                    |    | - |   |   |   | 132,353 |   |
|                                       |   |     |    |   |                    |    |   |   |   |   |   |   |
| Total      current assets                  |   |     |    |   |                    |    | 1,587,143 |   |   |   | 934,608 |   |
|                                       |   |     |    |   |                    |    |   |   |   |   |   |   |
| Property,      plant and equipment, net    |   |     |    |   |                    |    | 52,389 |   |   |   | 69,759 |   |
| Intangible      assets, net                |   |     |    |   |                    |    | 1,190,414 |   |   |   | 1,322,651 |   |
|                                       |   |     |    |   |                    |    |   |   |   |   |   |   |
| Total      assets                          |   |     |    |   |                    |    | 2,829,946 |   |   |   | 2,327,018 |   |
|                                       |   |     |    |   |                    |    |   |   |   |   |   |   |

| LIABILITIES      AND STOCKHOLDERS' EQUITY                                                                                                                                   |   |      |    |   |   |    |      |   |   |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-----------|---------|--------|--------|---------|-----------|--------|--------|
|                                                                                                                                                                        |   |      |    |   |   |    |      |   |   |
| Current      liabilities                                                                                                                                                    |   |      |    |   |   |    |      |   |   |
| Trade      payables                                                                                                                                                         |   |      |    |   |   | 530,729 |      |   |   | 311,058 |   |
| Accrued      charges and other payables                                                                                                                                     |   |      |    |   |   | 436,836 |      |   |   | 531,981 |   |
| Amounts      due to related parties                                                                                                                                         |   | 6(b)(iii) |    |   |   | 77,898  |      |   |   | 19,458 |   |
| Temporary      receipts                                                                                                                                                     |   |      |    |   |   | 28,382  |      |   |   | 61,470 |   |
| Loans      from a related party                                                                                                                                             |   | 6(b)(iv)  |    |   |   | 486,765 |      |   |   | - |   |
| Short-term      bank loan                                                                                                                                                   |   |      | 7       |   |   |    | -         |   |   |   | 125,000 |   |
| Interest      payable to a related party                                                                                                                                    |   |      | 6(b)(v) |   |   |    | 53,544    |   |   |   | 56,588 |   |
|                                                                                                                                                                        |   |      |    |   |   |    |      |   |   |   |   |   |
| Total      current liabilities                                                                                                                                              |   |      |    |   |   |    | 1,614,154 |   |   |   | 1,105,555 |   |
|                                                                                                                                                                        |   |      |    |   |   |    |      |   |   |   |   |   |
| Long-term      loans from a related party                                                                                                                                   |   | 6(b)(iv)  |    |   |   | -       |      |   |   | 707,353 |   |
|                                                                                                                                                                        |   |      |    |   |   |    |      |   |   |   |   |   |
| Commitments      and contingencies                                                                                                                                          |   |      |    |   |   |    |      |   |   |   |   |   |
|                                                                                                                                                                        |   |      |    |   |   |    |      |   |   |   |   |   |
| Stockholders'      equity                                                                                                                                                   |   |      |    |   |   |    |      |   |   |   |   |   |
| Preferred      stock, par value US$0.001 per share; authorized 5,000,000 shares; none      issued and outstanding as of June 30, 2010 and December 31,      2009            |   |      |    |   |   |    |      |   |   |   |   |   |
| Common      stock, par value US$0.001 per share; authorized 300,000,000 shares; issued      and outstanding 1,292,166 shares as of June 30, 2010 and December 31,      2009 |   |      |    |   |   |    | 1,292     |   |   |   | 1,292 |   |
| Additional      paid in capital                                                                                                                                             |   |      |    |   |   |    | 2,009,454 |   |   |   | 2,009,454 |   |
| Dedicated      reserve                                                                                                                                                      |   |      |    |   |   |    | 319       |   |   |   | 319 |   |
| Accumulated      losses                                                                                                                                                     |   |      |    |   |   |    | (869,328  | )      |   |   | (1,508,785 | ) |
| Accumulated      other comprehensive income                                                                                                                                 |   |      |    |   |   |    | 74,055    |   |   |   | 74,055 |   |
|                                                                                                                                                                        |   |      |    |   |   |    |      |   |   |   |   |   |
| Total      SPYE stockholders’ equity                                                                                                                                  |   |      |    |   |   |    | 1,215,792 |   |   |   | 576,335 |   |
| Noncontrolling      interests                                                                                                                                               |   |      |    |   |   |    | -         |   |   |   | (62,225 | ) |
|                                                                                                                                                                        |   |      |    |   |   |    |      |   |   |   |   |   |
| Total      stockholders’ equity                                                                                                                                       |   |      |    |   |   |    | 1,215,792 |   |   |   | 514,110 |   |
|                                                                                                                                                                        |   |      |    |   |   |    |      |   |   |   |   |   |
| Total      liabilities and stockholders' equity                                                                                                                             |   |      |    |   |   |    | 2,829,946 |   |   |   | 2,327,018 |   |

----

|                                                                                                                                                                                                                                                                    |   | Six      months endedJune      30, |     |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|------------------------------------|----------|
|                                                                                                                                                                                                                                                                    |   | 2010                     |     |   | 2009   |   |
|                                                                                                                                                                                                                                                                    |   | US$                           |     |   | US$  |   |
|                                                                                                                                                                                                                                                                    |   |                               |     |   |   |   |
| Cash      flows from operating activities:                                                                                                                                                                                                                              |   |                               |     |   |   |   |
| Net      income (loss) including noncontrolling interests                                                                                                                                                                                                               |   |                               | 638,492  |   |   |   | (643,313 | ) |
|                                                                                                                                                                                                                                                                    |   |                               |     |   |   |   |   |   |
| Adjustments      to reconcile net income (loss) to net cash from (used in) operating      activities:                                                                                                                                                                   |   |                               |     |   |   |   |   |   |
|       Depreciation      of property, plant and equipment                                                                                                                                                                                  |   |                               | 8,362    |   |   |   | 7,555 |   |
|       Amortization      of intangible assets                                                                                                                                                                                              |   |                               | 102,825  |   |   |   | 110,723 |   |
|       Interest      income                                                                                                                                                                                                                |   |                               | (3,296   | ) |   |   | (1,901 | ) |
|       Interest      expense                                                                                                                                                                                                               |   |                               | 34,130   |   |   |   | 34,858 |   |
|       Amortization      of loans from a related party                                                                                                                                                                                     |   |                               | -        |   |   |   | 16,469 |   |
|       Gain      on disposal of interest in a subsidiary                                                                                                                                                                                   |   |                               | (607,525 | ) |   |   |  - |   |
|       Loss      on early termination of loans from a related party                                                                                                                                                                        |   |                               | -        |   |   |   | 25,974 |   |
|   Share of result of      an associate                                                                                                                                                                                                                        |   |                               | -        |   |   |   | 13,465 |   |
|   Changes in working      capital:                                                                                                                                                                                                                            |   |                               |     |   |   |   |   |   |
| Trade    receivables                                                                                                                                                                                                                                                    |   |                               | (194,888 | ) |   |   | (21,354 | ) |
| Prepayments and      deposits                                                                                                                                                                                                                                           |   |                               | 1,591    |   |   |   | 18,562 |   |
| Other debtors                                                                                                                                                                                                                                                           |   |                               | (1,916   | ) |   |   | 178,257 |   |
| Inventories                                                                                                                                                                                                                                                             |   |                               | (13,780  | ) |   |   | (14,423 | ) |
| Trade payables                                                                                                                                                                                                                                                          |   |                               | 219,671  |   |   |   | (24,081 | ) |
| Accrued charges and other      payables                                                                                                                                                                                                                                 |   |                               | 72,657   |   |   |   | 235,836 |   |
| Temporary    receipts                                                                                                                                                                                                                                                   |   |                               | (33,088  | ) |   |   | (82,697 | ) |
| Income tax      recoverable/payable                                                                                                                                                                                                                                     |   |                               | (25,053  | ) |   |   | 3,829 |   |
|                                                                                                                                                                                                                                                                    |   |                               |     |   |   |   |   |   |
| Net      cash generated from (used in) operating activities                                                                                                                                                                                                             |   |                               | 198,182  |   |   |   | (142,241 | ) |
|                                                                                                                                                                                                                                                                    |   |                               |     |   |   |   |   |   |
| Cash      flows from investing activities:                                                                                                                                                                                                                              |   |                               |     |   |   |   |   |   |
|   Interest      income                                                                                                                                                                                                                                        |   |                               | 3,296    |   |   |   | 1,901 |   |
| Payments for purchase of      property, plant and equipment                                                                                                                                                                                                             |   |                               | (17,676  | ) |   |   | (5,830 | ) |
| Payments for purchase of      intangible assets                                                                                                                                                                                                                         |   |                               | -        |   |   |   | (29,411 | ) |
| Decrease in bank deposit,      collateralized                                                                                                                                                                                                                           |   |                               | 132,353  |   |   |   | - |   |
|                                                                                                                                                                                                                                                                    |   |                               |     |   |   |   |   |   |
| Net      cash generated from (used in) investing activities                                                                                                                                                                                                             |   |                               | 117,973  |   |   |   | (33,340 | ) |
|                                                                                                                                                                                                                                                                    |   |                               |     |   |   |   |   |   |
| Cash      flows from financing activities:                                                                                                                                                                                                                              |   |                               |     |   |   |   |   |   |
| Repayments to related      parties                                                                                                                                                                                                                                      |   |                               | (53,025  | ) |   |   | (13,030 | ) |
| Interest paid                                                                                                                                                                                                                                                           |   |                               | (12,909  | ) |   |   | (20,711 | ) |
| Repayment of short-term bank      loan                                                                                                                                                                                                                                  |   |                               | (125,000 | ) |   |   | (125,000 | ) |
| New short-term bank loan      raised                                                                                                                                                                                                                                    |   |                               | -        |   |   |   | 125,000 |   |
|                                                                                                                                                                                                                                                                    |   |                               |     |   |   |   |   |   |
| Net      cash used in financing activities                                                                                                                                                                                                                              |   |                               | (190,934 | ) |   |   | (33,741 | ) |
|                                                                                                                                                                                                                                                                    |   |                               |     |   |   |   |   |   |
| Net      increase (decrease) in cash and cash equivalents                                                                                                                                                                                                               |   |                               | 125,221  |   |   |   | (209,322 | ) |
|                                                                                                                                                                                                                                                                    |   |                               |     |   |   |   |   |   |
| Cash      and cash equivalents at beginning of period                                                                                                                                                                                                                   |   |                               | 378,671  |   |   |   | 245,685 |   |
|                                                                                                                                                                                                                                                                    |   |                               |     |   |   |   |   |   |
| Effect      on exchange rate changes                                                                                                                                                                                                                                    |   |                               | -        |   |   |   | 3,576 |   |
|                                                                                                                                                                                                                                                                    |   |                               |     |   |   |   |   |   |
| Cash      and cash equivalents at end of period,  represented by cash and bank      balances                                                                                                                                                                  |   |                               | 503,892  |   |   |   | 39,939 |   |
|                                                                                                                                                                                                                                                                    |   |                               |     |   |   |   |   |   |
| Supplemental      cash flow information                                                                                                                                                                                                                                 |   |                               |     |   |   |   |   |   |
| Interest      paid                                                                                                                                                                                                                                                      |   |                               | 12,909   |   |   |   | 20,711 |   |
| Non-cash      transactions (see note 8):- consideration for acquisition      of additional interest in a subsidiary paid by a related    party                                                                                                                          |   |                               | 294,118  |   |   |   | - |   |
|            - consideration      for disposal of interest in a subsidiary:                     settled      by offsetting against amount due to a related party |   |                               | 251,471  |   |   |   | - |   |
|                     unpaid and included in other debtors                                                                                                                                          |   |                               | 566,176  |   |   |   |   |   |

----

| 1. | ORGANIZATION |
|----|--------------|

| 2. | GOING      CONCERN CONSIDERATION |
|----|----------------------------------|

----

| 4. | TAXATION |
|----|----------|

| 5. | DISCONTINUED      OPERATIONS |
|----|------------------------------|

|                                                                            |   | Three      months ended June      30, |   |   | Six      months ended June      30, |   |
|---------------------------------------------------------------------------------|--------|--------------------------------------------|--------|--------|------------------------------------------|--------|
|                                                                            |   | 2010                             |   |   | 2009                           |   |   | 2010   |   |   | 2009   |   |
|                                                                            |   | US$                                   |   |   | US$                                 |   |   | US$  |   |   | US$  |   |
|                                                                            |   | (Unaudited)                           |   |   | (Unaudited)                         |   |   | (Unaudited)  |   |   | (Unaudited)  |   |
|                                                                            |   |                                       |   |   |                                     |   |   |   |   |   |   |   |
| Service      income                                                             |   |                                       | -      |   |                                     |   | 464 |   |   |   | - |   |   |   | 1,708 |   |
|                                                                            |   |                                       |   |   |                                     |   |   |   |   |   |   |   |   |   |   |   |
| Subcontracting      and other service costs                                     |   |                                       | -      |   |                                     |   | (20 | ) |   |   | - |   |   |   | (149 | ) |
| Staff      costs                                                                |   |                                       | -      |   |                                     |   | (12,487 | ) |   |   | (1,576 | ) |   |   | (42,437 | ) |
| Depreciation      of property, plant and equipment                              |   |                                       | -      |   |                                     |   | - |   |   |   | (268 | ) |   |   | (535 | ) |
| Amortization      of intangible assets                                          |   |                                       | -      |   |                                     |   | (268 | ) |   |   | - |   |   |   | (8,006 | ) |
| Other      general and administrative expenses                                  |   |                                       | -      |   |                                     |   | (1,951 | ) |   |   | (13 | ) |   |   | (6,665 | ) |
| Interest      income                                                            |   |                                       | -      |   |                                     |   | - |   |   |   | 3 |   |   |   | 25 |   |
| Amortization      of loans from a related party                                 |   |                                       | -      |   |                                     |   | (1,296 | ) |   |   | - |   |   |   | (5,136 | ) |
| Share      of results of an associate                                           |   |                                       | -      |   |                                     |   | (13,465 | ) |   |   | - |   |   |   | (13,465 | ) |
| Interest      expenses                                                          |   |                                       | -      |   |                                     |   | (3,895 | ) |   |   | (6,618 | ) |   |   | (4,056 | ) |
|          Loss on early termination of loans from a related party |   |                                       | -      |   |                                     |   | - |   |   |   | - |   |   |   | (10,316 | ) |
|                                                                            |   |                                       |   |   |                                     |   |   |   |   |   |   |   |   |   |   |   |
|          Loss before taxation                                    |   |                                       | -      |   |                                     |   | (32,918 | ) |   |   | (8,472 | ) |   |   | (89,032 | ) |
|          Taxation                                                |   |                                       | -      |   |                                     |   | - |   |   |   | - |   |   |   | - |   |
|                                                                            |   |                                       |   |   |                                     |   |   |   |   |   |   |   |   |   |   |   |
|          Loss from discontinued operations, net of tax           |   |                                       | -      |   |                                     |   | (32,918 | ) |   |   | (8,472 | ) |   |   | (89,032 | ) |

----

| 6. | RELATED      PARTY TRANSACTIONS |
|----|---------------------------------|

| (a)    | Name      and relationship of related parties                                                    |   |                                                                                       |
|--------|--------------------------------------------------------------------------------------------------|--------|--------------------------------------------------------------------------------------------|
|   |                                                                                             |   |                                                                                       |
|   | Name                                                                                             |   | Existing relationships with the      Company                                               |
|   | Li      Xing Hao                                                                                 |   | A      director of Wanzhi and a major stockholder of SPYE                                  |
|   | Guangdong      Chigo Air Conditioning Company Limited      (“Chigo”) *               |   | A      company in which Li Xing Hao has control and beneficial      interest               |
|   | Foshan      Information Technology Company Limited (“Foshan Company”)      *    |   | A      company in which Li Xing Hao has significant influence and beneficial      interest |
|   | Foshan      JinCheng Information Technology Company Limited (“JinCheng”)      * |   | A      company in which Li Xing Hao has significant influence and beneficial      interest |
|   | Foshan      KaiEr Information Technology Company Limited (“KaiEr”) *                 |   | An      associate of JinCheng                                                              |
|   | Tang      Jin Cheng                                                                              |   | A      director of JinCheng                                                                |

| (b) | Balances      with related parties |
|-----|------------------------------------|

|                                                                                | As      of         |
|-------------------------------------------------------------------------------------|--------------------|
|                                                                                | June      30, 2010 |   | December      31, 2009 |
|                                                                                | US$           |   | US$  |
|                                                                                |               |   | (Audited)  |
|                                                                                |               |   |   |
|                   Chigo | 5,8211             |   | 5,8211 |

|   | The      amount due is unsecured, interest-free and has no fixed repayment      term. |
|--------|---------------------------------------------------------------------------------------|

|                                 |   | As      of         |    |
|--------------------------------------|--------|--------------------|---------|
|                                 |   | June      30, 2010 |    |   | December      31, 2009 |   |
|                                 |   | US$           |    |   | US$  |   |
|                                 |   |               |    |   | (Audited) |   |
|                                 |   |               |    |   |   |   |
| Tang      Jin Cheng                  |   |               | -       |   |   |   | 14,706 |   |
| JinCheng                             |   |               | 13,576  |   |   |   | - |   |
| KaiEr                                |   |               | 28,049  |   |   |   | 108,931 |   |
|                                 |   |               |    |   |   |   |   |   |
|                                 |   |               | 41,625  |   |   |   | 123,637 |   |
| Allowance      for doubtful accounts |   |               | (28,049 | ) |   |   | (123,637 | ) |
|                                 |   |               |    |   |   |   |   |   |
|                                 |   |               | 13,576  |   |   |   | - |   |

| (iii)   | Amounts      due to related parties |
|-------------------|-------------------------------------|

|                |   | As      of         |   |
|---------------------|--------|--------------------|--------|
|                |   | June      30, 2010 |   |   | December      31, 2009 |   |
|                |   | US$           |   |   | US$  |   |
|                |   |               |   |   | (Audited)  |   |
|                |   |               |   |   |   |   |
| Chigo               |   |               | 3,706  |   |   |   | 3,706 |   |
| Foshan      Company |   |               | 59,418 |   |   |   | - |   |
| Li      Xing Hao    |   |               | 14,774 |   |   |   | 15,752 |   |
|                |   |               |   |   |   |   |   |   |
|                |   |               | 77,898 |   |   |   | 19,458 |   |

|   | The      amounts due are unsecured, interest-free and have no fixed repayment      term. |
|--------|------------------------------------------------------------------------------------------|

----

| (b) | Balances      with related parties (Continued) |
|-----|------------------------------------------------|

|             | As      of         |
|------------------|--------------------|
|             | June      30, 2010 |   | December      31, 2009 |
|             | US$           |   | US$  |
|             |               |   | (Audited)  |
|             |               |   |   |
| Li      Xing Hao | 53,544   |   | 56,588   |

| (c) | Summary      of related party transactions |
|-----|--------------------------------------------|

|                                     |   | Three      months ended June      30, |   |   | Six      months ended June      30, |   |
|------------------------------------------|--------|--------------------------------------------|--------|--------|------------------------------------------|--------|
|                                     |   | 2010                             |   |   | 2009                           |   |   | 2010   |   |   | 2009   |   |
|                                     |   | US$                                   |   |   | US$                                 |   |   | US$  |   |   | US$  |   |
|                                     |   | (Unaudited)                           |   |   | (Unaudited)                         |   |   | (Unaudited)  |   |   | (Unaudited)  |   |
|                                     |   |                                       |   |   |                                     |   |   |   |   |   |   |   |
| Service      income from Chigo           |   |                                       | -      |   |                                     |   | 27,703 |   |   |   | - |   |   |   | 53,762 |   |
| Sales      of goods to Chigo             |   |                                       | 82,239 |   |                                     |   | - |   |   |   | 82,239 |   |   |   | - |   |
| Interest      expenses to Li Xing Hao    |   |                                       | 12,301 |   |                                     |   | 16,740 |   |   |   | 33,523 |   |   |   | 16,740 |   |
| Compensation      payment to Li Xing Hao |   |                                       | -      |   |                                     |   | 18,118 |   |   |   | - |   |   |   | 18,118 |   |

| 7. | SHORT-TERM      BANK LOAN |
|----|---------------------------|

| 8. | ACQUISITION      OF ADDITIONAL INTEREST IN A SUBSIDIARY AND DISPOSAL OF ENTIRE INTEREST IN      A SUBSIDIARY |
|----|--------------------------------------------------------------------------------------------------------------|

| 9. | CHANGE      TO A PLAN OF DISCONTINUED OPERATIONS AND ASSETS HELD FOR      SALE |
|----|--------------------------------------------------------------------------------|

  

----

----

|                                                                                                         |   |   |   | Three      months ended June      30, |      |   | Six      months ended June      30, |              |
|--------------------------------------------------------------------------------------------------------------|--------|--------|--------|--------------------------------------------|-----------|--------|------------------------------------------|-------------------|
|                                                                                                         |   |   |   | 2010                             |      |   | 2009                           |              |   | 2010   |   |   | 2009   |   |
|                                                                                                         |   |   |   | US$                                   |      |   | US$                                 |              |   | US$  |   |   | US$  |   |
| Continuing      operations                                                                                   |   |   |   |                                       |      |   | (Restated)                          |              |   |   |   |   | (Restated)  |   |
|                                                                                                         |   |   |   |                                       |      |   |                                     |              |   |   |   |   |   |   |
| Operating      revenues                                                                                      |   |   |   |                                       |      |   |                                     |              |   |   |   |   |   |   |
| Service      income                                                                                          |   |   |   |                                       | 460,153   |   |                                     |              | 126,062 |   |   |   | 1,004,460 |   |   |   | 225,106 |   |
| Sale      of mobile phones                                                                                   |   |   |   |                                       | -         |   |                                     |              | 929,785 |   |   |   | - |   |   |   | 929,785 |   |
|                                                                                                         |   |   |   |                                       |      |   |                                     |              |   |   |   |   |   |   |   |   |   |   |
| Operating      expenses                                                                                      |   |   |   |                                       |      |   |                                     |              |   |   |   |   |   |   |   |   |   |   |
| Subcontracting      and other service costs                                                                  |   |   |   |                                       | (241,040  | )      |                                     |              | (33,762 | ) |   |   | (556,339 | ) |   |   | (83,634 | ) |
| Purchase      of mobile phones                                                                               |   |   |   |                                       | -         |   |                                     |              | (891,180 | ) |   |   | - |   |   |   | (891,180 | ) |
| Staff      costs                                                                                             |   |   |   |                                       | (108,228  | )      |                                     |              | (75,036 | ) |   |   | (133,517 | ) |   |   | (131,193 | ) |
| Depreciation      of property, plant and equipment                                                           |   |   |   |                                       | (4,343    | )      |                                     |              | (3,521 | ) |   |   | (8,094 | ) |   |   | (7,020 | ) |
| Amortization      of intangible assets                                                                       |   |   |   |                                       | (51,412   | )      |                                     |              | (51,359 | ) |   |   | (102,825 | ) |   |   | (102,718 | ) |
| Other      general and administrative expenses                                                               |   |   |   |                                       | (81,793   | )      |                                     |              | (206,026 | ) |   |   | (146,969 | ) |   |   | (437,509 | ) |
|                                                                                                         |   |   |   |                                       |      |   |                                     |              |   |   |   |   |   |   |   |   |   |   |
| Income      (Loss) from operations                                                                           |   |   |   |                                       | (26,663   | )      |                                     |              | (205,037 | ) |   |   | 56,716 |   |   |   | (498,363 | ) |
|                                                                                                         |   |   |   |                                       |      |   |                                     |              |   |   |   |   |   |   |   |   |   |   |
| Non-operating      income (expenses)                                                                         |   |   |   |                                       |      |   |                                     |              |   |   |   |   |   |   |   |   |   |   |
| Interest      income                                                                                         |   |   |   |                                       | 62        |   |                                     |              | 1,134 |   |   |   | 3,296 |   |   |   | 1,875 |   |
| Other      income                                                                                            |   |   |   |                                       | 6,939     |   |                                     |              | - |   |   |   | 6,939 |   |   |   | - |   |
| Amortization      of loans from a related party                                                              |   |   |   |                                       | -         |   |                                     |              | (2,859 | ) |   |   | - |   |   |   | (11,333 | ) |
| Share      of result of an associate                                                                         |   |   |   |                                       | -         |   |                                     |              | 10,803 |   |   |   | - |   |   |   | - |   |
| Interest      expenses                                                                                       |   |   |   |                                       | (12,301   | )      |                                     |              | (12,684 | ) |   |   | (27,512 | ) |   |   | (12,684 | ) |
| Compensation      payment                                                                                    |   |   |   |                                       | -         |   |                                     |              | (18,118 | ) |   |   | - |   |   |   | (18,118 | ) |
| Gain      on disposal of interest in a subsidiary                                                            |   |   |   |                                       | 607,525   |   |                                     |              | - |   |   |   | 607,525 |   |   |   | - |   |
| Loss      on early termination of loans from a related party                                                 |   |   |   |                                       | -         |   |                                     |              | (26,461 | ) |   |   | - |   |   |   | (15,658 | ) |
|                                                                                                         |   |   |   |                                       |      |   |                                     |              |   |   |   |   |   |   |   |   |   |   |
| Income      (Loss) before income tax and noncontrolling interests                                            |   |   |   |                                       | 575,562   |   |                                     |              | (253,222 | ) |   |   | 646,964 |   |   |   | (554,281 | ) |
|                                                                                                         |   |   |   |                                       |      |   |                                     |              |   |   |   |   |   |   |   |   |   |   |
| Income      tax                                                                                              |   |   |   |                                       | -         |   |                                     |              | - |   |   |   | - |   |   |   | - |   |
|                                                                                                         |   |   |   |                                       |      |   |                                     |              |   |   |   |   |   |   |   |   |   |   |
| Net      income (loss) from continuing operations                                                            |   |   |   |                                       | 575,562   |   |                                     |              | (253,222 | ) |   |   | 646,964 |   |   |   | (554,281 | ) |
|                                                                                                         |   |   |   |                                       |      |   |                                     |              |   |   |   |   |   |   |   |   |   |   |
| Discontinued      operations                                                                                 |   |   |   |                                       |      |   |                                     |              |   |   |   |   |   |   |   |   |   |   |
| Loss      from discontinued operations                                                                       |   |   |   |                                       | -         |   |                                     |              | (32,918 | ) |   |   | (8,472 | ) |   |   | (89,032 | ) |
|                                                                                                         |   |   |   |                                       |      |   |                                     |              |   |   |   |   |   |   |   |   |   |   |
| Net      income (loss) including noncontrolling interests                                                    |   |   |   |                                       | 575,562   |   |                                     |              | (286,140 | ) |   |   | 638,492 |   |   |   | (643,313 | ) |
|                                                                                                         |   |   |   |                                       |      |   |                                     |              |   |   |   |   |   |   |   |   |   |   |
| Add:      net loss from continuing operations attributable      to   noncontrolling interests |   |   |   |                                       | -         |   |                                     |              | 13,673 |   |   |   | 834 |   |   |   | 29,902 |   |
|                                                                                                         |   |   |   |                                       |      |   |                                     |              |   |   |   |   |   |   |   |   |   |   |
| Add:      net loss from discontinued operations attributable to noncontrolling      interests                |   |   |   |                                       | -         |   |                                     |              | 2,534 |   |   |   | 131 |   |   |   | 22,582 |   |
|                                                                                                         |   |   |   |                                       |      |   |                                     |              |   |   |   |   |   |   |   |   |   |   |
| Net      income (loss) attributable to SPYE common stockholders                                              |   |   |   |                                       | 575,562   |   |                                     |              | (269,933 | ) |   |   | 639,457 |   |   |   | (590,829 | ) |
|                                                                                                         |   |   |   |                                       |      |   |                                     |              |   |   |   |   |   |   |   |   |   |   |
| Other      comprehensive income                                                                              |   |   |   |                                       |      |   |                                     |              |   |   |   |   |   |   |   |   |   |   |
| -      Foreign currency translation adjustment                                                               |   |   |   |                                       | -         |   |                                     |              | - |   |   |   | - |   |   |   | 15,669 |   |
|                                                                                                         |   |   |   |                                       |      |   |                                     |              |   |   |   |   |   |   |   |   |   |   |
| Total      comprehensive income (loss)                                                                       |   |   |   |                                       | 575,562   |   |                                     |              | (269,933 | ) |   |   | 639,457 |   |   |   | (575,160 | ) |
|                                                                                                         |   |   |   |                                       |      |   |                                     |              |   |   |   |   |   |   |   |   |   |   |
|                                                                                                         |   |   |   |                                       |      |   |                                     |              |   |   |   |   |   |   |   |   |   |   |
| Basic      and diluted earnings (loss) per share                                                             |   |   |   |                                       |      |   |                                     |              |   |   |   |   |   |   |   |   |   |   |
|     Earnings      (loss) per share from continuing operations                            |   |   |   | 44.54      cents                           |      |   | (18.54)      cents                       |              |   | 50.14      cents |   |   | (40.58)      cents |   |
|     Loss      per share from discontinued operations                                     |   |   |   |                                       | -         |   |                                     | (2.35)      cents |   |   | (0.65)      cents |   |   | (5.14)      cents |   |
|                                                                                                         |   |   |   |                                       |      |   |                                     |              |   |   |   |   |   |   |   |   |   |   |
|                                                                                                         |   |   |   | 44.54      cents                           |      |   | (20.89)      cents                       |              |   | 49.49      cents |   |   | (45.72)      cents |   |
|                                                                                                         |   |   |   |                                       |      |   |                                     |              |   |   |   |   |   |   |   |   |   |   |
| Weighted      average number of shares of common stock outstanding                                           |   |   |   |                                       | 1,292,166 |   |                                     |              | 1,292,166 |   |   |   | 1,292,166 |   |   |   | 1,292,166 |   |

----

----

----

----

----

| 31.1       | Certification      of the Chief Executive Officer Pursuant to Rule 13a-14(a) or Rule      15d-14(a) of the Securities Exchange Act of 1934                             |
|------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|       |                                                                                                                                                                   |
| 31.2       | Certification      of the Chief Financial Officer Pursuant to Rule 13a-14(a) or Rule      15d-14(a) of the Securities Exchange Act of 1934                             |
|       |                                                                                                                                                                   |
| 32.1       | Certification      of the Company's Chief Executive Officer Pursuant to 18 U.S.C. SS. 1350      Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of      2002 |
|       |                                                                                                                                                                   |
| 32.2  | Certification      of the Company's Chief Financial Officer Pursuant to 18 U.S.C. SS. 1350      Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of      2002 |

----

|                 |                                      |               |
|----------------------|-------------------------------------------|--------------------|
| August      23, 2010 | Smartpay      Express, Inc.               |
|                 | By:                                       | /s/      Ping Tang |
|                 | Ping      Tang                            |
|                 | Chairman      and Chief Executive Officer |

|                 |                         |             |
|----------------------|------------------------------|------------------|
| August      23, 2010 | Smartpay      Express, Inc.  |
|                 | By:                          | /s/      Jin Liu |
|                 | Jin      Liu                 |
|                 | Chief      Financial Officer |

----