----

----

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

----

|                                |                                                                              |                                                                                                                               | Page       |
|-------------------------------------|-----------------------------------------------------------------------------------|------------------------------------------------------------------------------------------------------------------------------------|------------|
|                                |                                                                              |                                                                                                                               |       |
| PART      I - FINANCIAL INFORMATION |                                                                              |
|                                |                                                                              |                                                                                                                               |       |
|                                | ITEM      1 - FINANCIAL STATEMENTS                                                |                                                                                                                               |
|                                |                                                                              |                                                                                                                               |       |
|                                |                                                                              | Unaudited      Condensed Consolidated Statements of Operations for the three- and      six-month periods ended June 30, 2008       | 3          |
|                                |                                                                              |                                                                                                                               |       |
|                                |                                                                              | Condensed      Consolidated Balance Sheets as of December 31, 2007 and June 30,      2008                                     | 4          |
|                                |                                                                              |                                                                                                                               |       |
|                                |                                                                              | Unaudited      Condensed Consolidated Statements of Cash Flows for the three- and      six-month periods ended June 30,  2008 | 5          |
|                                |                                                                              |                                                                                                                               |       |
|                                |                                                                              | Notes      to the Unaudited Condensed Consolidated Financial    Statements                                                         | 6 -      9 |
|                                |                                                                              |                                                                                                                               |       |
|                                | ITEM      2 - MANAGEMENT'S DISCUSSION AND ANALYSIS OR PLAN      OF OPERATION | 10                                                                                                                                 |
|                                |                                                                              |                                                                                                                               |       |
|                                | ITEM      3 - QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET    RISK       | 13                                                                                                                                 |
|                                |                                                                              |                                                                                                                               |       |
|                                | ITEM      4 (A) - CONTROLS AND PROCEDURES                                         | 14                                                                                                                                 |
|                                |                                                                              |                                                                                                                               |       |
|                                | ITEM      4 (A)T – INTERNAL CONTROL OVER FINANCIAL REPORTING                | 14                                                                                                                                 |
|                                |                                                                              |                                                                                                                               |       |
| PART      II - OTHER INFORMATION    |                                                                              |
|                                |                                                                              |                                                                                                                               |       |
|                                | ITEM      1 - LEGAL PROCEEDINGS                                                   | 15                                                                                                                                 |
|                                |                                                                              |                                                                                                                               |       |
|                                | ITEM      2 - UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF      PROCEEDS    | 15                                                                                                                                 |
|                                |                                                                              |                                                                                                                               |       |
|                                | ITEM      3 - DEFAULTS UPON SENIOR SECURITIES                                     | 15                                                                                                                                 |
|                                |                                                                              |                                                                                                                               |       |
|                                | ITEM      4 - SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS                 | 15                                                                                                                                 |
|                                |                                                                              |                                                                                                                               |       |
|                                | ITEM      5 - OTHER INFORMATION                                                   | 15                                                                                                                                 |
|                                |                                                                              |                                                                                                                               |       |
|                                | ITEM      6 - EXHIBITS AND REPORTS ON FORM 8-K                                    | 15                                                                                                                                 |
|                                |                                                                              |                                                                                                                               |       |
|                                |                                                                              | SIGNATURES                                                                                                                         | 15         |

----

|                                                                       |   |   |    |   | Three      months ended June 30, 2008 |              |       | Six      months ended June 30, 2008 |              |
|----------------------------------------------------------------------------|--------|--------|---------|--------|---------------------------------------|-------------------|------------|-------------------------------------|-------------------|
|                                                                       |   | Note   |    |   | US$                                   |              |       | US$                                 |              |
| Operating      revenue                                                     |   |   |    |   |                                  |              |       |                                |              |
| Service      income                                                        |   |   |    |   |                                  | 238,571           |       |                                |              | 357,367 |   |
|                                                                       |   |   |    |   |                                  |              |       |                                |              |   |   |
| Operating      expenses                                                    |   |   |    |   |                                  |              |       |                                |              |   |   |
| Subcontracting      charges                                                |   |   |    |   |                                  | (105,960          | )          |                                |              | (152,236 | ) |
| Staff      costs                                                           |   |   |    |   |                                  | (76,344           | )          |                                |              | (155,613 | ) |
| Depreciation      of property, plant and equipment                         |   |   |    |   |                                  | (3,438            | )          |                                |              | (6,274 | ) |
| Amortization      of intangible assets                                     |   |   |    |   |                                  | (55,299           | )          |                                |              | (110,598 | ) |
| Other      general and administrative expenses                             |   |   |    |   |                                  | (199,366          | )          |                                |              | (317,650 | ) |
|                                                                       |   |   |    |   |                                  |              |       |                                |              |   |   |
| Loss      from operations                                                  |   |   |    |   |                                  | (201,836          | )          |                                |              | (385,004 | ) |
|                                                                       |   |   |    |   |                                  |              |       |                                |              |   |   |
| Interest      income                                                       |   |   |    |   |                                  | 108               |       |                                |              | 1,148 |   |
| Subsidy      income                                                        |   |   |    |   |                                  | 27,671            |       |                                |              | 27,671 |   |
| Other      income                                                          |   |   |    |   |                                  | 479               |       |                                |              | 479 |   |
| Gain      on disposal of partial interest in a subsidiary                  |   |   | 4       |   |                                  |              | -          |                                |              |   | 259,837 |   |
| Amortization      of long-term loans from a related party                  |   |   | 6(b)(b) |   |                                  |              | (13,119    | )                                   |              |   | (45,332 | ) |
| Loss      on partial settlement of long-term loans from a related    party |   |   | 6(b)(b) |   |                                  |              | -          |                                |              |   | (24,717 | ) |
| Share      of result of an associate                                       |   |   |    |   |                                  |              | (3,192     | )                                   |              |   | (3,192 | ) |
|                                                                       |   |   |    |   |                                  |              |       |                                |              |   |   |   |
| Loss      before income tax and minority interests                         |   |   |    |   |                                  |              | (189,889   | )                                   |              |   | (169,110 | ) |
|                                                                       |   |   |    |   |                                  |              |       |                                |              |   |   |   |
| Income      tax                                                            |   |   | 5       |   |                                  |              | -          |                                |              |   | - |   |
|                                                                       |   |   |    |   |                                  |              |       |                                |              |   |   |   |
| Loss      before minority interests                                        |   |   |    |   |                                  |              | (189,889   | )                                   |              |   | (169,110 | ) |
|                                                                       |   |   |    |   |                                  |              |       |                                |              |   |   |   |
| Minority      interests                                                    |   |   |    |   |                                  |              | 41,651     |                                |              |   | 58,367 |   |
|                                                                       |   |   |    |   |                                  |              |       |                                |              |   |   |   |
| Net      loss                                                              |   |   |    |   |                                  |              | (148,238   | )                                   |              |   | (110,743 | ) |
|                                                                       |   |   |    |   |                                  |              |       |                                |              |   |   |   |
| Other      comprehensive income                                            |   |   |    |   |                                  |              |       |                                |              |   |   |   |
| -      Foreign currency translation                                        |   |   |    |   |                                  |              | 27,662     |                                |              |   | 114,893 |   |
|                                                                       |   |   |    |   |                                  |              |       |                                |              |   |   |   |
| Total      comprehensive (loss) income                                     |   |   |    |   |                                  |              | (120,576   | )                                   |              |   | 4,150 |   |
|                                                                       |   |   |    |   |                                  |              |       |                                |              |   |   |   |
|                                                                       |   |   |    |   |                                  |              |       |                                |              |   |   |   |
| Basic      loss per share of common stock                                  |   |   |    |   |                                  | (0.29      cents) |       |                                | (0.22      cents) |   |
|                                                                       |   |   |    |   |                                  |              |       |                                |              |   |   |   |
| Weighted      average number of shares of common      stock outstanding    |   |   |    |   |                                  |              | 51,000,000 |                                |              |   | 50,763,736 |   |

----

|                                                                                                                                                                                          |   |                       |    |   | As      of        |      |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|----------------------------|---------|--------|-------------------|-----------|
|                                                                                                                                                                                          |   |                       |    |   | June      30,2008 |      |   | December      31,2007 |   |
|                                                                                                                                                                                          |   |                       |    |   | US$               |      |   | US$ |   |
|                                                                                                                                                                                          |   |                       |    |   | (Unaudited)       |      |   |   |   |
|                                                                                                                                                                                          |   | Note                       |    |   |              |      |   |   |   |
|                                                                                                                                                                                          |   |                       |    |   |              |      |   |   |   |
| ASSETS                                                                                                                                                                                        |   |                       |    |   |              |      |   |   |   |
|                                                                                                                                                                                          |   |                       |    |   |              |      |   |   |   |
| Current      assets                                                                                                                                                                           |   |                       |    |   |              |      |   |   |   |
| Trade      receivables from third parties                                                                                                                                                     |   |                       |    |   |              | 24,530    |   |   |   | 28,266 |   |
| Trade      receivables from related parties                                                                                                                                                   |   |                       | 6(b)(i) |   |              |      | 30,659 |   |   |   | 36,239 |   |
| Prepayments      and deposits                                                                                                                                                                 |   |                       |    |   |              |      | 651,561 |   |   |   | 170,093 |   |
| Other      debtors                                                                                                                                                                            |   |                       |    |   |              |      | 123,007 |   |   |   | 16,960 |   |
| Amounts      due from related parties                                                                                                                                                         |   | 6(b)(ii)                   |    |   |              | 31,110    |   |   |   | 10,084 |   |
| Loan      receivable from a minority shareholder                                                                                                                                              |   | 6(b)(iii)                  |    |   |              | 290,000   |   |   |   | 274,110 |   |
| Income      tax recoverable                                                                                                                                                                   |   |                       |    |   |              |      | - |   |   |   | 3,567 |   |
| Inventories      (smartcards)                                                                                                                                                                 |   |                       |    |   |              |      | 43,551 |   |   |   | 12,604 |   |
| Cash      and bank balances                                                                                                                                                                   |   |                       |    |   |              |      | 593,872 |   |   |   | 1,373,085 |   |
|                                                                                                                                                                                          |   |                       |    |   |              |      |   |   |   |   |   |   |
| Total      current assets                                                                                                                                                                     |   |                       |    |   |              |      | 1,788,290 |   |   |   | 1,925,008 |   |
|                                                                                                                                                                                          |   |                       |    |   |              |      |   |   |   |   |   |   |
| Property,      plant and equipment, net                                                                                                                                                       |   |                       |    |   |              |      | 57,081 |   |   |   | 52,143 |   |
| Intangible      assets, net                                                                                                                                                                   |   |                       |    |   |              |      | 1,846,459 |   |   |   | 1,855,881 |   |
| Interest      in an associate                                                                                                                                                                 |   |                       | 7       |   |              |      | 18,362 |   |   |   | - |   |
| Prepayment      for a long-term investment                                                                                                                                                    |   |                       | 7       |   |              |      | 50,725 |   |   |   | 20,548 |   |
|                                                                                                                                                                                          |   |                       |    |   |              |      |   |   |   |   |   |   |
| Total      assets                                                                                                                                                                             |   |                       |    |   |              |      | 3,760,917 |   |   |   | 3,853,580 |   |
|                                                                                                                                                                                          |   |                       |    |   |              |      |   |   |   |   |   |   |
| LIABILITIES      AND STOCKHOLDERS' EQUITY (DEFICIT)                                                                                                                                           |   |                       |    |   |              |      |   |   |   |   |   |   |
|                                                                                                                                                                                          |   |                       |    |   |              |      |   |   |   |   |   |   |
| Current      liabilities                                                                                                                                                                      |   |                       |    |   |              |      |   |   |   |   |   |   |
| Trade      payables                                                                                                                                                                           |   |                       |    |   |              |      | 17,882 |   |   |   | 11,135 |   |
| Accrued      charges and other payables                                                                                                                                                       |   |                       |    |   |              |      | 447,398 |   |   |   | 575,125 |   |
| Amounts      due to related parties                                                                                                                                                           |   |         6(b)(iv) |    |   |              | 1,383,472 |   |   |   | 1,423,636 |   |
| Temporary      receipts                                                                                                                                                                       |   |                       |    |   |              |      | 3,301 |   |   |   | 508,318 |   |
| Income      tax payable                                                                                                                                                                       |   |                       |    |   |              |      | 725 |   |   |   | 4,536 |   |
|                                                                                                                                                                                          |   |                       |    |   |              |      |   |   |   |   |   |   |
| Total      current liabilities                                                                                                                                                                |   |                       |    |   |              |      | 1,852,778 |   |   |   | 2,522,750 |   |
|                                                                                                                                                                                          |   |                       |    |   |              |      |   |   |   |   |   |   |
| Long-term      loans from a related party                                                                                                                                                     |   |                       | 6(b)(v) |   |              |      | 763,964 |   |   |   | 883,562 |   |
|                                                                                                                                                                                          |   |                       |    |   |              |      |   |   |   |   |   |   |
| Commitments      and contingencies                                                                                                                                                            |   |                       |    |   |              |      |   |   |   |   |   |   |
|                                                                                                                                                                                          |   |                       |    |   |              |      |   |   |   |   |   |   |
| Minority      interests                                                                                                                                                                       |   |                       |    |   |              |      | 564,762 |   |   |   | 472,005 |   |
|                                                                                                                                                                                          |   |                       |    |   |              |      |   |   |   |   |   |   |
| Stockholders'      equity (deficit)                                                                                                                                                           |   |                       |    |   |              |      |   |   |   |   |   |   |
| Common      stock, par value US$0.001 per share; authorized 300,000,000 shares; issued      and outstanding 51,000,000 shares as of June 30, 2008 and 50,000,000 as of      December 31, 2007 |   |                       | 8       |   |              |      | 51,000 |   |   |   | 50,000 |   |
| Additional      paid in capital                                                                                                                                                               |   |                       | 8       |   |              |      | 599,000 |   |   |   | - |   |
| Dedicated      reserve                                                                                                                                                                        |   |                       |    |   |              |      | 319 |   |   |   | 319 |   |
| Accumulated      losses                                                                                                                                                                       |   |                       |    |   |              |      | (185,799 | ) |   |   | (75,056 | ) |
| Accumulated      other comprehensive income                                                                                                                                                   |   |                       |    |   |              |      | 114,893 |   |   |   | - |   |
|                                                                                                                                                                                          |   |                       |    |   |              |      |   |   |   |   |   |   |
| Total      stockholders’ equity (deficit)                                                                                                                                               |   |                       |    |   |              |      | 579,413 |   |   |   | (24,737 | ) |
|                                                                                                                                                                                          |   |                       |    |   |              |      |   |   |   |   |   |   |
| Total      liabilities and stockholders' equity (deficit)                                                                                                                                     |   |                       |    |   |              |      | 3,760,917 |   |   |   | 3,853,580 |   |

----

|                                                                                             |   | Six      months ended June 30, |      |
|--------------------------------------------------------------------------------------------------|--------|--------------------------------|-----------|
|                                                                                             |   | 2008                           |      |   | 2007 |   |
|                                                                                             |   | US$                            |      |   | US$ |   |
| Cash      flows from operating activities:                                                       |   |                           |      |   |   |   |
| Net      loss                                                                                    |   |                           | (110,743  | ) |   |   | - |   |
|                                                                                             |   |                           |      |   |   |   |   |   |
| Adjustments      to reconcile net loss to net cash used in operating      activities:            |   |                           |      |   |   |   |   |   |
| Depreciation of property, plant      and equipment                                               |   |                           | 6,274     |   |   |   | - |   |
| Amortization of intangible      assets                                                           |   |                           | 110,598   |   |   |   | - |   |
| Interest income                                                                                  |   |                           | (1,148    | ) |   |   | - |   |
| Gain on disposal of partial      interest in a subsidiary                                        |   |                           | (259,837  | ) |   |   | - |   |
| Amortization of long-term loans      from a related party                                        |   |                           | 45,332    |   |   |   | - |   |
| Loss on partial settlement of      long-term loans from a related party                          |   |                           | 24,717    |   |   |   | - |   |
| Minority    interests                                                                            |   |                           | (58,367   | ) |   |   | - |   |
| Share of result of an      associate                                                             |   |                           | 3,192     |   |   |   | - |   |
| Exchange    difference                                                                           |   |                           | 15,223    |   |   |   | - |   |
| Changes in working      capital:                                                                 |   |                           |      |   |   |   |   |   |
| Trade    receivables                                                                             |   |                           | 13,056    |   |   |   | - |   |
| Inventories                                                                                      |   |                           | (30,217   | ) |   |   | - |   |
| Prepayments and      deposits                                                                    |   |                           | 128,332   |   |   |   | - |   |
| Other debtors                                                                                    |   |                           | (105,063  | ) |   |   | - |   |
| Trade payables                                                                                   |   |                           | 6,101     |   |   |   | - |   |
| Accrued charges and other      payables                                                          |   |                           | (161,068  | ) |   |   | - |   |
| Temporary    receipts                                                                            |   |                           | (123,523  | ) |   |   | - |   |
| Income tax      recoverable/payable                                                              |   |                           | (300      | ) |   |   | - |   |
|                                                                                             |   |                           |      |   |   |   |   |   |
| Net      cash used in operating activities                                                       |   |                           | (497,441  | ) |   |   | - |   |
|                                                                                             |   |                           |      |   |   |   |   |   |
| Cash      flows from investing activities:                                                       |   |                           |      |   |   |   |   |   |
| Interest income                                                                                  |   |                           | 1,148     |   |   |   | - |   |
| Prepayment for a long-term      investment                                                       |   |                           | (50,725   | ) |   |   | - |   |
| Payments for purchase of      property, plant and equipment                                      |   |                           | (8,553    | ) |   |   | - |   |
| Net advances to related      parties                                                             |   |                           | (20,256   | ) |   |   | - |   |
|                                                                                             |   |                           |      |   |   |   |   |   |
| Net      cash used in investing activities                                                       |   |                           | (78,386   | ) |   |   | - |   |
|                                                                                             |   |                           |      |   |   |   |   |   |
| Cash      flows from financing activities:                                                       |   |                           |      |   |   |   |   |   |
| Issue of share      capital                                                                      |   |                           | -         |   |   |   | *      - |   |
| Repayments to related      parties                                                               |   |                           | (41,238   | ) |   |   | - |   |
| Settlement of long-term loans      from a related party                                          |   |                           | (240,868  | ) |   |   | - |   |
|                                                                                             |   |                           |      |   |   |   |   |   |
| Net      cash used in financing activities                                                       |   |                           | (282,106  | ) |   |   | - |   |
|                                                                                             |   |                           |      |   |   |   |   |   |
| Net      decrease in cash and cash equivalents                                                   |   |                           | (857,933  | ) |   |   | *      - |   |
|                                                                                             |   |                           |      |   |   |   |   |   |
| Cash      and cash equivalents at beginning of period                                            |   |                           | 1,373,085 |   |   |   | - |   |
|                                                                                             |   |                           |      |   |   |   |   |   |
| Effect      on exchange rate changes                                                             |   |                           | 78,720    |   |   |   | - |   |
|                                                                                             |   |                           |      |   |   |   |   |   |
| Cash      and cash equivalents at end of period, represented by cash and bank      balances |   |                           | 593,872   |   |   |   | *      - |   |

| * | The      amount should be HK$1, which is the cash received from issuance of share      capital of Eastern Concept Development Limited on incorporation. The      amount is presented as US$nil due torounding. |
|---|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

The condensed consolidated balance sheet as ofDecember 31, 2007, which has been derived from the audited financial statementsat that date, and the unaudited condensed consolidated financial statements havebeen prepared pursuant to the rules and regulations of the Securities andExchange Commission.  Certain information and note disclosuresnormally included in annual financial statements prepared in accordance withgenerally accepted accounting principles have been condensed or omitted pursuantto those rules and regulations, although the Company believes that thedisclosures made are adequate to make the information notmisleading.

----

| Name                                                                                          |   | Existing relationships with the      Company                                 |
|-----------------------------------------------------------------------------------------------|--------|------------------------------------------------------------------------------|
| Benny      Lee                                                                                |   | The      sole director and a major shareholder of SPYX                       |
| Li      Xing Hao                                                                              |   | A      director of Wanzhi                                                    |
| Guangdong      Chigo Air Conditioning Company Limited (“Chigo”)                   |   | A      company in which Li Xing Hao has control and beneficial      interest |
| Tang      Jin Cheng                                                                           |   | A      director of JinCheng                                                  |
| Foshan      JinCheng Technology Company Limited                                               |   | Minority      shareholder of JinCheng                                        |
| Foshan      Shancheng JiaXun Technology Services Centre (“Shancheng      JiaXun”) |   | Minority      shareholder of JiaXun                                          |
| Foshan      KaiEr Information Technology Company Limited (“KaiEr”)                |   | An      associate                                                            |

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

|                                            |   | As      of         |   |
|-------------------------------------------------|--------|--------------------|--------|
|                                            |   | June      30, 2008 |   |   | December      31, 2007 |   |
|                                            |   | US$                |   |   | US$ |   |
|                                            |   | (Unaudited)        |   |   |   |   |
|                                            |   |               |   |   |   |   |
| Chigo                                           |   |               | 29,559 |   |   |   | 24,496 |   |
| Foshan      JinCheng Technology Company Limited |   |               | 1,100  |   |   |   | 11,743 |   |
|                                            |   |               |   |   |   |   |   |   |
|                                            |   |               | 30,659 |   |   |   | 36,239 |   |

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

----

|                      |   | As      of        |   |
|---------------------------|--------|-------------------|--------|
|                      |   | June      30,2008 |   |   | December      31, 2007 |   |
|                      |   | US$               |   |   | US$ |   |
|                      |   | (Unaudited)       |   |   |   |   |
|                      |   |              |   |   |   |   |
| Shancheng      JiaXun (a) |   |              | 2,124  |   |   |   | 5,975 |   |
| Tang      Jin Cheng (a)   |   |              | 14,493 |   |   |   | 4,109 |   |
| KaiEr      (b)            |   |              | 14,493 |   |   |   | - |   |
|                      |   |              |   |   |   |   |   |   |
|                      |   |              | 31,110 |   |   |   | 10,084 |   |

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

|   | (b)   The      amount due is unsecured, interest-free and repayable within three months      from the date of advance. |
|--------|---------------------------------------------------------------------------------------------------------------------------------------|

|   | The      loan to Shancheng JiaXun is unsecured, interest-free and repayable on 31      December 2008.  Mr. Li Xing Hao has undertaken to indemnify the      Company against any loss that may arise from the non-recovery of the      loan. |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|             |   | As      of        |      |
|------------------|--------|-------------------|-----------|
|             |   | June      30,2008 |      |   | December      31, 2007 |   |
|             |   | US$               |      |   | US$ |   |
|             |   | (Unaudited)       |      |   |   |   |
|             |   |              |      |   |   |   |
| Chigo            |   |              | -         |   |   |   | 3,453 |   |
| Benny      Lee   |   |              | 1,362,151 |   |   |   | 1,360,746 |   |
| Li      Xing Hao |   |              | 21,321    |   |   |   | 59,437 |   |
|             |   |              |      |   |   |   |   |   |
|             |   |              | 1,383,472 |   |   |   | 1,423,636 |   |

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

----

|                                               |   | As      of        |     |
|----------------------------------------------------|--------|-------------------|----------|
|                                               |   | June      30,2008 |     |   | December      31, 2007 |   |
|                                               |   | US$               |     |   | US$ |   |
|                                               |   | (Unaudited)       |     |   |   |   |
|                                               |   |              |     |   |   |   |
| At      beginning of period                        |   |              | 883,562  |   |   |   | - |   |
| Exchange      realignment                          |   |              | 51,221   |   |   |   | - |   |
| Additions      through acquisition of subsidiaries |   |              | -        |   |   |   | 883,562 |   |
| Amortization                                       |   |              | 45,332   |   |   |   | - |   |
| Repayments                                         |   |              | (216,151 | ) |   |   | - |   |
|                                               |   |              |     |   |   |   |   |   |
| At      balance sheet date                         |   |              | 763,964  |   |   |   | 883,562 |   |

|   | The      loans from Li Xing Hao, a director of Wanzhi, are unsecured, interest-free      and repayable within two years from the date of advances. The loans were      stated at fair value at inception, calculated by using the discount rate      of 7.56% per annum, and are subsequently stated at amortized      cost. |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | During      the period ended June 30, 2008, the Company paid US$240,868 for partial      settlement of a portion of the loans with carrying amount of US$216,151,      resulted in a loss of US$24,717 as recorded in the condensed consolidated      statements of operations. |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

|                                                                |   | Three      months endedJune      30, 2008 |   |   | Six      monthsended      June      30, 2008 |   |
|---------------------------------------------------------------------|--------|-------------------------------------------|--------|--------|----------------------------------------------|--------|
|                                                                |   | US$                                       |   |   | US$                                          |   |
|                                                                |   |                                      |   |   |                                         |   |
| Service      income from Chigo                                      |   |                                      | 30,480 |   |                                         |   | 46,499 |   |
| Service      income from Foshan JinCheng Technology Company Limited |   |                                      | 3,102  |   |                                         |   | 8,647 |   |

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| (In US$ thousands except per      share data)                     |   | Three-monthPeriod      Ended |   |   | Six-monthPeriod      Ended |   |
|-------------------------------------------------------------------|--------|------------------------------|--------|--------|----------------------------|--------|
|                                                              |   | Jun.      30                 |   |   | Jun.      30               |   |
|                                                              |   | 2008                         |   |   | 2008                       |   |
| Operating      revenues                                           |   |                         |   |   |                       |   |
|          Service Income                            |   |                         | 239    |   |                       |   | 357 |   |
|                                                              |   |                         |   |   |                       |   |   |   |
| Operating      expenses                                           |   |                         |   |   |                       |   |   |   |
|          Subcontracting charges                    |   |                         | (106   | )      |                       |   | (152 | ) |
|          Staff costs                               |   |                         | (76    | )      |                       |   | (156 | ) |
|          Depreciation expenses                     |   |                         | (3     | )      |                       |   | (6 | ) |
|          Amortization of intangible assets         |   |                         | (56    | )      |                       |   | (110 | ) |
|          Other general and administrative expenses |   |                         | (199   | )      |                       |   | (318 | ) |
| Total      Operating expenses                                     |   |                         | (440   | )      |                       |   | (742 | ) |
|                                                              |   |                         |   |   |                       |   |   |   |
| Loss      from operations                                         |   |                         | (202   | )      |                       |   | (385 | ) |
|                                                              |   |                         |   |   |                       |   |   |   |
| Non-operating      income                                         |   |                         |   |   |                       |   |   |   |
|          Interest income                           |   |                         | --     |   |                       |   | 1 |   |
|          Other income                              |   |                         | 12     |   |                       |   | 215 |   |
|                                                              |   |                         |   |   |                       |   |   |   |
| Loss      before income tax and minority interests                |   |                         | (190   | )      |                       |   | (169 | ) |
|          Income tax expense                        |   |                         | --     |   |                       |   | -- |   |
|                                                              |   |                         |   |   |                       |   |   |   |
| Loss      before minority interests                               |   |                         | (190   | )      |                       |   | (169 | ) |
|          Minority interests                        |   |                         | 42     |   |                       |   | 58 |   |
| Net      Loss                                                     |   |                         | (148   | )      |                       |   | (111 | ) |
|          Other comprehensive income                |   |                         |   |   |                       |   |   |   |
|          --Foreign currency translation            |   |                         | 28     |   |                       |   | 115 |   |
| Total      comprehensive income/(loss)                            |   |                         | (120   | )      |                       |   | 4 |   |
|                                                              |   |                         |   |   |                       |   |   |   |
|                                                              |   |                         |   |   |                       |   |   |   |
| Basic      loss per share of                                      |   |                         |   |   |                       |   |   |   |
|          Common stock (cents)                      |   |                         | (0.29  | )      |                       |   | (0.22 | )  |

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| 31     | Certification      of the Chief Executive Officer and Chief Financial Officer Pursuant to      Rule 13a-14(a) or Rule 15d-14(a) of the Securities Exchange Act of      1934                        |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                                               |
| 32     | Certification      of the Company's Chief Executive Officer and Chief Financial Officer      Pursuant to 18 U.S.C. SS. 1350 Adopted Pursuant to Section 906 of the      Sarbanes-Oxley Act of 2002 |

| August      14, 2008 | /s/      Benny Lee                                                   |
|----------------------|----------------------------------------------------------------------|
|                 | Benny      Lee                                                       |
|                 | Chairman,      Chief Executive Officer and Chief Financial Officer   |
|                 | (Principal      Executive Officer and Principal Accounting  Officer) |

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