----

| x | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
|---|-----------------------------------------------------------------------------------------|

|  ̈ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
|--------|------------------------------------------------------------------------------------------|

| Delaware                                                                   |   | 20-1917956                                            |
|----------------------------------------------------------------------------|--------|-------------------------------------------------------|
|  (State or other jurisdiction of incorporation or organization)  |   |  (I.R.S.  Employer Identification No.) |

| Xicheng Industrial Zone of Luoshan, Xinyang          |   |             |
|------------------------------------------------------|--------|------------------|
| Henan Province, The People’s Republic of China |   | 464200           |
|  (Address of principal executive offices)       |   |  (Zip Code) |

| Large accelerated filer  o                |                                                            | Accelerated filer  ̈         |
|------------------------------------------------|-----------------------------------------------------------------|----------------------------------|
|                                           |                                                            |                             |
| Non-accelerated filer     ̈ | (Do not check if a smaller reporting company)    | Smaller reporting company þ |

| Class                                   |   | Outstanding at February 22, 2011 |
|-----------------------------------------|--------|------------------------------------------------------|
| Common Stock, $.001 par value per share |   | 17,012,458 shares                                    |

----

| Item 1. | Financial Statements. |
|---------|-----------------------|

|                                                                                                                                              |   | Page       |
|---------------------------------------------------------------------------------------------------------------------------------------------------|--------|------------|
| Condensed Consolidated Balance Sheets as of December 31, 2010 (Unaudited) and March 31, 2010                                                      |   | F-2        |
|                                                                                                                                              |   |       |
| Condensed Consolidated Statements of Operations and Comprehensive Loss for the Three and Nine Months Ended December 31, 2010 and 2009 (Unaudited) |   | F-3        |
|                                                                                                                                              |   |       |
| Condensed Consolidated Statement of Changes in Shareholders’ Equity for the Nine Months Ended December 31, 2010 (Unaudited)                 |   | F-4        |
|                                                                                                                                              |   |       |
| Condensed Consolidated Statements of Cash Flows for the Nine Months Ended December 31, 2010 and 2009 (Unaudited)                                  |   | F-5        |
|                                                                                                                                              |   |       |
| Notes to Condensed Consolidated Financial Statements for the Three and Nine Months Ended December 31, 2010 and 2009 (Unaudited)                   |   | F-6 - F-23 |

----

|                                                                                                                                                                                 |   | December 31, 2010 |        |   | March 31, 2010 |   |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-------------------|-------------|--------|----------------|--------|
|                                                                                                                                                                                 |   | (Unaudited)       |        |   |           |   |
|                                                                                                                                                                                 |   |              |        |   |           |   |
| CURRENT ASSETS                                                                                                                                                                       |   |              |        |   |           |   |
| Cash and cash equivalents                                                                                                                                                            |   | $                 | 126,703     |   |           | $      | 319,816 |   |
| Restricted cash                                                                                                                                                                      |   |              | 1,509,958   |   |           |   | 3,662,306 |   |
| Notes receivable, net of reserve of $754,979 and $732,461 atDecember 31, 2010 and March 31, 2010, respectively                                                                       |   |              | -           |   |           |   | 42,483 |   |
| Inventories, net                                                                                                                                                                     |   |              | 1,511,884   |   |           |   | 7,607,683 |   |
| Prepayments for goods                                                                                                                                                                |   |              | 237,495     |   |           |   | 275,735 |   |
| Due from employees                                                                                                                                                                   |   |              | 76,600      |   |           |   | 225,519 |   |
| Other assets                                                                                                                                                                         |   |              | 40,990      |   |           |   | 35,762 |   |
| Due from a related party                                                                                                                                                             |   |              | 239,000     |   |           |   | 231,872 |   |
| Deferred taxes                                                                                                                                                                       |   |              | 290,917     |   |           |   | 622,452 |   |
| Total current assets                                                                                                                                                                 |   |              | 4,033,547   |   |           |   | 13,023,628 |   |
|                                                                                                                                                                                 |   |              |        |   |           |   |   |   |
| Plant and equipment, net                                                                                                                                                             |   |              | 14,819,248  |   |           |   | 16,246,562 |   |
| Land use rights, net                                                                                                                                                                 |   |              | 1,625,159   |   |           |   | 1,603,674 |   |
| Construction in progress                                                                                                                                                             |   |              | 31,423,436  |   |           |   | 29,540,856 |   |
| Deposits                                                                                                                                                                             |   |              | 1,245,763   |   |           |   | 1,208,607 |   |
| Deferred taxes                                                                                                                                                                       |   |              | 1,159,452   |   |           |   | 551,037 |   |
| Other long-term assets                                                                                                                                                               |   |              | 8,204       |   |           |   | 8,282 |   |
| Total long-term assets                                                                                                                                                               |   |              | 50,281,262  |   |           |   | 49,159,018 |   |
|                                                                                                                                                                                 |   |              |        |   |           |   |   |   |
| TOTAL ASSETS                                                                                                                                                                         |   | $                 | 54,314,809  |   |           | $      | 62,182,646 |   |
|                                                                                                                                                                                 |   |              |        |   |           |   |   |   |
| LIABILITIES AND SHAREHOLDERS' EQUITY                                                                                                                                                 |   |              |        |   |           |   |   |   |
| CURRENT LIABILITIES                                                                                                                                                                  |   |              |        |   |           |   |   |   |
| Accounts payable                                                                                                                                                                     |   | $                 | 7,652,209   |   |           | $      | 8,672,865 |   |
| Other payables and accrued liabilities                                                                                                                                               |   |              | 1,545,904   |   |           |   | 1,169,859 |   |
| Short-term debt                                                                                                                                                                      |   |              | 19,994,866  |   |           |   | 18,900,429 |   |
| Customer deposits                                                                                                                                                                    |   |              | 1,649,978   |   |           |   | 10,814,494 |   |
| Due to employees                                                                                                                                                                     |   |              | 283,634     |   |           |   | 16,810 |   |
| Payable to contractors                                                                                                                                                               |   |              | 1,204,679   |   |           |   | 1,175,726 |   |
| Due to related parties                                                                                                                                                               |   |              | 12,614,051  |   |           |   | 14,871,559 |   |
| Deferred taxes                                                                                                                                                                       |   |              | 490,498     |   |           |   | 450,853 |   |
| Taxes payable                                                                                                                                                                        |   |              | 587,393     |   |           |   | 570,768 |   |
| Derivative liabilities                                                                                                                                                               |   |              | 706,379     |   |           |   | - |   |
| Current portion of long-term notes payable                                                                                                                                           |   |              | 548,115     |   |           |   | 531,767 |   |
| Total current liabilities                                                                                                                                                            |   |              | 47,277,706  |   |           |   | 57,175,130 |   |
|                                                                                                                                                                                 |   |              |        |   |           |   |   |   |
| LONG-TERM LIABILITIES                                                                                                                                                                |   |              |        |   |           |   |   |   |
| Long-term bank loan                                                                                                                                                                  |   |              | 3,019,916   |   |           |   | 2,929,845 |   |
| Deferred taxes                                                                                                                                                                       |   |              | 959,871     |   |           |   | 722,636 |   |
| Due to employees                                                                                                                                                                     |   |              | 130,744     |   |           |   | 129,555 |   |
| Total long-term liabilities                                                                                                                                                          |   |              | 4,110,531   |   |           |   | 3,782,036 |   |
|                                                                                                                                                                                 |   |              |        |   |           |   |   |   |
| TOTAL LIABILITIES                                                                                                                                                                    |   |              | 51,388,237  |   |           |   | 60,957,166 |   |
|                                                                                                                                                                                 |   |              |        |   |           |   |   |   |
| SHAREHOLDERS' EQUITY                                                                                                                                                                 |   |              |        |   |           |   |   |   |
| Common stock, par value $0.001 per share; 30,000,000 shares authorized, 17,012,458 and 12,640,000shares issued and outstanding at December 31, 2010 and March 31, 2010, respectively |   |              | 17,012      |   |           |   | 12,640 |   |
| Common stock to be issued                                                                                                                                                            |   |              | 3,010       |   |           |   | - |   |
| Additional paid-in capital                                                                                                                                                           |   |              | 11,985,753  |   |           |   | 4,573,205 |   |
| Retained deficit (restricted portion was $0 and $950,327 at December 31, 2010 and March 31, 2010, respectively)                                                                      |   |              | (11,702,851 | )      |           |   | (5,903,362 | ) |
| Accumulated other comprehensive income                                                                                                                                               |   |              | 2,623,648   |   |           |   | 2,542,997 |   |
| TOTAL SHAREHOLDERS' EQUITY                                                                                                                                                           |   |              | 2,926,572   |   |           |   | 1,225,480 |   |
|                                                                                                                                                                                 |   |              |        |   |           |   |   |   |
| TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY                                                                                                                                           |   | $                 | 54,314,809  |   |           | $      | 62,182,646 |   |

----

|                                                   |   | Three Months EndedDecember 31, |       |   | Nine Months EndedDecember 31, |   |
|--------------------------------------------------------|--------|-----------------------------------------------|------------|--------|----------------------------------------------|--------|
|                                                   |   | 2010                                          |       |   | 2009                                         |   |   | 2010 |   |   | 2009 |   |
|                                                   |   |                                          |       |   |                                         |   |   |   |   |   |   |   |
| REVENUES                                               |   | $                                             | 943,757    |   |                                         | $      | 8,770,449 |   |   | $ | 18,034,768 |   |   | $ | 24,704,321 |   |
|                                                   |   |                                          |       |   |                                         |   |   |   |   |   |   |   |   |   |   |   |
| COST OF GOODS SOLD                                     |   |                                          | (1,911,527 | )      |                                         |   | (8,515,088 | ) |   |   | (19,904,189 | ) |   |   | (28,006,407 | ) |
|                                                   |   |                                          |       |   |                                         |   |   |   |   |   |   |   |   |   |   |   |
| GROSS (LOSS) PROFIT                                    |   |                                          | (967,770   | )      |                                         |   | 255,361 |   |   |   | (1,869,421 | ) |   |   | (3,302,086 | ) |
|                                                   |   |                                          |       |   |                                         |   |   |   |   |   |   |   |   |   |   |   |
| General and administrative                             |   |                                          | 549,159    |   |                                         |   | 622,722 |   |   |   | 1,680,316 |   |   |   | 1,829,231 |   |
|                                                   |   |                                          |       |   |                                         |   |   |   |   |   |   |   |   |   |   |   |
| Selling and distribution                               |   |                                          | 34,269     |   |                                         |   | 367,075 |   |   |   | 289,016 |   |   |   | 914,635 |   |
|                                                   |   |                                          |       |   |                                         |   |   |   |   |   |   |   |   |   |   |   |
| Research and development                               |   |                                          | 12,340     |   |                                         |   | 14,707 |   |   |   | 39,845 |   |   |   | 57,375 |   |
|                                                   |   |                                          |       |   |                                         |   |   |   |   |   |   |   |   |   |   |   |
| LOSS FROM OPERATIONS                                   |   |                                          | (1,563,538 | )      |                                         |   | (749,143 | ) |   |   | (3,878,598 | ) |   |   | (6,103,327 | ) |
|                                                   |   |                                          |       |   |                                         |   |   |   |   |   |   |   |   |   |   |   |
| OTHER INCOME (EXPENSES)                                |   |                                          |       |   |                                         |   |   |   |   |   |   |   |   |   |   |   |
|                                                   |   |                                          |       |   |                                         |   |   |   |   |   |   |   |   |   |   |   |
| Interest expense, net                                  |   |                                          | (956,460   | )      |                                         |   | (597,012 | ) |   |   | (2,271,518 | ) |   |   | (1,484,457 | ) |
|                                                   |   |                                          |       |   |                                         |   |   |   |   |   |   |   |   |   |   |   |
| Government grants                                      |   |                                          | 338,156    |   |                                         |   | - |   |   |   | 335,008 |   |   |   | - |   |
|                                                   |   |                                          |       |   |                                         |   |   |   |   |   |   |   |   |   |   |   |
| Other income, net                                      |   |                                          | 385        |   |                                         |   | 10,551 |   |   |   | 9,422 |   |   |   | 13,300 |   |
|                                                   |   |                                          |       |   |                                         |   |   |   |   |   |   |   |   |   |   |   |
| Change in fair value of derivatives                    |   |                                          | (295,848   | )      |                                         |   | - |   |   |   | 6,197 |   |   |   | - |   |
|                                                   |   |                                          |       |   |                                         |   |   |   |   |   |   |   |   |   |   |   |
| LOSS BEFORE INCOME TAXES                               |   |                                          | (2,477,305 | )      |                                         |   | (1,335,604 | ) |   |   | (5,799,489 | ) |   |   | (7,574,484 | ) |
|                                                   |   |                                          |       |   |                                         |   |   |   |   |   |   |   |   |   |   |   |
| INCOME TAX EXPENSE                                     |   |                                          | -          |   |                                         |   | (280,804 | ) |   |   | - |   |   |   | (366,438 | ) |
|                                                   |   |                                          |       |   |                                         |   |   |   |   |   |   |   |   |   |   |   |
| NET LOSS                                               |   |                                          | (2,477,305 | )      |                                         |   | (1,616,408 | ) |   |   | (5,799,489 | ) |   |   | (7,940,922 | ) |
|                                                   |   |                                          |       |   |                                         |   |   |   |   |   |   |   |   |   |   |   |
| OTHER COMPREHENSIVE INCOME                             |   |                                          |       |   |                                         |   |   |   |   |   |   |   |   |   |   |   |
|                                                   |   |                                          |       |   |                                         |   |   |   |   |   |   |   |   |   |   |   |
| Foreign currency translation gain                      |   |                                          | 31,253     |   |                                         |   | 18,681 |   |   |   | 80,651 |   |   |   | 8,255 |   |
|                                                   |   |                                          |       |   |                                         |   |   |   |   |   |   |   |   |   |   |   |
| OTHER COMPREHENSIVE INCOME                             |   |                                          | 31,253     |   |                                         |   | 18,681 |   |   |   | 80,651 |   |   |   | 8,255 |   |
|                                                   |   |                                          |       |   |                                         |   |   |   |   |   |   |   |   |   |   |   |
| COMPREHENSIVE LOSS                                     |   | $                                             | (2,446,052 | )      |                                         | $      | (1,597,727 | ) |   | $ | (5,718,838 | ) |   | $ | (7,932,667 | ) |
|                                                   |   |                                          |       |   |                                         |   |   |   |   |   |   |   |   |   |   |   |
| WEIGHTED AVERAGE SHARES OUTSTANDING, BASIC AND DILUTED |   |                                          | 17,012,458 |   |                                         |   | 12,640,000 |   |   |   | 15,079,883 |   |   |   | 12,640,000 |   |
|                                                   |   |                                          |       |   |                                         |   |   |   |   |   |   |   |   |   |   |   |
| NET LOSS PER SHARE, BASIC AND DILUTED                  |   | $                                             | (0.15      | )      |                                         | $      | (0.13 | ) |   | $ | (0.38 | ) |   | $ | (0.63 | ) |

----

|                                                                                          |   | Common Stock |       |   | CommonStock To Be |   |   | Additional Paid- |   |   |            |   |   | AccumulatedOtherComprehensive |       |   |   |   |
|-----------------------------------------------------------------------------------------------|--------|-------------------|------------|--------|-----------------------------|--------|--------|-----------------------|--------|--------|-----------------|--------|--------|-------------------------------|------------|--------|--------|--------|
|                                                                                          |   | Shares            |       |   | Par value              |   |   | Issued                |   |   | In Capital |   |   | Retained Deficit         |       |   | Income |   |   | Total |   |
|                                                                                          |   |              |       |   |                        |   |   |                  |   |   |            |   |   |                          |       |   |   |   |   |   |   |
| BALANCE AT MARCH 31, 2010                                                                     |   |              | 12,640,000 |   |                        | $      | 12,640 |                  |   | $      | -               |   |   | $                             | 4,573,205  |   |   | $      | (5,903,362 | ) |   | $ | 2,542,997 |   |   | $ | 1,225,480 |   |
|                                                                                          |   |              |       |   |                        |   |   |                  |   |   |            |   |   |                          |       |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Sale of 1,460,000 shares of common stock for cash, net of expenses and derivative liabilities |   |              | 1,460,000  |   |                        |   | 1,460  |                  |   |   | -               |   |   |                          | 893,772    |   |   |   | - |   |   |   | - |   |   |   | 895,232 |   |
|                                                                                          |   |              |       |   |                        |   |   |                  |   |   |            |   |   |                          |       |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Conversion of debt to common stock                                                            |   |              | 2,912,458  |   |                        |   | 2,912  |                  |   |   | 3,010           |   |   |                          | 6,518,776  |   |   |   | - |   |   |   | - |   |   |   | 6,524,698 |   |
|                                                                                          |   |              |       |   |                        |   |   |                  |   |   |            |   |   |                          |       |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Foreign currency translation gain                                                             |   |              | -          |   |                        |   | -      |                  |   |   | -               |   |   |                          | -          |   |   |   | - |   |   |   | 80,651 |   |   |   | 80,651 |   |
|                                                                                          |   |              |       |   |                        |   |   |                  |   |   |            |   |   |                          |       |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net loss                                                                                      |   |              | -          |   |                        |   | -      |                  |   |   | -               |   |   |                          | -          |   |   |   | (5,799,489 | ) |   |   | - |   |   |   | (5,799,489 | ) |
| BALANCE AT DECEMBER 31, 2010                                                                  |   |              | 17,012,458 |   |                        | $      | 17,012 |                  |   | $      | 3,010           |   |   | $                             | 11,985,753 |   |   | $      | (11,702,851 | ) |   | $ | 2,623,648 |   |   | $ | 2,926,572 |   |

----

|                                                                        |   | Nine Months EndedDecember 31, |        |
|-----------------------------------------------------------------------------|--------|----------------------------------------------|-------------|
|                                                                        |   | 2010                                         |        |   | 2009 |   |
| CASH FLOWS FROM OPERATING ACTIVITIES:                                       |   |                                         |        |   |   |   |
| Net loss                                                                    |   | $                                            | (5,799,489  | ) |   | $ | (7,940,922 | ) |
| Adjustments to reconcile net loss to net cash used in operating activities: |   |                                         |        |   |   |   |   |   |
| Depreciation and amortization                                               |   |                                         | 1,954,808   |   |   |   | 1,951,571 |   |
| Gain on disposal of plant and equipment                                     |   |                                         | (8,629      | ) |   |   | - |   |
| Deferred taxes                                                              |   |                                         | -           |   |   |   | 365,695 |   |
| Write-down of inventories to net realizable value                           |   |                                         | 18,752      |   |   |   | 146,674 |   |
| Government grants                                                           |   |                                         | (305,266    | ) |   |   | - |   |
| Change in fair value of derivatives                                         |   |                                         | (6,197      | ) |   |   | - |   |
| Interest expense from conversion of debt                                    |   |                                         | 602,040     |   |   |   | - |   |
|                                                                        |   |                                         |        |   |   |   |   |   |
| Changes in operating assets and liabilities:                                |   |                                         |        |   |   |   |   |   |
|                                                                        |   |                                         |        |   |   |   |   |   |
| (Increase) Decrease In:                                                     |   |                                         |        |   |   |   |   |   |
| Inventories                                                                 |   |                                         | 6,215,106   |   |   |   | (3,449,139 | ) |
| Prepayments for goods                                                       |   |                                         | 38,240      |   |   |   | (624,264 | ) |
| Other assets                                                                |   |                                         | (5,228      | ) |   |   | 13,677 |   |
| Due from a related party                                                    |   |                                         | -           |   |   |   | 30,090 |   |
|                                                                        |   |                                         |        |   |   |   |   |   |
| Increase (Decrease) In:                                                     |   |                                         |        |   |   |   |   |   |
| Accounts payable                                                            |   |                                         | (1,020,656  | ) |   |   | (2,422,205 | ) |
| Other payables and accrued liabilities                                      |   |                                         | 776,884     |   |   |   | 258,708 |   |
| Customer deposits                                                           |   |                                         | (9,164,516  | ) |   |   | 4,194,895 |   |
| Due to employees                                                            |   |                                         | 266,824     |   |   |   | 16,225 |   |
| Due to a related party                                                      |   |                                         | 189,829     |   |   |   | (47,265 | ) |
| Net cash used in operating activities                                       |   |                                         | (6,247,498  | ) |   |   | (7,506,260 | ) |
|                                                                        |   |                                         |        |   |   |   |   |   |
| CASH FLOWS FROM INVESTING ACTIVITIES:                                       |   |                                         |        |   |   |   |   |   |
| Restricted cash                                                             |   |                                         | -           |   |   |   | 727,309 |   |
| Purchases of plant and equipment                                            |   |                                         | (27,685     | ) |   |   | (31,782 | ) |
| Purchases of construction in progress                                       |   |                                         | (264,593    | ) |   |   | (2,001,416 | ) |
| Deposits                                                                    |   |                                         | -           |   |   |   | 917,564 |   |
| Purchases of other long-term assets                                         |   |                                         | (1,792      | ) |   |   | - |   |
| Proceeds from disposition of long-term investment                           |   |                                         | -           |   |   |   | 469,841 |   |
| Proceeds from disposal of plant and equipment                               |   |                                         | 8,629       |   |   |   | - |   |
| Due from employees                                                          |   |                                         | 148,919     |   |   |   | (412,723 | ) |
| Notes receivable                                                            |   |                                         | 43,126      |   |   |   | 137,172 |   |
| Net cash used in investing activities                                       |   |                                         | (93,396     | ) |   |   | (194,035 | ) |
|                                                                        |   |                                         |        |   |   |   |   |   |
| CASH FLOWS FROM FINANCING ACTIVITIES                                        |   |                                         |        |   |   |   |   |   |
| Proceeds from short-term debt                                               |   |                                         | 49,132,793  |   |   |   | 26,448,676 |   |
| Repayments of short-term debt                                               |   |                                         | (46,474,831 | ) |   |   | (23,975,059 | ) |
| Due to related parties                                                      |   |                                         | 2,260,391   |   |   |   | 5,122,876 |   |
| Proceeds from issuance of common stock, net                                 |   |                                         | 1,607,807   |   |   |   | - |   |
| Net cash provided by financing activities                                   |   |                                         | 6,526,160   |   |   |   | 7,596,493 |   |
|                                                                        |   |                                         |        |   |   |   |   |   |
| NET DECREASE IN CASH AND CASH EQUIVALENTS                                   |   |                                         | 185,266     |   |   |   | (103,802 | ) |
|                                                                        |   |                                         |        |   |   |   |   |   |
| Effect of exchange rate changes on cash                                     |   |                                         | (378,379    | ) |   |   | (39,735 | ) |
| Cash and cash equivalents at beginning of period                            |   |                                         | 319,816     |   |   |   | 410,870 |   |
|                                                                        |   |                                         |        |   |   |   |   |   |
| CASH AND CASH EQUIVALENTS AT END OF PERIOD                                  |   | $                                            | 126,703     |   |   | $ | 267,333 |   |
|                                                                        |   |                                         |        |   |   |   |   |   |
| SUPPLEMENTARY CASH FLOW INFORMATION                                         |   |                                         |        |   |   |   |   |   |
| Interest paid                                                               |   | $                                            | 822,551     |   |   | $ | 856,989 |   |

----

| 1. | ORGANIZATION AND PRINCIPAL ACTIVITIES |
|----|---------------------------------------|

| 2. | BASIS OF PRESENTATION |
|----|-----------------------|

| 3. | GOING CONCERN |
|----|---------------|

----

| 4. | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES |
|----|--------------------------------------------|

| (a) | Principles of Consolidation |
|-----|-----------------------------|

|   | (i) | Kinfair Holding Limited. (“KHL”) (An inactive holding company, 100% subsidiary of NOEC). |
|--------|-----|------------------------------------------------------------------------------------------------------|

|   | (ii) | Henan Jinding Chemicals Co., Ltd. (“Henan Jinding”) (100% subsidiary of KHL) |
|--------|------|------------------------------------------------------------------------------------------|

|   | (iii) | Luoshan Jinding Chemicals Co., Ltd. (“Luoshan Jinding”) (100% subsidiary of Henan Jinding) |
|--------|-------|--------------------------------------------------------------------------------------------------------|

| (b) | Concentrations |
|-----|----------------|

| Customer  |   | Sales                                              |   |   | Customer Deposits   |   |
|-----------|--------|----------------------------------------------------|--------|--------|--------------------------|--------|
|      |   | Nine Months Ended December 31, |   |   | As of December |   |   | As of March 31, |   |
|      |   | 2010                                               |   |   | 2009                     |   |   | 31, 2010 |   |   | 2010 |   |
| Company A |   |                                               | 45.79  | %      |                     |   | 20.68 | % |   |   | 54.68 | % |   |   | 83.32 | % |
| Company B |   |                                               | 9.53   | %      |                     |   | 16.59 | % |   |   | 23.32 | % |   |   | 5.16 | % |

| Supplier  |   | Purchases                                          |   |   | Accounts Payable/Deposits |   |
|-----------|--------|----------------------------------------------------|--------|--------|--------------------------------|--------|
|      |   | Nine Months Ended December 31, |   |   | As of December       |   |   | As of March 31, |   |
|      |   | 2010                                               |   |   | 2009                           |   |   | 31, 2010 |   |   | 2010 |   |
| Company C |   |                                               | 38.81  | %      |                           |   | 25.81 | % |   |   | 1.47 | % |   |   | 7.46 | % |
| Company D |   |                                               | 22.57  | %      |                           |   | 14.15 | % |   |   | 6.99 | % |   |   | 6.19 | % |
| Company E |   |                                               | 15.67  | %      |                           |   | 21.27 | % |   |   | 16.58 | % |   |   | 12.14 | % |

| (c) | Economic and Political Risks |
|-----|------------------------------|

| (d) | Use of Estimates |
|-----|------------------|

----

| 4. | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) |
|----|--------------------------------------------------------|

| (e) | Cash and Cash Equivalents |
|-----|---------------------------|

| (f) | Restricted Cash |
|-----|-----------------|

| (g) | Fair Value of Financial Instruments |
|-----|-------------------------------------|

|         |   | Fair Value Measurements at Reporting Date Using |      |
|------------------------|--------|-------------------------------------------------------------------------------|-----------|
|                   |   | Carrying valueas ofDecember 31,2010                            |      |   | Quoted Pricesin ActiveMarkets forIdenticalAssets |   |   | SignificantOtherObservableInputs |   |   | SignificantUnobservableInputs |   |
|                   |   |                                                                          |      |   | (Level 1) |   |   | (Level 2) |   |   | (Level 3) |   |
| Fair value of warrants |   | $                                                                             | 706,379   |   |   | $ | - |   |   | $ | - |   |   | $ | 706,379 |   |
| Long-term bank loan    |   | $                                                                             | 3,019,916 |   |   | $ | - |   |   | $ | 3,019,916 |   |   | $ | - |   |

----

| 4. | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) |
|----|--------------------------------------------------------|

| (h) | Derivative Financial Instruments |
|-----|----------------------------------|

| (i) | Inventories |
|-----|-------------|

| (j) | Capitalized Interest |
|-----|----------------------|

| (k) | Revenue Recognition |
|-----|---------------------|

| (l) | Cost of Goods Sold |
|-----|--------------------|

| (m) | Selling and Distribution Expenses |
|-----|-----------------------------------|

----

| 4. | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) |
|----|--------------------------------------------------------|

| (n) | General and Administrative expenses |
|-----|-------------------------------------|

| (o) | Foreign Currency Translation |
|-----|------------------------------|

|                                                      |   | December 31, 2010 |   |   | March 31, 2010 |   |   | December 31, 2009 |   |
|-----------------------------------------------------------|--------|-----------------------------|--------|--------|--------------------------|--------|--------|-----------------------------|--------|
| Period end RMB: $ exchange rate                           |   |                        | 6.6227 |   |                     |   | 6.8263 |                        |   |   | - |   |
| Average RMB: US$ exchange rate for the three months ended |   |                        | 6.6619 |   |                     |   | -      |                        |   |   | 6.8286 |   |
| Average RMB: US$ exchange rate for the nine months ended  |   |                        | 6.7245 |   |                     |   | -      |                        |   |   | 6.8321 |   |

| (p) | Loss Per Share |
|-----|----------------|

| (q) | Segments |
|-----|----------|

----

| 4. | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) |
|----|--------------------------------------------------------|

| (q) | Segments (Continued) |
|-----|----------------------|

| For The Three Months Ended December 31, 2010 |   |
|---------------------------------------------------------------------------------|--------|
|                                                                            |   | DME |   |   | Methanol |   |   | Segment Total |   |
| Revenues                                                                        |   |   | - |   |   | $ | 263,017 |   |   | $ | 263,017 |   |
| COGS                                                                            |   |   | - |   |   |   | 358,411 |   |   |   | 358,411 |   |
| Expensed manufacturing costs                                                    |   |   | - |   |   |   | - |   |   |   | 173,978 |   |
| Gross loss                                                                      |   |   | - |   |   | $ | (95,394 | ) |   | $ | (269,372 | ) |

| For The Three Months Ended December 31, 2009 |   |
|----------------------------------------------------------------------------|--------|
|                                                                  |   | DME |   |   | Methanol |   |   | Segment Total |   |
| Revenues                                                                   |   |   | - |   |   | $ | 1,180,852 |   |   | $ | 1,180,852 |   |
| COGS                                                                       |   |   | - |   |   |   | 1,393,273 |   |   |   | 1,393,273 |   |
| Gross loss                                                                 |   |   | - |   |   | $ | (212,421 | ) |   | $ | (212,421 | ) |

| For The Nine Months Ended December 31, 2010 |   |
|--------------------------------------------------------------------------------|--------|
|                                                                           |   | DME |   |   | Methanol |   |   | Segment Total |   |
| Revenues                                                                       |   |   | - |   |   | $ | 2,337,633 |   |   | $ | 2,337,633 |   |
| COGS                                                                           |   |   | - |   |   |   | 2,905,725 |   |   |   | 2,905,725 |   |
| Expensed manufacturing costs                                                   |   |   | - |   |   |   | - |   |   |   | 310,882 |   |
| Gross loss                                                                     |   |   | - |   |   | $ | (568,092 | ) |   | $ | (878,974 | ) |

| For The Nine Months Ended December 31, 2009 |   |
|--------------------------------------------------------------------------------|--------|
|                                                                           |   | DME |   |   | Methanol |   |   | Segment Total |   |
| Revenues                                                                       |   |   | - |   |   | $ | 3,558,221 |   |   | $ | 3,558,221 |   |
| COGS                                                                           |   |   | - |   |   |   | 5,272,545 |   |   |   | 5,272,545 |   |
| Gross loss                                                                     |   |   | - |   |   | $ | (1,714,324 | ) |   | $ | (1,714,324 | ) |

----

| 4. | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) |
|----|--------------------------------------------------------|

| (q) | Segments (Continued) |
|-----|----------------------|

| For The Three Months Ended December 31, 2010 |   |
|---------------------------------------------------------------------------------|--------|
|                                                                            |   | Urea |   |   | AmmoniumBicarbonate |   |   | LiquefiedAmmonia |   |   | AmmoniaWater |   |   | Segment Total |   |
| Revenues                                                                        |   | $ | 360,350 |   |   | $ | 54,453 |   |   | $ | 255,628 |   |   | $ | 10,309 |   |   | $ | 680,740 |   |
| COGS                                                                            |   |   | 383,521 |   |   |   | 95,646 |   |   |   | 436,031 |   |   |   | 13,255 |   |   |   | 928,453 |   |
| Expensed manufacturing costs                                                    |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 450,685 |   |
| Gross loss                                                                      |   | $ | (23,171 | ) |   | $ | (41,193 | ) |   | $ | (180,403 | ) |   | $ | (2,946 | ) |   | $ | (698,398 | ) |

| For The Three Months Ended December 31, 2009 |   |
|---------------------------------------------------------------------------------|--------|
|                                                                            |   | Urea |   |   | AmmoniumBicarbonate |   |   | LiquefiedAmmonia |   |   | AmmoniaWater |   |   | Segment Total |   |
| Revenues                                                                        |   | $ | 6,419,619 |   |   | $ | 834,984 |   |   | $ |  217,468 |   |   | $ | 117,526 |   |   | $ | 7,589,597 |   |
| COGS                                                                            |   |   | 5,918,724 |   |   |   | 884,773 |   |   |   | 210,776 |   |   |   | 107,542 |   |   |   | 7,121,815 |   |
| Gross profit (loss)                                                             |   | $ | 500,895 |   |   | $ | (49,789 | ) |   | $ | 6,692 |   |   | $ | 9,984 |   |   | $ | 467,782 |   |

| For The Nine Months Ended December 31, 2010 |   |
|--------------------------------------------------------------------------------|--------|
|                                                                           |   | Urea |   |   | AmmoniumBicarbonate |   |   | LiquefiedAmmonia |   |   | AmmoniaWater |   |   | Segment Total |   |
| Revenues                                                                       |   | $ | 14,393,526 |   |   | $ | 827,331 |   |   | $ | 354,105 |   |   | $ | 122,173 |   |   | $ | 15,697,135 |   |
| COGS                                                                           |   |   | 13,466,850 |   |   |   | 928,322 |   |   |   | 557,663 |   |   |   | 121,909 |   |   |   | 15,074,744 |   |
| Expensed manufacturing costs                                                   |   |   | - |   |   |   | - |   |   |   | -  |   |   |   | - |   |   |   | 1,612,838 |   |
| Gross (loss) profit                                                            |   | $ | 926,676 |   |   | $ | (100,991 | ) |   | $ | (203,558 | ) |   | $ | 264 |   |   | $ | (990,447 | ) |

| For The Nine Months Ended December 31, 2009 |   |
|--------------------------------------------------------------------------------|--------|
|                                                                           |   | Urea |   |   | AmmoniumBicarbonate |   |   | LiquefiedAmmonia |   |   | AmmoniaWater |   |   | Segment Total |   |
| Revenues                                                                       |   | $ | 18,246,429 |   |   | $ | 2,081,507 |   |   | $ |  518,877 |   |   | $ | 299,287 |   |   | $ | 21,146,100 |   |
| COGS                                                                           |   |   | 19,438,789 |   |   |   | 2,363,438 |   |   |   | 620,220 |   |   |   | 311,415 |   |   |   | 22,733,862 |   |
| Gross loss                                                                     |   | $ | (1,192,360 | ) |   | $ | (281,931 | ) |   | $ | (101,343 | ) |   | $ | (12,128 | ) |   | $ | (1,587,762 | ) |

| (r) | New Accounting Pronouncements |
|-----|-------------------------------|

| 5. | INVENTORIES |
|----|-------------|

|                   |   | December 31, 2010 |      |   | March 31, 2010 |   |
|------------------------|--------|-----------------------------|-----------|--------|--------------------------|--------|
|                   |   | (Unaudited)                 |      |   |                     |   |
| Finished goods         |   | $                           | 851,726   |   |                     | $      | 6,108,597 |   |
| Raw materials          |   |                        | 218,832   |   |                     |   | 989,483 |   |
| Packing materials      |   |                        | 441,326   |   |                     |   | 509,603 |   |
| Total inventories, net |   | $                           | 1,511,884 |   |                     | $      | 7,607,683 |   |

----

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

| (I) | Due from a Related Party |
|-----|--------------------------|

|                               |   | December 31, 2010 |    |   | March 31, 2010 |   |
|------------------------------------|--------|-----------------------------|---------|--------|--------------------------|--------|
|                               |   | (Unaudited)                 |    |   |                     |   |
| Current:                           |   |                        |    |   |                     |   |
| Huaiyang Desheng Chemical Co., Ltd |   | $                           | 239,000 |   |                     | $      | 231,872 |   |

| (II) | Due to Related Parties |
|------|------------------------|

|                                                |   |   | December 31, 2010 |       |   | March 31, 2010 |   |
|-----------------------------------------------------|--------|--------|-----------------------------|------------|--------|--------------------------|--------|
|                                                |   |   | (Unaudited)                 |       |   |                     |   |
| Principal:                                          |   |   |                        |       |   |                     |   |
| Xinyang Hongchang Channel Gas Engineering Co., Ltd. | (a)    |   | $                           | 10,448,908 |   |                     | $      | 10,840,426 |   |
| Long Triumph Investments Limited                    | (b)    |   |                        | -          |   |                     |   | 1,344,328 |   |
| Chen Siqiang                                        | (c)    |   |                        | -          |   |                     |   | 1,025,446 |   |
| Wang Guiquan                                        | (d)    |   |                        | -          |   |                     |   | 131,843 |   |
| Zhou Dianchang                                      | (e)    |   |                        | -          |   |                     |   | 73,246 |   |
| Mai Xiaofu                                          | (f)    |   |                        | -          |   |                     |   | 146,492 |   |
| Yu Zhiyang                                          | (g)    |   |                        | -          |   |                     |   | 43,948 |   |
| Yang Hongtao                                        | (h)    |   |                        | -          |   |                     |   | 43,948 |   |
| Subtotal                                            |   |   | $                           | 10,448,908 |   |                     | $      | 13,649,677 |   |

----

| 6. | RELATED PARTY TRANSACTIONS (CONTINUED) |
|----|----------------------------------------|

|                                                |   |   | December 31, 2010 |       |   | March 31, 2010 |   |
|-----------------------------------------------------|--------|--------|-----------------------------|------------|--------|--------------------------|--------|
|                                                |   |   |                        |       |   |                     |   |
| Interest:                                           |   |   |                        |       |   |                     |   |
| Xinyang Hongchang Channel Gas Engineering Co., Ltd. | (a)    |   |                        | 1,797,374  |   |                     |   | 934,227 |   |
| Chen Siqiang                                        | (c)    |   |                        | 260,438    |   |                     |   | 204,269 |   |
| Wang Guiquan                                        | (d)    |   |                        | 31,890     |   |                     |   | 24,716 |   |
| Zhou Dianchang                                      | (e)    |   |                        | 17,717     |   |                     |   | 13,731 |   |
| Mai Xiaofu                                          | (f)    |   |                        | 36,078     |   |                     |   | 28,087 |   |
| Yu Zhiyang                                          | (g)    |   |                        | 10,823     |   |                     |   | 8,426 |   |
| Yang Hongtao                                        | (h)    |   |                        | 10,823     |   |                     |   | 8,426 |   |
| Subtotal                                            |   |   | $                           | 2,165,143  |   |                     | $      | 1,221,882 |   |
| Total                                               |   |   | $                           | 12,614,051 |   |                     | $      | 14,871,559 |   |

| (a) | Xinyang Hongchang Channel Gas Engineering Co., Ltd. is a company controlled by the Chairman of the board and chief executive officer of the Company. The amount represents advances from Xinyang Hongchang Channel Gas Engineering Co., Ltd., and the amount consists of the following at December 31, 2010: |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Due June 30, 2011, interest rate at 8.748% per annum, unsecured    |   | $      | 3,019,916  |   |
|--------------------------------------------------------------------|--------|--------|------------|--------|
| Due April 9, 2011, interest rate at 10.62% per annum, unsecured    |   |   | 603,983    |   |
| Due April 14, 2011, interest rate at 10.62% per annum, unsecured   |   |   | 905,975    |   |
| Due June 10, 2011, interest rate at 10.62% per annum, unsecured    |   |   | 754,979    |   |
| Due June 28, 2011, interest rate at 10.62% per annum, unsecured    |   |   | 452,987    |   |
| Due June 30, 2011, interest rate at 10.62% per annum, unsecured    |   |   | 301,992    |   |
| Due January 25, 2012, interest rate at 10.62% per annum, unsecured |   |   | 301,992    |   |
| Due February 9, 2012, interest rate at 10.62% per annum, unsecured |   |   | 452,987    |   |
| Due November 20, 2011, interest rate at 24% per annum, unsecured   |   |   | 75,498     |   |
| Due April 13, 2011, interest rate at 36% per annum, unsecured      |   |   | 452,987    |   |
| Due April 9, 2011, interest rate at 24% per annum, unsecured       |   |   | 75,498     |   |
| Due May 1, 2011, interest rate at 36% per annum, unsecured         |   |   | 150,996    |   |
| Due April 14, 2011, interest rate at 36% per annum, unsecured      |   |   | 301,992    |   |
| Due May 1, 2011, interest rate at 36% per annum, unsecured         |   |   | 90,597     |   |
| Due May 24, 2011, interest rate at 36% per annum, unsecured        |   |   | 921,074    |   |
| Due June 17, 2011, interest rate at 36% per annum, unsecured       |   |   | 60,398     |   |
| Due June 20, 2011, interest rate at 36% per annum, unsecured       |   |   | 60,398     |   |
| Due June 30, 2011, interest rate at 36% per annum, unsecured       |   |   | 105,697    |   |
| No fixed repayment term, interest free, unsecured                  |   |   | 1,358,962  |   |
| Total                                                              |   | $      | 10,448,908 |   |

| (b) | Long Triumph Investments Limited is a former shareholder of the Company. On August 27, 2010, the Company entered into Indebtedness Conversion Agreements with Long Triumph for the conversion of $1,344,328 of debt into shares of common stock of the Company at a conversion rate of $1.00 per share. See Note 14. |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (c) | Chen Siqiang is the chairman of the board and chief executive officer of the Company. On September 28, 2010, the Company entered into Indebtedness Conversion Agreements with Chen Siqiang for the conversion of $1,030,791 of debt into shares of common stock of the Company at a conversion rate of $1.00 per share. See Note 14. The interest expense for the nine months ended December 31, 2010 and 2009 of $49,134 and $73,812 was capitalized in construction in progress, since the amount was used for construction. Also see Note 9. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 6. | RELATED PARTY TRANSACTIONS (CONTINUED) |
|----|----------------------------------------|

| (d) | Wang Guiquan is the president and director of the Company. On September 28, 2010, the Company entered into Indebtedness Conversion Agreements with Wang Guiquan for the conversion of $132,530 of debt into shares of common stock of the Company at a conversion rate of $1.00 per share. See Note 14. The interest expense for the nine months ended December 31, 2010 and 2009 of $6,317 and $9,490 was capitalized interest in construction in progress, since the amount was used for construction. Also see Note 9. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (e) | Zhou Dianchang is a director of the Company. On September 28, 2010, the Company entered into Indebtedness Conversion Agreements with Zhou Dianchang for the conversion of $73,628 of debt into shares of common stock of the Company at a conversion rate of $1.00 per share. See Note 14. The interest expense for the nine months ended December 31, 2010, 2010 and 2009 of $3,510 and $5,272 was capitalized in construction in progress, since the amount was used for construction. Also see Note 9. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (f) | Mai Xiaofu is a director of the Company. On September 28, 2010, the Company entered into Indebtedness Conversion Agreements with Mai Xiaofu for the conversion of $147,256 of debt into shares of common stock of the Company at a conversion rate of $1.00 per share. See Note 14. The interest expense for the the nine months ended December 31, 2010 and 2009 of $7,019 and $10,545 was capitalized in construction in progress, since the amount was used for construction. Also see Note 9. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (g) | Yu Zhiyang is a shareholder of the Company. On September 28, 2010, the Company entered into Indebtedness Conversion Agreements with Yu Zhiyang for the conversion of $44,177 of debt into shares of common stock of the Company at a conversion rate of $1.00 per share. See Note 14. The interest expense for the nine months ended December 31, 2010 and 2009 of $2,106 and $3,107 was capitalized in construction in progress, since the amount was used for construction. Also see Note 9. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (h) | Yang Hongtao is a shareholder of the Company. On September 28, 2010, the Company entered into Indebtedness Conversion Agreements with Yang Hongtao for the conversion of $44,177 of debt into shares of common stock of the Company at a conversion rate of $1.00 per share. See Note 14. The interest expense for the nine months ended December 31, 2010 and 2009 of $2,106 and $3,107 was capitalized in construction in progress, since the amount was used for construction. Also see Note 9. |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (III) | Due from employees |
|-------|--------------------|

|                            |   | December 31, 2010 |   |   | March 31, 2010 |   |
|---------------------------------|--------|-----------------------------|--------|--------|--------------------------|--------|
|                            |   | (Unaudited)                 |   |   |                     |   |
| Current                         |   | $                           | 76,600 |   |                     | $      | 225,519 |   |
| Total amount due from employees |   | $                           | 76,600 |   |                     | $      | 225,519 |   |

| 7. | PLANT AND EQUIPMENT |
|----|---------------------|

|             |   | December 31, 2010 |       |   | March 31, 2010 |   |
|------------------|--------|-----------------------------|------------|--------|--------------------------|--------|
|             |   | (Unaudited)                 |       |   |                     |   |
| At cost:         |   |                        |       |   |                     |   |
| Buildings        |   | $                           | 2,522,514  |   |                     | $      | 2,447,278 |   |
| Machinery        |   |                        | 25,976,944 |   |                     |   | 25,196,080 |   |
| Motor vehicles   |   |                        | 332,521    |   |                     |   | 344,841 |   |
| Office equipment |   |                        | 303,072    |   |                     |   | 272,839 |   |
|             |   |                        | 29,135,051 |   |                     |   | 28,261,038 |   |

----

| 7. | PLANT AND EQUIPMENT (CONTINUED) |
|----|---------------------------------|

|                     |   | December 31, 2010 |       |   | March 31, 2010 |   |
|--------------------------|--------|-----------------------------|------------|--------|--------------------------|--------|
| Buildings                |   |                        | 601,725    |   |                     |   | 513,328 |   |
| Machinery                |   |                        | 13,224,806 |   |                     |   | 11,076,634 |   |
| Motor vehicles           |   |                        | 270,161    |   |                     |   | 247,040 |   |
| Office equipment         |   |                        | 219,111    |   |                     |   | 177,474 |   |
|                     |   |                        | 14,315,803 |   |                     |   | 12,014,476 |   |
| Plant and equipment, net |   | $                           | 14,819,248 |   |                     | $      | 16,246,562 |   |

| 8. | LAND USE RIGHTS |
|----|-----------------|

|                           |   | December 31, 2010 |      |   | March 31, 2010 |   |
|--------------------------------|--------|-----------------------------|-----------|--------|--------------------------|--------|
|                           |   | (Unaudited)                 |      |   |                     |   |
| Cost                           |   | $                           | 1,854,377 |   |                     | $      | 1,799,069 |   |
| Less: Accumulated amortization |   |                        | 229,218   |   |                     |   | 195,395 |   |
| Land use rights, net           |   | $                           | 1,625,159 |   |                     | $      | 1,603,674 |   |

| Three months ended March 31, 2011 |   | $      | 9,132     |   |
|-----------------------------------|--------|--------|-----------|--------|
| 2012                              |   |   | 36,526    |   |
| 2013                              |   |   | 36,526    |   |
| 2014                              |   |   | 36,526    |   |
| 2015                              |   |   | 36,526    |   |
| Thereafter                        |   |   | 1,469,923 |   |
| Total                             |   | $      | 1,625,159 |   |

| 9. | CONSTRUCTION IN PROGRESS |
|----|--------------------------|

|      |   | December 31, 2010 |       |   | March 31, 2010 |   |
|-----------|--------|-----------------------------|------------|--------|--------------------------|--------|
|      |   | (Unaudited)                 |       |   |                     |   |
| Plant     |   | $                           | 29,045,731 |   |                     | $      | 27,176,737 |   |
| Machinery |   |                        | 2,165,075  |   |                     |   | 2,183,122 |   |
| Other     |   |                        | 212,630    |   |                     |   | 180,997 |   |
|      |   | $                           | 31,423,436 |   |                     | $      | 29,540,856 |   |

----

| 10. | SHORT-TERM DEBT |
|-----|-----------------|

|                                                                                                                                                                                                   |   | December 31,2010 |       |   | March 31,2010 |   |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-----------------------|------------|--------|--------------------|--------|
|                                                                                                                                                                                                   |   | (Unaudited)           |       |   |               |   |
| Bank Loans:                                                                                                                                                                                            |   |                  |       |   |               |   |
| Xinyang Commercial Bank, due April 28, 2010, interest rate at 10.08% per annum, collateralized by finished goods inventory. (Repaid on its due date)                                                   |   | $                     | -          |   |               | $      | 1,464,922 |   |
|                                                                                                                                                                                                   |   |                  |       |   |               |   |   |   |
| Guangdong Development Bank, due May 12, 2010, interest rate at 5.31% per annum, collateralized by land use rights and guaranteed by Xinyang Hong Chang Pipeline Gas Co., Ltd. (Repaid on its due date) |   |                  | -          |   |               |   | 4,394,767 |   |
|                                                                                                                                                                                                   |   |                  |       |   |               |   |   |   |
| Rural Credit Cooperatives, due August 16, 2010, interest rate at 9.56% per annum, collateralized by construction in progress. (Repaid on its due date)                                                 |   |                  | -          |   |               |   | 556,671 |   |
|                                                                                                                                                                                                   |   |                  |       |   |               |   |   |   |
| Xinyang Commercial Bank, due August 4, 2010, interest rate at 10.08% per annum, collateralized by finished goods inventory. (Repaid on its due date)                                                   |   |                  | -          |   |               |   | 1,464,922 |   |
|                                                                                                                                                                                                   |   |                  |       |   |               |   |   |   |
| Rural Credit Cooperatives, due October 23, 2010, interest rate at 10.62% per annum, collateralized by construction in progress. (Repaid on its due date)                                               |   |                  | -          |   |               |   | 571,320 |   |
|                                                                                                                                                                                                   |   |                  |       |   |               |   |   |   |
| Xinyang Commercial Bank, due January 4, 2011, interest rate at 10.08% per annum, guaranteed by Xinyang Hong Chang Pipeline Gas Co., Ltd. (Repaid on its due date)                                      |   |                  | 2,415,933  |   |               |   | 2,343,875 |   |
|                                                                                                                                                                                                   |   |                  |       |   |               |   |   |   |
| Xinyang Commercial Bank, due December 20, 2011, interest rate at 10.08% per annum, guaranteed by Xinyang Hong Chang Pipeline Gas Co., Ltd.                                                             |   |                  | 3,774,895  |   |               |   | - |   |
|                                                                                                                                                                                                   |   |                  |       |   |               |   |   |   |
| Guangdong Development Bank, due April 15, 2011, interest rate at 5.31% per annum, collateralized by land use rights and guaranteed by Xinyang Hong Chang Pipeline Gas Co., Ltd.                        |   |                  | 4,529,876  |   |               |   | - |   |
|                                                                                                                                                                                                   |   |                  |       |   |               |   |   |   |
| Xinyang Commercial Bank, due August 10, 2011, interest rate at 10.08% per annum, guaranteed by Xinyang Hong Chang Pipeline Gas Co., Ltd.                                                               |   |                  | 1,509,958  |   |               |   | - |   |
|                                                                                                                                                                                                   |   |                  |       |   |               |   |   |   |
| Rural Credit Cooperatives, due August 24, 2011, interest rate at 9.56% per annum, collateralized by construction in progress.                                                                          |   |                  | 573,784    |   |               |   | - |   |
|                                                                                                                                                                                                   |   |                  |       |   |               |   |   |   |
| Rural Credit Cooperatives, due October 25, 2011, interest rate at 11.16% per annum, collateralized by construction in progress.                                                                        |   |                  | 573,784    |   |               |   | - |   |
|                                                                                                                                                                                                   |   |                  |       |   |               |   |   |   |
| Rural Credit Cooperatives, due January 10, 2011, interest rate at 11.16% per annum , unsecured (Repaid on its due date)                                                                                |   |                  | 1,633,775  |   |               |   | - |   |
|                                                                                                                                                                                                   |   |                  |       |   |               |   |   |   |
| Notes Payable to Unrelated Companies:                                                                                                                                                                  |   |                  |       |   |               |   |   |   |
| Due May 2, 2010 (Repaid on its due date)                                                                                                                                                               |   |                  | -          |   |               |   | 2,197,384 |   |
| Due May 26, 2010 (Repaid on its due date)                                                                                                                                                              |   |                  | -          |   |               |   | 2,197,384 |   |
| Due August 2, 2010 (Repaid on its due date)                                                                                                                                                            |   |                  | -          |   |               |   | 1,611,415 |   |
| Due August 3, 2010 (Repaid on its due date)                                                                                                                                                            |   |                  | -          |   |               |   | 732,461 |   |
| Due September 16, 2010 (Repaid on its due date)                                                                                                                                                        |   |                  | -          |   |               |   | 585,969 |   |
| Due February 3, 2011(Repaid on its due date)                                                                                                                                                           |   |                  | 2,415,933  |   |               |   | - |   |
| Due April 19, 2011                                                                                                                                                                                     |   |                  | 603,983    |   |               |   | - |   |
|                                                                                                                                                                                                   |   |                  |       |   |               |   |   |   |
| Notes Payable to Unrelated Individuals:                                                                                                                                                                |   |                  |       |   |               |   |   |   |
| Due December 3, 2010, interest rate at 15% per annum, unsecured (Repaid on its due date)                                                                                                               |   |                  | -          |   |               |   | 339,862 |   |
| Due April 13, 2011, interest rate at 7.2% per annum, unsecured                                                                                                                                         |   |                  | 452,987    |   |               |   | 439,477 |   |
| Due April 15, 2011, interest rate at 6% per annum, unsecured                                                                                                                                           |   |                  | 1,509,958  |   |               |   | - |   |
|                                                                                                                                                                                                   |   | $                     | 19,994,866 |   |               | $      | 18,900,429 |   |

----

| 10. | SHORT-TERM DEBT (CONTINUED) |
|-----|-----------------------------|

| 11. | CURRENT PORTION OF LONG-TERM NOTES PAYABLE |
|-----|--------------------------------------------|

|                                            |   | December 31, 2010 |    |   | March 31, 2010 |   |
|-------------------------------------------------|--------|-----------------------------|---------|--------|--------------------------|--------|
|                                            |   | (Unaudited)                 |    |   |                     |   |
| Due December 31, 2011, interest free, unsecured |   | $                           | 548,115 |   |                     | $      | 531,767 |   |

| 12. | LONG-TERM BANK LOAN |
|-----|---------------------|

|                              |   | December 31, 2010 |      |   | March 31, 2010 |   |
|-----------------------------------|--------|-----------------------------|-----------|--------|--------------------------|--------|
|                              |   | (Unaudited)                 |      |   |                     |   |
| Luoshan Rural Credit Cooperatives |   | $                           | 3,019,916 |   |                     | $      | 2,929,845 |   |

| 13. | INCOME TAXES |
|-----|--------------|

----

| 13. | INCOME TAXES (CONTINUED) |
|-----|--------------------------|

|               |   | Nine Months Ended December 31, |   |
|--------------------|--------|----------------------------------------------------|--------|
|               |   | 2010                                               |   |   | 2009 |   |
|               |   | (Unaudited)                                        |   |   | (Unaudited) |   |
| Current:           |   |                                               |   |   |   |   |
| CIT                |   | $                                                  | -      |   |   | $ | - |   |
| Deferred:          |   |                                               |   |   |   |   |   |   |
| CIT                |   |                                               | -      |   |   |   | (366,438 | ) |
| Income tax expense |   | $                                                  | -      |   |   | $ | (366,438 | ) |

|                                    |   | Nine Months Ended December 31, |       |
|-----------------------------------------|--------|----------------------------------------------------|------------|
|                                    |   | 2010                                               |       |   | 2009 |   |
|                                    |   | (Unaudited)                                        |       |   | (Unaudited) |   |
| Computed “expected” benefit |   | $                                                  | 1,449,872  |   |   | $ | 1,893,621 |   |
| Permanent differences                   |   |                                               | (1,083,308 | ) |   |   | - |   |
| Valuation allowance                     |   |                                               | (366,564   | ) |   |   | (2,260,059 | ) |
| Income tax expense                      |   | $                                                  | -          |   |   | $ | (366,438 | ) |

|                                       |   | December 31, 2010 |       |   | March 31, 2010 |   |
|--------------------------------------------|--------|-----------------------------|------------|--------|--------------------------|--------|
|                                       |   | (Unaudited)                 |       |   |                     |   |
| Deferred tax assets:                       |   |                        |       |   |                     |   |
| Current portion:                           |   |                        |       |   |                     |   |
| Cost of sales                              |   | $                           | 15,714     |   |                     | $      | 362,250 |   |
| Financial expense                          |   |                        | 12,549     |   |                     |   | 12,175 |   |
| Welfare                                    |   |                        | 10,617     |   |                     |   | 10,300 |   |
| Provision for notes receivable             |   |                        | 188,745    |   |                     |   | 183,115 |   |
| Other expense                              |   |                        | 63,292     |   |                     |   | 54,612 |   |
| Total current deferred tax assets          |   |                        | 290,917    |   |                     |   | 622,452 |   |
| Non-current portion:                       |   |                        |       |   |                     |   |   |   |
| Net operating loss carry forward           |   |                        | 5,177,323  |   |                     |   | 4,202,344 |   |
| Valuation allowance                        |   |                        | (4,017,871 | )      |                     |   | (3,651,307 | ) |
| Total non-current deferred tax assets      |   |                        | 1,159,452  |   |                     |   | 551,037 |   |
| Total deferred tax assets                  |   |                        | 1,450,369  |   |                     |   | 1,173,489 |   |
|                                       |   |                        |       |   |                     |   |   |   |
| Deferred tax liabilities:                  |   |                        |       |   |                     |   |   |   |
| Current portion:                           |   |                        |       |   |                     |   |   |   |
| Cost of sales                              |   |                        | 406,081    |   |                     |   | 374,721 |   |
| Government grant                           |   |                        | 23,782     |   |                     |   | 30,031 |   |
| Investment income                          |   |                        | 17,789     |   |                     |   | 17,258 |   |
| Other expenses                             |   |                        | 42,846     |   |                     |   | 28,843 |   |
| Total current deferred tax liabilities     |   |                        | 490,498    |   |                     |   | 450,853 |   |
| Non-current portion:                       |   |                        |       |   |                     |   |   |   |
| Amortization                               |   |                        | 37,310     |   |                     |   | 32,094 |   |
| Depreciation                               |   |                        | 922,561    |   |                     |   | 690,542 |   |
| Total non-current deferred tax liabilities |   |                        | 959,871    |   |                     |   | 722,636 |   |
| Total deferred tax liabilities             |   |                        | 1,450,369  |   |                     |   | 1,173,489 |   |
|                                       |   |                        |       |   |                     |   |   |   |
| Net deferred tax assets                    |   | $                           | -          |   |                     | $      | - |   |

----

| 13. | INCOME TAXES (CONTINUED) |
|-----|--------------------------|

| 14. | SHAREHOLDERS’ EQUITY |
|-----|----------------------------|

----

| 14. | SHAREHOLDERS’ EQUITY (CONTINUED) |
|-----|----------------------------------------|

| 15. | WARRANTS |
|-----|----------|

|                                      |   | Numbers of SharesUnderlying Warrants |    |   | Weighted AverageExercise Price |   |
|-------------------------------------------|--------|-----------------------------------------------------|---------|--------|------------------------------------------|--------|
| Warrants outstanding at March 31, 2010    |   |                                                | -       |   |                                     | $      | - |   |
| Warrants granted                          |   |                                                | 876,000 |   |                                     |   | 1.88 |   |
| Warrants expired                          |   |                                                | -       |   |                                     |   | - |   |
| Warrants outstanding at December 31, 2010 |   |                                                | 876,000 |   |                                     |   | 1.88 |   |

|   | Warrants outstanding and exercisable  |    |
|--------|------------------------------------------------------|---------|
|   | Numbers of Shares under Warrants |    |   | Exercise Price |   | Expiration Date |   | WeightedAverageExercise Price |   |
|   |                                                 | 680,000 |   |   | $ | 2.00 |   | May 2, 2013 |   | $ | 2.00 |   |
|   |                                                 | 50,000  |   |   | $ | 2.00 |   | May 24, 2013 |   | $ | 2.00 |   |
|   |                                                 | 146,000 |   |   | $ | 1.25 |   | May 2, 2015 |   | $ | 1.25 |   |
|   |                                                 | 876,000 |   |   | $ | 1.25-2.00 |   |   |   | $ | 1.88 |   |

----

| 16. | DERIVATIVE LIABILITIES |
|-----|------------------------|

|                     |   | December 31, 2010 |    |   | At the date of issuance |              |
|--------------------------|--------|-----------------------------|---------|--------|---------------------------------------------|-------------------|
| Risk-free interest rate  |   | 1.02% to 2.01%              |    |   | 1.21% to 2.47%                              |              |
| Expected volatility      |   |                        | 143.56  | %      |                                        | 88.23% to 106.83% |   |
| Expected life (in years) |   | 2.3 to 4.3 years            |    |   | 3 to 5 years                                |              |
| Expected dividend yield  |   |                        | 0.00    | %      |                                        |              | 0.00 | % |
|                     |   |                        |    |   |                                        |              |   |   |
| Fair Value               |   | $                           | 706,379 |   |                                        | $                 | 712,576 |   |

| 17. | GOVERNMENT GRANTS |
|-----|-------------------|

| 18. | CONTINGENCIES |
|-----|---------------|

----

| 19. | CAPITAL COMMITMENT |
|-----|--------------------|

| 20. | SUBSEQUENT EVENTS |
|-----|-------------------|

----

| Item 2. | Management’s Discussion and Analysis of Financial Conditions and Results of Operations |
|---------|----------------------------------------------------------------------------------------------|

|   | Ÿ | The loss of primary customers; |
|--------|--------|--------------------------------|

|   | Ÿ | Our ability to implement productivity improvements, cost reduction initiatives or facilities expansions; |
|--------|--------|----------------------------------------------------------------------------------------------------------|

|   | Ÿ | Market developments affecting, and other changes in, the demand for our products and the introduction of new competing products; |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------|

|   | Ÿ | Availability or increases in the price of our primary raw materials or active ingredients; |
|--------|--------|--------------------------------------------------------------------------------------------|

|   | Ÿ | The timing of planned capital expenditures; |
|--------|--------|---------------------------------------------|

|   | Ÿ | Our ability to identify, develop or acquire, and market additional product lines and businesses necessary to implement our business strategy and our ability to finance such acquisitions and development; |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Ÿ | The condition of the capital markets generally, which will be affected by interest rates, foreign currency fluctuations and general economic conditions; |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Ÿ | The ability to obtain registration and re-registration of our products under applicable law; |
|--------|--------|----------------------------------------------------------------------------------------------|

|   | Ÿ | The political and economic climate in the foreign or domestic jurisdictions in which we conduct business; |
|--------|--------|-----------------------------------------------------------------------------------------------------------|

|   | Ÿ | Other PRC or foreign regulatory or legislative developments which affect the demand for our products generally or increase the environmental compliance cost for our products or impose liabilities on the manufacturers and distributors of such products; and |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Ÿ | On November 15, 2010, the Company ceased production due to the Company’s cash flow problem. The Company is seeking financial resources to solve the problem. The Company plans to resume production in February 2011, and expects operations to return to normal levels within one year. |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | Ÿ | The Company will need to obtain additional financing to continue operations beyond 2011. Its primary source of capital is cash generated from operations as well as through loans. If the Company is unable to obtain additional financing, it will not be able to sustain its  operations and would likely be required to cease its operations. The condensed consolidated financial statements have been prepared assuming the Company will continue as a going concern. The condensed consolidated financial statements do not include any adjustments that might result from the outcome of this uncertainty. |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   |   (i) | Kinfair Holding Limited. (“KHL”) (An inactive holding company, 100% subsidiary of NOEC). |
|--------|-----------------|------------------------------------------------------------------------------------------------------|

|   |  (ii) | Henan Jinding Chemicals Co., Ltd. (“Henan Jinding”) (100% subsidiary of KHL) |
|--------|------------|------------------------------------------------------------------------------------------|

|   | (iii) | Luoshan Jinding Chemicals Co., Ltd. (“Luoshan Jinding”) (100% subsidiary of Henan Jinding) |
|--------|-------|--------------------------------------------------------------------------------------------------------|

----

|         |   | Fair Value Measurements at Reporting Date Using |      |
|------------------------|--------|-------------------------------------------------------------------------------|-----------|
|                   |   | Carrying valueas of December                                   |      |   | Quoted Prices in ActiveMarkets forIdenticalAssets |   |   | SignificantOtherObservableInputs |   |   | SignificantUnobservableInputs |   |
|                   |   | 31, 2010                                                                 |      |   | (Level 1) |   |   | (Level 2) |   |   | (Level 3) |   |
| Fair value of warrants |   | $                                                                             | 706,379   |   |   | $ | - |   |   | $ | - |   |   | $ | 706,379 |   |
| Long-term bank loan    |   | $                                                                             | 3,019,916 |   |   | $ | - |   |   | $ | 3,019,916 |   |   | $ | - |   |

----

----

----

----

|                                                  |   | Three Months Ended December 31, 2010 |       |   | Three Months Ended December 31, 2009 |   |    | Comparisons |   |
|-------------------------------------------------------|--------|---------------------------------------------------------------|------------|--------|---------------------------------------------------------------|--------|---------|-------------|--------|
|                                                  |   | Amount                                                        |       |   | Percentage ofRevenues                                    |   |    | Amount      |   |   | Percentageof Revenues |   |   | Change inAmount |   |   | Increase(Decrease) inPercentage |   |
| Item                                                  |   | US $                                                     |       |   | (%)                                                           |   |    | US $   |   |   | (%) |   |   | US $ |   |   | (%) |   |
| Revenues                                              |   |                                                          | 943,757    |   |                                                          |   | 100.00  | %           |   |   | 8,770,449 |   |   |   | 100.00 | % |   |   | (7,826,692 | ) |   |   | (89.24 | )% |
| Cost of goods sold                                    |   |                                                          | (1,911,527 | )      |                                                          |   | (202.54 | )%          |   |   | (8,515,088 | ) |   |   | (97.09 | )% |   |   | 6,603,561 |   |   |   | (77.55 | )% |
| Gross profit (loss)                                   |   |                                                          | (967,770   | )      |                                                          |   | (102.54 | )%          |   |   | 255,361 |   |   |   | 2.91 | % |   |   | (1,223,131 | ) |   |   | (478.98 | )% |
| General & administrative                          |   |                                                          | 549,159    |   |                                                          |   | 58.19   | %           |   |   | 622,722 |   |   |   | 7.10 | % |   |   | (73,563 | ) |   |   | (11.81 | )% |
| Selling and distribution                              |   |                                                          | 34,269     |   |                                                          |   | 3.63    | %           |   |   | 367,075 |   |   |   | 4.19 | % |   |   | (332,806 | ) |   |   | (90.66 | )% |
| Research and development                              |   |                                                          | 12,340     |   |                                                          |   | 1.31    | %           |   |   | 14,707 |   |   |   | 0.17 | % |   |   | (2,367 | ) |   |   | (16.09 | )% |
| Loss from operations                                  |   |                                                          | (1,563,538 | )      |                                                          |   | (165.67 | )%          |   |   | (749,143 | ) |   |   | (8.54 | )% |   |   | (814,395 | ) |   |   | 108.71 | % |
| Interest expense, net                                 |   |                                                          | (956,460   | )      |                                                          |   | (101.35 | )%          |   |   | (597,012 | ) |   |   | (6.81 | )% |   |   | (359,448 | ) |   |   | 60.21 | % |
| Government grants                                     |   |                                                          | 338,156    |   |                                                          |   | 35.83   | %           |   |   | - |   |   |   | - |   |   |   | 338,156 |   |   |   | 100.00 | % |
| Other income (expenses), net                          |   |                                                          | 385        |   |                                                          |   | 0.04    | %           |   |   | 10,551 |   |   |   | 0.12 | % |   |   | (10,166 | ) |   |   | (96.35 | )% |
| Change in fair value of derivatives liabilities       |   |                                                          | (295,848   | )      |                                                          |   | (31.35  | )%          |   |   | - |   |   |   | - |   |   |   | (295,848 | ) |   |   | 100.00 | % |
| Loss before income taxes                              |   |                                                          | (2,477,305 | )      |                                                          |   | (262.49 | )%          |   |   | (1,335,604 | ) |   |   | (15.23 | )% |   |   | (1,141,701 | ) |   |   | 85.48 | % |
| Income tax expense                                    |   |                                                          | -          |   |                                                          |   | -       |        |   |   | (280,804 | ) |   |   | (3.20 | )% |   |   | 280,804 |   |   |   | (100.00 | )% |
| Net loss                                              |   |                                                          | (2,477,305 | )      |                                                          |   | (262.49 | )%          |   |   | (1,616,408 | ) |   |   | (18.43 | )% |   |   | (860,897 | ) |   |   | 53.26 | % |
| Foreign currency translation gain (loss)              |   |                                                          | 31,253     |   |                                                          |   | 3.31    | %           |   |   | 18,681 |   |   |   | 0.21 | % |   |   | 12,572 |   |   |   | 67.30 | % |
| Weighted average shares outstanding basic and diluted |   |                                                          | 17,012,458 |   |                                                          |   |    |        |   |   | 12,640,000 |   |   |   |   |   |   |   | 4,372,458 |   |   |   | 34.59 | % |
| Net loss per share, basic and diluted                 |   |                                                          | (0.15      | )      |                                                          |   |    |        |   | (0.13)  |   |   |   |   |   |   | 0.02 |   |   |   | 15.38 | % |

----

|    |                |   | DME    |   |   | Methanol |   |      | Urea   |   |   | AmmoniumBicarbonate |   |   | LiquefiedAmmonia |     |   | AmmoniaWater |   |
|---------|---------------------|--------|--------|--------|--------|----------|--------|-----------|--------|--------|--------|---------------------|--------|--------|------------------|----------|--------|--------------|--------|
| 2011Q3  | Revenues            |   |   | -      |   |     |   | 263,017   |   |   |   | 360,350             |   |   |             | 54,453   |   |         |   | 255,628 |   |   |   | 10,309 |   |
|    | COGS                |   |   | -      |   |     |   | 358,411   |   |   |   | 383,521             |   |   |             | 95,646   |   |         |   | 436,031 |   |   |   | 13,255 |   |
|    | Gross (Loss) Profit |   |   | -      |   |     |   | (95,394   | )      |   |   | (23,171             | )      |   |             | (41,193  | )      |         |   | (180,403 | ) |   |   | (2,946 | ) |
|    | Gross Margin        |   |   | -      |   |     |   | (36.27    | )%     |   |   | (6.43               | )%     |   |             | (75.65   | )%     |         |   | (70.57 | )% |   |   | (28.58 | )% |
| 2010Q3  | Revenues            |   |   | -      |   |     |   | 1,180,852 |   |   |   | 6,419,620           |   |   |             | 834,984  |   |         |   | 217,468 |   |   |   | 117,526 |   |
|    | COGS                |   |   | -      |   |     |   | 1,393,273 |   |   |   | 5,918,725           |   |   |             | 884,773  |   |         |   | 210,776 |   |   |   | 107,542 |   |
|    | Gross Profit (Loss) |   |   | -      |   |     |   | (212,421  | )      |   |   | 500,895             |   |   |             | (49,789  | )      |         |   | 6,692 |   |   |   | 9,984 |   |
|    | Gross Margin        |   |   | -      |   |     |   | (17.99    | )%     |   |   | 7.80                | %      |   |             | (5.96    | )%     |         |   | 3.08 | % |   |   | 8.50 | % |
| Changes | Revenues            |   |   | -      |   |     |   | (917,835  | )      |   |   | (6,059,270          | )      |   |             | (780,531 | )      |         |   | 38,160 |   |   |   | (107,217 | ) |
|    | Percentage          |   |   | -      |   |     |   | (77.73    | )%     |   |   | (94.39              | )%     |   |             | (93.48   | )%     |         |   | 17.55 | % |   |   | (91.23 | )% |

----

|               |   | Three Months EndedDecember 31, 2010 |    |   | Three Months EndedDecember 31, 2009 |   |   | Comparisons     |   |
|--------------------|--------|---------------------------------------------------------|---------|--------|---------------------------------------------------------|--------|--------|-----------------|--------|
| Provinces          |   | AmountUS $                                         |    |   | Percentageof Revenues(%)                           |   |   | AmountUS $ |   |   | Percentageof Revenues(%) |   |   | Change inAmountUS $ |   |   | Increase(Decrease) inPercentage(%) |   |
| Henan Province     |   |                                                    | 498,210 |   |                                                    |   | 52.79  | %               |   |   | 2,530,198 |   |   |   | 28.85 | % |   |   | (2,031,988 | ) |   |   | (80.31 | )% |
| Guangdong Province |   |                                                    | -       |   |                                                    |   | -      |            |   |   | 3,748,320 |   |   |   | 42.74 | % |   |   | (3,748,320 | ) |   |   | (100.00 | )% |
| Hubei Province     |   |                                                    | 286,713 |   |                                                    |   | 30.38  | %               |   |   | 536,295 |   |   |   | 6.12 | % |   |   | (249,582 | ) |   |   | (46.54 | )% |
| Anhui Province     |   |                                                    | 158,834 |   |                                                    |   | 16.83  | %               |   |   | 1,875,964 |   |   |   | 21.39 | % |   |   | (1,717,130 | ) |   |   | (91.53 | )% |
| Hunan Province     |   |                                                    | -       |   |                                                    |   | -      |            |   |   | 79,672 |   |   |   | 0.91 | % |   |   | (79,672 | ) |   |   | (100.00 | )% |
| Total              |   |                                                    | 943,757 |   |                                                    |   | 100.00 | %               |   |   | 8,770,449 |   |   |   | 100.00 | % |   |   | (7,826,692 | ) |   |   | (89.24 | )% |

----

|                                                  |   | Nine Months Ended December 31, 2010 |        |   | Nine Months Ended December 31, 2009 |   |    | Comparisons |   |
|-------------------------------------------------------|--------|--------------------------------------------------------------|-------------|--------|--------------------------------------------------------------|--------|---------|-------------|--------|
|                                                  |   | Amount                                                       |        |   | Percentage ofRevenues                                   |   |    | Amount      |   |   | Percentageof Revenues |   |   | Change inAmount |   |   | Increase(Decrease) inPercentage |   |
| Item                                                  |   | US $                                                    |        |   | (%)                                                          |   |    | US $   |   |   | (%) |   |   | US $ |   |   | (%) |   |
| Revenues                                              |   |                                                         | 18,034,768  |   |                                                         |   | 100.00  | %           |   |   | 24,704,321 |   |   |   | 100.00 | % |   |   | (6,669,553 | ) |   |   | (27.00 | )% |
| Cost of goods sold                                    |   |                                                         | (19,904,189 | )      |                                                         |   | (110.37 | )%          |   |   | (28,006,407 | ) |   |   | (113.37 | )% |   |   | 8,102,218 |   |   |   | (28.93 | )% |
| Gross loss                                            |   |                                                         | (1,869,421  | )      |                                                         |   | 10.37   | %           |   |   | (3,302,086 | ) |   |   | (13.37 | )% |   |   | 1,432,665 |   |   |   | (43.39 | )% |
| General & administrative                          |   |                                                         | 1,680,316   |   |                                                         |   | 9.32    | %           |   |   | 1,829,231 |   |   |   | 7.40 | % |   |   | (148,915 | ) |   |   | (8.14 | )% |
| Selling and distribution                              |   |                                                         | 289,016     |   |                                                         |   | 1.60    | %           |   |   | 914,635 |   |   |   | 3.70 | % |   |   | (625,619 | ) |   |   | (68.40 | )% |
| Research and development                              |   |                                                         | 39,845      |   |                                                         |   | 0.22    | %           |   |   | 57,375 |   |   |   | 0.23 | % |   |   | (17,530 | ) |   |   | (30.55 | )% |
| Loss from operations                                  |   |                                                         | (3,878,598  | )      |                                                         |   | (21.51  | )%          |   |   | (6,103,327 | ) |   |   | (24.71 | )% |   |   | 2,224,729 |   |   |   | (36.45 | )% |
| Interest expense, net                                 |   |                                                         | (2,271,518  | )      |                                                         |   | (12.60  | )%          |   |   | (1,484,457 | ) |   |   | (6.01 | )% |   |   | (787,061 | ) |   |   | 53.02 | % |
| Government grants                                     |   |                                                         | 335,008     |   |                                                         |   | 1.86    | %           |   |   | - |   |   |   | - |   |   |   | 335,008 |   |   |   | 100.00 | % |
| Other income (expenses), net                          |   |                                                         | 9,422       |   |                                                         |   | 0.05    | %           |   |   | 13,300 |   |   |   | 0.05 | % |   |   | (3,878 | ) |   |   | (29.16 | )% |
| Change in fair value of derivatives liabilities       |   |                                                         | 6,197       |   |                                                         |   | 0.03    | %           |   |   | - |   |   |   | - |   |   |   | 6,197 |   |   |   | 100.00 | % |
| Loss before income taxes                              |   |                                                         | (5,799,489  | )      |                                                         |   | (32.16  | )%          |   |   | (7,574,484 | ) |   |   | (30.66 | )% |   |   | 1,774,995 |   |   |   | (23.43 | )% |
| Income tax expense                                    |   |                                                         | -           |   |                                                         |   | -       |        |   |   | (366,438 | ) |   |   | (1.48 | )% |   |   | 366,438 |   |   |   | (100.00 | )% |
| Net loss                                              |   |                                                         | (5,799,489  | )      |                                                         |   | (32.16  | )%          |   |   | (7,940,922 | ) |   |   | (32.14 | )% |   |   | 2,141,433 |   |   |   | (26.97 | )% |
| Foreign currency translation gain (loss)              |   |                                                         | 80,651      |   |                                                         |   | 0.45    | %           |   |   | 8,255 |   |   |   | 0.03 | % |   |   | 72,396 |   |   |   | 876.99 | % |
| Weighted average shares outstanding basic and diluted |   |                                                         | 15,079,883  |   |                                                         |   |    |        |   |   | 12,640,000 |   |   |   |   |   |   |   | 2,439,883 |   |   |   | 19.30 | % |
| Net loss per share, basic and diluted                 |   |                                                         | (0.38       | )      |                                                         |   |    |        |   |   | (0.63 | ) |   |   |   |   |   |   | 0.24 |   |   |   | (38.78 | )% |

----

|                 |   | Nine Months EndedDecember 31, 2010 |       |   | Nine Months EndedDecember 31, 2009 |   |   | Comparisons     |   |
|----------------------|--------|--------------------------------------------------------|------------|--------|--------------------------------------------------------|--------|--------|-----------------|--------|
| Products             |   | AmountUS $                                        |       |   | Percentageof Revenues (%)                    |   |   | AmountUS $ |   |   | Percentageof Revenues (%) |   |   | Change inAmountUS $ |   |   | Increase(Decrease) inPercentage(%) |   |
| Urea                 |   |                                                   | 14,393,526 |   |                                                   |   | 79.81  | %               |   |   | 18,246,429 |   |   |   | 73.86 | % |   |   | (3,852,903 | ) |   |   | (21.12 | )% |
| Ammonium bicarbonate |   |                                                   | 827,331    |   |                                                   |   | 4.59   | %               |   |   | 2,081,507 |   |   |   | 8.43 | % |   |   | (1,254,176 | ) |   |   | (60.25 | )% |
| Methanol             |   |                                                   | 2,337,633  |   |                                                   |   | 12.96  | %               |   |   | 3,558,221 |   |   |   | 14.40 | % |   |   | (1,220,588 | ) |   |   | (34.30 | )% |
| Liquefied Ammonia    |   |                                                   | 354,105    |   |                                                   |   | 1.96   | %               |   |   | 518,877 |   |   |   | 2.10 | % |   |   | (164,772 | ) |   |   | (31.76 | )% |
| Ammonia Water        |   |                                                   | 122,173    |   |                                                   |   | 0.68   | %               |   |   | 299,287 |   |   |   | 1.21 | % |   |   | (177,114 | ) |   |   | (59.18 | )% |
| Total                |   |                                                   | 18,034,768 |   |                                                   |   | 100.00 | %               |   |   | 24,704,321 |   |   |   | 100.00 | % |   |   | (6,669,553 | ) |   |   | (27.00 | )% |

----

|               |   | Nine Months EndedDecember 31, 2010 |       |   | Nine Months EndedDecember 31, 2009 |   |   | Comparisons     |   |
|--------------------|--------|--------------------------------------------------------|------------|--------|--------------------------------------------------------|--------|--------|-----------------|--------|
| Provinces          |   | AmountUS $                                        |       |   | Percentageof Revenues(%)                          |   |   | AmountUS $ |   |   | Percentageof Revenues(%) |   |   | Change inAmountUS $ |   |   | Increase(Decrease) inPercentage(%) |   |
| Henan Province     |   |                                                   | 5,033,503  |   |                                                   |   | 27.91  | %               |   |   | 8,010,033 |   |   |   | 32.42 | % |   |   | (2,976,530 | ) |   |   | (37.16 | )% |
| Guangdong Province |   |                                                   | 9,771,239  |   |                                                   |   | 54.18  | %               |   |   | 10,754,267 |   |   |   | 43.53 | % |   |   | (983,028 | ) |   |   | (9.14 | )% |
| Hubei Province     |   |                                                   | 1,370,642  |   |                                                   |   | 7.60   | %               |   |   | 886,745 |   |   |   | 3.59 | % |   |   | 483,897 |   |   |   | 54.57 | % |
| Anhui Province     |   |                                                   | 1,843,153  |   |                                                   |   | 10.22  | %               |   |   | 4,816,643 |   |   |   | 19.50 | % |   |   | (2,973,490 | ) |   |   | (61.73 | )% |
| Hunan Province     |   |                                                   | 1,803      |   |                                                   |   | 0.01   | %               |   |   | 174,415 |   |   |   | 0.71 | % |   |   | (172,612 | ) |   |   | (98.97 | )% |
| Hebei Province     |   |                                                   | -          |   |                                                   |   | -      |            |   |   | 31,948 |   |   |   | 0.13 | % |   |   | (31,948 | ) |   |   | (100.00 | )% |
| Jiangxi Province   |   |                                                   | -          |   |                                                   |   | -      |            |   |   | 30,270 |   |   |   | 0.12 | % |   |   | (30,270 | ) |   |   | (100.00 | )% |
| Guangxi Province   |   |                                                   | 14,428     |   |                                                   |   | 0.08   | %               |   |   | - |   |   |   | - |   |   |   | 14,428 |   |   |   | 100.00 | % |
| Total              |   |                                                   | 18,034,768 |   |                                                   |   | 100.00 | %               |   |   | 24,704,321 |   |   |   | 100.00 | % |   |   | (6,669,553 | ) |   |   | (27.00 | )% |

----

|                                                         |   | Nine Months Ended December 31, |       |
|--------------------------------------------------------------|--------|----------------------------------------------------|------------|
|                                                         |   | 2010                                               |       |   | 2009 |   |
| Net cash provided by (used in)                               |   |                                               |       |   |   |   |
|      Operating activities           |   | $                                                  | (6,247,498 | ) |   | $ | (7,506,260 | ) |
|      Investing activities           |   |                                               | (93,396    | ) |   |   | (194,035 | ) |
|      Financing activities           |   |                                               | 6,526,160  |   |   |   | 7,596,493 |   |
| Net change in cash and cash equivalents                      |   |                                               | 185,266    |   |   |   | (103,802 | ) |
|                                                         |   |                                               |       |   |   |   |   |   |
| Effect of exchange rate changes on cash and cash equivalents |   |                                               | (378,379   | ) |   |   | (39,735 | ) |
|                                                         |   |                                               |       |   |   |   |   |   |
| Cash and cash equivalents at beginning of period             |   |                                               | 319,816    |   |   |   | 410,870 |   |
|                                                         |   |                                               |       |   |   |   |   |   |
| Cash and cash equivalents at end of period                   |   | $                                                  | 126,703    |   |   | $ | 267,333 |   |

----

----

| Item 3. | Quantitative and Qualitative Disclosures About Market Risk. |
|--------------|-------------------------------------------------------------|

| Item 4. | Controls and Procedures. |
|---------|--------------------------|

----

| Item 1. | Legal Proceedings |
|---------|-------------------|

| Item 1A. | Risk Factors. |
|----------|---------------|

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

| Item 3. | Defaults Upon Senior Securities. |
|---------|----------------------------------|

| Item 4. | (Removed and Reserved). |
|---------|-------------------------|

----

| Item 5. | Other Information |
|---------|-------------------|

| Item 6. | Exhibits. |
|---------|-----------|

| ExhibitNumber |   | Exhibit Description                                                                                                                                                                                  |
|---------------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|          |   |                                                                                                                                                                                                 |
| 2.1           |   | Share Exchange Agreement dated as of October 11, 2006, between Sports Source, Kinfair Holdings Limited and Auto Chance International Limited. (2)                                                    |
|          |   |                                                                                                                                                                                                 |
| 2.2           |   | Share Transfer Agreement, dated February 29, 2006, between Kinfair Holdings Limited, Xinyang Hongchang Channel Gas Engineering Co., Ltd., Mai XiaoFu, Wang Guiquan, Yu Zhiyang and Yang Hongtao. (2) |
|          |   |                                                                                                                                                                                                 |
| 2.3           |   | Stock Purchase Agreement, dated February 19, 2006, by and between Henan Jinding Chemical Industry Co., Ltd. and Kinfair Holdings Limited. (2)                                                        |
|          |   |                                                                                                                                                                                                 |
| 3.1           |   | Certificate of Incorporation of the Company, as amended by the current report on Form 8-K filed with the SEC on February 7, 2007 (1)                                                                 |
|          |   |                                                                                                                                                                                                 |
| 3.2           |   | Bylaws of the Company, as amended by the current report on Form 8-K/A filed with the SEC on February 23, 2007 (1)                                                                                    |
|          |   |                                                                                                                                                                                                 |
| 4.1           |   | Specimen of Common Stock Certificate (3)                                                                                                                                                             |
|          |   |                                                                                                                                                                                                 |
| 10.1          |   | Securities Purchase and Registration Rights Agreement, dated May 3, 2010, by and between the Company and the Investors listed on the Schedule of Buyers attached thereto. (6)                        |
|          |   |                                                                                                                                                                                                 |
| 10.2          |   | Securities Purchase and Registration Rights Agreement, dated May 25, 2010, by and between the Company and the Investors listed on the Schedule of Buyers attached thereto. (4)                       |
|          |   |                                                                                                                                                                                                 |
| 10.3          |   | Form of Warrant. (6)                                                                                                                                                                                 |
|          |   |                                                                                                                                                                                                 |
| 10.4          |   | Indebtedness Conversion Agreement, dated August 27, 2010, by and between the Company and Long Triumph Investments Limited. (7)                                                                       |
|          |   |                                                                                                                                                                                                 |
| 10.5          |   | Indebtedness Conversion Agreement, dated August 27, 2010, by and between the Company and Intellect Goal Investments Limited. (7)                                                                     |
|          |   |                                                                                                                                                                                                 |
| 10.6          |   | Indebtedness Conversion Agreement, dated September 28, 2010, by and between the Company and Chen Siqiang. (8)                                                                                        |
|          |   |                                                                                                                                                                                                 |
| 10.7          |   | Indebtedness Conversion Agreement, dated September 28, 2010, by and between the Company and Mai Xiaofu. (8)                                                                                          |
|          |   |                                                                                                                                                                                                 |
| 10.8          |   | Indebtedness Conversion Agreement, dated September 28, 2010, by and between the Company and Wang Guiquan. (8)                                                                                        |
|          |   |                                                                                                                                                                                                 |
| 10.9          |   | Indebtedness Conversion Agreement, dated September 28, 2010, by and between the Company and Zhou Dianchang. (8)                                                                                      |
|          |   |                                                                                                                                                                                                 |
| 10.10         |   | Indebtedness Conversion Agreement, dated September 28, 2010, by and between the Company and Yu Zhiyang. (8)                                                                                          |

----

| 10.11  |   | Indebtedness Conversion Agreement, dated September 28, 2010, by and between the Company and Yang Hongtao. (8)                                   |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------|
|   |   |                                                                                                                                            |
| 10.12  |   | Commitment Letter, dated November 15, 2010,  from Xingyang Hongchang Channel Gas Engineering Co., Ltd.*                                    |
|   |   |                                                                                                                                            |
| 10.13  |   | Commitment Letter, dated February 19, 2011, from Xingyang Hongchang Group *                                                                     |
|   |   |                                                                                                                                            |
| 31.1   |   | Certification of Principal Executive Officer under Section 302 of the Sarbanes-Oxley Act of 2002 *                                              |
|   |   |                                                                                                                                            |
| 31.2   |   | Certification of Principal Financial Officer under Section 302 of the Sarbanes-Oxley Act of 2002 *                                              |
|   |   |                                                                                                                                            |
| 32.1   |   | Certification of Principal Executive Officer under Section 906 of the Sarbanes-Oxley Act of 2002 *                                              |
|   |   |                                                                                                                                            |
| 32.2   |   | Certification of Principal Financial Officer under Section 906 of the Sarbanes-Oxley Act of 2002 *                                              |
|   |   |                                                                                                                                            |
| 99.1   |   | Loan Agreement, dated August 8, 2008, by and between New Oriental Energy & Chemical Corp. and Xinyang Hong Chang Pipeline Gas Co., Ltd. (5) |

----

|  * | Filed herewith. |
|---------|-----------------|

| (1) | Incorporation by reference to the Company’s Registration Statement on Form SB-2, as amended (Registration No. 333-125131). |
|-----|----------------------------------------------------------------------------------------------------------------------------------|

| (2) | Incorporated by reference to the Company’s Current Report on Form 8-K dated October 13, 2006. |
|-----|-----------------------------------------------------------------------------------------------------|

| (3) | Incorporated by reference to the Company’s Quarterly Report on Form 10-Q for the period ended December 31, 2008. |
|-----|------------------------------------------------------------------------------------------------------------------------|

| (4) | Incorporated by reference to the Company’s Quarterly Report on Form 10-Q for the period ended June 30, 2010. |
|-----|--------------------------------------------------------------------------------------------------------------------|

| (5) | Incorporated by reference to the Company’s Quarterly Report on Form 10-Q for the period ended June 30, 2008. |
|-----|--------------------------------------------------------------------------------------------------------------------|

| (6) | Incorporated by reference to the Company’s Current Report on Form 8-K dated May 4, 2010. |
|-----|------------------------------------------------------------------------------------------------|

| (7) | Incorporated by reference to the Company’s Current Report on Form 8-K dated September 1, 2010. |
|-----|------------------------------------------------------------------------------------------------------|

| (8) | Incorporated by reference to the Company’s Current Report on Form 8-K dated September 30, 2010. |
|-----|-------------------------------------------------------------------------------------------------------|

----

|   | NEW ORIENTAL ENERGY & CHEMICAL CORP. |
|--------|------------------------------------------|
|   |                                     |   |   |
|   | By:                                      | /s/ Chen Si Qiang |   |
|   |                                     | Chen Si Qiang |   |
|   |                                     | Chief Executive Officer and Chairman of the Board |   |
|   |                                     |   |   |
|   | By:                                      | /s/ Donglai Li |   |
|   |                                     | Donglai Li |   |
|   |                                     | Chief Financial Officer |   |

----

| ExhibitNumber |   | Exhibit Description                                                                                                                                                                             |
|---------------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|          |   |                                                                                                                                                                                                 |
| 2.1           |   | Share Exchange Agreement dated as of October 11, 2006, between Sports Source, Kinfair Holdings Limited and Auto Chance International Limited. (2)                                                    |
|          |   |                                                                                                                                                                                                 |
| 2.2           |   | Share Transfer Agreement, dated February 29, 2006, between Kinfair Holdings Limited, Xinyang Hongchang Channel Gas Engineering Co., Ltd., Mai XiaoFu, Wang Guiquan, Yu Zhiyang and Yang Hongtao. (2) |
|          |   |                                                                                                                                                                                                 |
| 2.3           |   | Stock Purchase Agreement, dated February 19, 2006, by and between Henan Jinding Chemical Industry Co., Ltd. and Kinfair Holdings Limited. (2)                                                        |
|          |   |                                                                                                                                                                                                 |
| 3.1           |   | Certificate of Incorporation of the Company, as amended by the current report on Form 8-K filed with the SEC on February 7, 2007 (1)                                                                 |
|          |   |                                                                                                                                                                                                 |
| 3.2           |   | Bylaws of the Company, as amended by the current report on Form 8-K/A filed with the SEC on February 23, 2007 (1)                                                                                    |
|          |   |                                                                                                                                                                                                 |
| 4.1           |   | Specimen of Common Stock Certificate (3)                                                                                                                                                             |
|          |   |                                                                                                                                                                                                 |
| 10.1          |   | Securities Purchase and Registration Rights Agreement, dated May 3, 2010, by and between the Company and the Investors listed on the Schedule of Buyers attached thereto. (6)                        |
|          |   |                                                                                                                                                                                                 |
| 10.2          |   | Securities Purchase and Registration Rights Agreement, dated May 25, 2010, by and between the Company and the Investors listed on the Schedule of Buyers attached thereto. (4)                       |
|          |   |                                                                                                                                                                                                 |
| 10.3          |   | Form of Warrant. (6)                                                                                                                                                                                 |
|          |   |                                                                                                                                                                                                 |
| 10.4          |   | Indebtedness Conversion Agreement, dated August 27, 2010, by and between the Company and Long Triumph Investments Limited. (7)                                                                       |
|          |   |                                                                                                                                                                                                 |
| 10.5          |   | Indebtedness Conversion Agreement, dated August 27, 2010, by and between the Company and Intellect Goal Investments Limited. (7)                                                                     |
|          |   |                                                                                                                                                                                                 |
| 10.6          |   | Indebtedness Conversion Agreement, dated September 28, 2010, by and between the Company and Chen Siqiang. (8)                                                                                        |
|          |   |                                                                                                                                                                                                 |
| 10.7          |   | Indebtedness Conversion Agreement, dated September 28, 2010, by and between the Company and Mai Xiaofu. (8)                                                                                          |
|          |   |                                                                                                                                                                                                 |
| 10.8          |   | Indebtedness Conversion Agreement, dated September 28, 2010, by and between the Company and Wang Guiquan. (8)                                                                                        |
|          |   |                                                                                                                                                                                                 |
| 10.9          |   | Indebtedness Conversion Agreement, dated September 28, 2010, by and between the Company and Zhou Dianchang. (8)                                                                                      |
|          |   |                                                                                                                                                                                                 |
| 10.10         |   | Indebtedness Conversion Agreement, dated September 28, 2010, by and between the Company and Yu Zhiyang. (8)                                                                                          |
|          |   |                                                                                                                                                                                                 |
| 10.11         |   | Indebtedness Conversion Agreement, dated September 28, 2010, by and between the Company and Yang Hongtao. (8)                                                                                        |
|          |   |                                                                                                                                                                                                 |
| 10.12         |   | Commitment Letter, dated November 15, 2010,  from Xingyang Hongchang Channel Gas Engineering Co., Ltd.*                                                                                         |
|          |   |                                                                                                                                                                                                 |
| 10.13         |   | Commitment Letter, dated February 19, 2011, from Xingyang Hongchang Group *                                                                                                                          |
|          |   |                                                                                                                                                                                                 |
| 31.1          |   | Certification of Principal Executive Officer under Section 302 of the Sarbanes-Oxley Act of 2002 *                                                                                                   |
|          |   |                                                                                                                                                                                                 |
| 31.2          |   | Certification of Principal Financial Officer under Section 302 of the Sarbanes-Oxley Act of 2002 *                                                                                                   |
|          |   |                                                                                                                                                                                                 |
| 32.1          |   | Certification of Principal Executive Officer under Section 906 of the Sarbanes-Oxley Act of 2002 *                                                                                                   |

----

| 32.2   |   | Certification of Principal Financial Officer under Section 906 of the Sarbanes-Oxley Act of 2002 *                                              |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------|
|   |   |                                                                                                                                            |
| 99.1   |   | Loan Agreement, dated August 8, 2008, by and between New Oriental Energy & Chemical Corp. and Xinyang Hong Chang Pipeline Gas Co., Ltd. (5) |

----

|  * | Filed herewith. |
|---------|-----------------|

| (1) | Incorporation by reference to the Company’s Registration Statement on Form SB-2, as amended (Registration No. 333-125131). |
|-----|----------------------------------------------------------------------------------------------------------------------------------|

| (2) | Incorporated by reference to the Company’s Current Report on Form 8-K dated October 13, 2006. |
|-----|-----------------------------------------------------------------------------------------------------|

| (3) | Incorporated by reference to the Company’s Quarterly Report on Form 10-Q for the period ended December 31, 2008. |
|-----|------------------------------------------------------------------------------------------------------------------------|

| (4) | Incorporated by reference to the Company’s Quarterly Report on Form 10-Q for the period ended June 30, 2010 |
|-----|-------------------------------------------------------------------------------------------------------------------|

| (5) | Incorporated by reference to the Company’s Quarterly Report on Form 10-Q for the period ended June 30, 2008. |
|-----|--------------------------------------------------------------------------------------------------------------------|

| (6) | Incorporated by reference to the Company’s Current Report on Form 8-K dated May 4, 2010. |
|-----|------------------------------------------------------------------------------------------------|

| (7) | Incorporated by reference to the Company’s Current Report on Form 8-K dated September 1, 2010. |
|-----|------------------------------------------------------------------------------------------------------|

| (8) | Incorporated by reference to the Company’s Current Report on Form 8-K dated September 30, 2010. |
|-----|-------------------------------------------------------------------------------------------------------|

----